Some Highlights of New Taxes / Changes for Non-Filers expected in the upcoming Budget 2019-2020.
1) Unregistered industrial
/ commercial entities (not having STRN) having electricity / gas bill amount in excess of Rs 20,000 per month, extra sales tax would be increased from 5% to 20%
2) Residential consumers be made liable to provide NTN in case electricity bill amount exceeds Rs 1.2 million per year or levy advance income tax withholding of 20%.
3) All exemptions (like exemption on agricultural income) under the Income Tax Law should only be made available to filers so that exempt income is also reported and wealth is reconciled with income reported in the return.
4) Withholding tax on International business class tickets under section 236L is same Rs 16,000 for filer and non-filer, it would be increased to Rs 50,000 for non-filers.
5) Withholding income tax on interest income u/s 151 is 10% for filer and 17.5% for non-filer. Rate would be increased to 30% for non-filers.
6) Annual private motor vehicle tax u/s 234 for non-filers is Rs 30,000 for 2000 CC and above. Rate for non-filers would be increased to Rs 200,000 for 2000 CC and above.
7) Rate of income tax on Filer as well as Non-Filer Commercial / industrial connections of electricity is 12% and 5% respectively. Rate of tax for Non Filer Commercial / industrial connections would be increased to 25%
8) At present, 12% WHT is being collected from owners of marriage halls on their electricity bills, which does not represent actual tax on their income. Moreover, the same is somehow minimized through use of generators. In order to avoid this, Capacity Tax would be imposed on marriage halls on the basis of per square feet coverage area.
List of registered Marriage halls paying capacity tax on per square foot basis would be on internet and accessible to all so that it can easily be identified who is not on the list thereby forcing them to get themselves register and pay tax.
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