I) INCOME TAX ACT
1. Income Tax New Regime Has come (optional regime).
a) Following Analysis For Regime:
- Limited exemptions are given if you opt for this scheme.
- No standard deduction
- No 80C, 80D, 80E
- Exemptions like LTA & HRA = Not Applicable for This Scheme.
Note: Once u opt, u can’t get back to old scheme if you have PGBP Income. If you don’t have PGBP income then you can keep changing the schemes (old/New)
b) New slab rates are as follows:
|0 to 2.5L||Exempt|
|2.5L to 5L||5%|
|5L to 7.5 L||10%|
|7.5L to 10L||15%|
|10L to 12.5L||20%|
|2.5L to 15L||25%|
2. DDT Removed in the budget
3. Tax Audit Limit Raised from 1 Crore to 5 Crores.
4. 70 exemptions, deductions with a view to further simplify tax regime are Removed
5. Section 50C – 110%
6. Affordable housing Continues.
7. Faceless Appeals Introduced
8. Vivad se vishwas scheme :(Pay disputed tax – No interest & Penalty – if paid before 31/03/2020.
9. Instant Allotment of Pan Card using Aadhaar card.
10. Deposit insurance coverage raised to Rs 5 lakh from Rs 1 lakh
11. Tax on Co-operative societies proposed to be reduced to 22%
12. Concessional withholding rate of 5% on interest payment to non-residents extended up to June 30, 2022
13. Govt proposes 100 per cent tax concession to sovereign wealth funds on investment in infra projects
II) GOODS & SERVICES TAX ACT
1. Simplified Returns From 01/04/2020.
2. Aadhaar and QR code mechanism.
3. SMS Based Nil return filing
4. Deep data & Analytics For ITC
5. Invoice & ITC matching is done.