Category: Tax Planning

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New Income Tax Act Amendments coming into effect from 1st September, 2019 as proposed in Budget.

NEW AMENDMENTS TO INCOME TAX ACT EFFECTIVE 1ST SEPTEMBER 2019 TDS ON PAYMENTS MADE IN ADDITION TO BASIC PRICE WHILE PURCHASING IMMOVABLE PROPERTY From September 1, while buying a property, you will have to include the payment made for other services or amenities such as club membership fee, car parking fee, electricity and water facility fee and so on when computing the amount paid for the property for the purpose of deducting TDS. TDS ON PAYMENTS MADE BY INDIVIDUALS AND HUFS TO CONTRACTORS AND PROFESSIONALS (Section 194M) From September 1, individuals and HUFs making a payment to contractors and professionals exceeding Rs 50 lakh in aggregate per annum will also be required to deduct TDS at the rate of 5 per cent. TDS ON CASH WITHDRAWAL FROM BANK ACCOUNTS (Section 194N) Cash withdrawals exceeding Rs 1 crore on aggregate basis during the year from an account held with a bank, cooperative bank or post office will invite levy of TDS from September 1. The move is aimed at discouraging large cash transactions and also to promote a less cash economy and at the same time promoting digital transactions. *Update: Providing relief to the rural economy, the government has exempted agriculture produce marketing committees (APMCs) from the purview of the 2% tax deducted at source (TDS) on payments above Rs. 1 crore, an anti-abuse provision in the Income Tax Act introduced this year. Others exempt under this section were entities like the government, banks, cooperative societies and their banking correspondents. TDS ON NON-EXEMPT PORTION OF LIFE INSURANCE If life insurance maturity proceeds received by you are taxable in your hands, then TDS will be deducted @ 5% on the net income portion. The net income portion is defined as the total sum received less of total amount of insurance premium paid. BANKS AND FINANCIAL INSTITUTIONS CAN BE ASKED TO REPORT EVEN SMALL TRANSACTIONS Banks and other financial institutions are required to report specified financial transactions if the amount exceeded the threshold limit of Rs. 50,000/-. The Government, has now removed that limit and can direct the Banks and financial institutions to report any or all transactions which may be in turn verified with your returns filed. INTER- CHANGEABILITY OF PAN AND AADHAAR AND MANDATORY QUOTING IN PRESCRIBED TRANSACTIONS Aadhaar can be given in place of PAN only for certain specified transactions. Though the new law comes into effect from September 1, the government is yet to notify those certain prescribed transactions. PAN TO BE BECOME INOPERATIVE IF NOT LINKED WITH AADHAR PAN will become now become inoperative but not invalid if not linked with Aadhaar by the specified deadline.

INCOME TAX ACT AMENDMENTS SEPTEMBER 1ST 2019 TDS ON PAYMENTS MADE IN ADDITION TO BASIC PRICE WHILE PURCHASING IMMOVABLE PROPERTY From September 1, while buying a property, you will have to include the payment made for other services or amenities such as club membership fee, car parking fee, electricity and water facility fee and so […]

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Income Tax News Tax Planning

How to get PAN Card in 48 hours

Permanent Account Number (PAN) is a ten-digit alphanumeric ID, issued to assessee by the Income Tax Department. Each assessee viz,. individual, firm, trust, company etc. is issued a unique PAN. It is one of the most important number after Aadhaar. It is also used as identity proof. All assesses, taxpayers or individuals who are required […]

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Income Tax News Tax Planning

Want to Update your Aadhaar card photo? Here’s how to do it

Want to know how to update your photograph on your Aadhaar card, then follow the steps as it guides you through the process. It is an offline process but all steps are as important as for an online process.

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Income Tax News Tax Planning

PAN card features not to be missed

Permanent Account Number or PAN card issued by the Income Tax (IT) departments is witnessing a total revamp and changes at lightning fast speed. Income Tax department had issued some new guidelines which one needs to keep in mind before applying for a new PAN or getting some corrections done to an existing PAN. The […]

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Tax Planning

PAN cards now with Enhanced Quick Response (QR) Code

Now PAN with Enhanced Quick Response (QR) Code being printed for enhanced safety. Your PAN card is now more safe and secure with introduction of a new feature called Enhanced Quick Response (QR) Code. To check fraudulent practices in taxation and banking systems, the Income Tax Department has directed all the PAN Card Centres and […]