The new Income Tax Amendments which are applicable from 1 September 2019 are as under:
1: TDS on additional payment made when purchasing immovable property – From 1 Sep 2019 onward, while buying a property, payments made for other services or amenities such as car parking, electricity fees, water fees, club membership and so on needs to be added while computing TDS for amount paid / payable.
2: TDS on cash withdrawals from bank account – Cash withdrawal exceeding Rs 1 Crore in a financial year from a bank, co-operative society or post office will attract TDS.
3: TDS on payment made by Individuals or HUF to contractors and Professionals – Individuals and HUF are liable to deduct TDS at rate of 5 percent for making payment in aggregate of Rs 50 Lakh per annum to contractors and professionals.
4: TDS on non-exempt portion of Life Insurance – TDS will be deducted at rate of 5 percent for net income amount i.e. Total sum received less total amount of life insurance premium paid.
5: Banks and financial institutions can be asked to report even small transactions – Banks and financial institutions are required to report specified financial transactions if the amount exceeded the threshold limit of Rs 50,000/-.
6: PAN to become in-operative if not linked with Adhaar.
NOTE: The above tax rate structure is for information purpose only. Kindly speak to C.A. / Tax Consultant / Professional for more information.
