5 Recent Important Income Tax Changes we must know
1. TDS on additional payment made when purchasing immovable property
The government had amended 194-IA of Income Tax Act during the budget announcement in July stating that if any person purchases an immovable property of INR 50 lakh or more than that (excluding agricultural land), is required to deduct TDS at the rate of 1 % from September 1, 2019, onward. The amendment included all charges of the nature of club membership fee, car parking fee, electricity and water facility fees, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of immovable property.
2. TDS on cash withdrawals from bank accounts
The government has included a new section 194N in the Act. With this new inclusion, the TDS can be levied at the rate of 2 % on cash payments worth more than INR 1 crore in aggregate made within the year, by a cooperative bank, a banking company, or post office to any individual from an account, which is maintained by the recipient.
3. TDS on payments made by HUF / Individual to professionals and contractors
Under this provision announced in the Budget, if the payment made to a contractor or a professional or a brokerage exceeds INR 50 lakh in a year, an individual or HUF (Hindu Undivided Family) is required to deduct 5% TDS at the time of crediting such amount. This will help check evasion but may lead to a higher burden of compliance for the payer. This means that individuals making payments of over INR 50 lakh,
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4. TDS on life insurance
Section 194DA -Under the new TDS (Tax deducted at source) rule the maturity proceeds in a life insurance policy is tax-free only if the sum assured is at least ten times of the premium. For example, if the premium value stands at INR 1 lakh, the sum assured needs to be at least INR 10 lakh for the maturity value to be tax-free. Earlier, the TDS on a life insurance policy, whenever sum assured, use to be 1 per cent of the maturity value, but under the new rule it will be 5% on the net maturity amount (maturity amount minus the premium paid).
5. Interchangeability of Pan and Aadhaar
Union finance minister Nirmala Sitharaman in her Budget speech had announced that taxpayers who don’t own a PAN card (Permanent Account Number) can now file Income Tax returns with their Aadhaar Card also. The FM allowed the interchangeability of PAN and Aadhaar card for filing tax returns. more
The government had amended 194-IA of Income Tax Act during the budget announcement in July stating that if any person purchases an immovable property of INR 50 lakh or more than that (excluding agricultural land), is required to deduct TDS at the rate of 1 % from September 1, 2019, onward. The amendment included all charges of the nature of club membership fee, car parking fee, electricity and water facility fees, maintenance fee, advance fee or any other charges of similar nature, which are incidental to the transfer of immovable property.
2. TDS on cash withdrawals from bank accounts
The government has included a new section 194N in the Act. With this new inclusion, the TDS can be levied at the rate of 2 % on cash payments worth more than INR 1 crore in aggregate made within the year, by a cooperative bank, a banking company, or post office to any individual from an account, which is maintained by the recipient.
3. TDS on payments made by HUF / Individual to professionals and contractors
Under this provision announced in the Budget, if the payment made to a contractor or a professional or a brokerage exceeds INR 50 lakh in a year, an individual or HUF (Hindu Undivided Family) is required to deduct 5% TDS at the time of crediting such amount. This will help check evasion but may lead to a higher burden of compliance for the payer. This means that individuals making payments of over INR 50 lakh,
.
4. TDS on life insurance
Section 194DA -Under the new TDS (Tax deducted at source) rule the maturity proceeds in a life insurance policy is tax-free only if the sum assured is at least ten times of the premium. For example, if the premium value stands at INR 1 lakh, the sum assured needs to be at least INR 10 lakh for the maturity value to be tax-free. Earlier, the TDS on a life insurance policy, whenever sum assured, use to be 1 per cent of the maturity value, but under the new rule it will be 5% on the net maturity amount (maturity amount minus the premium paid).
5. Interchangeability of Pan and Aadhaar
Union finance minister Nirmala Sitharaman in her Budget speech had announced that taxpayers who don’t own a PAN card (Permanent Account Number) can now file Income Tax returns with their Aadhaar Card also. The FM allowed the interchangeability of PAN and Aadhaar card for filing tax returns. more
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The efficiency of SBI is much lower then other Govt Banks.Leave aside Private Banks.Needs introspection. more
Nov 30
Many villagers particularly senior citizens need hel as banks do not deal in local language. more
Nov 14
rather banks may have separate queue at the existing counters for the sr.citizens and one each persons can be handled. more
Nov 13
I don't accept / believe that Banks are shortage of staff, particularly nationalised banks. I hold accounts with a few nationalised banks where counters open after 10.30 am though banks open at 10 am. Employees generally reach office between 10.15 am and 10.30 am. Situation is quite different in private banks where employees are at the counter sharp at starting time. more
Nov 13
The Banks are so short of staff. It'll be impossible to man another counter exclusively for the Sr Citizens more
Nov 12
