Income tax related changes announced in the Budget usually come into effect from April 1. However, since the full Budget for FY 2019-20 was presented in July this year after the general elections, there are certain tax changes that will come into effect from September 1, 2019. Here are those main changes in tax laws that will come into effect from September 1. TDS on additional payments made when purchasing immovable property From September 1, while buying a property, you will have to include the payment made for other services or amenities such as club membership fee, car parking fee, electricity and water facility fee and so on when computing the amount paid for the property for the purpose of deducting TDS. Chartered Accountant Naveen Wadhwa, DGM, Taxmann.com says, "Previously, tax was deducted by the buyer from the payment made for the purchase of property. However, other payments such as club membership fees etc. were usually subtracted from the total consideration to compute … [Read more...] about 7 changes in income tax laws that come into effect from Sept 1
Missed tax deadline
The Central GST collection fell short of the budged estimate by nearly 40% during the April-November period of 2019-20, according to the data presented in Parliament on Monday. The actual CGST collection during April-November stood at ₹3,28,365 crore while the budgeted estimate is of ₹5,26,000 crore for these months, Minister of State for Finance Anurag Singh Thakur said in a written reply in Lok Sabha. The Minister added that the data was provisional. In 2018-19, the CGST collection stood at ₹4,57,534 crore as against the provisional estimate of ₹6,03,900 crore for the year, he said. In 2017-18, the CGST collection was ₹2,03,261 crore. The Minister said that as many as 999 cases were registered till October in the current fiscal for GST evasion and ₹8,134.39 crore has been recovered. In 2018-19, ₹19,395.26 crore was recovered (1,473 cases) and in 2017-18 the recovery was ₹757.81 crore (148 cases). He also said that a new CGST rule … [Read more...] about CGST collections miss target by 40% in Apr-Nov.
GST Council Meet: In a major relief to the builders of the country, the all-powerful Good and Services Tax (GST) Council has given them an option to choose between the old and the new tax regime for the under-construction residential projects to help resolve input tax credit issues. However, these builders have been given a deadline of March 31 to choose between the two taxation options. The council, headed by Union Finance Minister Arun Jaitley and including representatives of all states, during the 34th GST Council Meeting in the national capital laid out transition rules for the implementation of new tax rates for the real estate sector. “Builders will get a one-time option to continue paying tax at the old rates (effective rate of 8 per cent or 12 per cent with Input Tax Credit or ITC) on ongoing projects (buildings where construction and actual booking have both started before April 1, 2019, but which will not be completed by March 31, 2019),” Revenue Secretary AB … [Read more...] about Under-construction residential projects get Centre’s relief! GST Council allows options to choose tax rates
Talking on a variety of MSME related aspects, in the backdrop of the interim budget 2019 slated to be announced in few days, Saurabh Agarwal, Managing Committee Member, ASSOCHAM, highlights his expectations from the Finance Minister, the key hits and misses of the GST framework, and how, going forward, the 'one nation-one tax mechanism' could be made more pro-MSME. Edited excepts: ET: How do you see the current GST framework? What could be its important hits and misses for the MSMEs sector?Saurabh Agarwal (SA): The current GST framework is encouraging for Micro, Small and Medium Enterprises (MSMEs). Its major hits include doubling of the exemption limit to Rs 40 lakhs and increasing the turnover cap for availing the composition scheme to Rs 1.5 crore. MSMEs under the composition scheme will file just one tax return annually and pay taxes every quarter. Composition taxpayers are also exempted to maintaining detailed records normally required. The availability of free accounting and … [Read more...] about 2-3 tax slab structure will boost GST compliance: Assocham’s Saurabh Agarwal
A 146 square metre home in Wasatch County built in 1978 was recorded on 2019 tax rolls with a market rate value of more than $US987 million ($1.44 billion). In reality, the value should have only been a modest $US302,000 ($441,000). The Wasatch County assessor says the error occurred when a staff member may have dropped their phone on their keyboard. It caused a countywide overvaluation of more than $US6 million ($8.8 million) and a deficit in five various county taxing areas — including the Wasatch County School District — which was unable to collect the nearly $US4.4 million ($6.4 million) already budgeted, the Deseret News reported this week. “Teacher and staff salaries will not be impacted this year,” said spokesman John Moss. “However, some of the capital projects that were scheduled or proposed will need to be cancelled or postponed due to lack of funds.” County Manager Mike Davis told the outlet the shortfall was due to the mistake is more … [Read more...] about ‘Dear God, help us all’: Utah taxpayers stung after home valued at $1.4 billion in ‘horrific’ typo