Clever Count

1. ITR for the AY 2019-20 has been extended to 31st July 2020.

2. TDS Return has been extended to 31st July 2020 for all taxpayers

3. Due date of Generating of Form 16 has been extended to 15th Aug 2020.

4. Time limit for depositing the deductions under chapter VI-A has ben extended to 31st July 2020.

Budget Hilight-2020
The government has proposed a new income tax regime under Section 115BAC that comprises a significant change in the tax slabs rates. Taxpayers have been provided with an option whether they want to pay taxes according to the new regime or if they want to continue paying taxes according to the existing regime. However, a few taxpayers may not be able to switch back to the existing tax slab once they opt to follow the new one.
Under section 194J- fees for technical services, TDS has been reduced to 2% from 10%.
Tax audit threshold has been increased from Rs 1 crore to Rs 5 crore provided turnover/ gross receipts in cash does not exceed 5% during the previous year. Also, payment made in the P.Y in cash does not exceed 5%. For such taxpayers, the due date for tax audit has been extended to the 31st of October from the 30th of September.
Under Section 80EEA, the additional deduction of Rs.1.5 lakh for interest paid on home loans will now be allowed for the loans sanctioned till the 31st of March 2021.
DDT has been discontinued. Instead, the recipients of the dividend will have to pay tax at their applicable rate.
In the case of startups, employees possessing Employee Stock Option Plans (ESOPs) may defer paying taxes up to five years from the time of exercise, till the time they leave the startup, or until they sell their shares, whichever is earlier.
Eligible startups with a turnover of up to Rs 25 crore is permitted to deduct 100% of its profits for three continuous assessment years of seven years if the overall turnover is under Rs 25 crore. This limit is now increased to Rs 100 crore. Furthermore, the eligibility period to deduct is increased to 10 years from 7 years.
Section 194: Dividend paid by Indian companies, to a shareholder, who is resident in India, TDS @ 10% if the dividend amount exceeds 5000 during the FY.
Section 194K: Dividend paid by MF to a resident TDS 10% will be deducted only if the dividend amount exceeds 5000 during the FY
Section 194: Dividend on shares paid by company exceeding Rs 5000 will be subject to TDS @ 10%
Section 194-O: Any payment made by e-commerce operator to the participant, the operator will have to deduct 1% TDS only if the annual amount paid or credited exceeds Rs 5 lakh.
Section 206AA: in relation to 194O has been amended to 5% instead of 20% in case of not furnishing the PAN.
Change in residential status: (Section 6)
An individual, being a citizen of India, shall be deemed to be resident in India in any previous year, if he is not liable to tax in any other country
An individual being a citizen of India, or a person of Indian origin who, being outside India, comes on a visit to India in any previous year and is in India for 120 days or more, shall be resident in India
A person is said to be “not ordinarily resident” in India in any previous year, if such person is
an individual who has been a non-resident in India in seven out of the ten previous years preceding that year;
or
a Hindu undivided family whose manager has been a non-resident in India in seven out of the ten previous years preceding that year.
Section 234G (insertion of new section) relating to payment of fee of Rs 200 per day for default in furnishing statement or certificate under section 35 by research association, university, college, company or any other institution.
Section 43CA, if value adopted for the purpose of stamp duty does not exceed 110% of the actual consideration received, then consideration so received shall be deemed to be the full value of the consideration for computing profits and gains on transfer of such asset other than capital assets. Before the amendment it was 105% instead of 110%.
Section 50C, in case of transfer of capital asset being land or building or both, if value adopted for the purpose of stamp duty does not exceed 110% of the actual consideration received, then consideration so received shall be deemed to be the full value of consideration for computing capital gains on transfer of such capital assets.Before the amendment it was 105% instead of 110%.

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