Key Highlights of Direct and Indirect Tax Proposals
1.The threshold of Turnover for companies to be taxed at 25% to be increased to 400 Crores:
2. Deduction on Interest on Housing Loan increased to Rs 3.5 lakhs
3. TDS OF 2% on cash withdrawal exceeding 1 cr in a year from a bank account.
4 Surcharge on individuals having taxable income from 2 crore - 5 crores and 5 crores and above to be enhanced, so that effective tax rate will increase by around 3% and 7% respectively
5. Business establishments with annual turnover more than 50 crore rupees may offer low-cost digital payments; no charges or merchant discount rates to be imposed on customers or merchants for these
6. Faceless income tax assessment in electronic mode involving no human interface to be launched this year in a phased manner, to reduce taxpayer harassment
7. PAN and Aadhaar to be made interchangeable for convenience of tax payers; Income Tax returns can now on be filed using Aadhaar number, if PAN card not available
8."Additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase electric vehicles
- Electronic invoice system will be introduced to prefill the taxpayers return. Roll out from January 2020
- There will be no need for separate for e-way bill.
- A simplified single monthly return.
- Taxpayers with less than 5 crores annual turnover will file only quarterly return.
- A fully automated GST refund module will be implemented.
- Multiple tax ledgers for GST payers will be replaced by just one.
- GST reduced on EV from 12% to 5%.
- Defence imports not manufactured in India to be exempted from Custome Duty.
- Increased Custom Duty on gold & other precious metals from 10% to 12.5%.
- Non-calamity & contingent duty imposed on tobacco products.