FM proposes to exempt minimum alternate tax for non-residents paying tax on presumptive basis

Finance Minister Nirmala Sitharaman on Sunday proposed to exempt Minimum Alternate Tax (MAT) for non-residents who pay tax on presumptive basis. In her Budget speech, she said the threshold for availing safe harbour for IT services is being enhanced from Rs 300 crore to Rs 2,000 crore. Sitharaman added that the tax collected at source rate on liquor, scrap, and mineral has been rationalised to 2 per cent. The minister also announced to rationalise definition of accountants for safe harbour rules to promote home-grown accounting firms. She said the government would allow inter-cooperative societies dividend income as deduction under the new tax regime.