Bills and Amendements Current Affairs - 2020
On December 2, 2019, Lok Sabha passed the Taxation Laws (Amendment) bill, 2019. The main objective of the bill is to provide an option for the domestic companies to pay taxes at the rate of 22%.
The bill replaced the ordinance promulgated by the President in September 2019. The ordinance reduced corporate taxes. The bill aims to amend both Income Tax Act, 1961 and Finance Act, 2019.
The bill provides the domestic companies to pay taxes at the rate of 22%. However, this can be availed only if the companies are not claiming deductions under the Income Tax act. Currently, the companies with annual turn over of Rs 400 crores are paying taxes at the rate of 25% and the companies with annual turn over more than Rs 400 crores are paying taxes at the rate of 30%.
Concessions are provided to those companies that were started after September 30, 2019 and begins manufacturing before April 1, 2023. They can pay taxes at the rate of 15% provided they do not claim deductions from other laws and rules
The companies opting for the new tax rates need not pay Minimum Alternate Taxes (MAT).
The main aim of the bill is to promote growth and investment in domestic manufacturing sector. In order to pull up the economy of the country the Union Government also reduced the corporate tax rates up to 10%. It was the biggest reduction in the last 28 years.
Tags: Bills and Acts • Bills and Amendements • Economic Growth • Finance Act 2019 • Income Tax Act 1961
Parliament has passed Repealing and Amending Bill, 2019 that seeks to repeal certain enactments and to amend certain other enactments. The bill provides for repealing 58 old and obsolete laws which have no relevance at present and makes minor amendments to two other laws. It was introduced in Lok Sabha on 25 July 2019 by Union Minister of Law and Justice Ravi Shankar Prasad.
Repealing and Amending Bill, 2019
Repealing certain laws in whole: Bill repeals 68 laws that have been listed in 1st Schedule of Bill.
These include: (1) Beedi Workers Welfare Fund Act, 1976 (2) Motor Vehicles (Amendment) Act, 2001.
Amendment of certain laws: Bill makes minor amendments to two Acts which relate to substitution of certain words. These two Acts are: (1) Income Tax Act (IT), 1961 and (2) India Institutes of Management (IIM) Act, 2017.
NOTE: Since NDA government came to power for 1st term in 2014, it started identifying obsolete laws and has so far repealed 1,428 old and archaic central Acts and about 75 laws which Centre drafted for states in view of President rule have also been repealed till date. This periodic review of old laws is part of governance.