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| Budget-2019 Memorandum |
- Tax Rates:-
- There is no change in Income tax rate slab for Individuals.
- For Companies having annual turnover up to Rs.400 crores tax rate is reduced to 25%. and for other Companies it is 30%.
- Earlier it was 25% for Company having total turnover up to Rs 250 crore in financial year 2016-17 and for other Indian Companies 30%.
- Surcharge (Additional tax ) increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and on above Rs. 5 Crore by 3% & 7% respectively.
- Income Tax Returns:-
- Pre-filled tax returns for faster and more accurate tax returns.
- Details of several incomes and deductions to be made available in pre-filled forms.
- This is only for Assesse having income from Salary, Capital Gain and Other Sources.
- Data to be collected from Banks, Mutual Funds, Stock Exchanges. Stamp Duty Authority etc.
- This is a Threat to Practicing Chartered Accountants(Small Firms), Advocates, Accountants.
- Chapter VI A deductions:-
- Benefit of tax free withdrawal from NPS is increased to 60%, earlier it was 40%.
- Central Government employees can also now invest in NPS and can avail deduction upto Rs.1,50,000/- under section 80C on fulfillment of certain conditions.
- Home Loans:-
- Deduction up to Rs 3.5 lakhs for interest paid on home loan borrowed up to 31st March 2020 for house value up to Rs.45 Lakh.
- Earlier Deduction was Rs 2 lakhs.
- Vehicle Loan:-
- Deduction of Rs.1.5 lakhs on interest paid on electric vehicle loans.
- Robotic Assessment:-
- Faceless electronic assessment with no human interface to be launched.
- It will reduce corruption for sure.
- PAN vs Aadhaar:-
- Aadhaar can be used wherever PAN is required.
- It means tax return can be filled using Adhaar Card.
- Relief from Section 50CA and Section 56:-
- To reduce genuine hardships of taxpayers appropriate class of persons to be exempt from the anti-abuse provisions of Sec 50CA & Sec 56.
- Under section 50CA,In case of Unquoted Shares of a company held as capital asset, if sale consideration is less than Fair market value, then such Fair Market Value shall be treated as Full Value of Consideration.
- Relief for Start Ups:-
- Capital Gain exemptions from sale of residential house for investment in start-ups extended till Financial Year 2021.
- Relaxation of conditions for carry forward and set off of losses.
- Valuation Scrutiny and identification of investors to be done a new mechanism electronically. Now these do not require scrutiny form Income Tax Department.
- No assessment by assessing officers without prior approval of the Higher Authority.
- NBFCs:-
- Interest on certain bad & doubtful debts by NBFCs to be taxed in the year in which interest is actually received.
- Inclusion of NBFCs under section 43B.
- It is proposed to provide that interest on loans or borrowings from a deposit taking NBFC or a systematically important non-deposit taking NBFC will also be allowed only in the year of actual payment.
- International Financial Services Centre (IFSC)
- Exemption to interest payment on loan taken from non-residents.
- Exemption from Corporate Dividend Tax from current & accumulated income to Companies & Mutual funds.
- 100% profit-linked deduction in any ten year block within a fifteen year period.
- STT in case of Option Trading:-
- Securities Transaction tax restricted to the difference between settlement and strike price.
Credit:- pib.nic.in
I have discussed only on Amendments in Direct Taxes
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