Income Tax Slab & Rate for FY 2019-20

In India, Income Tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab.

Such tax slabs tend to undergo a change during every budget.

Further, since the budget 2018 has not announced any changes in income tax slabs this time, it remains the same as that of last year.

There are three categories of individual taxpayers:

1.Individuals (below the age of 60 years) which includes residents as well as non-residents

2.Resident Senior citizens (60 years and above but below 80 years of age)
3.Resident Super senior citizens (above 80 years of age)

Income Tax Slabs for Individual Tax Payers & HUF
(Less Than 60 Years Old) for FY 2019-20

Income Tax Slabs	Tax Rate	Health and Education Cess
Up to ₹2,50,000*	Nil	Nil
₹2,50,001 to ₹5,00,000	5% of total income exceeding ₹2,50,000	4%
₹5,00,001 to ₹10,00,000	₹12,500 + 20% of total income exceeding ₹5,00,000	4%
Above ₹10,00,000	₹1,12,500 + 30% of total income exceeding ₹10,00,000	4%

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

*Income tax exemption limit for FY 2019-20 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)

Income Tax Slabs for Senior Citizens
(60 Years Old Or More but Less than 80 Years Old) for FY 2019-20

Income Tax Slabs	Tax Rate	Health and Education Cess
Income up to Rs 3,00,000*	No tax
Income from Rs 3,00,000 – Rs 5,00,000	5%	4% of Income Tax
Income from Rs 5,00,000 – 10,00,000	20%	4% of Income Tax
Income more than Rs 10,00,000	30%	4% of Income Tax

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
*Income tax exemption limit for FY 2019-20 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

Income Tax Slabs for Super Senior Citizens
(80 Years Old Or More) for FY 2019-20

Income Tax Slabs	Tax Rate	Health and Education Cess
Income up to Rs 5,00,000*	No tax
Income from Rs 5,00,000 – 10,00,000	20%	4% of Income Tax
Income more than Rs 10,00,000	30%	4% of Income Tax

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

*Income tax exemption limit for FY 2019-20 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Income Tax Slabs for Domestic Companies for FY 2019-20

Turnover Particulars	Tax Rate
Gross turnover upto 250 Cr. in the previous year	25%
Gross turnover exceeding 250 Cr. in the previous year	30%

In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7%
Taxable income is more than 10Cr. :12%

Key points for first ever filing of GST Annual returns

The government has introduced different types of annual return keeping in mind the various categories of taxpayers

The Central Board of Indirect tax and Customs (CBIC) has issued the format of annual returns under the Goods and Service Tax (GST). The Taxpayers have to file their first GST annual returns pertaining to the Financial Year 2017-18 by December 31, 2018. 

The government has introduced different types of annual return keeping in mind the various categories of taxpayers. For instance, GSTR-9 for regular taxpayers and GSTR-9A for composition scheme taxpayers have been issued.

No ITC on buses/cars hired for transportation of employees from various locations to factories: AAR

GST : Services of contractor for hiring of buses/cars for transportation of employees qualifies as 'rent-a-cab' as any commercial vehicle hired for passenger transportation is covered by such phrase. Hence, in view of restriction contained under section 17(5)(b)(iii) of CGST Act, 2017 applicant factory owner is not eligible to take ITC on GST charged by Contractor for hiring of buses/cars for transportation of its employees

Haryana AAR holds that applicant is not eligible to take ITC on GST charged by the Contractor for hiring of buses/cars for transportation of employees in view of restriction contained u/s 17(5)(b)(iii) of CGST Act, 2017; Rejects applicant’s contention that buses which can carry large number of passengers would not qualify under “rent-a-cab” observing that any commercial vehicle hired for passenger transportation is covered by such phrase;...

