Budget Announcements 2019

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Budget Announcements 2019

 INDIVIDUAL

  1. New deduction up to 1.5 lakhs for interest on a loan from financial institutions provided the Stamp duty value of the house does not exceed Rs. 45 lakhs.
  2. New deduction for a maximum amount of Rs. 1.5 Lakhs with respect to the amount paid in respect of interest on loan taken for the purchase of an electric vehicle from NBFC.
  3. Surcharge rate increased to 25% and 37% in case of income exceeding Rs. 2crore and Rs. 5 crore respectively.
  4. Assessee having deposited Rs. 2 crore or more in current account are compulsorily required to furnish ITR.
  5. Assessee incurring expenditure of Rs. 2 lakhs or more on foreign travel are compulsorily required to furnish their ITR.
  6. Assessee incurring expenditure amounting Rs. 1 lakhs or more on electricity consumption are compulsorily required to furnish ITR.
  7. Assessee can now furnish ITR only by furnishing Aadhaar if he has not been allotted PAN or if he has linked his PAN with Aadhaar.
  8. The sunset date for transfer of residential house property, for claiming an exemption under Section 54GB in respect of investment made in eligible start-ups, has been extended from 31st March, 2019 to 31st March, 2021.
  9. Threshold limit of tax payable for initiation of prosecution proceedings has been increased from Rs. 3,000 to Rs. 10,000.
  10. A taxpayer has been allowed to withdraw 60% of total amount from NPS as tax free. Currently, the exemption is allowed only up to 40% of the total corpus amount.

 

CORPORATES

  1. Threshold limit for reduced tax rates of 25% for domestic companies has been increased to 400 crores from the current 250 crores. The limit for T.O. shall not exceed Rs. 400 crore in the financial Year 2017-18 to avail the benefit of reduced tax rate.
  2. Section 115QA which requires payment tax on distributed income in case of buy-back of shares has proposed to be extended to listed companies as well.
  3. The constituent entity of an International group shall now be required to keep & maintain information & document under Section 92D.
  4. The scope of furnishing statement of financial transactions has been widened by mandating furnishing of a statement by certain additional specified persons.
  5. Modes prescribe for electric payment to include some other specified electronic modes of payment which were earlier not specified under the Act.

 

TDS

  1. TDS @ 2% is required to be deducted if cash is withdrawn during the F.Y. from any Bank account or cooperative bank or post office exceeds Rs. 1 crore.
  2. The application under Section 195(2) and 195(7) for lower or nil deduction of tax from the sum paid or payable to non-residents person can be filed electronically.
  3. A new provision u/s 194M has been inserted requiring individual or HUF to deduct TDS from the sum paid to contractors or professionals if aggregate paid during the year exceeds Rs. 50lakhs.
  4. While calculating consideration paid to purchase immovable property, charges paid towards membership fees, car parking fee, electricity and water facility fees, maintenance fee, or any other charges of similar nature, which are incidental to the transfer of the immovable property.
  5. TDS u/s 194DA increased to 5% from 1% is required to be deducted from income component of Life insurance pay-out.

STARTUPS

  1. The sunset date for the transfer of residential house property, for claiming an exemption under Section 54GB in respect of investment made in eligible start-ups, has been extended from 31st March, 2019 to 31st March, 2021.
  2. Provision with respect to set off and carry forward of losses have been relaxed for startups.
  3. Conditions of minimum shareholding of 50% of share capital or voting rights have been reduced to 25% for the purpose of evaluating the eligible startup.
  4. Condition restricting the transfer of new asset being computer or computer software from the current five years has been reduced to three years.
  5. A dedicated TV channel for startups to serve as a platform for promoting startups, discussing further issues affecting their growth etc.
  6. Startups can now claim an aggregate amount of unabsorbed losses and depreciation brought forward while calculating book profits under section 115JB.

 

GST

  1. Every registered person shall authenticate, or furnish proof of possession of Aadhaar number
  2. Value of exempt supply of services by way of extending deposits etc. shall not be included in Turnover for composition scheme
  3. The government shall constitute ‘National Appellate Authority for Advance Ruling (NAAAR)’ for hearing appeals
  4. The CG has been authorized to pay the amount of refund towards State taxes to the taxpayers
  5. Composition registered dealers are required to pay tax quarterly and file return on an annual basis.
  6. Simplified return forms to be implemented soon

 

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