AMENDMENTS IN INCOME TAX ACT

SUBMITTED TO-
Prof. Atul Kochhar

SUBMITTED BY-
19BSP3370_Ajay Grover
19BSP3466_Rohit jhawar
19BSP3512_Kunal Gupta
19BSP3531_Akash Gupta
19BSP3596_Lakshay Solanki
19BSP3762_Harsh Bhawani
NEW TAX SCHEME FOR INDIVIDUAL AND HUF

 A new section 115BAC has been proposed to be inserted to provide

an alternative to individuals and HUFs to pay tax at lower rate. The
income under this scheme shall be computed without claiming any
deduction under chapter VI-A or Sections 24 or exemptions.
INCOME TAX RATE & SLAB FOR INDIVIDUALS & HUF:
Taxable income Tax Rate Tax Rate
(Existing Scheme) (New Scheme)

Up to Rs. 2,50,000 nil nil

Rs. 2,50,001 to Rs. 5,00,000 5% 5%
Rs. 5,00,001 to Rs. 7,50,000 20% 10%
Rs. 7,50,001 to Rs. 10,00,000 20% 15%
Rs. 10,00,001 to Rs. 12,50,000 30% 20%
Rs. 12,50,001 to Rs. 15,00,000 30% 25%
Above Rs. 15,00,000 30% 30%
ABOLITION OF DIVIDEND DISTRIBUTION
TAX(DDT)

Dividend from the domestic company or income from units of a

mutual fund shall be taxable in the hands of shareholders or unit
holders at the rate and the domestic company or mutual funds shall
not be required to pay any distribution tax.
RATIONALIZATION OF TAXATION
OF START-UPS
Section 80- IAC has been proposed to be amended to provide
that deduction to an eligible start-up shall be available for a
period of 3 consecutive assessment years out of 10 years.
Earlier, this deduction was available for 3 consecutive finanaal
years out of first 7 years. Further, the turnover limit for claiming
such exemption has been proposed to raised to RS. 100 crore
which was earlier RS. 25 crore.
PENALTY FOR FAKE INVOICES
To curb the practice of obtaining fake GST invoices so as to claim
the input tax credit, a new section 271AAD has been proposed to be
inserted to levy a penalty of an amount equal to the aggregate
amount of such fake invoices .
INCREASE THRESHOLD LIMIT FOR TAX AUDIT

The threshold limit for getting the accounts audited is proposed

to be increased from Rs. 1 crore to Rs. 5 crore provided cash
receipt or payment does not exceed 5% of total receipt or
payment , as the case may be .
(Govt boost up for cashless economy)
TDS rate Fees for Technical Services

Under Section 194J the payment of fees for technical service shall be
subject to TDS at the rate of 2% (previously it was 10%) w.e.f. 1
April 2020.
The TDS rate in other cases including fees for professional services
shall remain the same.
In case the payee does not furnish his PAN then the rate of deduction
would be 20%.
DUE DATE fOR ITR EXTENDED

 The government via a press conference dated May 13, 2020

 extended the due date for filing ITR for FY 2019-20 from July 31
and October 31 to November 30.
 For those companies and individuals whose accounts are required to
be audited deadline has been extended from September 30 to
October 31.
 E-COMMERCE TRANSACTION
 The finance bill has proposed that e-commerce operator shall deduct
tax at the rate of 1% from sale done by the particular through their
platforms.
THANK YOU