Assignment

of
UPPCR
Submitted to
Amity University Uttar Pradesh

In partial fulfilment of the requirements for the award of the degree

of
Bachelor of Technology
in
Information Technology
by
ABC
Submitted to:
Dr. XYZ
DEPARTMENT OF INFORMATION TECHNOLOGY
AMITY SCHOOL OF ENGINEERING AND TECHNOLOGY
INDIAN TAX LEGISLATION

India’s deficiency in governmental expenditures is most notably attributed to wide spread and
blatant tax evasion. Relative to other developing nations, the fact that India’s income tax
comprises .5% of its GDP is due to the fact nearly 2-3% of the population is exposed to income
taxation. India faces more uphill battles in proliferating its income tax than a country like China,
who subjects 20% of its population, because there is an emphatically low amount of formal
wage earners. Even though India’s income tax was started in 1922 by the British, their tax
history explains their high degree of tax delinquency today
Income tax related alterations announced in the Budget usually come into effect from April 1.
However, since the full Budget for FY 2019-20 was presented in July this year after the general
elections, there are certain tax changes that will come into effect from September 1, 2019.

Here are those main changes in tax laws that will come into effect from September 1.

⦁ TDS on additional payments made when purchasing immovable property

From September 1, while buying a property, you will have to include the payment made for other
services or amenities such as club membership fee, car parking fee, electricity and water facility
fee and so on when computing the amount paid for the property for the purpose of deducting
TDS.

Chartered Accountant Naveen Wadhwa, DGM, Taxmann.com says, "Previously, tax was
deducted by the buyer from the payment made for the purchase of property. However, other
payments such as club membership ..

⦁ TDS on payments made by individuals and HUFs to contractors and professionals

From September 1, individuals and HUFs making a payment to contractors and professionals
exceeding Rs 50 lakh in aggregate per annum will also be required to deduct TDS at the rate of
5 per cent.

This would mean that individuals making payments over this limit for house renovation, wedding
functions or for any other purpose to a single professional in a year would be required .
• TDS on additional payments made when purchasing immovable property
From September 1, while buying a property, you will have to include the payment made for other
services or amenities such as club membership fee, car parking fee, electricity and water facility
fee and so on when computing the amount paid for the property for the purpose of deducting
TDS.

TDS on cash withdrawals from bank account

Cash withdrawals exceeding Rs 1 crore on aggregate basis during the year from an account
held with a bank, cooperative bank or post office will invite levy of TDS from September 1. The
move is aimed at discouraging large cash transactions and also to promote a less cash
economy.

TDS on payments made by individuals and HUFs to contractors and professionals

From September 1, individuals and HUFs making a payment to contractors and professionals
exceeding Rs 50 lakh in aggregate per annum will also be required to deduct TDS at the rate of
5 per cent.

⦁ If PAN is not linked with Aadhaar

As per rules existing prior to changes announced in July Budget 2019 PAN would have become
invalid if not linked with Aadhaar by a specified deadline. This would have meant that in case of
a person's PAN becoming invalid, it would be treated as if the person never had a PAN.

However, to protect the validity of previous transactions done using the PAN, Budget 2019
changed the rules such that PAN will become now.

Governmental Attempts To Combat Tax Evasion:

The Indian government has taken several steps in order to mitigate the effects and degree of
tax evasion. Amongst actual legislations, Searches, seizures, surveys, and scrutiny of income
tax returns are being done by the Income Tax Department. The government has also created
Voluntary Disclosure of Income Schemes, whereby black income and assets can actually be
declared without penalty or prosecution. In addition, the introduction of the Prevention of
Money‐Laundering Act makes any and all activities related to the laundering of money a federal
offense with a minimum imprisonment of less than three years. Similarly, the Finance Act of
2004 prosecutes for the falsification of books and taxing gifts worth more than 25,000 Rupees.
Given that tax evasion is one of the most wide spread, yet difficult issues a government can
deal with, they have historically relegated this issue to recommendations made by Taxation
Enquiry Commission (1953), Administrative Reforms Commission (1969),and Direct Tax Enquiry
Committee (1971). Additionally, India has attempted to eradicate tax evasion by requiring an
identification number for all major financial deals. (However, this method has proven very
ineffective, as many transactions are conducted with cash and therefore often go unreported.

Income Tax

Income Tax is a tax imposed on individuals or entities (taxpayers) that varies with respective
income or profits (taxable income). Income tax generally is computed as the product of a tax
rate times taxable income. The tax collected by Income Tax Department for central government.

Goods and Services Tax

Goods and Services Tax is an indirect tax collected on supply of goods or service.
• Central Tax: Portion of Tax to central government on intrastate sales.
• State Tax: Portion of Tax to state on intrastate sales.
• Integrate Tax: tax