Income Tax

• Tax Audit Limit increased to Rs. 10 crores, provided transactions of cash receipts & payments are up to 5% only.
• ITR to have more pre filled information on dividend, interest & capital gains from listed securities, to ease compliance.
• Senior Citizen above 75 years of age earning only pension & interest income to be exempt from filing the ITR
• Reopening time-limit of income-tax assessment cases under Income Tax reduced to 3 years from 6 years.
• Serious Tax Evasion cases – where evasion evidence is of Rs. 50 lacs or more then reopening within 10 years with approval of Principal Chief Commissioner of Income Tax.
• Setting up of Dispute Resolution Mechanism for small taxpayers – Anyone having total income less than 50 lacs and disputed income less than 10 Lacs.
• TDS on Dividend income of Non-Residents at lower treaty rate i.e. (rate agreed between two countries & actual rate).
• Dividend payment to REITs (estate investment trusts) and INVIT’s (Infrastructure investment trusts) exempt from TDS.
• Late deposits of employees’ contribution not to be allowed as deduction to the employer.

Companies/LLP

• Change in threshold paid-up capital of small companies from Rs 50 lakh to Rs 2 crore & increase in threshold of maximum turnover from Rs 2 crore to Rs 20 crore. Due to this More than 2 lakh additional companies to come under the definition of small companies which have a lower compliance burden including lower penalties for violations and lower filing requirement.
• NRIs to be allowed setting up One Person Company without any restriction of Share Capital & Turnover and has also eased requirements of residency for a person setting up a One-person company from 182 days to 128 days in India. The move is aimed at encouraging businesses to register as One-person companies as they will not be forced to convert to private or public companies which have a greater compliance burden.
• Decriminalization of LLP Act,2008 – Offences under the said act will be considered as Civil Offences from now onwards.

Goods & Service Tax

• GST Audit certification by a Chartered Accountant or Cost Accountant has been removed and form GSTR-9/9C has been merged. Now the taxpayer can file annual return by self-certified statement. But audit for FY 19-20 needs to be done.
• Penalty for detention of goods has been increased from 100% to 200% of the tax payable on such goods.
• In case of Exports-ZERO RATED SUPPLY where foreign currency remittances are involved, if the realization of sale proceeds doesn’t happen within 30 days of the limit prescribed under FEMA Act,1999 then the taxpayer has to deposit the REFUND so claimed (with interest) back to the department.

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