InvestorQ : What are the key tax changes I need to be aware of as a new financial year commences from April 01 2020?
prachi Patwardhan made post

What are the key tax changes I need to be aware of as a new financial year commences from April 01 2020?

Answer
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shrinidhi Rajan answered.
6 months ago


Some important direct tax in Budget 2020 will be effective from April 01. Key changes are:

· Get used to the dual tax regime. You can opt for the existing tax regime or opt for the new regime with lower rates of tax (without exemptions).

· Dividends from domestic companies and mutual funds will be free of DDT but will be taxed at your marginal peak rate. TDS deduction if dividend exceeds Rs.5,000/-.

· If employer's contribution exceeds Rs.7.5 lakh in a year towards NPS, superannuation fund and EPF (put together) it is taxable in the hands of the employee.

· Enhanced exemption of Rs.3.50 lakhs for first time home purchase up to Rs.45 lakhs is extended till March 2021.

Tax payment on ESOPs will be deferred to 48 months from exercise or cessation or sale of shares. Currently, ESOPs are taxable when exercised by employees.