Hightlights of GST Council Meeting held on 10th January 2019

10th January 2019:  32nd GST Council meeting was held at New Delhi and chaired by Shri Arun Jaitley. Announcements made was a big relief to MSMEs and small traders. The key takeaways of the 32nd GST Council meeting are as follows:

३२वीं  जीएसटी कौंसिल की बैठक की मुख्य बातें कुछ इस प्रकार हैं:

दिन १० जनवरी २०१९ को जीएसटी कौंसिल की बैठक हुई जिसकी अध्यक्षता माननीय वित्य मंत्री श्री अरुण जेटली जी ने की, इस बैठक में MSMe एवं छोटे करदाता को मुख्य रूप से छूट दी गई,

• Increase in GST registration limit from Rs 20 lakhs up to Rs 40 lakhs for suppliers of goods.
• Changes in the existing composition scheme made by increasing the turnover limit to join the scheme up to Rs 1.5 crores, tax payments to be made quarterly and returns to be filed annually starting 1st April 2019.
• New composition scheme is introduced for service providers and those who supply services along with goods; the Turnover limit set is Rs 50 lakhs and the Tax rate is fixed at 6%.
• No rate cuts were announced this time. GoMs were formed to study taxation of under-construction properties & lotteries.
• Calamity cess up to 1% for up to 2 years will be charged for supplies made within the State of Kerala.

Extension of filling of GSTR-7 Return regarding Section 51 of the CGST Act

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

Government of India Ministry of Finance (Department of Revenue) [Central Board of Indirect Taxes and Customs]

Notification No. 8/2019 – Central Tax New Delhi,
the 8th February, 2019


G.S.R. .....(E).—In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Commissioner hereby extends the time limit for furnishing the return by a registered person required to deduct tax at source under the provisions of section 51 of the said Act in FORM GSTR-7 of the Central Goods and Services Tax Rules, 2017 under sub-section (3) of section 39 of the said Act read with rule 66 of the Central Goods and Services Tax Rules, 2017 for the month of January, 2019 till the 28th day of February, 2019.

Synopsis of Inspection and Detention Procedure During Movement of Goods under GST

Procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances:

1.  
   The proper officer is authorized to intercept any conveyance carrying goods for verification of documents required to be carried by person in charge of conveyance and inspection of goods.
2. If prima facie, no discrepancies are found on verification of documents relating to goods and conveyance, the conveyance shall be allowed to move further.
3. Proper officer shall record the statement of the person in charge of conveyance in FORM GST MOV-01 in case certain discrepancies are found in the documents or officer decides to inspect the goods. An order of inspection shall be passed in FORM GST MOV-02 and a summary report of inspection in Part A of FORM GST EWB-03 on the common portal shall be uploaded.
4. Inspection proceedings should be completed within 3 days from the above order or within such period as may extended by Commissioner and a copy of report of physical verification shall be served on the person in charge in FORM GST MOV-04. Moreover, a final report of the inspection in Part B of FORM GST EWB-03 shall be uploaded on common portal.
5. In absence of discrepancies, conveyance shall be allowed to move further by issuing release order in FORM GST MOV-05. Otherwise detention order shall be issued in FORM GST MOV-06 and a notice specifying the tax and penalty in FORM GST MOV-07 only in relation to such good/conveyance which contravened the provisions of Act or Rules.
6. On payment of appropriate tax and penalty by owner of goods, the goods and conveyance shall be released by order in FORM GST MOV-05. Further, an order in FORM GST MOV-09 shall also be uploaded on common portal in pursuance of which, accrued demand shall be added in electronic credit ledger with corresponding debit in electronic credit ledger or electronic cash ledger on payment. The owner may also get the goods released after furnishing a bond in FORM GST MOV-08 along with bank guarantee equal to amount of tax and penalty levied.
7. In case the payment is not paid within 7 days, confiscation proceedings shall be initiated by issuing notice in FORM GST MOV-10 specifying the tax, penalty and fine in lieu of confiscation of goods and conveyance. Thereafter, confiscation order shall be passed in FORM GST MOV-11 after giving an opportunity of being heard to the concerned person and accordingly the electronic credit ledger shall be credited with debit in electronic credit ledger or electronic cash ledger on payment. The title to goods and conveyance shall be transferred to Central Government.
8. The goods and conveyance shall be auctioned by the proper officer to discharge the liability in case the payment is not made within three months. Time allowed can be modified in case of perishable or hazardous goods.
9. The procedure narrated above shall be applicable mutatis mutandis for an order or proceeding under the IGST Act, 2017.
10. It has been stated in law that the goods in transit can be physically verified only once in any State, unless information relating to evasion of tax is made available subsequently. However, since Forms are not available on the common portal currently, it has been clarified that hard copies of the notices or orders can be shown to another tax authority as a proof of initiation of action.
11. It has also been clarified by the government that only such consignment/vehicle shall be detained or confiscated in respect of which there is a violation of the provisions of the GST Acts or rules made there under.

