Aug 10, 2019
Mahesh Sharma, Chartered Accountant, has listed the following Direct and Indirect tax changes in Indian Budget 2019.
- Direct tax revenue has increased to 11.37 lakh crores and there is no change in Income tax slabs.
- Corporate Tax- Tax Rate of 25% on Companies with turnover of up to Rs. 400 crores. This will cover 99.3 % companies which further promotes entrepreneurship.
- GST rate reduced on electric vehicle from 12% to 5% promoting the all transport electrification motive by 2025.
- Tax deduction on loan taken for purchase of electric vehicle: Additional Income tax deduction of Rs. 1.5 lakh of interest on loan taken for purchase of electric vehicle.
- Startup’s would not be under scrutiny by IT Department removing the needless hassles faced. Startups and investors who provide requisite documents will not be subject to angel tax assessment.
- Additional deduction of Rs. 1.5 lakh for interest on loans borrowed under affordable housing.
- STT change in case of Options purchased on Stock Exchange.
- Aadhaar can be used in place of PAN for filing Income Tax Returns. Aadhaar cards to be issued to non-residents Indians with Indian passports after arrival in India without waiting for 180 days.
- Faceless E-assessment for Income Tax Scrutiny and automated GST refund system initiated to curb the corrupt practices in the administration of taxes.
- TDS of 2% on cash withdrawal exceeding Rs. 1 cr. from a Bank account per year.
- No charges for customer on Digital modes of payment.
- Surcharge on individuals having taxable income of Rs 2 crore to Rs 5 crore, and Rs 5 crore and more raised.
- Basic customs duty on auto parts, optical fiber, digital camera, cashew, certain synthetic rubber, vinyl flooring hiked.
- Customs duty exempted on components of specified electronic goods and customs duty on certain parts of electric vehicles removed.
- Cess on petrol, diesel raised by Re 1 per litre; customs duty on gold raised to 12.5 percent from 10 percent.
- A nominal basic excise duty imposed on tobacco- Proposes Legacy Dispute Resolution scheme to solve litigations in service tax and excise.