Modi 2.0 Union budget : tax highlights

Let us go through the highlights of the Modi 2.0. Union Budget. This was the First Budget by the Modi Government after being elected for the second time.

  1. Same rates of tax to continue for corporate assesses.
  2. Lower rate of tax @25% was for companies having an annual turnover up to Rs. 250 crores. This rate to now is offered to all companies with turnover up to Rs. 400 crores, i.e. more than 99% of companies in India.
  3. Lowering of GST on electric vehicles from 12% to 5%.
  4. Income Tax Deduction up to Rs. 1.5 lakhs for interest paid on loans taken for buying electric vehicles.
  5. To resolve the Angel Tax issue, start-ups and their founders who provide the requisite information in their returns will not be subject to any kind of scrutiny to value the share premium.
  6. Special arrangements will be made by CBDT to expedite the process of resolving scrutiny matters of start-ups.

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  1. Extend period of exemption from capital gains on sale of residential house by investing into start ups, up to 31-Mar-2020.
  2. Additional deduction of Rs. 1,50,000 for interest paid on affordable housing till 31-Mar-2020.
  3. Inter-changeability of PAN and Adhaar.
  4. Scrutiny under Income Tax to be made face-less with no human intervention, to be launched in a phased manner. This is to prevent harassment of assesses.
  5. To discourage the practice of making business expenses in cash, a TDS of 2% will be deducted on cash withdrawal exceeding Rs. 1 crore in a year from a bank account.
  6. No charges shall be imposed on customers or the merchants for digital modes of payment. Costs will be borne by the RBI and banks from their savings.
  7. Enhance the surcharge on individuals having taxable income from Rs. 2 crores to 5 crores, and Rs. 5 crores and above, by 3% and 7%
  8. Tax payer having annual turnover up to Rs. 5 crores, shall file only quarterly GST returns.
  9. Electronic invoice system will be rolled out from Jan 2020, which will automatically also report invoices in the GST returns in an automated manner.

What are your views on the Budget ?



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