Budget 2020

*Budget 2020 key highlights*

* GST bring synergy in logistics sector (20% time reduction)
* 60 lakhs new taxpayers added via GST introduction
* New simplified GST returns from April 2020
* FDI elevated during period 2014-2019 to $284bn
* Central government debt reduced to 48.7% of GDP in 2019
* 16 points action plan for agricultural & irrigation sector under aspirational India
* New Education Policy will be announced soon
* ECB and FDI will open in education sector
* Degree level full fledged online programs to be started
* National Police University & Forensic university is proposed to be set up
* INR 99,300 cr proposed for education sector
* Investment clearance cell to be set up to facilitate investments and to provide advisory at State as well as Centre level
* 5 new smart cities to be developed
* Move to develop each district an export hub
* INR 27,300 cr for promotion of industry & commerce
* National logistics policy to be released soon
* Digital refund of duties to exporter
* Setting up of solar panels on barren lands
* More Tejas types train to be introduced to connect iconic cities
* 100 more Airports to be developed by 2024
* Proposed to states to replace old electric meters to the smart pre-paid electric meters. This will give flexibility to consumer to choose service provider.
* INR 22,000 cr proposed for power & renewal energy sector
* Private sectors to built data centre parks throughout the country, policy may come soon
* INR 6,000 cr proposed for 'Bharat Net'
* Funding for ideation and start up
* INR 28,600 cr proposed in this budget specific to women
* Proposed to set up Indian Institute of Heritage & culture as a deemed university
* 5 Archeological sites would be developed as iconic sites with onsite museums
* Setting up of Tribal Museum in Ranchi, Jharkhand
* INR 2,500 cr proposed for development of Tourism sector
* Taxpayer's charter to be a part of statute to build confidence/trust
* Government will ensure that citizens need not worry about tax harassment. There is a debate on building criminal liabilites for civil acts. Companies Act will be amended to correct this
* India to host G20 presidency in 2022; INR 100 cr allocated for preparation
* Robust mechanism is in place to monitor health of all scheduled banks
* Insurance cover for deposits increased from INR 1 lakh to 5 lakh
* Universal pension coverage with auto enrollment to be introduced (through PFRDI) to every person
* Invoice financing by NBFCs to MSME sector - Amendments to be made in Factoring Act
* Certain amendments to be made in SARFESI Act
* Non residents can invest in certain Government securities
* Liquidity constraints of NBFCs & HFCs will be addressed - Government has taken steps from last year
* International Buillion exchange to be setup in GIFT IFSC
* LIC initial public offer will come to list on stock exchange; Government will sell part of its holding

*Part-B - Tax Proposals*

* Personal income tax - proposed to bring new income-tax regime for individual Taxpayer's
New slab rate (without exemption)
10% - income  5 - 7.5 lakhs
15% - 7.5 - 10 lakhs
20% - 10 - 12.5 lakhs
25% - 12.5 - 15 lakhs
30% - Above 15 lakhs

Income upto 5 lakhs no tax, says FM

* if individual ears income of 15 lakhs then tax would be 1.95 lakh vis-a-vis 2.73 lakhs as earlier

* New scheme of individual tax rates is optional
* FM says - reviewed all existing income tax exemptions and removed 70 of them in new regime and will review remaining and rationalize
* Propose to remove DDT and dividend would be taxable in the hands of shareholders; removal of cascading effect of dividend distributed by holding to subsidiary (25k cr revenues forgone on account of DDT abolishion)
* Concessional tax rate for electricity/power generation companies
* 100% tax exemption on new investment by foreign funds in infrastructure sector by 2024 with a minimum lock in period of 3 years
* ESOPs given by startups to employees currently taxed as perquisites; deffering of tax payment by employees to 5 years
* Increase in turnover limit from 25 cr to 100 cr for startups
* Deduction can be claimed by startups upto 10 years
* Tax audit turnover threshold limit increased from 1 cr to 5 cr
*  Concessional 5% withholding tax has been extended  to municipal bonds. Cooperatives are taxed at 30 percent now. Cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.
* Complete online registration of charitable institutions
* Faceless appeals on the line of faceless assessment
* Vivad se Vishwas Scheme introduced - New direct tax dispute settlement scheme
* More than 4.83 lakhs cases pending at various forums
* Taxpayer's need to pay only disputed amount of tax (no penalty be charged) by March 2020; scheme will be available till June 2020 but some additional payment to made in-addition to tax
* CBDT to adopt Taxpayer's charter
* PAN shall be instantly allotted on the basis of Aadhar without any filling up of form
* Personal interface with tax administrators will be at minimum level
* GST reforms will continue including a simplified return-filling form. FM says, refund has been simplified and has been fully automated.

