Direct Tax Updates – September 2019

Enhanced Depreciation on purchase of certain Machinery and Plant The Central Board of Direct Taxes (CBDT) vide Notification No. 69 /2019/ F.No. 370142/17/2019-TPL has provided to insert the following in the existing depreciation table:

• For motor cars, other than those used in business of running them on hire acquired on or after the 23^rd day of August 2019 but before the 1^st day of April 2020 and its put to use before the 1^st day of April 2020–

The rate of depreciation is allowed at 30% of written down value.

• For motor buses, motor lorries and motor taxies used in a business of running them on hire, acquired on or after the 23^rd day of August 2019 but before the 1^st day of April 2020 and its put to use before the 1^st day of April 2020.

The rate of depreciation is allowed at 45% of written down value. Cost Inflation Index for Financial Year 2019-20  The CBDT has issued notification (No. 63/2019/F.No. 370142/11/2019-TPL) on September 12, 2019, for providing the Cost Inflation Index (CII) for the Financial Year 2019-20. As per the notification, the CII for Financial Year 2019-20 is 289. This notification shall be applicable for the Assessment Year 2020-21 (i.e. Financial Year 2019-20) and subsequent years. E-assessment Scheme, 2019  The CBDT has issued Notification No. 61/2019, dated September 12, 2019, notifying e-assessment scheme. This scheme provides for conducting a faceless scrutiny assessment of income tax returns (ITR). The salient features of this scheme are as follows:

• The scrutiny notice will be issued to the assessee u/s 143(2) through assessee’s Income tax e-filing account under e-proceeding section.
• The assessee will have to reply within 15 days from the date of receipt of the notice. The notice issued will be sent electronically on the taxpayer’s account on the e-fling website, to the registered email address of the taxpayer or on the mobile app of the income tax department which has the registered mobile number.
• The assessee will have to respond to the notice or order received through the registered account only.
• The assessee would not be required to appear either personally or through an authorized representative in relation to the proceedings related to the scheme. All the communication between the department and the taxpayer would be done electronically. Even all the internal communication within the income tax department will be electronic.

Appeal Filing Limit not applies to cases of Bogus LTCG/STCG The CBDT has issued Circular No. 23 of 2019 dated September 6, 2019. This circular overrides all other circulars issued earlier to specify monetary limits for filing of departmental appeals in the tax matters before Income Tax Appellate Tribunal (ITAT), High Court and Supreme Court. Now, the appeals can be filed by special order directing the filing of appeal on merit in cases involving organized tax evasion activities. Contact us today to know more about our services.   Last Updated: 27th September 2019 This article is contributed by:  Deepika Agarwal Manager, Taxation

Tag: Direct tax, Direct Tax Update, Tax Update