INDIRECT TAXES

1. Benefiting Domestic Industries: Custom duty on imports of many products have been increased such as Automobile parts, Electronic & electrical equipment etc. This will give boost to the domestic industry.

2. Resolving litigation: Sabka Vishwas (Legacy Dispute Resolution) Scheme proposed for quick disposal of pending 3.65 Lacs Crore -central excise and service tax cases. In the scheme, relief ranging from 25% to 70% of amount of duty/tax involved have been provided.

3. Getting tough with offenders: Strict penal and prosecution provisions for customs frauds.

4. Towards reducing compliance: Proposal to introduce electronic invoicing and doing away with e-way bill from Jan 2020.

5. National Appellate Authority for Advance Ruling: National Appellate Authority for Advance Ruling has been constituted for hearing appeals against conflicting advance rulings pronounced on the same question by the Appellate Authorities of two or more States or Union territories in case of distinct persons.

DIRECT TAXES

1. Steep increase in surcharge for high income taxpayers.

2. Mandatory filing of returns based on expenditure/ other criteria.

3. Benefit of reduced rate of tax of 25% extended to companies having turnover less than Rs. 400 crores.

4. Budget gives fillip to Start ups: Resolving angel tax issues and relaxing provisions for carry forward and set off of loss and extending certain incentives.

5. Aadhar made ubiquitous : PAN & Aadhar interchangeable.

6. TDS on large Cash withdrawals by businesses : Noose on cash economy further tightened.

7. Strengthening RBI’s regulatory authority over NBFCs & including HFCs within its framework.

8. Level playing field for NBFC’s by according tax treatment like other banking and financial institutions.

9. Electronic application for certificate for lower or nil withholding taxes for payments to non- residents.

10. Exemption from tax – Interest payable by individual company for a business trust to a non-resident or foreign company on Rupee denominated Bonds w.e.f AY 20-21

11. Gifts made by resident to a person outside India will now be taxable in India.

More Under Income Tax

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