Thread by @manoj_gujaran

As we are heading towards the beginning of Financial Year 2019-20, it's important to know about provisions of law applicable from Apr 1, 2019. @narendramodi led govt had made various changes under Income-tax law & GST applicable from 1/4/19.
Cc @TeamNamoBrigade @LillyMaryPinto

@PiyushGoyal in his recent budget speech had announced the following:

Income tax :
1.Sec 87A rebate - Amount of tax rebate under Sec 87A increased from Rs.2,500 to Rs.12,500. Further, it shall be available to resident individual whose total income does not exceed Rs. 5,00,000.

2.Standard deduction from salary :

The limit of standard deduction for the salaried class taxpayers has been increased from Rs. 40,000 to Rs. 50,000.

3.No deemed rental income on having two residential house properties.

If an individual owns more than 1 self-occupied house property then only 1 house property as per his choice is treated as self-occupied and its annual value is computed as nil.

Other house property is deemed to be let-out as per sec 23 & notional rent is computed & charged to tax under the head 'Income from House Property'.

Contd..

Cc
@aditya2585 @OKarthik82 @v2l2b2 @AnilMJacob @GitaSKapoor

Sec 23 amended w.e.f. 1/4/2019 to provide relief to the taxpayers by allowing them an option to claim nil annual value in respect of any two houses declared as self-occupied.

Though from FY 2019-20, assessee can claim annual value as NIL for 2 self occupied properties.

However, there is no change in aggregate limit for deduction in respect of interest on housing loan. Aggregate deduction for interest on housing loan for both houses cannot exceed Rs. 30000 or Rs. 2,00,000.
@TeamNamoBrigade @OKarthik82 @AnilMJacob @LillyMaryPinto @_NAN_DINI

4.Sec 54 relief to 2 residential houses - Any long-term capital gains, arising to an Individual/HUF, from sale of residential property is exempted tht such capital gains are invested in another residential property and was allowed to invest only in 1 residential house in India.

From FY 2019-20, assessee shall be able to claim exemption under sec 54 even if he invests in 2 residential houses in India. However, this benefit shall be available where capital gain does not exceed ₹2 cr.

Further, if the assessee exercises this option, he shall not be subsequently entitled to exercise the option for the same or any other assessment year, i.e., the assessee can exercise this option only once in a lifetime.

5.TDS on interest income - Sec 194A deals with TDS ded. on interest income other than interest on securities like interest on Fixed Deposits.

Sec 194A amended to ease the burden of compliance by way of increasing the threshold limit from Rs. 10,000 to Rs. 40,000 for deduction of tax at source on interest income, other than interest on securities, paid by a banking company, co-operative society or a post office.

6.TDS on rental income - Threshold limit for deduction of tax at source under section 194-I on rental income has been increased from Rs. 1,80,000 to Rs. 2,40,000.

7.Amendment to DTAA with Singapore and Mauritius - Protocols with Mauritius and Singapore were signed in year 2016 to tax capital gains. The protocol gave India the right to tax capital gains on transfer of shares of an Indian Company acquired on or after 1 April, 2017.

Upto March 31, 2019 tax rates on capital gains is charged at 50% of the prevailing domestic rates. With effect from April 1, 2019 capital gains shall be charged at full domestic rates.
Cc
@TeamNamoBrigade @mitalishah121 @varshasinghmcx @muglikar_ @dhaval241086 @EconomicGyani

GST:
1. New scheme is now available at 6% to Intra-State Suppliers of Goods or Services - recently introduced wherein an Intra-state supplier can now pay GST at the rate of 6% (3% for Central and 3% for State) on first supplies of goods or services for ₹ 50 lakh.

Wef Apr 1, 2019 this scheme can be availed only if the aggregate turnover of supplier does not exceed Rs. 50 lakhs during the previous financial year. This has been made effective vide Notification No. 02/2019 – Central Tax (Rate) dated March 7, 2019.

Benefit of this scheme shall not be available to service providers who are rendering services in multiple States or through e-commerce websites. Thus, CAs, Architects, etc. may not avail, this scheme if they have clients in different States.
Cc @TeamNamoBrigade @EconomicGyani

2.Threshold Limit for composition scheme increased to ₹1.5 cr - Existing threshold limit on gross turnover in previous FY to avail of composition scheme has been increased from ₹1 cr to ₹1.5 cr. In respect of NE States, threshold limit increased from ₹50 lakhs to ₹75 lakhs.

Consequently, the taxable persons can substantially reduce their compliance burden as they would be required to file GST returns on quarterly basis instead of monthly basis vide Notification No. 14/2019 – Central Tax dated Mar 7, 2019 wef April 1, 2019.

3.Threshold limit to take GST registration increased to ₹40 lakhs - Sec 23 of CGST Act, every person is required to obtain GST regn if his turnover from supply of goods or services exceeds Rs. 20 lakhs.

