The Indian finance minister just declared the financial bills that have 40 new amendments. The amendments are majorly focused on cashless transaction and tribunals. Honorable finance minister Arun Jaitley stated the financial bill and below amendment was passed by the Loksabha.
Adhaar mandatory for income tax filing and PAN
From first of July 1 aadhar will be an obligatory document for filing Income Tax Return and also for permanent account number (PAN). It is mandatory to link your PAN number with your 12 digit UI number before the deadline.
Limit on cash transactions at 2
Now you can only deposit of withdraw money below 2 lakhs if it is in the form of cash. It was earlier proposed that the limits will be 3 Lakhs, but later it was capped to 2 Lakhs. The implementation of this amendment is to reduce the cash transaction and improvise the cashless transaction figures.
Corporate tax reduction
Corporate tax assessment has been lessened from 30% to 25% for SME’s and small firms with a yearly turnover of up to 500 million rupees to lift investment. The rate of individual salary charge on yearly salaries of Rs. 250,000 to Rs. 500,000 is brought down to 5% from 10 %.
Tax exemption for builder and real estate developers
Tax exclusions have been provided for real estate builders, on the off chance that they finish their tasks in five years. New companies have likewise been exempted from paying a wage to impose for any three continuous years out of introductory seven years after incorporation.
- Officials of the income tax department are permissible to raid any place without giving a prior notice or explanations.
- Electoral bonds can be issued by the small banks after the approved authorizing of Reserve Bank of India. These bonds can only be bought by the modes of digital payments and cheque if an individual plan to fund election campaigns and political parties.
- One of the amendments includes the merging of various administrative tribunals.
Looking at this change in the financial structure will probably motivate the cashless transaction numbers, improve transparency in the transaction and eliminate the generation of black money.