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10th April 2020

Dear Reader,

We hope you and all loved ones are safe. In this time of lock down, we at KDP have made arrangements to work remotely and we are working hard to ensure all compliances are met within the prescribed time lines. We truly appreciate your support.

We have analyzed various recent amendments and following are the highlights that you may find interesting.

A] Income Tax amendments for FY 2020-21 (as per Finance Act, 2020):
  1. Corporate tax rate for a newly set-up manufacturing company slashed down to 15% whereas for other corporates, tax rate is dropped from 30% to 22% - subject to fulfillment of certain conditions…read more
  2. Tax rates for Individuals and HUFs slashed under new tax regime subject to fulfillment of conditions…read more
  3. New concept of ‘Deemed Residency’ has been introduced and Non-Resident Indians stay in India restricted to only for 119 days as against 181 days earlier...read more
  4. Dividend Distribution Tax (DDT) abolished and deduction allowed for certain inter- corporate dividends...read more
  5. TDS provisions introduced on dividend to shareholders, withdrawal of cash and on sale of goods and services by e-commerce operators…read more
  6. TCS collection levied on foreign remittance through LRS, selling of overseas tour package and sale of goods over a specified limit…read more
  7. Tax audit threshold increased from Rs. 1 crore to Rs. 5 crores subject to restrictions on cash transactions and time limit for filing return of income extended by 1 month…read more
  8. Transfer of Immoveable property - increase in safe harbor limit from 5% to 10% for the variance between actual sale consideration and stamp duty value of property…read more
  9. Levying of 100% penalty on false entries in the books of accounts due to forged or falsified documents such as false invoices, etc…read more
  10. Rationalization of provisions related to trusts, institutions and funds which involves applying for fresh registration, furnishing of statement containing the details of donors…read more
  11. Bring an end to litigation with IT department - introduction of Vivad Se Vishwas Scheme + Initiative of e-appeal & e-penalty proceedings launched, grant of stay by ITAT only on the payment of 20% of demand…read more
  12. Other miscellaneous provisions which includes rationalization of provisions for Start-ups, deferment of TDS or tax payment on ESOP issued by an eligible start-up, extension of time limit for approval of Affordable Housing projects, etc…read more
If you wish to read the entire document of income tax amendments as introduced by Finance Act, 2020...click here

B] Relaxation in GST compliances due to Covid-19 outbreak

In continuation to FM’s announcement, the authority has issued notification to extend timeline for filing of various GST returns, clarifying on late fees and delay interest, relaxation of claim of input credits and timeline for e-way bills…read more


The Ministry of Corporate Affairs has introduced a scheme for Companies and LLPs whereby defaulting Companies and LLP can make its default good with no payment of any additional fees or late filing fees...read more

D] RBI announcements on COVID-19 outbreak:

Timeline for realization of export remittance has been relaxed and foreign inwards permitted to PM CARES Fund...read more

We hereby draw your attention to this law for your necessary further action on compliances.

In case of you need any additional information, kindly write to us on info@kdpaccountants.com



  • This note does not form an opinion from our end and before taking any decision based on above, it is recommended to consult our experts on the subject.

  • Kamdar Desai & Patel will not be liable for any damages (including, without limitation, damages for loss of business projects, or loss of profits) arising in contract, tort or otherwise from the use of or inability to use this article, or any of its contents, or from any action taken (or refrained from being taken) as a result of using this article or any such contents.


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