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.
2. The due date of filing Tax audit report is 31st October 2020.
3. The due date of ITR filing of Tax audit assessees including partners of firms having Tax audit is 30th November 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%.
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.
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.