1 SUNIL CHOPRA & CO. Chartered Accountants 3, 1 st Floor, Mandar, 193, Turner Road, Bandra (W), Mumbai 400050 Tel: 022-26515394 / 95, Fax: 26515438 Email: sccoca@gmail.com INTERIM UNION BUDGET 2019-20 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)
2 HIGHLIGHTS OF BUDGET 2019 1. 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 Duty @ 0.015% on transfer of Securities & Shares whether listed or not and whether transacted on market or otherwise.
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 2019. (Section 80IBA) Limit for deduction of TDS on interest paid increased from Rs.10,000/- to Rs.40,000/-. The rate of TDS remains @ 10% (Section 194A) Limit of rent on which TDS to be deducted increased from Rs 180,000/- to 240,000/- (Section 194I)
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/- Surcharge @ 10% applicable if income exceds Rs.50,00,000/- but does not exceeds 1,00,00,000/-. Surcharge @ 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.10,000 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. 20,000. Surcharge @ 12% 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. Surcharge @ 12% applicable if income is in excess of Rs.1,00,00,000/-. Health and Education Cess @ 4% on tax payable. D. Local Authorities No change Rate of Income-tax on the whole of the income 30 per cent. Surcharge @ 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 2017-2018 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%. Surcharge @ 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%. Surcharge @ 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 surcharge @ 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 surcharge @ 12%. Tax on distributed income to unit holders (Section 115R) will continue to remain 25/30 percent plus surcharge @ 12%. Tax on distributed income to investors by Securitisation Trusts(Section 115TA) will continue to remain (i) twenty five percent plus surcharge @ 12% for individual & HUF (ii) thirty percent to any other persons plus surcharge @ 12%.
5 COMPARATIVE TAX TABLE FOR INDIVIDUAL & HUF FOR THE ASSESSMENT YEAR 2019-2020 & 2020-21 (IT+H&EC) (IT+H&EC) (IT+H&EC) (IT+H&EC) (IT+H&EC) (IT+H&EC) NI (AY 2019-20) (AY 2020-21) NI (AY 2019-20) (AY 2020-21) NI (AY 2019-20) (AY 2020-21) Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 100000 445000 10140 745000 63960 50960 150000 450000 10400 750000 65000 52000 155000 455000 10660 755000 66040 53040 160000 460000 10920 760000 67080 54080 165000 465000 11180 765000 68120 55120 170000 470000 11440 770000 69160 56160 175000 475000 11700 775000 70200 57200 180000 480000 11960 780000 71240 58240 185000 485000 12220 785000 72280 59280 190000 490000 12480 790000 73320 60320 195000 495000 12740 795000 74360 61360 200000 500000 13000 800000 75400 62400 205000 505000 14040 1040 810000 77480 64480 210000 510000 15080 2080 820000 79560 66560 215000 515000 16120 3120 830000 81640 68640 220000 520000 17160 4160 840000 83720 70720 225000 525000 18200 5200 850000 85800 72800 230000 530000 19240 6240 860000 87880 74880 235000 535000 20280 7280 870000 89960 76960 240000 540000 21320 8320 880000 92040 79040 245000 545000 22360 9360 890000 94120 81120 250000 550000 23400 10400 900000 96200 83200 255000 260 555000 24440 11440 910000 98280 85280 260000 520 560000 25480 12480 920000 100360 87360 265000 780 565000 26520 13520 930000 102440 89440 270000 1040 570000 27560 14560 940000 104520 91520 275000 1300 575000 28600 15600 950000 106600 93600 280000 1560 580000 29640 16640 960000 108680 95680 285000 1820 585000 30680 17680 970000 110760 97760 290000 2080 590000 31720 18720 980000 112840 99840 295000 2340 595000 32760 19760 990000 114920 101920 300000 2600 600000 33800 20800 1000000 117000 104000 305000 2860 605000 34840 21840 1010000 120120 107120 310000 3120 610000 35880 22880 1020000 123240 110240 315000 3380 615000 36920 23920 1030000 126360 113360 320000 3640 620000 37960 24960 1040000 129480 116480 325000 3900 625000 39000 26000 1050000 132600 119600 330000 4160 630000 40040 27040 1060000 135720 122720 335000 4420 635000 41080 28080 1070000 138840 125840 340000 4680 640000 42120 29120 1080000 141960 128960 345000 4940 645000 43160 30160 1090000 145080 132080 350000 5200 650000 44200 31200 1100000 148200 135200 355000 5460 655000 45240 32240 1110000 151320 138320 360000 5720 660000 46280 33280 1120000 154440 141440 365000 5980 665000 47320 34320 1130000 157560 144560 370000 6240 670000 48360 35360 1140000 160680 147680 375000 6500 675000 49400 36400 1150000 163800 150800 380000 6760 680000 50440 37440 1160000 166920 153920 385000 7020 685000 51480 38480 1170000 170040 157040 390000 7280 690000 52520 39520 1180000 173160 160160 395000 7540 695000 53560 40560 1190000 176280 163280 400000 7800 700000 54600 41600 1200000 179400 166400 405000 8060 705000 55640 42640 1350000 226200 213200 410000 8320 710000 56680 43680 1450000 257400 244400 415000 8580 715000 57720 44720 1550000 288600 275600 420000 8840 720000 58760 45760 1650000 319800 306800 425000 9100 725000 59800 46800 1750000 351000 338000 430000 9360 730000 60840 47840 1850000 382200 369200 435000 9620 735000 61880 48880 1950000 413400 400400 440000 9880 740000 62920 49920 2050000 444600 431600 Tax rate for income above Rs.10,00,000/- is 30%. Surcharge @ 10% applicable if if income exceds Rs.50,00,000/- but does not exceeds 1,00,00,000/-. Surcharge @ 15% applicable if income is in excess of Rs.1,00,00,000/-. Health & Education cess @ 4% on tax payable inclusive of surcharge.