| Total Income | Existing | Proposed (Option) |
| Individual, HUF, AOP, BOI (Conditions in next slides) | ||
| 0 – 2,50,000 | Nil | Nil |
| 2,50,001 – 5,00,000 | 5% | 5% |
| 5,00,001 – 7,50,000 |
20% |
10% |
| 7,50,001 – 10,00,000 | 15% | |
| 10,00,001 – 12,50,000 |
30% |
20% |
| 12,50,001 – 15,00,000 | 25% | |
| More than 15,00,000 | 30% | |
There is no change in Surcharge and Cess.
- The scope of Sec. 115BAB (15%) is expanded to include the companies engaged in the business of generation ofelectricity
- There is no change in Tax rate of Company, Firm,LLP
Conditions…1: List of Exemptions/Deductions not allowed
- Leave TravelAllowance
- House RentAllowance
- Standard Deduction of Rs.50,000 available to salaried taxpayers
- Entertainment Allowance and Professional Tax u/s16
- Deduction of 15,000 from FamilyPension
- Set off of House Property Loss against any other head of income
- All Chp-VI A Deductions except deduction u/s 80CCD(2) and u/s80JJAA
- No set off of Brought Forward Loss or UnabsorbedDepreciation
- No deduction for Additional Depreciation
- No deduction or exemption u/s10/10AA/24(b)/32AD/33AB/33ABA/35AD/35CCC
- No deduction or exemption for allowances orperquisites
Conditions… 2
- Individual or the HUF with businessIncome
- Option once exercised for a previous year shall be valid for that previous year and all subsequentyears.
- The option can be withdrawn only once for a previous year other than the year in which it was exercised and thereafter, the individual or HUF shall never be eligible to exercise option under thissection
- Individual or the HUF without businessIncome
- Option to be exercised for every previousyear
Depreciation shall be allowed for any subsequent year so however, that where there is a depreciation allowance in respect of a block of asset which has not been given full effect to prior to the assessment year beginning on 1st April, 2021, corresponding adjustment shall bemade.
Sec-139 Due dates of Return of Income:
|
Type |
Due Dates | |
| Existing | Proposed | |
| Income Tax Return (w/o Audit) | 31stJuly | No Change |
| Income Tax Return (with Audit) | 30thSeptember | 31stOctober |
| Audit Report | 30thSeptember | 30thSeptember |
| Income Tax Return (Working Partner) | 30thSeptember | 31stOctober |
| Income Tax Return (Non-working Partner) | 31stJuly | 31stOctober |
Deposit Insurance Coverage
| Particulars | Old Regime | New Regime |
| Deposit Insurance and Credit Guarantee Corporation
(DICGC) |
Rs. 1,00,000 | 5,00,000 |
Applicability of Tax Audit Provisions
|
Turnover or Gross Receipts |
Profit and gains |
Existing Tax Audit Applicable? |
Proposed Tax Audit Applicable? | |
| Cash Receipts / Payments* | ||||
| Upto 5% of total | > 5% of total | |||
|
Upto 1 crores |
< 8% (or 6%) | Yes (44AD) | Yes (44AD) | Yes (44AD) |
| 8% (or 6%) or more | No | No | No | |
|
1 – 2 crores |
< 8% (or 6%) | Yes (44AD) | Yes (44AB) | Yes (44AB) |
| 8% (or 6%)or more | No | No | No | |
|
2 – 5 crores |
Upto 8%(or 6%) | Yes (44AB) | No | Yes (44AB) |
| >8% (or 6%) | Yes (44AB) | No | Yes (44AB) | |
Receipts / Payments = Sales, turnover or gross receipts / Expenditure
Residential Status:
- Residence OfIndia
| Particulars | Existing | Proposed |
| Indian Citizen living in india | 182 days or more in a year OR 60 days or more in a year AND 365+ days in 4 years | No Change |
| Foreign or Indian Citizen comes on visit to India (NRI / PIO) | 182 Days or more in a year | 120 Days or more in a year |
- Not OrdinaryResidence
| Particulars | Existing | Proposed |
| Individual / HUF | Non Resident in India in nine out of ten preceding previous yearsor
Seven preceding previous years been in India for 729 Days or less |
Non Resident in India in seven out of ten preceding previous years |
An Individual being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature.
