Nirmala Sitharaman's Budget proposals to stimulate economic growth

The tax proposals are aimed at stimulating growth, simplifying tax structure, bringing ease of compliance and reducing litigation

Direct taxes

The Union Budget 2020-21 is woven around the themes of Aspirational India, Economic Development and Caring Society, together with better governance and growth of the financial sector for betterment of ease of living. The tax proposals are aimed to “stimulate growth, simplify tax structure, bring ease of compliance and reduce litigation”. 

Proposals to stimulate growth
 

• Dividend Distribution Tax (DDT)

DDT will be abolished and dividend will henceforth be taxed in shareholders’ hands under the classical system. Indian companies will not pay tax on dividends from domestic companies to the extent of onward distribution of such dividends within a specified