The Indian Finance Minister presented the Union Budget 2020 on February 1. Both houses of the Indian Parliament have now passed the Budget, and it obtained Presidential assent on March 27. It will become law effective April 1, 2020. This insight highlights some key changes made to the Budget (over the original proposals).
The elimination of the double taxation of dividends and extension of the credit mechanism to foreign dividends provides much needed clarity. The expansion of the scope of equalization levy to nonresident e-commerce operators is a rather unexpected move. E-commerce companies now should assess the tax impact and undertake compliance obligations.