Tag: Income Tax

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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 Tax Planning

CBDT notifies New PAN card rules that come into effect from 5th December, 2018

The Income Tax Department has released a notification specifying some new rules for PAN (permanent account number) card applicants and for those without PAN. The new PAN card rules will become effective from 5th December 2018. The new notification specifies that financial entities which make transactions amounting to Rs. 2.5 lakh or more in a […]

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Income Tax Refund Scam

A new internet scam in form of income tax refund mail to empty your hard earned money from your bank account is on the prowl. A salaried person is most afraid of Income Tax Department and even more if he receives a notice from the department. At the same time if one is to get […]

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Tax Planning

DUE DATE OF Income Tax Return Filing 2013 -14 EXTENDED TO 05/08/2013

DUE DATE OF ITR FILING 2013-14 EXTENDED TO 05/08/2013

A fresh breath has been pumped in to the heart of Tax payers who were facing difficulty in filing their return online or have not yet filed their returns, as the government on Wednesday extended the last date for ITR filing for 2013 of income tax returns by five days to August 5, 2013 The due date, […]

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Income Tax Rates/Slab for F.Y. 2012-13 (A.Y. 2013-14)

Income Tax Rates or Tax Slab Financial year 2012-13 is about to end on 31st March, 2013 and there is an obvious rush among salaried employees to make investment according to income tax rates and save as much income tax possible under Section 80C of the Income Tax Act, 1961. Employees are asking colleagues about […]