SUNIL CHOPRA & CO. Chartered Accountants

Transcription

1

2 1 SUNIL CHOPRA & CO. Chartered Accountants 3, 1 st Floor, Mandar, 193, Turner Road, Bandra (W), Mumbai Tel: / 95, Fax: sccoca@gmail.com INTERIM UNION BUDGET Our 23 rd Year of Budget Review General elections being around the corner, the Government could not present the full fledged Budget. The Interim Budget was presented by Shri Piyush Goyal in the capacity of acting Finance Minister due to ill health of Shri Arun Jaitley. In such capacity, he also became the first Chartered Accountant to have presented the Union Budget. It was a short and brief Budget highlighting government s achievements in the past four years and a vision outline for the coming period. The Budget has some good features in form of tax exemption and measures to boost economy with emphasizes on rural and poor. With regards, (SUNIL CHOPRA)

3 2 HIGHLIGHTS OF BUDGET GENERAL: Minimum 14% revenue of GST to states by Central Govt. GST-registered SME units will get 2% interest rebate on incremental loan of Rs 1 Crore. 10% reservation in educational institutions and Government services for poors. Setting up of 22 nd AIIMS in Haryana. MGNREGA has been allocated with Rs. 60,000 crores. Every farmer having upto 2-hectares land has to be given Rs 60,000 p.a in three installments. Increase in the allocation for Rashtriya Gokul Mission to Rs 750 crore in the current year itself and setting up of "Rashtriya Kamdhenu Aayog" to upscale sustainable genetic up-gradation of cow resources and to enhance production and productivity of cows. Farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card, to be provided the benefit of 2% interest subvention and in case of timely repayment of loan, they will also get an additional 3% interest subvention. The ceiling of payment of gratuity has been enhanced from 10 lakhs to 20 lakhs. Pension yojana namely Pradhan Mantri Shram-Yogi Maandhan for the unorganized sector workers with monthly income upto Rs 15,000. This pension yojana shall provide them an assured monthly pension of Rs 3,000 from the age of 60 years and worker joining pension yojana at the age of 29 years will have to contribute only Rs. 100 per month till the age of 60 years. Levy of Stamp 0.015% on transfer of Securities & Shares whether listed or not and whether transacted on market or otherwise.

4 3 2. INCOME TAX: No changes in the Tax slab rates. Rebate of income tax increased to Rs.12,500/- for the person whose total Income does not exceed Rs.5,00,000/- (Section 87A) Relief to salaried taxpayers: Standard deduction increased from Rs 40,000/- to Rs 50,000/- (Section 16) Benefit of NIL notional rental value extended to 2 self occupied houses instead of 1 with suitable amendment in Section 23. Period of benefit of NIL deemed notional rental income incase of property held as stock-in trade increased from 1 year to 2 years with suitable amendment in Section 23(5) of Income Tax Act. Incase of long term capital gain not exceeding Rs.2 crores, an Individual or HUF shall get benefit of exemption by purchase or construction of two residences in India instead of one as was earlier allowed. However, this benefit is available only once in life time. (Section 54) Benefit of deduction in respect of profit or gain in housing project is extended by one more year upto 31 March 2020 instead of earlier set date 31 March (Section 80IBA) Limit for deduction of TDS on interest paid increased from Rs.10,000/- to Rs.40,000/-. The rate of TDS 10% (Section 194A) Limit of rent on which TDS to be deducted increased from Rs 180,000/- to 240,000/- (Section 194I)

5 4 INCOME TAX RATES A. Individuals, Hindu Undivided families etc. (1) where the total income does not exceed Rs. 5,00,000 Nil (2) where the total income exceeds Rs.5,00,001 but does 20% of the amount by which not exceed Rs. 10,00,000 the total income exceeds Rs.5,00,000/- (3) where the total income exceeds Rs. 10,00,000 Rs.1,00,000/- plus 30% of the amount by which the total income exceeds Rs.10,00,000/- 10% applicable if income exceds Rs.50,00,000/- but does not exceeds 1,00,00,000/-. 15% applicable if income is in excess of Rs.1,00,00,000/-. B. Co-operative societies No change (1) where the total income does not exceed Rs.10, per cent of the total income; (2) where the total income exceeds Rs.10,000 but does Rs. 1,000 plus 20% of the amount by not exceed Rs. 20,000 which the total income exceeds Rs.10,000; (3) where the total income exceeds Rs. 20,000 Rs. 3,000 plus 30% of the amount by which the total income exceeds Rs. 20, % applicable if income is in excess of Rs.1,00,00,000/-. C. Firms No change Rate of Income-tax on the whole of the income 30 per cent. 12% applicable if income is in excess of Rs.1,00,00,000/-. Health and Education 4% on tax payable. D. Local Authorities No change Rate of Income-tax on the whole of the income 30 per cent. 12% applicable if income is in excess of Rs.1,00,00,000/-. E. Companies i) In the case of domestic companies whose the total turnover or gross receipts of previous year does not exceed Two hundred fifty crore rupees, the rate of income-tax shall be 25%. ii) In the case of domestic companies other than stated above, the rate of tax shall continue to be 30%. 7% if income exceeds Rs.1,00,00,000 but does not exceeds Rs.10,00,00,000/- and 12% if it exceeds Rs.10,00,00,000/-. In the case of company other than Domestic companies, the rate of tax continues to be 40%-50%. 2% if income exceeds Rs.1,00,00,000/- and 5% if exceeds income Rs.10,00,00,000/-. Tax on dividend distributed by domestic companies (Section 115 -O) will continue to remain fifteen percent plus 12% (to be grossed up). Tax on buyback of shares (other than listed companies) to shareholders (Section 115QA) will continue to remain twenty percent plus 12%. Tax on distributed income to unit holders (Section 115R) will continue to remain 25/30 percent plus 12%. Tax on distributed income to investors by Securitisation Trusts(Section 115TA) will continue to remain (i) twenty five percent plus 12% for individual & HUF (ii) thirty percent to any other persons plus 12%.

6 5 COMPARATIVE TAX TABLE FOR INDIVIDUAL & HUF FOR THE ASSESSMENT YEAR & (IT+H&EC) (IT+H&EC) (IT+H&EC) (IT+H&EC) (IT+H&EC) (IT+H&EC) NI (AY ) (AY ) NI (AY ) (AY ) NI (AY ) (AY ) Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs Tax rate for income above Rs.10,00,000/- is 30%. 10% applicable if if income exceds Rs.50,00,000/- but does not exceeds 1,00,00,000/-. 15% applicable if income is in excess of Rs.1,00,00,000/-. Health & Education 4% on tax payable inclusive of surcharge.

7