In the 31st meeting held by the GST council, an introduction to a new GST return system for taxpayers was decided.
With the commencement of the new financial year 2020-21 from April 1, there will be some changes in terms of policies as well as the processes that every individual/ companies have to comply with. Right from the end of linking PAN-Aadhaar deadline to the availability of new GST return system, there will be many tax and economic changes that will become mandatory from April 1, 2020. We have listed out five changes that will come from the start of the new financial year.
Below are 5 things to take note of:
New Income Tax Regime
In Budget 2020-21, the government introduced a new income tax regime with optional rates and slabs which will become effective for the new financial year, starting April 1. Any taxpayer can opt for a new tax structure (with lesser slab) if he/she decides to opt-out of declaring their investments, earnings and filing returns according to the old regime. The move had come on the back of the government’s intentions to provide some liquidity in the hands of people.
Below mentioned are the new income tax rates:
Rs 5-7.5 lakh- 10%
Rs 7.5-10 lakh- 15%
Rs 10-12.5 lakh- 20%
Rs 12.5-15 lakh- 25%
TCS for foreign tour package
You will have to pay more for foreign travel because of 5 per cent TCS announced in Budget 2020: If you have planned a foreign trip for the next year for either study or holiday purposes, the trip is expected to be more expensive. The new provisions to collect TCS (Tax collected at source) will be implemented from April 1. You are required to pay TCS on Remittance under Liberalised Remittance Scheme (LRS) of RBI given the amount exceeds Rs 7 lakh in a fiscal. TCS will also be collected on the sales of abroad tour packages which are booked through a tour operator.
PAN Card Number
PAN will become inoperative if not linked to Aadhaar from April 1. The government has given a deadline of linking Permanent Account Number (PAN) with Aadhaar, which is March 31, 2020. Come April 1, if your PAN is not linked to your Aadhaar, it will become ‘inoperable.’ The deadline was extended multiple times last year. Around 17.58 crore PANs are currently not linked with Aadhaar while more than 30.75 crore people have done it already.
India will switch to cleanest petrol, diesel. Starting April 1, the country will leapfrog and adopt stricter emission norms. According to the government’s mandate, all the vehicles that are manufactured and sold from the beginning of the next fiscal will be Bharat Stage-VI (BS-VI) compliant. With this, the country will come at par with the global standards of Euro-6 norms. The fuel compliant to BS-VI will have 10 parts per million of sulphur in order to prevent vehicular pollution.
New GST returns
In the 31st meeting held by the GST council, an introduction to a new GST return system for taxpayers was decided. The new system, to be introduced on April 1, is simplified and an automated version. Now there are two new forms introduced under the new regime. These forms are GST FORM ANX- 1 and GST FORM ANX- 2. They will be the annexures to the main return GST RET-1/ RET-2/ RET-3, depending on which one is applicable. While GST ANX- 1 will inform about the details of outward supplies, inward supplies liable to reverse charge, and import of goods and services, GST ANX-2 will have details of inward supplies obtained from registered persons, imports made, and supplies received from an SEZ unit/developer.