In the backdrop of nation-wide Coronavirus lockdown, Parliament passed the Finance Bill on the last day of the Budget Session.
Crux of the Matter
Key Takeaways
The government will be allowed to increase the special additional excise duty on petrol and diesel by up to ₹18 and ₹12 respectively when needed.
Bill reduces the time required by a Person of Indian Origin (PIO) or Indian Citizen to be considered as Resident for taxing purposes to 120 days from 183 days.
NRIs who have an Indian-income above ₹15 lakh will be deemed Indian residents and taxed under the Indian regime if they are not taxed under any other regime. This also means that those who have income less than ₹15 lakhs and are not taxed abroad will not be taxed in India.
20% tax will be levied (TDS) on payment of dividends to NRIs and foreign companies.
The Bill also clarified that dividends received by Shareholders after April 1 on which Dividend Distribution Tax (DDT) has been paid as per the old regime will not be taxed.
If a person has not filed tax returns for three years, then on cash withdrawal of amount above ₹20 lakhs, 2% tax will be levied; and on cash withdrawal of amount above ₹1 crore, 5% tax will be levied. This will be in effect from 1st July 2020.
Withdrawal of amount over ₹1 crore from banks, co-operative banks, and the post office will not be taxed. Earlier, it was taxed at 2%.
The most striking part of the Bill was the amendment that empowers the government to raise prices of petrol and diesel when needed. Moreover, this is the first time in Indian history that due to a public health crisis, a parliament session got over ahead of it’s scheduled date. In total parliament passed 12 Bills, out of which 6 were passed without any heated debate or much discussion in the last session.
Curiopedia
Lok Sabha– The Lok Sabha, or House of the People, is the lower house of India’s bicameral Parliament, with the upper house being the Rajya Sabha. Members of the Lok Sabha are elected by adult universal suffrage and a first-past-the-post system to represent their respective constituencies, and they hold their seats for five years or until the body is dissolved by the President on the advice of the council of ministers. The house meets in the Lok Sabha Chambers of the Sansad Bhavan, New Delhi. More Info
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