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 have completed my 3 years of Articleship at CVK & Associates under the able guidance of CA Amit Dhavale & CA Himanshu Joshi. I have gained varied exposure in Taxation and Audit ranging from Individuals to Private Ltd Companies dealing in various facets of business dimensions such as Man View Full Profile

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9 Comments

      1. ankit3210 says:

        Wordings of the Memorandum to Finance Act – “This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years”

    1. ankit3210 says:

      Wordings of the Memorandum to Finance Act – “This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent assessment years”

    1. ankit3210 says:

      Though being an amendment made by Finance Act, 2020, as per the wordings of memorandum the same is applicable w.e.f AY 2020-21 i.e. FY 2019-20

      1. Ana says:

        Finance Act, 2020 is applicable for FY 2020-21 i.e., AY 2021-22 (Please read preamble). If I’m wrong kindly let me know. And Increased limit with conditions for 44AB is applicable for FY 2019-20 because date of filing tax audit falling under FY 2020-21. As mentioned, Finance Act 2020 applicable from 1st day of 2020.

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