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Here’s a list of a few Important Taxation amendments w.r.t. Tax Audit/Company Audit for FY 2019-20:

1. The threshold limit of Rs 1 crore for applicability of Tax audit u/s 44AB(a) is increased to Rs 5 crore if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover and the cash payments are limited to 5% of the aggregate payments.

(Finance Act, 2020)

2. The due date of filing Tax audit report is 31st October 2020.

(CBDT Notification No 35/2020)

3. The due date of ITR filing of Tax audit assessees including partners of firms having Tax audit is 30th November 2020.

(CBDT Notification No 35/2020)

4. Motor car acquired on or after 23rd August 2019 but before 31st March 2020 is to be depreciated at 30% and the enhanced rate of depreciation is 30% for use of car other than hiring business only and for hiring business it is @ 45%.

(CBDT Notification No 69/2019)

5. New Corporate Tax Regime(optional)

– 22% for existing domestic companies(Sec 115BAA) and 15% for new domestic manufacturing companies(Sec 115BAB).

– Companies cannot carry forward & set off their unutilized MAT credit or brought forward loss.

– MAT is not applicable.

– Certain deductions/exemptions not available.

(The Taxation Laws (Amendment) Ordinance, 2019)

6. For Corporates not opting for the above options, MAT Rate is reduced from 18.5% to 15%. And the rate of tax would be 25% or 30% depending on whether the Turnover or Gross receipts for FY 17-18 was less than or equal to Rs 400 crore or otherwise.

(The Taxation Laws (Amendment) Ordinance, 2019)

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I'm a Chartered Accountant, an IRS aspirant and a Tax columnist. I have written articles/posts on Taxation related updates and for CA students on LinkedIn, on various Taxation websites and in ICAI Journals. I did my articleship at CVK & Associates under the able guidance of CA Amit Dhavale & View Full Profile

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April 2024