Here’s how experts decode budget 2020's impact on HNIs
There are certain measures that came out in the fine print that could perhaps make life of the rich a little more tough, a little more challenging for them.
Budget 2020 is behind us but it has perhaps been slightly more taxing for the super-rich. Not too many of their expectations were fulfilled. There are certain measures that came out in the fine print that could perhaps make life a little more tough, a little more challenging for them.
Discussing the fine print of the budget and its impact on the rich, Anshu Kapoor, Head of Edelweiss Private Wealth Management said, “Our clients who run businesses, are business entrepreneurs found it to be a balanced budget overall. Obviously, there were expectations on the taxation side but most clients understand that given the fiscal situation and the way it was explained by the finance minister that not much could have been expected from a tax relief perspective."
"There were a few amendments or modifications - like to the remittance scheme or to the trust etc but they may not impact them too much,” he added.
According to Girish Vanvari, Founder of Transaction Square, “It is important to understand what happened. First of all, dividend distribution tax was abolished; that was a popular ask. The people were also expecting that the dividend taxation rate in the hands of the recipient would remain the same. Presently it is 10 percent and they were hoping that 10 percent would continue and dividend distribution tax would get abolished. That 10 percent continuation has not happened."
"The company pays 20 percent and the recipient pays 10 percent today. This 10 percent now is taxed at the regular rate of income. So, if you are a company you have to pay 25 percent, if you are an individual it could go as high as 43 percent. This would benefit if you are a non-resident and if you are a non-resident, then depending upon the treaty you fall with, you can get up to 5-15 percent,” he added.
First Published: Feb 18, 2020 7:30 PM IST
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