Income Tax Highlights of Budget 2019

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 –

√ Taxable income from Rs 2 crore to Rs 5 crore- Surcharge has been increased from 15% to 18%

√ Taxable income from Rs 2 crore to Rs 5 crore- Surcharge has been increased from 15% to 22%

4. Deduction-

√ Additional Income Tax Deduction of 1.5 lakh rupees has been provided on the interest paid on loans taken to purchase e-vehicles.

√ Additional deduction upto Rs. 1.5 lakh has been provided under section 80EE

    • Has been provided for interest paid on loans borrowed for self-occupied house property by 3 1/3/2020.
    • 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

√ with the aim to reduce taxpayer trouble.

6. Angel Tax

√ Valuation of share issue will be beyond Income tax scrutiny in case of Start ups.

√ 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.

√ 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

11. TDS- 2% TDS has been levied on cash withdrawal of more than Rs 1 crore from bank account in a year.

√ It will boost up digital transaction.

Customs Highlights of Budget 2019

Customs Duty Increased/Imposed

  • Increase in custom duty on Gold and other precious metals – from 10% to 12.5%.
  • Basic Customs Duty increased on – 1′ Cashew kernels

√ PVC, tiles

√ Auto parts

√ marble slabs

√ Optical fibre cable

√ CCTV camera etc.

  • 5% Basic Custom Duty -imposed on imported books.

Exemption from Customs Duty/Reduction in Customs Duty

  • Exemptions from Custom Duty on –

√ Electronic vehicles

√ Some other electronic products

  • End use based exemptions on – 1′ Palm stearin

√ Fatty oils withdrawn.

  • Customs duty reduced on certain raw materials –

√ Inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants etc.

√ Capital goods required for manufacture of specified electronic goods.

  • Defence equipment not manufactured in India exempted from basic customs duty

Legacy Dispute Resolution Scheme

For quick closure of pending litigations in Central Excise and Service tax (pre-GST regime), Legacy Dispute Resolution Scheme has been introduced.

Source- https://icmai.in/icmai/index.php

More Under Custom Duty

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