Ahead of the 2020 Union budget, the expectations on any changes in the current tax regime are high. There are hopes of relief, dispute resolution, and simplification in the current system.

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On personal income taxation, the expectation is about possible relief. Can the slab be moved up or new slab created? Will tax rates be reduced? All this has revenue implications but expectations remain.

There are also hopes about the creation of a new category of deductions in infrastructure bonds.

On dividend distribution tax (DDT), the expectation is whether the taxation liability be moved away from the distributor to the recipient. On long-term capital gains tax (LTCG), the threshold currently is one year. The expectation is whether it will be increased to two years and made exempt afterwards.

The expectation is also for a dispute resolution mechanism for direct taxes to clear the backlog of cases.

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First Published:Feb 1, 2020 9:10 AM IST