New income tax rules

New income tax rules come into effect from September 1 of 2019. Latest changes explained

By Business League -  September 2, 2019

HIGHLIGHTS

Under new income tax laws, aggregate cash withdrawal beyond a certain threshold in a year from banks, post offices will attract TDS

For TDS calculation from income tax perspective, while buying a property, the buyer has to include payment made for other charges like club membership fee, car parking fee

Some income tax changes announced in this year’s Budget comes from September 1, 2019. The full Budget for this year was presented in July this year. Cash withdrawals exceeding ₹1 crore in aggregate in a year from finance institutions will attract TDS while in case of property transactions the definition of immovable property has been widened to include charges like club membership fee and car parking fee for TDS levy. Also, in another income tax rule change, a higher TDS will be levied if life insurance maturity proceeds received are taxable in your hands.

Here are 5 changes in income tax rules that come into effect from September 1:

1) The government has introduced a new Section called 194N in income tax laws under which cash withdrawals exceeding ₹1 crore in aggregate in a year from banks, post offices or co-operative society engaged in carrying on the business of banking will attract a TDS @2. Payments made on or after September 1 will attract the provisions of Section 194N.

The income tax department has clarified that cash withdrawal prior to 1 September, 2019, will not be subjected to TDS under Section 194N. However, since threshold of ₹1 crore is with respect to the previous year, the calculation of amount of cash withdrawal for triggering deduction under section 194N will be counted from 1 April, 2019.

2) The government has amended 194-IA of Income Tax Act to include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property, under immovable property, for levy of TDS. This comes into effect from 1 September. It is to be noted that the TDS is levied @1% if the value of the property exceeds ₹50 lakh. So now, charges like club membership fee, car parking fee, electricity or water facility fee will also be included for calculation of TDS.

3) The government has introduced a new Section called 194M in income tax laws under which individual is required to deduct TDS @5% for paying a sum in excess of ₹50 lakh for carrying out any work in pursuance of a contract or by way of fees for professional services during a financial year. Payments made on or after September 1 will attract the provisions of Section 194M.

4) A higher TDS of 5%, from 1% earlier, will be levied if life insurance maturity proceeds received that are taxable in your hands. According to current tax laws, if the annual premium paid on the insurance policy is less than 10% of the sum assured the amount received on maturity are exempt from tax. (For insurance policies purchased before April 2012, the premium must be less than 20% of the sum assured to get the tax benefit on maturity).

It is to be noted that TDS is levied if the maturity proceeds exceeds ₹1 lakh.

5) In Budget 2019, Finance Minister Nirmala Sitharaman had proposed to allow interchangeability between Permanent Account Number (PAN) and Aadhaar with effect from 1 September 2019.

Those who don’t have PAN can quote Aadhaar in transactions that otherwise require quoting of PAN like cash deposit above ₹50,000.

Source: https://www.businessleague.in/2019/09/02/new-income-tax-rules-

Article 370 is no more

Union Home Minister Amit Shah on Monday proposed to scrap Article 370 of the Constitution which gives special status to Jammu and Kashmir and said the state will be split into two Union Territories: Jammu and Kashmir with an Assembly and Ladakh without one.With this reform, India now has 28 states and 9 union territories.

What is Article 35A

Article 35A of the Indian Constitution empowers J&K legislature to define state's "permanent residents" and their special rights and privileges. The law was inserted in the Constitution through a Presidential order of 1954 instead of a parliamentary amendment under Article 368.

35A is based on Article 370, a temporary and transitional provision that was included in the Indian Constitution, on the terms negotiated between J&K’s popular leader Sheikh Abdullah and the Centre led by then Prime Minister Jawaharlal Nehru in 1949.

Permanent residence status

J&K till now defined its permanent residents as “all persons born or settled within the state before 1911 or after having lawfully acquired immovable property and residence in the state for not less than 10 years or prior to that date”. All emigrants from Jammu and Kashmir, including those who migrated to Pakistan, were considered state subjects. The descendants of emigrants were considered state subjects for two generations.

The law prohibited non-permanent residents from settling permanently in the state, acquiring immovable property, government jobs, scholarships and aid.

Good news for Kashmiri women

The law was discriminatory against the J&K women. It disqualified them from their state subject rights if they married non-permanent residents. But in a landmark judgment in October 2002, the J&K high court held that women married to non-permanent residents will not lose their rights. However, the children of such women don't have succession rights as of now.

Article 35A was also challenged by Kashmiri women married to ‘outsiders’ arguing that the state's permanent residency law, flowing from 35A, had disenfranchised their children.

What is Article 370?

Article 370 of the Indian Constitution is a 'temporary provision' which grants special autonomous status to Jammu & Kashmir. Under Part XXI of the Constitution of India, which deals with "Temporary, Transitional and Special provisions", the state of Jammu & Kashmir has been accorded special status under Art370. All the provisions of the Constitution which are applicable to other states are not applicable to J&K. For example, till 1965, J&K had a Sadr-e-Riyasat for governor and prime minister in place of chief minister.

History of Article 370

After J&K's accession, National Conference leader Sheikh Abdullah (in pic) took over reins from Dogra ruler Maharaja Hari Singh and in 1949, he negotiated the state's political relationship with New Delhi, which led to the inclusion of Article 370 in the Constitution.