Union budget 2020 Direct tax reforms

*Union Budget 2020*

* Proposed Direct Tax Reforms*

* New Simplified Personal Income Tax Regime for Individual Tax Payers
  • no deduction or exemption
  • 5-7.5 Lakhs - 10 %
  • 7.5 - 10 Lakhs - 15 %
  • 10 - 12.5 Lakhs - 20 %
  • 12.5 - 15 Lakhs - 25 %
  • Above 15 Lakhs - 30 %
  • optional for tax payers
  • simplified income tax return
  • removal of 70 deductions

* Dividend Distribution Tax on companies removed and dividend to be taxed in hands of the recipient.

* 15% concessional rate of corporate tax extended to Power Sector

* Foreign Investment encouraged by extending lower withholding tax rate to interest on various securities in respect of foreign investment

* Start ups provided with more income tax benefits

* Cooperative societies provided an option to be taxed at 22 % with no exemption

* Tax Audit threshold increased to 5 crores if less than 5 % turnover is in cash

* New Charitable Institution registration process to be completely electronic

* Faceless Appeals to be enabled in lines of faceless assessments

* Vivaad se Vishvash
 • no Dispute but Trust Scheme
 • Direct Tax Dispute Resolution
 • payment of all taxes will lead to waiver of penalty and interest
 • applicable for all pending appeals at all levels

* PAN to be allotted instantly on basis on Adhar

Early to bed and early to rise makes a man healthy, wealthy and wise

Early to bed and early to rise makes a man healthy, wealthy and wise

"Early to bed and early to rise makes a man healthy, wealthy and wise," runs the proverb. We must have full sleep before we apply ourselves to our daily work. Oversleep is as harmful to our health as under sleeping is.

A man who goes to bed late must rise late. A man who gets up early is sure to have an advantage over others who get up late. Getting up late means hurrying through everything-no bathing but only dry cleaning, not eating and chewing food properly but only bolting it.

Early morning hours are the freshest and the quietest. The atmosphere is calm and free from dust. The rays of the morning sun are particularly good for health and only an early riser can take advantage of it. Early rising makes a man smart, and active.

Exercise and deep breathing in the fresh morning air give new life and energy. They act as tonic. Nature is quiet. Peace and quietness of Nature impart peace to the soul. One instinctively feels that there is a bond of union between Nature's heart and that of man.

Nature presents a very charming and lovely view in the morning. The freshly blossomed flowers, the pearly dew drops on the grass and chirping of the birds enliven the mind. Apart from this, one can begin one's day's work early and finish it early.

In cities, life has become artificial. Modern science has provided means of keeping late hours, so people in towns generally go to bed late. Activity in all spheres of life goes on till late hours. Mills and factories work non-stop. Traffic keep plying throughout the night. So people in towns go to bed late and rise late. This has led man to all sorts of diseases and ailments.

In villages, life is not so complex. It is more or less natural. People go to bed early and rise early. Moreover, their work is such as requires early rising. A farmer must get up early to plough his field or milk his cows and buffaloes. The farmer's wife must rise early to grind corn or to churn milk. The washerman must rise early to wash the clothes.

Early rising is not so difficult as it seems. It is all a question of determination and realization of grate benefits of early rising. Once you get used to it, you will find it difficult to do without it. Even in the severest winter you will not need a great effort to come out of your warm bed.

If a farmer begins to plough his fields, a traveller starts on his Journey, or a labourer begins his work, while the others are still asleep, he finishes his task much ahead of them, besides, he can do much more than the others. The fact that one has already done a portion of one's work before others have started to do theirs, gives one a peculiar sense of confidence and satisfaction.

Early morning is the best time of the day for students and other intellectual workers to go about their work. They are fresh after the night's rest, and there is not much noise at this time to disturb them.

When a man is healthy and wealthy, he automatically grows wise. A man who can put in work can learn any trade. It is by using one's hands and brain that one grows wise. A man grows wise by work and experience. An idle man remains a fool all his life.

Mortgage

Mortgage

 1.Mortgage is defined in Section 58 of the Transfer of Property Act.

2. Mortgage is the transfer of interest in a specific immovable property, for the purpose of securing an existing or future debt or

for the performance of an engagement which may give rise to a pecuniary liability. The person creating the mortgage is called as

the mortgagor and the person in whose favour mortgage is created (bank) is called as the mortgagee.

3. Immovable property, means land and things attached or permanently fastened to the earth.

4. Types of Mortgage: There are six types of mortgages namely (i) Simple Mortgage (ii) Mortgage by Conditional Sale (iii)

Usufructuary Mortgage (iv) English Mortgage (v) Mortgage by Deposit of title Deeds (Equitable Mortgage) and (vi). Anamalous

Mortgage. Of these, all • mortgages except Equitable Mortgage require registration with the Registrar of Assurances.

