1. Individuals having Net Taxable Income upto 5,00,000 will have no Income Tax by way of rebate. However, Basic Exemption limit stands at 2,50,000. Surcharge rates will be increased for individuals having income exceeding 2cr and 5 cr respectively to make their net rate increase by 3% and 7%.
  2. Lower corporate tax of 25% on Companies having turnover up to 400 crores
  3. GST for electric vehicles reduced from 12% to 5%.
  4. Deduction on loan for purchase of electric vehicle of Rs. 1.5 lakh (Upto repayment will go to 2.5 lakhs)
  5. Enhanced deduction of Affordable Housing Scheme :- Additional Deduction of Rs 1.5 Lacs (taking total deduction of interest to Rs 3.5 Lacs) if the value of house is upto Rs 45 Lacs
  6. Start Ups furnishing requisite declarations will be exempt from Angel Tax ie 56(2)(viib) scrutiny in the valuation of shares. Pending assessments will be closed by launching a scheme. No startup tax for issue of shares to Category I and II Alternate Investment Funds. Relaxation of conditions for set off and carry forward.
  7. Extension of Exemption u/s 54GB (i.e. sale of residential house and investing in start-up business) upto 31/3/21
  8. PAN and Aadhar can be used interchangeably ie Return can be filed without PAN using Aadhar. Pre filled Return will be available for ease of filing.
  9. E assessments will include zero human interface. E notices will be without Name, Designation, Location of Assessing Officer
  10. TDS @ 2% to be deducted by bank on cash withdrawal of more than Rs 1 crore during the financial year.
  11. Custom duty to be increased from 10% to 12.5% on gold and precious metals.
  12. Legacy Dispute Resolution Scheme for quick closure of pending litigations in pre GST era i.e. Service Tax, Excise, etc.

For any queries/clarification you may contact

CA. Bharat Poplani