BUDGET 2020 - Contetra brings to you the budget series to share insights on what all to be done to plan taxes and benefi

1. #BUDGET 2020 - Contetra brings to you the budget series to share insights on what all to be done to plan taxes and benefit from the Budget Powered by PART 1 – BUDGET & BUSINESS • Budget 2020 provides individuals the option to choose between the tax regime: • Factoring these optional tax rate for TDS purpose, HR will need to upgrade the existing system to differentiate between the choice taken by employee and accordingly calculate tax to be deducted from monthly salary. • Challenges are likely to be encountered when employee decide to make the regime change later. Hence, the system needs to be flexible to address later choices. • Many online calculators are now available for an individuals to check which tax regime would be beneficial. As value add, company HR should consider bringing such functionality into salary structuring to enable them to make the wise choice. • HUMAN RESOURCES • HRMS upgradation • TDS planning ConTeTra Universal LLP 165, Satra Plaza, Sector – 19D, Vashi, Navi Mumbai. 91- 8291862829,

2. #BUDGET 2020 - Contetra brings to you the budget series to share insights on what all to be done to plan taxes and benefit from the Budget Powered by PART 1 – BUDGET & BUSINESS • Union Budget 2020 abolishes Dividend Distribution Tax (DDT) and effective April 1, 2020 dividend will be taxed in the hands of the shareholder at the applicable slab rate depending on the tax regime opted. • Any dividend paid before March 31, 2020, will be taxed as DDT @ 17.50% and if the total dividend income earned by the shareholder exceeds Rs. 10 Lacs than the same is taxable at 10% + applicable surcharge + 4% cess. • Promoter driven companies and closely held companies can do an appropriate analysis and decide whether declaring dividends before March 2020 is beneficial • All ESOPs, sweat equity, etc. will be taxed in the hands of employees within 14 days of earliest of following events: • 5 years from the date of allotment • Exercising the option • Date of sale of specified equity (year in which they sell the shares), and • Date of cessation of employment • This information needs to be conveyed to the employees holding ESOPs, this gives them a major relief. • STAKEHOLDERS • Maximizing your returns • Structuring ESOPs ConTeTra Universal LLP 165, Satra Plaza, Sector – 19D, Vashi, Navi Mumbai. 91- 8291862829,

3. #BUDGET 2020 - Contetra brings to you the budget series to share insights on what all to be done to plan taxes and benefit from the Budget Powered by PART 1 – BUDGET & BUSINESS • As DDT (Dividend Distribution Tax) has got abolished, finance teams should note that there will be no provision in books of accounts for the same. This is likely to have significant income statement implication as any deferred tax liability set-up on undistributed profits of subsidiaries will have to be reversed. Resulting in substantial decrease in tax charge in Q1 2020-21 and also year ended March 31, 2020. • DTAA has reduced the TDS on foreign remittance in case of FTS to about 2%. • Income tax audit limits have increased from 1 CR to 5 CR, this brings in compliance as well cash flow relief for small businesses. • Existing Income Tax dispute which are likely not to be in your favor, you can choose to pay the taxes under ‘Vivad Se Vishwas’ scheme (for direct taxpayers) and get rid of penalties as well as interests on tax litigation. • Finance teams across organizations need to get on with e-invoice implementations and implications from GST standpoint. • Tax teams to closely watch the changes in transfer pricing regime in the form of APA (Advance Pricing Agreement) and safe harbour provisions which will be applicable from April 21 and April 20 respectively. • Due date for Transfer Pricing documentation (study and filing of Form 3CEB) is revised from November to October of the relevant assessment year. • FINANCE & TAX TEAM • Maximizing your returns • Structuring ESOPs ConTeTra Universal LLP 165, Satra Plaza, Sector – 19D, Vashi, Navi Mumbai. 91- 8291862829,