5. Registered Mortgage: In the case of registered mortgage (also called legal mortgage) first a mortgage deed is written which is

stamped as per Stamp Act of the concerned state. The deed is then executed in the presence of two witnesses. Thereafter, in

terms of the Indian Registration Act 1908, it is to be registered with the Registrar of Assurances (Sub Registrar) within 4 months of

the execution.

6. Simple Mortgage: In simple mortgage the mortgagor makes himself personally liable to pay the debt and agrees that in the

event of failing to pay according to his contract, mortgagee can get the property sold through the intervention of the court. If after

sale of property some debt is still outstanding, the borrower shall be- personally liable for the outstanding amount. Neither the

possession nor ownership of the property is transferred to the mortgagee. The mortgagee cannot exercise the right of foreclosure.

7. Mortgage by Conditional Sale: The mortgagor ostensibly sells the property to the mortgagee upon the condition that if the

debt is paid in time the property will be transferred back to him and in case of nonpayment within the specified time the

transaction would become a real sale. There is no personal liability of the mortgagor. In case of default, the mortgagee can exercise

his right of foreclosure through court.

8. Usufructuary Mortgage: In this mortgage, possession of the property is transferred to the mortgagee. The mortgage money is

recovered through income of the mortgaged property. There is no personal liability of mortgagor.

9. English Mortgage: As in the case of simple mortgage, the mortgagor undertakes personal liability to pay the debt. He transfers

the ownership of mortgaged property to the mortgagee upon a condition that property must be transferred back to him on

payment of debt. Mortgagee can sell the mortgaged property even without the intervention of court.

Equitable Mortgage

1. Equitable Mortgage is called as Mortgage by Deposit of Title Deeds.

2. It can be created by mere deposit of title deeds of property with intention to borrow.

3 a.Title deeds should be deposited at Mumbai, Kolkata, Chennai ( Presidency Towns) or any other town notified by the State

Government in this regard. It is not necessary that the title deeds should be deposited with the branch or at the place where the

loan is being raised.

3 b.These can be deposited anywhere in India at a notified place.

it is not necessary that it should be within bank branch premises. Mortgagor can deliver the title deeds to an authorized

representative of the bank at mortgagor's residence or other place provided it is in a Notified Centre.

4. The property to be mortgaged may be located anywhere in India (For example, for property located in Delhi, title deeds can be

deposited at Chennai.

5. Equitable Mortgage does not require registration with Registrar of Assurances. But in case of a limited company, charge in

yespect of equitable mortgage under Section 125 of the Companies Act, 1956 must be registered with Registrar of Companies.

6. A title deed can be a sale deed, lease deed, partition deed, gift deed, deed of assignment, deed of relinquishment, or such

other documents. Agreement to sale is not a title deed.

7. Normally a bank should insist for original title deeds but in exceptional cases equitable mortgage can be. created even by

certified copy of the title deeds.

8. Property located in cantonment areas should not be accepted for equitable mortgage, without clearance from cantonment

authorities.

10.The bank should not part with the title deeds even for a short duration at the request of the mortgagor because if some other

creditor is induced to finance on the basis of title deeds, the bank may Lose priority over the mortgaged property.

11. No registration with Registrar of Assurance is required. For a company, registration with ROC within 30 days is required u/s

87 of Companies Act 2013. Under SARFAESI Act, registration with CERSAI.

12.Deposit can take place within Municipal limits of Presidency Towns (Kolkata, Chennai or Mumbai) or State Govt. Notified Towns.

It is not necessary that the place for deposit of title.deeds, should be bank branch premises

Legal Opinion and Search Report: Before accepting mortgage of immovable property, legal opinion should be

obtained that the property is fit for mortgage and search should be conducted in the records of Registrar /Sub

Registrar for at least 12 years to ensure that the property is free from prior encumbrance.

Priority of Mortgage: The priority of the mortgage is considered from the date of execution of the mortgage deed (in the case of

registered mortgage) or from the date of creation of mortgage by deposit of title deeds and not with reference to the type of

mortgage or date of registration.

Right of Redemption: Right of the mortgagor to get back his mortgaged property on repayment of the loan, is called as the right of

redemption. This is available in all types of mortgages.

Right of foreclosure: The right of the mortgagee to deny the mortgagor of the property to exercise his right of redemption i.e.

debarring the mortgagor for ever to get back the mortgaged property is called as the right of foreclosure. This right is available to

the mortgagee in case of mortgage by conditional sale.