A.
DIRECT TAXES
INDIVIDUALS / HUF / AOP / BOI
Ø
New Simplified
Personal Income Tax Regime [optional for Individual taxpayers] introduced:
·
Income upto Rs. 5
lakh - NIL
·
5 to 7.5 lakh - 10%
·
7.5 to 10 lakh -
15%
·
10 to 12.5 lakh - 20%
·
12.5 to 15 lakh - 25 %
·
15 lakh &
above - 30%
In the above regime, no deduction or exemption shall be
allowed to taxpayers.
Ø Proposal to remove 70 out
of 100 exemptions and deduction in tax regime
Ø Pre-fill information of
donation will result in hassle-free claims for the individuals claiming tax
exemption.
CORPORATES, INTERNATIONAL TRANSACTIONS
/ NRI / FOREIGN TAXATION OTHER PROVISIONS & OTHER MAJOR ANNOUNCEMENTS:
Ø
'Vivad se
Vishwas' scheme for direct tax payers whose appeals are pending at various
forum, no interest and penalty will be charged if taxpayers pay by March 31,
2020. The scheme is applicable for
all pending appeals at all levels. Scheme to end in
June 2020.
Ø
Turnover limit
for deductions under Section 80-IAC to start-ups has been proposed to be
increased to Rs. 100 crore.
Ø
Dividend
Distribution tax has been abolished. The dividend will be taxable in hands of
the recipients. Dividend received by holding from
subsidiary is exempt.
Ø
Concessional tax rate of 15% extended to power generation
companies.
Ø
ESOP: Ddeferment of
tax payment by employees on ESOPs from startups by five years.
Ø
100% tax
concession to sovereign wealth funds on investment in infra projects.
Ø
Option to be provided to cooperative societies to be taxed at
22% plus 10% surcharge and 4% cess, with no exemptions or deductions.
Cooperative societies to be exempted also from Minimum Alternative Tax.
Ø
The date of approval of affordable Housing project has been
extended to 31st mar 2021 for getting tax benefits.
Ø
The Threshold limit for conducting tax audit has been extended
from Rs. 1 crore to Rs 5 crore.
Ø
Currently, while taxing income from capital
gains, business profits and other sources in respect of transactions in real
estate, if the consideration value is less than circle rate by more than 5
percent, the difference is counted as income both in the hands of the purchaser
and seller. This limit has been increased to 10%.
Ø
Process of registration of Charitable
Institutions shall be made completely electronic under which a unique
registration number (URN) shall be issued to all new and existing charity
institutions. To facilitate the registration of the new charity institution
which is yet to start their charitable activities, proposal to allow them
provisional registration for three years.
Ø
Income Tax Act
to be amended to allow faceless appeals against tax orders on lines of faceless
assessment.
Ø
PAN
will be issued instantly based on Aadhaar without any documentation.
Ø TDS rates reduced for FPIs, municipal bonds & interest on listed
bonds
B.
INDIRECT
TAXES:
Ø New
GST return systems will be effective from 01.04.2020.
Ø E
invoicing for assessee having turnover more than 100 crores is mandatory with
effect from 01.04.2020.
Ø Announcement of health cess on import of medical equipment.
Ø Custom
duty raised on footwear and furniture.
Ø Customs Act being amended to neutralise misuse of FTA provisions
Ø Amending
laws to ensure no undue gains for imports under FTA
Ø To transfer
FY17, FY18 cess balance to GST compensation fund
Ø GST
compensation to states to be limited to cess collection.