Memo - Memorandum Part-I (Income-tax)

Income tax reforms expand reliefs and incentives while tightening source rules for nonresident taxation and anti abuse provisions.

The Bill revises income-tax rates and surcharge mechanics, prescribes TDS and advance tax rates, clarifies that specified non-resident incomes are deemed to accrue in India regardless of place of rendering or business connection, expands and enhances investment linked and R&D weighted deductions, permits limited commercial receipts for charitable status subject to a receipts threshold, raises audit and presumptive taxation thresholds to ease compliance, tightens anti-abuse provisions for transfers without adequate consideration, and provides conditional tax-neutral conversion rules for companies into LLPs.