Ask us anything about Budget 2020

The Budget 2020 was announced on 1st Feb.
New Tax Regime announced and Income Tax slab rates were changed by FM Nirmala Sitharaman.

We understand it can be confusing.
Ask us Anything about #Budget2020.

We at Quicko are on a mission to simplify taxes for all! :rocket:

1 Like

@Quicko Will investors have options to choose between the old and new tax rates every year or is that locked once user exercise his option for current year


As per the New Tax Regime, The taxpayer will have the option to choose between current and new tax rates every year.
If you choose the new income tax slab rates, you cannot claim the deductions under Chapter VIA.

Here are the old and new Income Tax slab rates.

Clarification: As per new finance bill, the taxpayer having no business income has an option to choose between current and new tax rates every year. But the taxpayers who have business income can only exercise his/her option one time. Once an option is exercised it will be locked. And the same needs to be followed by the taxpayer in subsequent years.


apart from tax saving criteria? which tax slab is better for a first time tax payee?

@Quicko how will removal of ddt benefit foreign investors.

Please explain about dividend tax, as per my understanding as of now it is taxed to individual so it come under income tax and added as extra income of individual? If so is there any minimum limit like 10Lakhs like earlier.

What is percentage of tax on dividends received by individual investors now.

can full time traders opt for new tax slabs?

can full time traders claim expenses like Broker charges stt gst + other expenses like computer buy for trading, internet connection bill etc under new tax slabs?

There is a Tax exemption for startups whose annual turnover is less than 25Cr. Is it applicable for startups that have been acquired?

Hi @rahul_L,

Yes, any individual taxpayer can opt for new tax slabs, there are no restrictions based on type of income earned by a taxpayer.

Yes, under new tax slabs, you will be able to claim all the direct expenses related to your business activity while calculating your taxable income.

Hope this helps. We at Quicko are on a mission to simplify taxes for all! You can either drop us a message requesting a callback or write to us on [email protected]. We are on a mission to simplify taxes for all! :slight_smile:


I read articles which says removal of DDT has introduced TDS on mutual funds. Can you please explain it? I do not see the link between the two.

Hi @Bharathi_Devarasu @Double_hammer @Ashish_Krishna_K,

In Budget 2020, Dividend Distribution Tax(DDT) is abolished. As an effect to that now Dividend Income will be taxable in the hands of a resident taxpayer at a slab rate.

From FY 2020-21 onward there will be TDS deduction @10% on Equity Dividend u/s 194 if dividend income is more than INR. 5,000. And TDS deduction @10% on Mutual Fund Dividend u/s 194K if dividend income is more than INR. 5,000.

To clarify it further, Up until FY 2019-20, domestic companies will be paying DDT and hence the same will not be taxed in the hands of a shareholder to avoid double taxation of income. But from FY 2020-21, due to abolishment of DDT, no tax will be deducted by the domestic companies. Hence to tax dividend income TDS will be introduced on dividend from Equity and Mutual Fund.

1 Like

Hi @oneHere,

This budget changes will be applicable from FY 2020-21. Hence for current financial year i.e 2019-20 taxpayers will be able to take benefit of deductions. From FY 2020-21 it will be upto the taxpayer to select the tax regime based on their Income and Investments situation.

Following are the pros of following a new tax regime:

  1. The Income Tax Slab Rates are lower,
  2. A simplified Tax Structure i.e, Ease in filing ITR.
  3. Individuals can invest freely according to their financial goals without any compulsion to make an investment to avail deduction.

Following are the cons of following a new tax regime:

  1. Discourages New Home buyers since no benefit will be available on Interest paid on Home Loans.
  2. Salaried individuals who live in rented properties will not be able to claim Exemption on HRA which will increase their tax burden.
  3. No tax benefit under section 80C or 80CCD(1B) upon investment in different tax savings schemes.

Hope this helps.


@Quicko is this true?


Hi @Quicko
Your response is contradicting the one sent by our company tax team. Can you please clarify or provide any verified source where we can check this

If they charge deduct the TDS ; How WILL they provide or how will the investors get the dividend certificate and TDS certificates ?

In the bank FDs ; banks provide interest certificates and the TDS certificates…

So if the MFs or the companies deduct TDS on the dividend or etc ; will we get the certificate of the same ?


Also pls tell : TDS would be also applied on the interest of the bonds debentures too ?