FM Nirmala Sitharaman proposed several amendments in Finance (No. 2) Bill 2019 on July 5, 2019. The Budget 2019 was a forward looking budget that brought with it incremental changes and advancements. What’s new and what to be careful about in the coming year, is all here:
- Threshold limit for reduced tax rate of 25% in case of domestic companies has been increased from Rs. 250 crores to Rs. 400 crores. Thus, if in FY 2017-18, the domestic company had a turnover of less than Rs. 400 crores, applicable tax rate shall be 25%
- No change in income tax slabs and threshold limits
- A new section 80EEB has been inserted to provide additional deduction of Rs. 1.5 Lakhs for interest on loan for electric vehicle purchase
- A new Section 80EEA has been inserted to provide for deduction of up to Rs. 1.50 lakhs for interest on loan taken from any financial institution for acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs
- New rates for surcharge on income tax:
- 10% (for income >Rs. 50 Lakhs but <Rs. 1 crore)
- 15% (for income >Rs. 1 crore but <Rs. 2 crore)
- 25% (for income >Rs. 2 crore but <Rs. 5 crore)
- 37% (for income >Rs. 5 crore)
- Furnishing of return mandatory in the following cases:
- If a person has Rs. 1 crore or more in current account
- If a person spends Rs. 2 lakhs or more on foreign travel
- If a person spends Rs. 1 lakh or more on electricity consumption
- If a person does not have PAN, he/ she can file the return using Aadhar number
- A new Section 194N has been inserted to require deduction of tax at source at the rate of 2% if aggregate of cash withdrawn during the financial year from any account maintained with a banking company or cooperative bank or post office exceeds Rs. 1 crore
- A new Section 194M has been inserted to require any individual or HUF (who is not required to deduct tax under Section 194C or 194J) to deduct tax at source from sum paid to a contractor or professional, if aggregate payment during the year exceeds Rs. 50 lakh. The tax can be deposited under this provision without any requirement to obtain TAN.
