Budget 2019 Focus Points:
Tax Rebate bonanza
Individual Assessee whose income does not exceed 5 lakhs or extended upto 6.5 lakhs with the investments prescribed under section 80C need not have to pay taxes, as the tax rebate has been increased upto 5 lakhs. Whereas assessee having income above the above said limits, the taxes will remain as usual.
Salary Income benefit
Salaried taxpayers get the tax relief through increase in deduction from Rs. 40,000/- to Rs. 50,000/-. This is irrespective of your salary scale to all the salaried earners.
House property Income boon
An assessee holding two houses for the purposes of residing self, need not have to pay taxes on notional rent basis for their second house. As the exemption has been extended from one house to two houses for self-occupation.
Rental Income boon
No Tax Deduction at Source (TDS) on rental income earned upto Rs. 2,40,000/- as compared to earlier Rs. 1,80,000/-
Bonanza for capital gains on sale of residential house and reinvestment on the same
Exemption under section 54 for purchase or construction of residential houses is now extended to two houses (previously it was only for one house) for the assessee having capital gain income upto 2 crore and the same shall be once in a lifetime.
Interest Income boon
No Tax Deduction at Source (TDS) on interest earned from bank and post office deposits upto Rs.40,000/- as compared to earlier Rs. 10,000/-
Bonanza for Developers and Builders of Housing Projects
- Deduction under Section 80-IBA i.e. an amount equal to hundred per cent of the profits and gains derived from business of developing and building housing projects to Developers and builders is being extended for one more year, i.e. to the housing projects approved till 31st March, 2020.
- A Builder holding unsold inventory of building, for the period up to two year (previously one year) from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority, need not have to pay taxes on notional rent.
We have expressed our views on the budget proposals solely for educational purposes only as well as to give you general understanding of the budget proposals, not to provide specific legal advice. Our article should not be substitute for competent legal advice. Author can be reached at email@example.com
FAQs on The Banning ofUnregulated Deposit SchemesOrdinance 2019 for Jewellers
Whether Jewellers offering saving schemes covered by this Ordinance?
Jewellers in their course of business accept advance against the goods to be sold after a specified period. Such advance are not deposits.
Whether monthly deposit schemes offered by gold jewellery shops to prospective buyers who will purchase the jewellery out of such accumulated deposited amount from the said shop covered under the Ordinance?
Jewellers in their course of business accept advance against the goods to sold after a specified period. Such advances are not deposits.
A jeweler (Individual/PF/Pvt Ltd co) accepts gold every month from general public as loan and pay interest @ X% pa in terms of gold only and the said gold deposit is repayable on demand by giving a letter 15 days before the redemption date. Jewellers issue pass book for recording entry for gold deposit and interest and repayment. What is the impact on such scheme under Banning of unregulated deposit ordinance?
It may be said that the ordinance is applicable to the business of taking deposits
i.e., Where collecting deposit is the prime/ substantial activity.
Mostly jewellers offering monthly gold savings schemes do not carry out the scheme as their prime/substantial activity, so they may not be covered under the Ordinance, as definition of deposit under Section 2(4) talks about only amount received (not in kind).
Jewellers run easy instalment schemes for customers. These are advances given by customers against purchase and in return the customer is given incentive in the form of discount on the purchase the he makes.
Do these schemes come under the purview of Deposits if run by a company (pvt/public ) if the period of the schemes is less than 365 days?
If such schemes are run by an LLP, irrespective of period of schemes, do they fall under the purview of unregulated deposits?
Jewellers in their course of business accept advance against the goods to be sold after a specified period. Such advances are not deposits. For companies the period of supply should not exceed 365 days. For others including LLP, this Ordinance has not prescribed any time period yet.
We have compiled FAQs on The Banning of Unregulated Deposit Schemes Ordinance 2019 issued by Institute of Chartered Accountants of India which are applicable to Jewellers solely for educational purposes only as well as to give you general understanding of the ordinance, not to provide specific legal advice. Our compilation should not be substitute for competent legal advice. Author can be reached at firstname.lastname@example.org