INTER C.A. J.K.

SHAH CLASSES

Statutory Updates

(November’20 attempt)

(IN SUMMARISED & EASY VERSION)

1. P.N.1 of PDF of ICAI

Topic: Surcharge rates for section 111A & 112A
Where we have covered? -- Capital Gain Chapter

Let’s Recap
Easy chart
“For Surcharge of Individual/HUF/AOP/BOI/AJP”
What is Total Income
(Incl. 111A & 112A)

> 50L but < 1 Cr > 1 Cr but < 2 Cr > 5Cr

  > 2 Cr but < 5 Cr

10% 15% Excl. 111A &
112A

> 5Cr > 2Cr < 2 Cr

Excl. 111A & 112A Excl. 111A &  But 
Also > 2 Cr 112A 37% < 5 Cr 15%
 < 2 Cr &  On all
25% on Tax of  15% 25%
other Income 15% on all &
15% on Tax 15%
U/s 111A & 112A

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INTER C.A. J.K.SHAH CLASSES

E.g.

111A & Total S.C. S.C. on 111A

T.I (Excl. 111A & 112 A)
112A Income On other & 112A
56 L 3 Cr 3.56 Cr 15% 15%
3 Cr 56 L 3.56 Cr 25% 15%
6 Cr 5 Cr 11 Cr 37% 15%
50 L 70 L 1.2 Cr 15% 15%
50 L 10 L 60 L 10% 10%
10 L 1.95 Cr 2.05 Cr 15% 15%
2.1 Cr 10 L 2.11 Cr 25% 15%

Note:
All Sums we have done in recorded lectures.

2. P.N.3 of PDF of ICAI

Topic: Increased rate of Depreciation on motor car
Where we have covered? -- PGBP Sec. 32

Let’s Recap
Motor Car (Other than used for business of hire, etc.)

Acquired & put to use b/w Other wise

23.8.19 to 31.3.20 
 15%
30% Dep. (< 180 days than half)
(If used for < 180 days than
half dep.)

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INTER C.A. J.K.SHAH CLASSES

Motor buses, Motor taxies, Lorries

Acquired & put to use b/w Other wise

23.8.19 to 31.3.20 
 15%
45% Dep. (< 180 days than half)
(If used for < 180 days half)

3. P.N.3 of PDF of ICAI

Topic: CII of P.Y. 19 – 20
Where we have covered? -- CG

P.Y. 19 – 20  CII = 289

4. P.N.4 of PDF of ICAI

Topic: Case where 56 (2) (x) N.A
New
Please add this in IFOS, SEC. 56(2)(x)

One more case where Immovable property received without consideration will not be
taxable U/s 56(2)(x) via notification no. 96/ 2019 date 11.11.19

History: Mainly in Delhi, where on agricultural land without taking proper permission
to convert land into non-agricultural Land, Colonies were made (1731 Colonies) & it is
not sold legally because no approval is taken so,

Mr. A Make Trf. Such Prop. to Mr. B But not by
 Colonies on Land legal Trf. It is Trf. By general power
Legal owner of without Proper of attorney or agreement to sale.
agricultural Land approval (So, Mr. b Can’t take loan on Prop.
as he is not legal owner)
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INTER C.A. J.K.SHAH CLASSES

Under PM UDAY YOJANA,

Government with DDA (Delhi Development Authority) decided to give legal ownership
to such person having possession of unauthorized colonies.

Hence,
So, when resident of such colonies get legal ownership (legal trf.) from DDA/ CG for
this unauthorized Colony.

56(2)(x) will not apply

5. P.N.5 of PDF of ICAI

Topic: Other e-mode
Where we have covered?
Sec 43(1) PGBP, Sec 43CA  50C (PGBP), Sec 56(2)(x), IFOS 40A(3)  PGBP,
44AD  PGBP, 80JJAA  Deduction

Where a/c payee chq, a/c payee draft, ECS, Other e-mode is covered

Credit / Net IMPS, RTGS, BHIM

Debit Card Banking UPI NEFT

Immediate
Payment Service,
Unfied Payment
interface

(E.g. Phone pe,

Google Pay,
paytm, SBI Pay)

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INTER C.A. J.K.SHAH CLASSES

6. P.N.7 of PDF of ICAI

Topic: Sec 194N
Where we have covered?  TDS

>1 Cr Cash withdrawal from a/c maintained with Bank, Post office
2% TDS above 1 Cr.
w.e. from 1.9.19
2 Explanations:
1. To Count limit of 1 Cr cash withdrawal between 1.4.19 to 31.8.19 is also to be incl.
but TDS to be deducted only on cash withdrawn after 1.9.19.
2. 194N N.A to:
Cash withdrawn by govt., Bank, Post office, Person doing busi. Of banking Co. as
per RBI (NBFC). &
(a) Cash Replenishment Agencies (CRA) & Agent of white label Automated
Teller Machine Operator (WLATMO)

Those who are handing work to deposit cash in ATMs
When they withdraw cash to deposit in ATM  No 194N

(b) Agent/Trader of APMC (Agri. Product Market Committee) of any State


If withdraw cash to make payment to farmers for purchasing agricultural
produce

Then NO TDS U/s 194N if Bank, Post office has taken PAN of
Trader/agent.

(c) It authorized dealer of RBI (To Buy Sale Foreign exchange) or Full-
fledged Money Changer licensed by RBI.

If they have separate a/c for purchase of Foreign Currency of NR Visiting
India or resident If they return to India etc. & they withdraw cash

No TDS U/s 194N

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INTER C.A. J.K.SHAH CLASSES

7. P.N.9 of PDF of ICAI

Topic: Sec 194M
Where we have covered TDS

w.e.f 1.9.19 Ind./HUF not covered by ACHIJ will deduct 5% TDS if > 50 L paid for
work, Professional fees, brokerage.

This TDS to be deposited to govt, within 30 days from end of month in which TDS
deducted in challan cum return 26QD (Electronically) & within 15 days of such due
date of 26QD, give certificate of TDS deduction to payee in form no. 16D

8. P.N.11 of PDF of ICAI

Topic: Sec. 139A, 139AA
Where we have covered  Assessment procedure

w.e.f. 1.9.19  wherever PAN to be quoted, if person don’t have PAN, he can quote
Aadhaar Number.
& whosoever has PAN, has to intimate Aadhaar number (link) on or before 31.3.21

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