As per Notification no. 10/2019 – Central Tax dated Mar 7, 2019 wef Apr 1, 2019 this threshold limit increased to ₹ 40 lakhs only if supplier is engaged in supply of goods, not required to take GST regn.

This exemption from GST registration is subject to various conditions, inter alia, he is not making any Inter-State supply, he is not a non-resident taxable person, etc.

4.Due dates for filing of GSTR-1 and GSTR-3B announced for April, May and June 2019 notified as follows:
In case of GSTR-1
a) turnover of registered person is upto ₹1.50 cr for Apr-June, 2019, shall file his GSTR-1 on quarterly basis & due date shall be 31st July, 2019.

If turnover > ₹1.50 cr for Apr-June, 2019, shall file GSTR-1 on monthly basis & due date shall be 11th of succeeding month.

GSTR-3B - Form GSTR-3B be filed on monthly basis by every tax payer who is required to file GSTR-3B & due date shall be 20th of the succeeding month.

5.Option to opt for Composition Scheme - Any registered person who wants to pay tax under Composition Scheme for the F.Y. 2019-20 shall file an intimation, duly signed and verified, on the GST common portal, latest March 31, 2019.

6.Last chance to avail Input Tax Credit relating to F.Y. 2017-18 - Registered person can avail input tax credit of GST paid from July, 2017-Mar, 2018, latest by due date of furnishing return for Mar, 2019 i.e. by April 20, 2019.

7.Availing benefit of reduced GST Rates by real estate developers or builders - GST Council in its 33rd and 34th meeting had recommended GST rate of 1% in case of affordable houses and 5% in other cases, without input tax credit.

Promoters to be given one-time option to continue to pay tax at old rates (i.e., at 8% or 12% with ITC) on ongoing projects (if construction and actual booking have started before 01-04-2019) & not been completed by Mar 31, 2019.

The above option to be exercised once within a prescribed time frame and where it's not exercised, new rates shall apply.

However, new tax rates in real estate sector are recommendations of the GST Council and date of applicability of new tax rates have not been notified yet.

8.Due date to file Form ITC-04 for Goods sent to Job-worker - Last date to furnish declaration in Form GST ITC-04 in respect of goods dispatched to/ recd from job-worker from July, 2017 to Dec, 2018 is Mar 31, 2019 vide Notf. No.-78/2018-Central Tax dt Dec 31, 2018.

9.Benefits related to Specific Industry - Money changer (Forex Dealer); Air travel agent; Dealer of second hand goods opting for 'Margin Scheme'; or Taxpayer engaged in Life Insurance business are given option to determine value of such supply as per rule 32 of CGST Rules, 2017.

It is suggested that the above mentioned eligible registered persons intended to determine the value of their supplies as per the valuation rules can exercise the option at the beginning of the Financial Year that is on or before April 1, 2019.

10.Availing Input tax credit (ITC) by Banks, Financial Institutions or NBFC - Option to avail 50% of eligible ITC on inputs, capital goods and input services. This option be exercised on or before Apr 1, 2019 as option once exercised cant be withdrawn in remaining part of FY.

11.Following Amendment Acts made applicable from Feb 1, 2019-
(a) CGST (Amendment) Act, 2018
(b) IGST (Amendment) Act, 2018
(c) UTGST (Amendment) Act, 2018
(d) GST (Compensation to States) Amendment Act, 2018.

Major changes are as follows:
(a) Manner of utilization of ITC has been amended by inserting Sec 49A in CGST Act. Credit of IGST needs to utilized first fully for payment of IGST, CGST, SGST & UTGST respectively.

(b) Sec 9(4) relating to reverse charge applicability on purchases made by registered person from unregistered person replaced, now it applies to specific class.
(c) E-comm operators reqd to collect tax at source u/s 52 of CGST Act, 2017 mandatorily reqd obtain GST regn.

(d) Composition dealers as per sec 10 of CGST Act, 2017 allowed to supply services to the extent higher of 10% of turnover in preceding FY or ₹5 lakh.
(e) Multiple GST regn within same state for each place of business allowed. Concept of business vertical is done away with.

(f) Issue of consolidated debit/credit note allowed in respect of multiple invoices issued in a financial year rather than single debit/credit note in respect of each invoice.
Cc
@LillyMaryPinto @prettypadmaja @EconomicTimes @TheEconomist @wef @FinancialTimes @FinancialTimes

(g) Receipt of payment in INR permitted by RBI for services exported out of India, will be covered in definition of 'export of services' as per IGST Act, 2017.
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Cc @TeamNamoBrigade @muglikar_ @PiyushGoyal @GST_Council @EconomicGyani @MainChowkidar @OpIndia_com