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ARTICLE · 08 APRIL 2020

The Finance Bill 2020 Enacted After Significant Amendments

Khaitan & Co.
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The Finance Bill 2020 was presented in the Indian Parliament on 1 February 2020 (Finance Bill) as part of the Budget proposals.

IndiaFinance and Banking
Vinita Krishnan
Vinita Krishnan
Ritu Shaktawat
Ritu Shaktawat
Raghav Bajaj
Raghav Bajaj
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Introduction

The Finance Bill 2020 was presented in the Indian Parliament on 1 February 2020 (Finance Bill) as part of the Budget proposals (see our Ergo on direct tax related budget proposals here). On 23 March 2020, it was passed by the Indian Parliament with certain amendments – some of which are significant including widening the scope of equalisation levy (popularly referred to as Google tax). After receiving the Presidential assent earlier today, it is now in force (Finance Act).

Key amendments and effect thereof are summarised below:

  • Tax residency criteria further amended:
    Income threshold prescribed
    • The Finance Bill had proposed that (i) Indian citizens / persons of Indian origins (PIOs) coming to India on visit(s) and staying in India for 120 days or more (reduced from currently applicable 182 days) in a year, and (ii) stateless persons (i.e. Indian citizens who are not liable to tax in any country) (Stateless Residency Rule), shall be deemed as

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