mode of payment, it is proposed to
amend the above sections so as to
include such other electronic mode as
may be prescribed, in addition to the
already existing permissiblemode of
payment.
This amendment will take effect from
April 1, 2020.
- A new section 194N has been inserted
to require deduction of tax at source at
2% if the aggregate of cash withdrawal
during the financial year from any
account maintained with the bank or
co-operative bank or post office
exceeds `1 crore. However, it is
proposed to exempt payments made to
certain recipients such as government
banking companies, co-operative
society engaged in carrying on
business of banking, post office,
banking correspondents and white
label ARM who are involved in
handling of substantial amount of cash
as part of their business operations. - Every person having total turnover
exceeding INR 50 crore shall
compulsorily accept payments through
prescribed electronic modes, failing
which penalty of INR 5,000 per day
shall be levied for the period of default.
Such person cannot levy extra charges
on customers for these transactions.
Boost to Start-ups India- The exemption from angel tax earlier
available to category I Alternate
Investment Fund (AIF) has been
extended to Category II AIF. Also, it is
clarified that the Central government
will notify certain class of companies
from exemption of angel tax. Further,
in the budget speech, it was also
mentioned that establishing the
identity of investor and source of fund
will be resolved by putting in place a
mechanism of e-verification. - Provision of carry-forward and set-off
loss has been relaxed by permitting
start-up to claim carry forward and
set-off of loss even if the same person
beneficially hold 51% shares in the
start-up. The sunset clause of claiming
exemption of Long Term Capital Gain
has been extended from March 31,
2019 to March 31, 2021. - Start-ups and investors who file
requisite declarations and provide
information in their returns will not be
subjected to any kind of scrutiny in
respect of valuations of share
premiums.
Tax administration
- Government to start new scheme for
faceless scrutiny e-assessments which
shall be randomly allocated to
assessing officers.- Prefilled returns to be made available
by widening the scope of furnishing
statement of financial transactions to
ease filing of income tax return. - Relaxation of Provision of Section 201
and 40 of the Income Tax Act in the
case of payment to non-resident. - Clarification with regard to power of
assessing officers doing transfer pricing
assessment - Provision for providing tax relief where
salary, etc. is paid in arrears or in
advance have been amended to give
more benefits to salaried employees. - It is also clarified that no TDS would
be deducted on non-income portion of
life insurance pay-out.
Amendment to the Black Money
and Imposition Act 2015- Now, non-resident can also be subject
to Black Money and Imposition Act if
such non-resident were resident in the
year of acquisition of undisclosed
assets and income aboard.
Benami Property Transaction Act has
also been amended to give more power
to assessing officers for properly
implementing provisions to achieve the
main object of the Act. DS