RECENT INCOME TAX AMENDMENTS FOR THE A.Y 2020-21 & 2021-2022
The Interim Union Budget was presented by the acting Finance Minister Piyush Goyal on 1st February 2019. The full Union Budget 2019 was presented by Finance Minister, Nirmala Sitharaman on 5 July 2019. On 25 November 2019, the Taxation Laws (Amendment) Bill, 2019 (Bill) was introduced in the Lok Sabha.
On the second Union budget, drastic changes in Income Tax has been taken place. In this article, only a few amendments have been explained which has changed the Income Tax in a big way.
Majorly applicable from AY 21-22 & SOME APPLICABLE FROM AY 20-21. Some changes are so drastic steps that this will change the Income-tax completely like an option for New vs. old in personal taxation and the same way new rates for Corporate.
Changes applicable for the assessment year 2020-21
1. Business and Profession:
Motor cars acquired on or after 23rd August 2019 but before 31st March 2020 is now depreciated at 30% and the enhanced rate of Depreciation is 30% for use of car other than hiring business only and for hiring business it is @ 45%.
2. Tax Audit:
Relaxation from Tax Audit upto 5 crores, for those having TOTAL CASH EXPOSURE less than 5% of TOTAL receipts & payments.
Date of filing of audited return -31-10including partners of firms having Tax Audit. And TAR upload by 30-9 for AY 20-21, the date of uploading TAR is 31-10-2020 & the date of filling of TAR ITR is 30-11-2020.
3. House Property:
A person can claim two properties as self-occupied house properties subject to certain conditions. its Annual value is NIL.
So Interest under section 24(b) to remain 2 lac max. . Even if you claim 2 houses as Self Occupied.
4. Capital Gain:
Section 54 – Assessee may buy 2 houses (earlier one) When LTCG below 2 cr to save Tax on LTCG of House sold. This option available only once in a lifetime.
5. Personal Taxation:
Rebate 12500 instead 2500 till income 5 lakhs.
Salary Standard deduction Rs 50000 (Earlier Rs 40000)
7. Return Filing:
Mandatory Return filling for cash withdrawal, Foreign travel exp, Electric bill consumption over certain limits irrespective of their Total income is less/more than 2.5 lakhs.
8. Corporate Taxation:
Changes for the Assessment year 2021-2022:
1. Tax deducted at Source/Tax Collected at Source:
NPS+SAF+ PF anything in excess of 7.5 lac contributed by Employer will be taxable as perquisites in hands of employee
3. Personal Taxation:
4. Other Sources:
Where any person receives any immovable property for inadequate consideration, the stamp duty value of such property as exceeds such consideration, if the difference is more than the higher of the following amounts:
(i) the amount of fifty thousand rupees; and
(ii) the amount equal to 10% of the consideration (earlier 5%)
The excess differential amount will be taxable in the hands of the receiver.
5. Capital Gain:
For indexation of property value, the Stamp Duty Value of 01-04-2001 is to be considered. not FMV as on 01-04-2001
now 10% Variation allowed for Stamp Duty Value And Sale price. Earlier it was 5%
Copyright © 2019 - All Right Reserved