Budget 2020 is round the corner and so earlier we had discussed Pre budget Memorandum of ICAI. In this post we’ll discuss about various main points discussed in Pre-budget Memorandum issued by BCAS (Bombay Chartered Accountant Society).
- Reduction in tax rate of LLP and capping maximum tax rate of individuals at 30% including surcharge.
- To scrap the provisions of DDT and tax it directly in the hand of individual.
- To provide benefit of grandfathering in case of shares received after 01.02.2018 but by way of merger or demerger.
- ICDS should be scrapped.
- Threshold of for payment of advance tax to be increased to 1,00,000 from 10,000.
- Deduction of maintenance charged from Income from house property.
- Allowing CSR expenditure as expense u/s 37 of Income tax act.
- Reduce rate of deemed profit u/s 44ADA.
- Increase in limit of turnover for audit u/s 44AB of income tax act.
- Depreciation allowance of 100% where the value of asset is very low.
- Increase in limit u/s 54EC from 50 lakh to 1.5 crore.
- The limit for reopening assessment after 4 years should be increased to Rs. 5 lakh.
- Short term capital gain should be allowed to be set off against other income.
- To amend section 246A, to make order u/s 270A appealable.
- Section 271J should be deleted or allowed to be appealed before ITAT so that such power is not misused.
- Under current provision of section 115JB there is a confusion on whether to look at the loss and unabsorbed depreciation on a year to year basis or aggregate basis and thus a clarification needs to be provided.
- Increase in limit of exemption in case of clubbing of minor income from Rs. 1500 (came into force from 1993) or taxing Gift of Rs. 50000 (introduced since 2006) etc.
These are some of the major suggestions made by BCAS which would affect most of people. You can read full PDF here: BCAS
If you need assistance you can ask a question to our expert and get the answer within an hour or post a comment about your views on the post and also subscribe to our newsletter for latest weekly updates.