Corporate and Professional Updates on 6th July 2019

Direct Tax Updates:

• Direct tax revenue has grown 78 percent i.e 11.37 lakh Crores from 2014 to 2019. Propose to enhance surcharge on taxable income of Rs. 2 to 5 cr and Above 5 Crore* effective tax rate will  increase by around 3% and 7%, respectively
• Corporate Tax- Tax Rate of 25% on Companies with turnover from 250 Cr of up to Rs. 400 crores. This will cover 99.3 % of companies.
• Start up’s would not be require Scrutiny by IT Department. Carry forward and set off losses for startups and increase in period of exemption of capital gains from the sale of residential house for investment in startups up to March 2021.
• Additional deduction of Rs. 1.5 lakh for interest on loans borrowed for affordable housing until 2020 (up to 45 Lakhs). STT is proposed to be restricted to the difference between settlement and strike price of options.
•  Interchangeability of PAN and Aadhaar for Income Tax Returns. Faceless E-assessment for Tax Scrutiny. TDS of 2% on cash withdrawal exceeding Rs. 1 cr. from a Bank account per year.

Indirect tax Updates:

• GST rate reduced on electric vehicles from 12% to 5%. Tax deduction on loan taken for the purchase of electric vehicle: Additional Income tax deduction of      Rs. 1.5 lakh of interest on loan taken for the purchase of electric vehicles.
• Start up’s would not be required Scrutiny by IT Department. Carry forward and set off losses for startups and increase in period of exemption of capital gains from the sale of residential house for investment in startups up to March 2021.
• Additional deduction of Rs. 1.5 lakh for interest on loans borrowed for affordable housing until 2020 (upto 45 Lakhs). STT is proposed to be restricted to the difference between settlement and strike price of options.
•  Interchangeability of PAN and Aadhaar for Income Tax Returns. Faceless E-assessment for Tax Scrutiny. TDS of 2% on cash withdrawal exceeding Rs. 1 cr. from a Bank account per year.

Key Due Dates:

• 07-07-2019 – Deposit of TDS/TCS for the month of June 2019.
• 07-07-2019 -Equalisation levy deposit which is withheld at the time of payment by the service recipient where the annual payment made to one service provider exceeds Rs.1,00,000 in one financial year for the specified and notified services.
• 10-07-2019 – GSTR 8 for E-Commerce Companies for the m/o June 2019.
• 10-07-2019 – Filing GSTR-7 (for the assessee who is required to deduct TDS under GST) for the m/o June 2019.
• 10-07-2019 – Issue of TDS Certificate for salary for the financial year 2018-19.
• 11-07-2019 – GSTR-1 for the month of June 2019 for taxpayers with Annual Aggregate turnover more than 1.50 Crore.
•  13-07-2019 – GSTR-6 for Input Service Distributor.
• 14-07-2019 – Issue of TDS Certificate for tax deducted under section 194-IA/194-IB in m/o           May’19.
• 15-07- 2019 – Quarterly statement of TCS for the quarter ending 30 June 2019.
• 15-07-2019- ESI/PF Payment for m/o June 2019.
• 15-07-2019- FLA Report it is required to be submitted directly by all Indian Companies which have received  FDI or made FDI abroad for m/o June 2019.
• 18-07-2019- GSTR-4 Quarterly return for taxpayers opting for composition scheme.
• 20-07-2019 – GSTR-3B for the m/o June 2019.
• 20-07-2019 – GSTR-5 for the m/o June 2019.
• 20-07-2019 – GSTR-5A for the m/o June 2019.
• 25-07-2019-  EPF returns filing for the month of June 2019.
• 30 -07-2019 -Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2019.
• 30-07-2019 – Furnishing challan-cum-statement in respect of tax deducted u/s 194-IA/194IB in the month of June’19.
• 31-07-19 – GSTR-1 for June Quarter applicable for taxpayers with Annual Aggregate turnover up to Rs. 1.50/- Crore.
• 31-07- 2019 – Quarterly statement of TDS for the quarter ending 30 June 2019.
• 31-07- 2019 – Income Tax return for the F.Y 2018-19 (A.Y 2019-20) for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) working partner of a firm whose accounts are required to be audited or (d) an assessee who is required to furnish a report u/s 92E.
• 31-07-2019- Payment of Professional Tax and Shop and Establishment taxes.
• 31-07-2019- Form 67 Due date for claiming Foreign Tax Credit, upload statement of Foreign income offered for tax for the previous year 2018-19 and of Foreign tax deducted or paid on such incomes.