Union Budget 2019: GST & Direct Tax

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Finance Minister Nirmala Sitaraman presented budget in Lok Sabha today and the following are the key concepts with respect to GST and Direct Tax

Nothing much had been spoken about GST except for the self appreciation.

Key points With Respect To GST

1. Great initiative, we have achieved one nation one tax
2. Further reforms for simplifications shall be made.
3. E-invoicing may start from Jan2020.
4. E-waybills not required for the E- invoices
5. Common refund portal shall be launched
6. Single cash ledger shall be implemented soon..
7. New return scheme gng to get implemented..
8. Interest to be paid on the net tax payable in Cash* – from a date to be notified.Ref. Sec 99 of the Finance bill

9. “Legacy dispute resolution scheme” to close the litigations of previous regime.*

Key Points with respect to Direct Tax

1. Aadhaar card and PAN to be interchangeable
2. Corporate tax rate @ 25% extended for companies having t/o up to ₹ 400 crore, covering 99% companies
3. 1.50 lacs additional deduction on interest on loans taken for buying electric vehicles
4. Interest deduction on housing loan to go up to ₹ 3.50 lacs for affordable house category
5. Surcharge to go up. Effective Tax rate to go up by 3 and 7 % for ₹ 2 to 5 crore and ₹ 5 crore and above
6. Digital payments – TDS of 2% on cash withdrawal exceeding ₹ 1 crore from bank account during the year
7. Start ups – 
a. valuation scrutiny and identification of investors to stop 
b. Assessments not to happen without prior approval 
c. Exemption on Cap gain from sale of residential house for investment in startup extended up to 31.3.21
8. Administration:
a. Prefilled tax returns to be made available to assesses having salary, cap gains and other income 
b. E scrutiny – faceless scheme to start this year without disclosing the name of AO
9. Merchants having ₹ 50 crore or more sales turnover shall be exempted from charges on credit, debit card driven transactions
10. Investment linked incentives to select sectors under section 35 AD like-Solar plants, Batteries..etc
11. NBFCs – to be at par with banks for bad debts allowance
12. 80 LA deduction, exemption of DDT etc. for IFSCs

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