File photo. Photograph:( Zee News Network )
The Budget also proposed to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file income tax returns by simply quoting their Aadhaar number.
The Union Budget 2019-20 on Friday proposed to extend the lower rate of 25 per cent corporate tax to all companies with annual turnover up to Rs 400 crore.
Currently, this rate is only applicable to companies having annual turnover up to Rs 250 crore. Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said: "This will cover 99.3 per cent of the companies. Now only 0.7 per cent of companies will remain outside this rate."
The Budget also proposed to make PAN and Aadhaar interchangeable and allow those who do not have PAN to file income tax returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN. Sitharaman said more than 120 crore Indians now have Aadhaar and the proposal aims at ease and convenience of taxpayers.
At the same time, pre-filed tax returns will be made available to taxpayers which will contain details of salary income, capital gains from securities, bank interests, dividends and tax deductions. "This will not only significantly reduce the time taken to file a tax return, but will also ensure accuracy of reporting of income and taxes," said Sitharaman.
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A scheme of faceless assessment in electronic mode involving no human interface will be launched in a phased manner. To start with, such e-assessments will be carried out in cases requiring verification of certain specified transactions or discrepancies, she added.
The Budget also proposed to levy tax deduction at source of two per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account.
This is in continuation of a number of initiatives taken in the recent past for the promotion of digital payments and less cash economy and to promote digital payments further, said the minister.