As we enter new Financial Year 2019-20, let’s have a look at the various changes under the Income-tax law and GST which shall be applicable from April 1, 2019.

Income tax

1. Section 87A rebate

The amount of tax rebate has been increased from Rs. 2,500 to Rs. 12,500. It is applicable for income not exceeding Rs. 5, 00,000.

2. E-deduction from salary

The limit of standard deduction 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 one self-occupied house property, then only one house property as per his choice is treated as self-occupied, and its annual value is nil.

The aggregate deduction for interest on housing loan for both houses cannot exceed Rs. 30000 or Rs. 2, 00, 000.

4. Section 54 relief extended to 2 residential houses

Any long-term capital gains, arising to an Individual or HUF, from the sale of residential house property is exempted to the extent, that such capital gains are invested in another residential property.

5. TDS on interest income

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 bank, co-operative society or post office.

6. TDS on rental income

The threshold limit for deduction of tax at source is 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 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.

GST

1. New Scheme is now available @ 6% to Intra-State Suppliers of Goods or Services.

A new scheme has been introduced, wherein an Intra-State supplier can now pay GST at the rate of 6% (3% for Central and 3% for respective State) on first supplies of goods or services worth 50 lakhs.

2. Threshold Limit for composition scheme has been increased to Rs. 1.5 crores

The existing threshold limit on a gross turnover in the previous financial year to avail of the composition scheme has been increased from Rs. 1 crore to Rs. 1. 5 crores. In respect of North-Eastern States, the limit has been increased to Rs. 75 lakhs.

3. Threshold limit to take registration has been increased to Rs. 40 lakhs

Every person is required to obtain the GST registration if his turnover from the supply of goods or services exceeds Rs. 20 lakhs. This revised limit is now Rs. 40 lakhs.

4. Due dates for filing of GSTR-1 and GSTR-3B

GSTR-1

If the turnover is up to Rs. 1.50 crores for the months of April to June 2019, he shall file his GSTR-1, and the due date shall be 31st July 2019.

If the turnover exceeds Rs. 1.50 crores for the months of April to June 2019, he shall file his GSTR-1 , and the due date shall be 11th of the succeeding month.

GSTR-3B

Form GSTR-3B shall be filed every month by every taxpayer who is required to file GSTR-3B, and 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 intimation, duly signed and verified, on the GST common portal, by latest March 31, 2019.

6. Last chance to avail Input Tax Credit relating to F.Y. 2017-18

The registered person can avail input tax credit of GST paid from July 2017 to March 2018, latest by the due date of furnishing the return for the month of March 2019, i.e. by April 20, 2019.

7. The availing benefit of reduced GST Rates by real estate developers or builders

The GST Council had recommended the GST rate of 1% in the case of affordable houses and 5% in other cases. The promoters shall be given a one -time option to continue to pay tax at the old rates (i.e., at 8% or 12% with ITC) on ongoing projects (if construction and actual booking have started before 01-04-2019) which have not been completed by March 31, 2019.

8. Due date to file Form ITC-04 for Goods sent to Job-worker.

The last date to furnish a declaration in Form GST ITC-04 from July 2017 to December 2018 is March 31, 2019.

10. Availing Input tax credit by Banks, Financial Institutions or NBFC.

Banks or financial institution or NBFC have been given an option to avail 50% of the eligible Input tax credit on inputs, capital goods and input services on or before April 1, 2019.

For carrying out business, companies are required to meet compliance requirements. There are various laws and acts that a business needs to follow. Failure to comply with the regulations may lead to punitive action from the concerned authorities. There are central laws, and there are state laws with which a business must comply.