Impact of Union Budget 2019 in TAX

During the financial year (FY) 2015-16, total number of taxpayers was 4.29 crores. But in the FY 2017-18 number of taxpayers has increased to 6.43 crores. This huge rise is a clear indication that central government had implemented strict rules to deduct tax from all the taxpayers explicitly.

This budget benefited all employees with annual salary less than 5 lakhs as they are fully exempted from tax payment. For corporates, initially 30% of profit is taken as corporation tax and now it has lessened to 25%, if the annual profit is less than 250 crores. And if the turnover is more than 250 crores, they should pay 30% as corporation tax.

Aadhaar and PAN

If anyone who don’t have PAN card, he can file the IT (Income Tax) return by using the Aadhaar card. This helps government to find out those without PAN card and the government will issue a PAN card to them, by collecting details from their Aadhaar card.

Everyone should link their Aadhaar with PAN card otherwise PAN card will be invalid automatically.

Any withdrawal for more than 1 Crore in a year is subjected to TDS

If we want to withdraw more than one crore as cash from our bank account in a year, 2 % will be deducted from our account as TDS (Tax Deducted at Source). This is for the purpose of increasing online transactions and avoid black money.

Income tax Department (IT Dept) focusing on NRIs (Non-Resident Indians)

IT Department eyes the NRIs residential status and tax assets. Notices have been sent to all asking to submit last 5 to 6 years tax remittance details and passport copy before 15th August 2019. Passport copy helps IT department to find out the days they lived in India and can calculate the tax implications of each NRIs accordingly.

Thou shall file the Return

These peoples are supposed to file the IT returns

1. Those who paid electricity bill for more than 1lakh within a year should file IT return
2. People travelling to foreign countries, if the total travel expense is more than 2 lakhs should file IT return.
3. Those who invest more than 1 crore in current account.

IT department is monitoring individuals on their expenditure. Based on that amount, they will cross check with the income they filed.

Most of us take photographs of our new vehicles and international trips and post the same in social medias. This is also a trick; IT officers will follow us with the help of these photographs if we are not filed the proper income tax returns.