DIRECT TAX PROPOSALS - 2019 [W.E.F. Assessment Year 2020-21]

-


PERSONAL TAX

v  Rebate for Resident Individuals:
Currently:
§  Rebate of Rs. 2,500/- if total income does not exceed Rs. 3,50,000/-
Proposed:
§  Rebate increased to Rs. 12,500/- if total income does not exceed Rs. 5,00,000/-

v  Standard Deduction from Salary Income:
Currently:
§  Rs. 40,000/- allowed as standard deduction
Proposed:
§  Rs. 50,000/- shall be allowed as standard deduction

v  Notional Rent exemption:
Currently:
§  Only 1 house property can be treated as self-occupied property. Tax on 2nd house property to be paid on notional rent
Proposed:
§  The benefit shall be extended to 2 house properties. Tax on 3rd house property to be paid on notional rent

v  Reinvestment of Sale of House Property:
Currently:
§  Capital Gain on Sale of House Property exempted if invested in 1 house property
Proposed:
§  Now investment allowed in 2 house properties for exemption.

TDS
v  Increase in threshold limit for exemption from TDS:
Particulars
Current
Proposed
Interest on term deposits with Banks, Co-op Banks and Post Office
Rs. 10,000/-
Rs. 40,000/-
Rent
Rs. 1,80,000/-
Rs. 2,40,000/-


Housing Sector
v  Notional Rent for House Property held as Stock-in-trade:
Currently:
§  Taxable Notional Rent = NIL upto 1 year from the date of Completion Certificate
Proposed:
§  Taxable Notional Rent = NIL upto 2 years from the date of Completion Certificate

v  100% deduction of profits for approved affordable housing projects:
Currently:
§  Allowed upto March 31, 2019
Proposed:
§  Extended upto March 31, 2020 


Comments

Post a Comment

Popular posts from this blog

Budget 2020 - an Analysis by team Arun Valera

-
DIRECT TAX Personal Tax Option A - New Regime under section 115BAC for personal taxation For Individuals and HUFs Income Tax Rate (%) Upto Rs. 2,50,000 0% Rs. 2,50,001 to Rs. 5,00,000 5% Rs. 5,00,001 to Rs. 7,50,000 10% Rs. 7,50,001 to Rs. 10,00,000 15% Rs. 10,00,001 to Rs. 12,50,000 20% Rs. 12,50,001 to Rs. 15,00,000 25% Above Rs. 15,00,000 30% Ø   Option parameters: Eligible assessees Exercise of option Earning income other than business income Option can be exercised in every previous year Earning business income Option once exercised in a previous year shall be valid for subsequent assessment years. Further, the option may be withdrawn only once, after which the assessee shall never be eligible to exercise the option Ø   Under New Regime,...
Read more

The Jailor

-
(Excerpts from ‘Jailor’ by Acharya Vijay Abhayshekhar Suri) A prisoner was sentenced 100 lashes every day for a robbery he committed. As the  Jailor  raised to beat him up, he shouted “Who the hell are you to beat me? I didn’t rob anything from you. Bring the man whom I robbed and he has the right to beat me up.” What will be the result? Will the  Jailor  leave him?  Certainly not. In fact, in all probabilities, he may get angry and beat him more. But then there is a point in the prisoner’s argument. Who gave the right to the  Jailor  to beat the prisoner? Only the person whom the prisoner robbed should have the right to beat him up. But it doesn’t happen like that. So the moot question again – “Who gave the right to the  Jailor  to beat the prisoner?” Answer in the story is simple – The Court. The Court decided who the criminal was and what the sentence ought to be and gave that right to the  Jailor  to execu...
Read more

How to read DTAA?

-
What is a Treaty? Vienna Convention on law of treaties is known as the Bible of Tax Treaties. “Treaty” has been defined by Article 2 of Vienna Convention to mean an international agreement concluded between States in written form and governed by international law, whether embodied in a single instrument or in two or more related instruments and whatever its particular designation. Tax Treaty is also known as Double Taxation Avoidance Agreement (DTAA), or Agreement for Avoidance of Double Taxation (AADT) or as Double Tax Conventions (DTCs). These terms can be used interchangeably. DTAAs can either be “Comprehensive DTAA” covering all types of incomes or “Limited DTAA” which are limited to certain type of incomes only. India has entered into Comprehensive Agreement with 97 countries and Limited Agreements with 8 countries including Pakistan, Iran, Maldives. What is the need to enter into treaty between countries? Let us understand this with the help of an illustration. US In...
Read more