Tax Part

Affordable housing

Buyers :::Intrest deduction
>Earlier= if you have taken house loan  till 31^st March 2020==intrest incurred will be deducted till  1.5 lakh .
>Budget= Date extended by 1 year ==ie. 31^st March 2021.

Builder:::Tax holiday
>Earlier=Profit earned from affordable housing = no tax till 31^st March 2020.
>Budget= Date extended by 1 year.

Real estate::: Unhappy
>Demands:
                 >>Rollover of Loans taken by Real Estate.
                 >>Better Rental Housing Policy = as most FDI is in commercial rentals
                              >>>10% rise in luxuary rental  that are unoccupied bcoz of bad rental policies.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Double taxation on Dividend

>Defination=  When a company earns Profit and wants to give dividend to its share holders; Company had to gove tax on dividend called”Dividend Distribution Tax (DDT)”
>Problem=
1)Company were reluctant to give dividend fearing heavy DDT.
2)Foriegn investor = didnt got benefit of double taxation agreement in DDT

>Budget = DDT removed ==only share holder (Person not company) will give tax on dividend earned if its in taxable slab.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Cooperative tax in par with Corporate

>Background:

Both cooperative and corporate sector used to pay 30% tax........Budget 2019 = Reduced corporate tax........Cooperative remined at same level(30 % )
>Demand = Amul= a dairy cooperative asked to bring it at par with corporate.

Budget= cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess with no exemption/deductions,”

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Coustom Duty increased:::Chinese maal

>Budget=Toys + electrical appliance +footwear + Funiture + Mobile etc = steep increase @ Custom duty
>benefit = stop dumping + save MSME
>Newspaper= Machinery/ paper  duty decreased.
>Import @MSME=  goods required by MSME=Plastic + Machinery etc = custom reduced.
>Extra promise = to work on “Source of Origin” to preven missuse of FTA.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Finance Commission::::J&K
>Finance Commission kept the devolution % of tax for state same= 42%
>Although each State will recieve only= 41% == 1% will go to newly formed 2 UT(Kashmir + Laddhak)
>Budget excepted the proposal ↑.

>Defence exp recommendation= Disinvestment of Public sector + Cess +Monitising surplus land + insurance of tax free defence bond etc
>trend@ defence exp = 2011-2016 out lay of defence exp less then budget allocation........afterward trend reversal is seen.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Taxpayer's Charter
>Background = innocent taxpayers were being harrassed by IT officials.
>Budget= FM promised to add "Charter" in  "Central Board of Direct Taxes (CBDT)" through amending IT act.