21
Jul

#KeyHighlightsBugdet2019

Tax

  1. Threshold for applicability of lower corporate tax rate of 25% increased from Rs 250 crore to Rs 400 crore.

 

  1. Enhanced interest deduction up to Rs 5 lakh for purchase of an affordable house.

 

  1. New Section 80EEB so as to provide for deduction up to Rs. 1.5 lakh to an Individual assessee in respect of interest on loan taken for purchase of an electric vehicle

 

  1. TDS of 2% on cash withdrawal exceeding 1 crore in a year from a bank account to promote less cash economy.

 

  1. No charges or MDR on specified digital mode of payments. These modes are to be compulsorily provided by large businesses.

 

  1. Sabka Vishwas Legacy Dispute Resolution Scheme proposed for quick closure of service tax and excise related litigations.

 

  1. Higher surcharge @25% on tax is proposed where taxable income of Individual, HUF, AOP and BOI is between Rs   2   to   5      Taxable   Income exceeding Rs 5 Crores to attract surcharge @ 37%. Maximum Surcharge at present was 15% of tax where income exceeds Rs 1 crore. Effective tax rate for Individual, HUF, AOP and BOI having taxable income between Rs 2 to 5 crores is increased from 35.88% to 39% and income exceeding Rs 5 crores from 35.88% to 42.74%.  Refer Annexure A1.

 

  1. Buy back of shares from a shareholder by a listed company, on or after 5th July 2019, shall be covered under provisions of  Section  115QA  and  will  attract  tax @20% in the hands of the listed company and consequentially  amount  received  by  shareholder will be exempt under Section 10(34A).

 

  1. Deposit taking and systemically important non-deposit taking NBFCs can now pay tax in the year they receive interest for certain bad or doubtful debts.

 

Others

  1. Those who do not have PAN will be allowed to file income tax returns on the basis of Aadhaar number. Aadhaar can be quoted wherever PAN is required.

 

  1. For the benefit of distressed companies, it is also proposed to amend section 115JB to provide that for calculating book profit, the aggregate amount of brought forward unabsorbed depreciation and loss (excluding depreciation) shall also be allowed to be reduced. The said amendments are proposed to be effective from AY 2020-21.

 

  1. The target is  for  India to be a 5 trillion  dollar economy in 5 years