Centre has reduced both employer and employee contribution in the EPF account as a Covid-19 measure.
RBI has allowed all lending institutions to offer a moratorium on loan repayments.
Hinting that the income tax rates may come down slightly more in future, finance minister Nirmala Sitharaman said that in the long run, the government wants to move towards a 'no exemptions' tax regime with a 'bottomed out rate' so that tax net widens.
The proposed new tax structure does not offer higher tax exemption limit for senior citizens.
As per a Budget 2020 tax proposal, dividends distributed by mutual funds would become subject to 10% tax deduction at source (TDS) from the next FY. Experts feel that this TDS levy would be applicable to capital gains from mutual funds also.
To see if the new regime is beneficial, each individual will have to make their own calculations.
All deductions under chapter VIA will not be claimable by those opting for the new tax regime, as per Budget 2020.
Individuals now have to deduct tax at source in multiple situations.
What is more, the budget also proposes to allow refund of excess money paid under this scheme for a 'class of persons' to be notified later by the government.
While the government's aim is to widen and deepen the tax base through these steps, it increases the financial accounting liability for individuals impacted by these rules.
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