Dividend Distribution Tax (DDT) Removed
- DDT not applicable to domesticcompanies
- Dividend income Taxable in the hands of shareholders / unitholders at the applicable taxrate
Vivad se Vishwas Scheme:
- Under this scheme, a taxpayer would be required to pay only the amount of the disputed taxesand will get complete waiver of interest and penalty provided he pays by 31stMarch,2020.
Those who avail this scheme after 31stMarch, 2020 will have to pay some additional amount. The scheme will remain open till 30thJune,2020.
Provision for E-Appeal:
- It is proposed to empower Central Government to notify an e-appeal scheme for disposal of appeal by an appellate system with dynamic jurisdiction by one or more Commissioner(Appeals)
Extending Time Limit For Affordable Housing Project Under Section 80-IBA
| Particulars | Existing | Proposed |
| Deduction of an amount equal to 100% of the profits and gains derived from Building and developing Affordable Housing. | Project approved by the competent authority up to31st March,2020. | Project approved by the competent authorityupto 31st March,2021 |
Interest on loan for affordable housing (Section 80EEA):
| Particulars | Existing | Proposed |
| Deduction Upto Rs. 1,50,000 in respect of Payment of Interest on Loan taken for Affordable Housing | Loan sanctioned upto 31st March, 2020. | Loan sanctioned upto 31st March, 2021 |
Start Ups: Section 80-IAC Tax Incentive:
| Particulars | Existing | Proposed |
| Period For Claiming Deduction of 100% on Net Profit for 3 Consecutive Assessment Years | Within 7 Years from the Incorporation | Within 10 Years from the Incorporation |
| Turnover Limit for Availment of Deduction | Upto 25 Crore | Upto 100 Crore |
Cost of Acquisition (asset acquired before 01.04.2001):
| Existing | Proposed |
| Fair Market Value as on 1-4-2001 or Actual cost at the option of the assessee. | Fair Market Value as on 1-4-2001 or Actual cost at the option of assesseesubject to Fair Market value shall not exceeds Stamp Value as on 1-4- 2001. |
Employee Stock Option Plan (ESOP) taxability for Employees:
| Particular | Existing | Proposed |
| ESOPs taxed as perquisites under section 17(2). | Tax on perquisite is required to be paid at the time of exercising of option. | tax on such income should be paid within fourteen days —
(i) after the expiry of forty eight months from the end of the relevant assessment year;or (ii) from the date of the sale of such specified security or sweat equity share by the assesse;or (iii) from the date of which the assesse ceases to be the employee of theperson; Whichever is the Earliest |
Penalty:
| Section | Particulars | Penalty |
| 271AAD | Books of accounts found to have
– False entry – Omission of an entry to evade taxliability |
Equal to the aggregate amount of such false or omitted entry |
| 271K | Failure to furnish Statements (with reference to sec. 35, 80G) | Rs.10,000 to 1,00,000 |
TDS:
| Secton | Particular | Existing | Proposed |
|
194C |
Payment to the contractors | Expression ‘work’ defined | ‘work’ expanded to include
supply according to requirements of the manufacturer, even if raw material is supplied by associate enterprise of such customer |
|
194J |
Any person other than Individual/HUF | Professional Service, Remuneration, Fees, Commission, Royalties, Technical Services : TDS Rate 10% | Professional Service, Remuneration, Fees, Commission, Royalties :TDS Rate 10%
Technical Services : TDS Rate 2% |
|
194O |
Sale done by the Participants through e-commerce platform | — | 1% on gross amount |
February 3, 2020, 1:17 pm
Thank u for information
February 3, 2020, 2:06 pm
Good info.. helpful in calculation of tax