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
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
- 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
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.