CA Updates by CA. Pooja Shukla RYPS

The Government has made some some certain Amendments in the Income Tax Act 1961 “The Act” and the Finance Act 2019. 1. FOR DOMESTICE COMPANIES -  Anew provision has been inserted in the Income Tax Act with effect from FY 2019-20. Which allows an option to pay income – tax at the rate of 22% . The effective tax rate for these companies shall be 25.17% inclusive of surcharge & cess. Also , such companies shall not be required to Pay Minimum Alternate Tax (MAT).             CONDITION            Domestic Company will not avail any exemption / incentive. 2. NEW DOMESTICE MANUFACTURING COMPANIES (Incorporate on or after 1st October 2019)   Another new provision has been inserted in the Income Tax Act with effect from FY 2019-20 allows an option to pay Income Tax at the rate of 15 % . the effective tax rate for these companies shall be 17 .01% inclusive of surcharge & cess . Also , such company...

In order to provide hassle -free tax environment to the Start-ups. CBDT issued various circulars / clarifications on a series of announcement  have been made by Finance Minister Smt. Nirmala Sitharaman in her General Budget 2019 and also on 23rd August 2019. The present circular inter alia highlights the following: - i) Simplification of process of assessment of Strat-ups – Circular No 16/2019 dated 7th of August 2019 provide for the simplified procedure of assessment of Start-ups recognized by DPIIT . the circular covered cases under “limited scrutiny “, cases where multiple issues including issue of section 56(2)(viib) were involved or cases where Form No 2was not filed by the start-ups entities. ii) Time limit for completion of pending assessments of Start -ups: All cases involving “ limited scrutiny “ were to be completed preferably by 30th September 2019 and the other cases of start-ups were to be disposed off on priority preferably by 31st October 2019. iii) Proc...