Highlights of Budget 2019- Direct Tax

Income Tax

1. No change in Income Tax in case of income up to Rs 2 crores.

2. Income Tax return can be filed using either Aadhar Number or PAN No.

3. Surcharge
(a). Taxable income from Rs 2 crore to Rs 5 crore- Surcharge has been increased from 15% to 18%
(b). Taxable income from Rs 5 crore and above- Surcharge has been increased from 15% to 22%

4. Deduction-
(a). Additional Income Tax Deduction of 1.5 lakh rupees has been provided on the interest paid on loans taken to purchase e-vehicles.
(b). Additional deduction upto Rs. 1.5 lakh has been provided under section 80EE
(i) Has been provided for interest paid on loans borrowed for self occupied house property by 31/3/2020.
(ii)The cost of house must be within Rs. 45 lakh

5. Faceless Income Tax Assessment in electronic mode is going to be launched in 2019 in a phased manner
(a). with the aim to reduce taxpayer trouble.

6. Angel Tax
(a). Valuation of share issue will be beyond Income tax scrutiny in case of Start ups.
(b). Pre approval is to be taken by A.O from Higher Authorities for assessment of Start ups.

7. All companies having annual turnover of Rs 400 crores, will now be under the bracket of 25% tax.

8. Proposal has been give to provide relief in levy of securities transaction tax.
(a). STT will be levied only on difference between Strike Price and Settlement Price.

9. Prefilled Income Tax Returns for Salaries, Interest, Mutual Fund Income etc.

10. 35AD exemption has been extended to Li-On battery, Semi-Conductor, Laptops, Fabrication & Photo Volic.

TDS

1. 2% TDS has been levied on cash withdrawal of more than Rs 1 crore from bank account in a year.
(a). It will boost up digital transaction.

Source : The Institute of cost accountant of India