Sheikh Abdullah had argued that Article 370 should not be placed under temporary provisions of the

Provisions of Article 370

According to this article, except for defence, foreign affairs, finance and communications, Parliament needs the state government's concurrence for applying all other laws. Thus the state's residents live under a separate set of laws, including those related to citizenship, ownership of property, and fundamental rights, as compared to other Indians. As a result of this provision, Indian citizens from other

What will happen to J&K and Ladakh now

After Kashmir's special status is gone, people from anywhere in India be able to buy property and permanently settle in the state. This has fuelled fear in the mind of Kashmiris — they think it would lead to the state's demographic transformation from majority Muslim to majority Hindu.

A separate Union Territory will be created for Jammu & Kashmir with legislature, Amit Shah has revealed via a notification. "Keeping in view the prevailing internal security situation, fuelled by cross-border terrorism in the existing state of Jammu & Kashmir, a seperate Union Territory is being created", the notification said.

Under the notificaiton, the Ladakh region is also being given the status of a Union Terrority, without legislature. "The Ladakh division has a large area but is sparsely populated with a very difficult terrain. There has been a long-pending demand of people of Ladakh to give it a Union Territory status to enable them to realise their aspiration", it said.

Terror trail

The Jammu and Kashmir government on Friday urged Amarnath Yatra pilgrims to "curtail" their stay and leave the state at the earliest, citing intelligence reports of terror threats. The move by the government came after security forces found a Pakistan-made mine, an M-24 American sniper rifle and a huge cache of arms along the route of the annual pilgrimage. The yatra to the holy Amarnath cave in the mountains of south Kashmir started on July 1 and is scheduled to end on August 15.

Five pilgrims, all belonging to Rajasthan, were injured in a grenade attack by terrorists in 2006. According to media reports, a bus carrying 40 passengers was targeted while returning to Srinagar from Baltal base camp. The Srinagar-Baltal road, which is the main route that pilgrims take, was closed following the attack. However, no outfit claimed responsibility for the attack.
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New Motor Vehicles Act.2019

Here is a list of the proposed changes:

Section/ Offence	Old Penalty	New Penalty (Minimum)
General (177)	Rs 100	Rs 500
Rules of road regulation violation (new 177A)	Rs. 100	Rs 500
Travelling without a ticket (178)	Rs 200	Rs 500
Disobedience of orders of authorities (179)	Rs 500	Rs 2000
Unauthorized use of vehicles without licence (180)	Rs 1000	Rs 5000
Driving without licence (181)	Rs 500	Rs 5000
Driving without qualification (182)	Rs 500	Rs 10,000
Oversized vehicles (182B)	New	Rs 5000
Over speeding (183)	Rs 400	Rs 1000 for LMV, Rs 2000 for Medium Passenger Vehicle
Dangerous driving penalty (184)	Rs. 1,000	Upto Rs 5000
Drunken driving (185)	Rs 2000	Rs 10,000
Speeding/ Racing (189)	Rs 500	Rs 5,000
Vehicle without permit (192A)	Upto Rs 5000	Upto Rs 10,000
Aggregators (violations of licencing conditions) (193)	New	Rs 25,000 to Rs 1,00,000
Overloading (194)	Rs 2,000, and Rs 1,000 per extra tonne	Rs 20,000, and Rs 2,000 per extra tonne
Overloading of Passengers (194A)	N.A.	Rs 1000 per extra passenger
Seat Belt (194 B)	Rs 100	Rs 1,000
Overloading of two-wheelers (194 C)	Rs 100	Rs 2,000 , Disqualification of licence for 3 months
Not providing way for emergency vehicles (194E)	New	Rs 10,000
Driving without insuarance (196)	Rs 1,000	Rs 2,000
Offences by Juveniles (199)	New	Guardian/ Owner shall be deemed guilty. Rs 25,000 with 3 years imprisonment. Juvenile to be tried under JJ Act. Registration of Motor Vehicle to be cancelled.
Power of officers to impound documents (206)	N.A.	Suspension of driving licence under sections 183, 184, 185, 189, 190, 194C, 194D, 194E,
Offences committed by enforcing authorities (210B)	N.A.	Twice the penalty under the relevant section

WILL DEED

WILL DEED is one of the important document in one's life.  Because this the one document which is the last time to be executed by a person in his last minute.  Many people does not recognize the importance of Will Deed, due to which after the demise of the head of family the children ( Successors) will face many problems.  It is always better to execute a WILL DEED when a person attains the age of 65 or more. 

WHO SHOULD WRITE WILL DEED: any person who is having movable, immovable properties, cash, ornaments or any type of assets shall write a WILL DEED so as to transfer the same to his family members/Legal Representative.

HOW TO WRITE A WILL:  WILL DEED is a simple deed it can be written on any paper, but it should be attested by two major witnesses.

IS IT COMPULSARY TO REGISTER A WILL DEED: NO it is not compulsory to register a will deed even a WILL DEED can be executed on a white paper.  But I sincerely advise the parties to register a WILL DEED to avoid future complications.

WHY REGISTRATION:  Because  WILL DEED should be presented in many Government and Municipal offices to get mutate the names of Legal Representatives.  In the Government offices to avoid un necessary litigation and to have perfection and to avoid risk usually prefer a Registered WILL DEED.  So it is always safe to register a WILL DEED.

if you have any doubts with regard to drafting, execution of WILL DEED you can contact  9848647145  or  6281412621- Sarma