Budget FY20 Key Highlights - Personal Taxation, Investments and Capital Markets | Mitraz
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Budget FY20 Key Highlights – Personal Taxation, Investments and Capital Markets | Mitraz

July 12, 2019



Hello Friends, In this video, I am going to speak about some
key points related to Personal Taxation, Investments and Capital Markets, from the Union Budget Personal Taxation Govt. will introduce Faceless scrutiny of
tax assessment, and online pre-filled documents for filing of returns with data on Salary,
income and capital gains. No changes in tax slabs except for taxable
income above 2 Crores. Effectively a person having net taxable income
of 2 Crores plus will get taxed at 39% due to 25% surcharge and above 5 Crores will get
taxed at 42.7% due to 37% surcharge. Additional income tax deduction of ₹1.5
lakh for interest paid on home loans for houses costing below ₹45 lakh till March 2020. ₹1.5 lakh income tax deduction on interest
paid on loans for the purchase of electric vehicles. Investments The Government has proposed the inclusion
of ETFs investing in Central Public Sector Enterprises under the ELSS category. Income tax exemption limit for lump sum withdrawal
from NPS increased to 60% from 40%. Capital gains exemption arising from the sale
of a residential house upon investment in startups has been extended up to 31st March
2021. The funds raised by startups will not require
any kind of scrutiny by the Income Tax department following the requisite declarations and information
provided. The waive-off for startups to justify the
fair market value of their shares issued to a category one AIF which include social venture,
venture capital, SME funds is now also extended to AIF category two funds which include private
equity, real estate and debt structure funds. Category I and II AIFs will be allowed to
‘pass-through’ their losses to investors. This can be used to offset other capital gains. Capital Markets The government also proposed to relax know-your-customer
(KYC) norms for foreign portfolio investors and Merge the non-resident Indian (NRI) portfolio
investment scheme route with the FPI route to encourage more NRIs to invest in the country’s
capital markets. The government also hopes to enable listing
of social sector enterprises on a social stock exchange. Recapitalization of PSU banks with a capital
infusion of Rs 70,000 crore. The government would raise part of its borrowing
in foreign currency. The government will work with the RBI and
Sebi to enable stock exchanges to allow AA-rated bonds as collateral in the corporate tri-party
repo market. To see the impact of this year's Union Budget
on your investment portfolio please read our research report, you can also subscribe to
our reports by sending a mail to [email protected] This is Satish Anand from Mitraz Financial,
Helping Clients Realize Their Aspirations.

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