Income Tax Rate

  1. No Income Tax up to Rs. 5 Lakhs
  2. Surcharge for Individuals:
Total Income Surcharge
2 Crore to 5 Crore 3%
More than 5 Crore 7%
  • Corporate Tax: 25% for companies having Turnover up to Rs. 400 Crores from existing Rs. 250 Crores.

STT

  • The Securities Transaction Tax or STT is proposed to be restricted to the difference between settlement and strike price of options

Deductions and Exemptions

  • Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer.
  • An additional deduction of Rs 1,50,000 on interest on loans borrowed under affordable housing until 2020.

TDS

  • To discourage the practice of making business payments in cash the government proposes to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account

Start-ups

  • To resolve the issue of Angel Tax the start-ups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by start-ups will not require any tax scrutiny.
  • Pending assessments of Start-ups – Officer can not to scrutiny without prior approval from supervising officer
  • Increase in period of exemption of capital gains from the sale of residential house for investment in start-ups up to March 2021.

Income Tax Return Filing

  1. Interchangeable Pan and Aadhar. Income Tax return can be filed with Aadhar.
  2. Prefilled Income Tax Returns will be available for Assessees. Particulars like Name, PAN, DOB, Salary, Capital Gain will be prefilled and ready

GST

  1. GST: Simplified 1 return per month to be enabled. Electronic Invoices to be enabled
  2. Tax payers having Annual Turnover up to Rs. 5 Crores can file GST returns quarterly

Customs Duty

  1. The government proposes an increase in customs duty on gold and other precious metals to 12.5 per cent and a special additional excise duty of Rs 1/Litre on petrol and diesel.
  2. A 5 per cent customs duty on imported books and increase on auto parts, synthetic rubber, PVC, vinyl flooring and tiles.

Others

  1. The net-owned fund requirement to Rs 1,000 crore from Rs 5,000 crore for insurers/reinsurers setting up operations in the International Financial Services Centre to boost capital into the Indian insurance market and improve access to services.
  2. E-Assessment: Faceless assessment in electronic mode. Officers will be assigned selected cases randomly. Electronic notices will be issued by Central Unit. The notice will not contain any identity of the officer in charge – no name, designation. Central Unit will be the intermediary between assessees and officers
  3. Business establishments with annual turnover of Rs 50 crore will have to use BHIM, UPI, Aadhar Pay, NEFT, and RTGS modes of payments with no charges or merchant discount rates will be imposed on customers or merchants. RBI and banks will absorb these costs
  4. The fiscal deficit this year is 3.3 per cent, brought down from 3.4 per cent.