✂ Taxes Chop-Chop?

The Corporate Tax rate cut in India and other news.

What’s happening this week?

• 2021 census to be conducted digitally in India.
• China opens its doors to the giant starfish-shaped airport
• Howdy Modi was billed as the largest ever reception in the US for a foreign leader.
• WeWork’s chief executive Adam Neumann quits.

Hey,

The Fin Min gave good news by cutting corporate tax rates… but no news for ITR due date extension in case of a tax audit.

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Here & There

Cooked? World’s oldest (178 years old) travel company, Thomas Cook filed for bankruptcy on Monday. The abrupt news left 22,000 employees across 16 countries and nearly 500,000 travelers stranded. No one wants the vacation to end… but not like this!

Googling… without the internet… the tech giant Google is launching a helpline to reach non-internet users with Vodafone-Idea. Internet issues? No issue! Call on a single number for free and ask about anything in Hindi or English. Well, this is exciting!

What’s more exciting?! Getting your tax refund… We know you are eagerly waiting for it! Let us help: we have developed free tools just for you:

• Track your income tax refund
• Track ITR Status

Where will you use your tax refund? Invest it wisely ask a CA and get the maximum benefit next year.

Haven’t filed your ITR yet? The due date was 31st August 2019, file a belated ITR for free and the claim eligible refund. In case the tax audit is applicable you have till 30th September 2019 for ITR filing, no news of extension… Hurry!

Confused?! Drop us a message to ask us your tax-related queries, and our experts will call you.

Tax Rate

Chop-chop-chop… Fin Min on Friday cut the corporate tax rate to 25% from 35%, and 17% for new manufacturing companies set up this year. *Conditions Apply* companies won’t be able to claim tax deductions. The markets on Monday jumped 5% with happiness this week.

What goes around, comes around… Fewer taxes means more funds in hand, these can be utilized for investments… creating jobs -> leading to higher consumer spending in the economy… and that’s how the cycle works. YAY!!! … but, Are we over-optimistic?

The flipside of the coin… the investments in the home economy have been at a 15 year low for the 1st quarter this financial year. But will companies invest or clear the debt off their books? India has the highest ‘risky’ corporate debt for the Asian markets.

Talking about bad loans… The RBI ordered PMC (Punjab and Maharashtra Co-operative bank) to stop business for 6-months and capped the depositor withdrawal limit to INR 1,000/day on lines of bad loans.

Enough skepticism… Let’s lift up the mood. RBI governor is expecting higher FPI inflows following last week’s two major events — One, the Fed rate cut of 25 basis points and Secondly, India’s corporate tax rate cuts. Fingers Crossed!

Byte of the Week

“Corporate tax rate cut a bold, positive step.” — Shaktikanta Das

Extra Bytes

• Savings: What are some unusual ways to save tax?
• Refund: What is the eligibility and process for tax refund?
• Traders: What is the tax treatment for trading activity?

PS: We made the mistake in the last Quicko Bytes edition, the revenue for the plastic industry was INR 3.5 lakh crore. Apologies.

Plan your taxes for FY 2019–20 wisely, to get maximum and utilize all eligible tax deduction next year. Ask an expert, for tax planning and saving.

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