Budget 2019: High point of propositions made in Income Tax

Budget2019
  • A domestic company whose total turnover or the gross receipt in the previous year 2017-2018 does not exceed Rs. 400 crore shall be taxable at the rate of 25%.
  • The new rate of surcharge for Individual, HUF, AOP, BOI and AJP shall be – 10% (for income of Rs. 50 lakhs to Rs. 1 crore), 15% (for income of Rs. 1 crore to Rs. 2 crores), 25% (for income of Rs. 2 crores to Rs. 5 crores) and 37% (for income exceeding 5 crores).
  •  If a person has linked his Aadhaar number with PAN, he may also furnish his Aadhaar number in place of PAN in the Income-tax return.
  •  PAN allotted to a person shall be deemed to be invalid, if he failed to intimate the Aadhaar to the Dept.
  • Section 80EEA is introduced to provide deduction of up to Rs. 1.50 lakhs for interest on loan taken from any financial institution for acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs.
  • Section 80EEB is introduced to provide deduction of up to Rs. 1.5 lakhs in respect of interest on loan taken for purchase of an electric vehicle. 
  • Section 194N is introduced to provide for deduction of tax at source at the rate of 2% if aggregate of cash withdrawn during the financial year from any account maintained with a banking company or cooperative bank or post office exceeds Rs. 1 crore.
  • Application under Section 195(2) and 195(7) for lower or nil deduction of tax from sum paid or payable to non-residents person can be filed electronically.
  • Introduction of Section 194M that requires any individual or HUF (who is not required to deduct tax under Section 194C or 194J ) to deduct tax at source from sum paid to a contractor or professional if aggregate payment during the year exceeds Rs. 50 lakh. The tax can be deposited under this provision without any requirement to obtain TAN.
  • A taxpayer has been allowed to withdraw 60% of total amount from NPS as tax free. Currently, the exemption is allowed only up to 40% of the total corpus amount.