Key Points in the Union Budget 2020: Tax Reforms and Environmental Initiatives

Hello, let us break down the budget presented by the Finance Minister Nirmala Sitharaman on the 1st of February 2020. This article will highlight the significant changes in the tax regime and the emphasis on environmental conservation that stand out in the 2020 Union Budget.

Income Tax Slab Rates

Starting with the Income Tax Slab Rates, taxpayers have the option to either continue with the current tax regime or join the new tax regime for the upcoming Assessment Year. The major differences between the two regimes lie in the exemptions and deductions.

The basic tax exemption limit will remain the same for all assessees, including senior citizens. This means that those opting for the new regime will not benefit from higher tax exemption for senior and super senior citizens.

Changes in Deductions and Exemptions

A list of deductions that have been removed and kept under the new tax regime includes:

Home loan interest tax exemption for self-occupied property is no longer available. Interest on home loans for let-out properties is taxable up to the rental income. Losses from house property can only be set off against other income from house property and cannot be carried forward. The dividend tax distribution has now been reduced to 15%.

Corporate Tax and Residential Status

Taxes on cooperative societies have been revised to 22% without any exemptions. The residential status changes are detailed in the image given below. These changes aim to improve transparency and simplify tax compliance.

Environmental Initiatives

A significant area of focus in the 2020 Union Budget is the establishment of a specific ministry for water. This initiative underscores the government's commitment to water conservation and environmental preservation.

Senior citizens have expressed their hope that state governments will work closely with the central government to protect the environment. However, many regions, like Tamil Nadu, continue to face environmental challenges such as unregulated sand mining. Thorium, an element more powerful than Uranium, has been found in Tamil Nadu; sadly, it seems the Bharatiya Janata Party (BJP) is a mere observer to these environmental atrocities committed by government officials.

Conclusion

This highlights the balance between financial reforms and environmental conservation in the 2020 Union Budget. As always, the government is striving to achieve a sustainable development trajectory while ensuring effective tax compliance and environmental protection.

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