Budget 2019 – Tax impact on individuals and Companies

Budget 2019 – Tax impact on individuals

MANDATORY FILING OF RETURN OF INCOME

PERSON OTHER THAN COMPANY OR FIRM

  • Deposited amount exceeding 1 crore or more in current account maintained with a banking company or a co-operative bank
  • Incurred expenditure of more than Rs. 2 lakh for travel to a foreign country
  • Incurred expenditure of more than Rs. 1 lakh for electricity
  • Claims rollover benefits on investment in a house or a bond or other assets, under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA and 54GB

INCREASE IN TAX RATES – INDIVIDUALS

INCREASE IN TAX RATES - INDIVIDUALS

SECTION 194M – TDS BY INDIVIDUAL/HUF

SECTION 194M – TDS BY INDIVIDUAL/HUF

SECTION 194IA – TDS ON PURCHASE OF IMMOVABLE PROPERTY

TOTAL CONSIDERATION SHALL INCLUDE

  • Club Membership Fee
  • Car Parking fee
  • Electricity and water facility fees
  • Maintenance fee, advance fee
  • Any other charges of similar nature, which are incidental to transfer of the immovable property

SECTION 194N – TDS ON CASH WITHDRAWAL

SECTION 194N – TDS ON CASH WITHDRAWAL

OTHER PROVISIONS

AMENDMENTS

  • Interest on loan upto Rs. 1.5 lakh for acquisition of a residential house property – Stamp duty value of property is upto Rs. 45 lakhs
  • Interest on loan upto Rs. 1.5 lakh for acquisition of an electric vehicle
  • Prosecution proceedings for non filing of return shall be initiated if tax payable is Rs. 10,000 or more.
  • NPS holders can withdraw 60% from NPS total corpus as tax free amount.

INTEROPERABILITY OF PAN AND AADHAR

INTEROPERABILITY OF PAN AND AADHAR

BUDGET 2019 – Tax Impact on Companies

CHANGES IMPACTING COMPANIES

  • Income-tax shall be 25% if total turnover of company in FY 2017-18 does not exceed Rs. 400 crores
  • Provisions for filing SFT are proposed to be modified
  • If NR recipient deposits tax and files return, Indian payor shall not be considered as assessee in default for non deduction of TDS
  • Buy Back Distribution tax of 20% (plus SC and Cess) applicable on Listed companies as well
  • Lower WHT applications can be filed online

SECONDARY ADJUSTMENT – AY 2018-19 ONWARDS

  • Secondary adjustment provision shall apply to agreements signed on or after 1st April, 2017
  • Assessee can pay additional income-tax @ 18% of excess money increased by a surcharge of 12%. Interest for secondary adjustment upto the date of payment of tax is additionally payable.
  • No income tax deduction in respect of the amount on which such tax has been paid.
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