Reduction in corporate tax rate has led to many people hoping that Finance Minister Nirmala Sitharaman’s this year’s Budget announcement will provide a relaxation on the personal income tax area.
As per a recent report experts are of the opinion that the government may make some changes in dividend distribution tax and long-term capital gains on listed securities.
In Budget 2020, experts think that there has to a moderate rate of tax for income up to Rs. 5 lakh which is currently taxed at 5% and for income up to Rs. 5-10 lakh, which is presently taxed at 20%.
Some feel that government should come up with a plan that will tax divident to shareholders at concessional rates.
Few tax experts also think that government should introduce some tax sops for home loans as it will be provide relief to the real-estate sector. This will encourage more individuals to invest in property if they likely get some exclusive tax benefit on the principal amount of home loans.
Budget 2020: Interesting income tax changes expected this year
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