DIRECT TAX BUDGET PROPOSALS

*DIRECT TAX BUDGET PROPOSALS*

₹ 11 lac crore tax collection from ₹ 6 lac crore tax collection in last 5 years

Corporate tax rate @ 25% for companies having ₹ 400 crore sales turnover, covering 99% companies

Investment linked incentives to select sectors under section 35 AD

1.50 lacs additional deduction on interest on loans taken for buying electric vehicles

Start ups - valuation scrutiny and identification of investors to stop

Start ups assessments not to happen without prior approval

Cap gain from sale of residential house - reinvestment in start up can be made upto 31.3.21

Int deduction on housing loan to go up to ₹ 3.50 lacs for affordable house category

NBFCs - to be at par with banks for bad debts allowance

80 LA deduction, exemption of DDT etc. for IFSCs

Adhar card and PAN to be interchangeable for filing

Prefilled tax returns to be made available to assesses having salary, cap gains and other income

E scrutiny - faceless scheme to start this year without disclosing the name of AO

Digital payments - TDS of 2% on cash withdrawal exceeding ₹ 1 crore from bank account during the year

Merchants having ₹ 50 crore or more sales turnover not to levy charges on credit, debit card driven transactions

Surcharge to go up. Effective Tax rate to go up by 3 and 7 % for ₹ 2 to 5 crore and ₹ 5 crore and above