1Rule 138(14) of Central GST Rules

2Notification No. 28/2018-Central Tax dated 19th June, 2018

3Circular No. 41/158/2018-GST dated 13th April, 2018 as amended by,

Circular no. 49/23/2018-GST dated 21st June, 2018

4Section 129 of Central GST Act, 2017

REVERSE CHARGE MECHANISM AMENDMENTS EFFECTIVE FROM 1st FEBRUARY, 2019

The provisions of section 9 (4) of the CGST Act, 2017 deals with the applicability of Reverse Charge Mechanism, wherein, the goods or services or both is being procured by the registered person from the unregistered person.

Due to its wide implication, the said provisions has already undergone various amendments, however, the entire provisions of section 9 (4) has been recently substituted by the CGST (Amendment Act, 2018 which is effective from 1^st February, 2019.

The entire stages of the amendment to section 9 (4), along with the recent substitution, is being explained in the present article.

UNDERSTANDING THE EARLIER PROVISIONS – 

As per the earlier provisions of section 9 (4) of the CGST Act, 2017, the central tax in respect of a supply of taxable goods or services or both by an unregistered person to a registered person shall be paid by the registered person on a reverse charge basis. However, the said provisions and the effective date of the provisions has undergone various amendments, which is being tabulated hereunder –

RELEVANT NOTIFICATION	RELEVANT AMENDMENTS
Notification no. 8/2017-Central Tax (Rate) dated 28th June, 2017	Central tax payable on reverse charge basis on Intra-state supplies of goods or services or both received by the registered person from the unregistered person is exempted till an aggregate value of INR 5000 per day.
Notification no. 38/2017-Central Tax (Rate) dated 13th October, 2017	Entire central tax payable on reverse charge basis on Intra-state supplies of goods or services or both received by the registered person from an unregistered person is exempted (i.e. exemption upto INR 5000 replaced and the entire transaction was exempted) till 31st March, 2018.
Notification no. 10/2018-Central Tax (Rate) dated 23rd March, 2018	The above exemption was extended till 30th June, 2018
Notification no. 12/2018-Central Tax (Rate) dated 29th June, 2018	The above exemption was extended till 30th September, 2018
Notification no. 22/2018-Central Tax (Rate) dated 6th August, 2018	The above exemption was extended till 30th September, 2019

In nut-shell as per the earlier provisions, the central tax was payable by the registered person on reverse charge basis on all the transactions, wherein, the taxable goods or services or both is received by him from the unregistered person. However, the said applicability of reverse charge on registered person was exempted till 30^th September, 2019.

AMENDED PROVISIONS AND ITS EFFECT THEREOF – 

Vide the Central Goods and Service Tax (Amendment) Act, 2018 effective from 1^st February, 2019, entire section 9 (4) of the CGST Act, 2017 was substituted. Now, let us understand what the substituted provisions of section 9 (4) says –

‘The Government may, on recommendations of the Council, by notification, specify the class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay tax on reverse charge basis as a recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both’