Turnover Limit for Minimum Tax section 113
Turnover Limit for Minimum Tax section 113: Currently, individual and AOP having turn over exceeding Rs. 10 million are required to pay turn over tax under section 113 of ITO, 2001. Now the Finance Bill has proposed to increase the said turn over limit to Rs. 100 million.
Furthermore, presently section 113(2)(c) allows carryforward of minimum tax paid in excess of the normal tax payable for a period of 5 years.
However, there is conflict between tax payer and tax authorities in case if there is no tax payable. Now the said issue will be settled as the Bill proposes to allow such benefit of carryforward even in case no tax is payable.
The rate of turnover tax has also been reduced from 1.5% to 1.25%.