More Incentives, More Reasons to Become Filer

The second mini budget was finally unveiled by Finance Minister on January 23, 2019. The Govt. has proposed has offered various incentives to capital markets and industries including agriculture, small and medium enterprises (SMEs), banks and automobile industry, in particular as part of the proposal. Some of the key incentives that should boost business and investors’ confidence are as follows:

·       Removal of tax on undistributed reserves by listed companies

·       Reduction in filing requirement of monthly advance tax return by withholding agents to bi-annual

·       No super tax on banking sector

·       Reduction of tax on inter-company dividends for group companies

·   Reduction in tax rates on banks’ interest income from advances given to Micro, SME, Low Cost Housing Finance and Farm Credit.

The government has also proposed some additional incentives to filers and / or additional taxes for non-filers as outlined below:

·       50% increase in rates of Advance Tax on registration of motor vehicles for NON-FILERS:

S. No	Engine Capacity	Tax for Non-Filers
		Current	Proposed
1	850   cc or below	10,000	15,000
2	851   cc – 1000 cc	25,000	37,500
3	1001 cc – 1300 cc	40,000	60,000
4	1301 cc – 1600 cc	100,000	150,000
5	1601 cc – 1800 cc	150,000	225,000
6	1801 cc – 2000 cc	200,000	300,000
7	2001 cc – 2500 cc	300,000	450,000
8	2501 cc – 3000 cc	400,000	600,000
9	Above 3000cc	450,000	675,000

 

·       No Advance Tax on Cash Withdrawals and Banking Transactions for FILERS.

·    Option to carry forward capital losses on sale of securities for up to three years from tax year 2019 onwards.

It is only a matter of time, and one expects that the government will continue to offer more incentives to filers and tighten the noose for non-filers.

 

Have any questions or comments? Shoot us an email at info@befiler.com or call us at (021) 35303294-6 during office hours. 

 

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