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Finance bill 2010 kalyan
 

Finance bill 2010 kalyan

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    Finance bill 2010 kalyan Finance bill 2010 kalyan Presentation Transcript

    • THE JALNA CA CPE STUDY CHAPTER
      Presentation on Proposed Finance Bill 2010Direct Taxes
      3rd March, 2010
      CA. Kalyan Chakravarthy Vennety
    • INCOME TAX ACT, 1961
      2
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • NEW TAX RATE SLAB for Individuals & HUF
      3
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Decrease in Surcharge on Income Tax
      4
      CA. Kalyan Chakravarthy Vennety
      Now
      3.3.2010
    • Sec 2(15) Charitable Purposew.e.f. 1-04-2009
      Restriction of the definition of
      “Charitable Purpose”
      Not Apply
      if aggregate receipts do not exceed Rs. 10 Lacs
      5
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 9 Income deemed to accrue or arise in India w.e.f. 01-06-1976
      Income from royalties, interest,
      fee for technical services
      Ishikawajima- Harima Heavy Industries Ltd case (SC)
      Include in Total Income of NR
      Whether or not Non-Resident rendered service in India
      6
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 10(21)Incomes not included in Total IncomeDate of effect: 01-04-2011
      Approved
      Research Association
      7
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 12AA (3) Cancellation of trust or institution w.e.f. 01-06-2010
      Earlier Cancellation was linked to
      Trust/Institution granted reg’n u/s 12AA(1)
      Now
      Cancellation provided where any Trust/Institution
      has obtained Reg’n any time u/s 12A
      8
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 32 Depreciationw.e.f. 01-04-2011
      Company
      LLP
      Dep’n as if no succession has taken place
      9
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 35 Weighted Deduction on Expenditure on Researchw.e.f. 01-04-2011
      10
      CA. Kalyan Chakravarthy Vennety
      175%
      125%
      Now
      Now
      200%
      150%
      3.3.2010
    • Sec 35ADExpenditure on specified businessw.e.f. 01-04-2010
      Cross-country
      Gas or Oil
      pipeline network
      Total Capacity should be as per P&NG
      Reg Board
      New specified Business
      Hotel
      2Star or above
      11
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 35DDAAmortisation of Exp under VRSw.e.f. 01-04-2011
      Company
      LLP
      Deduction as if no succession has taken place
      12
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 40(a)(ia)Disallowance of Expw.e.f. 01-04-2010
      TDS Deducted
      But not paid
      on or before the due date of filing of return
      13
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Yes, you all guessed it right ! He is the Tax Auditor
      14
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 44ABTax Audit Provisionw.e.f. 01-04-2011
      15
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 44ADTax Audit Provisionw.e.f. 01-04-2011
      16
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 44 BB Business of Exploration of Mineral Oils w.e.f. 01-04-2011
      Sec 44 DA applicable?
      Sec 44 BB
      Not Applicable
      17
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 44 DARoyalties etc. in case of non residents w.e.f. 01-04-2011
      Sec 44 BB applicable?
      Sec 44 DA
      Not Applicable
      18
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 47(xiii b) Transactions not regarded as transferw.e.f. 01-04-2011
      Company
      Transfer of Capital / Intangible Asset
      LLP
      Six conditions?
      Not a Transfer
      19
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 47(xiii b) Transactions not regarded as transferw.e.f. 01-04-2011
      Six conditions
      20
      CA. Kalyan Chakravarthy Vennety
      All A&L of co. become A&L of LLP
      All Shareholders become Partners of LLP
      Shareholders do not receive any compensation in any form
      Aggregate of PSR of shareholders should not be less than 50% for 5years
      Turnover of the company any of the 3 years prior to conversion does not exceed Rs. 60 Lacs
      No amount is paid to partners out of accumulated balance of the company on the date of conversion for a period of 3 years
      3.3.2010
    • Sec 49(4) New sub-sectionCost of acquisitionw.e.f. 01-06-2010
      Shares received without consideration or inadequate consideration
      Cost of Acquisition
      Value which has been taken into account for the
      purpose of section 56 (2) (viia)
      21
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • 56(2)(vii)(b)Income from other sourcesw.e.f. 01-10-2009
      Value of Property received
      Property
      = Capital Asset only.
      Does not cover Stock in Trade
      Condition of inadequate consideration Removed
      Taxed only if
      Property is received
      without any consideration
      22
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • 56(2)(vii)(b)Income from other sourcesw.e.f. 01-06-2010
      w.e.f. 01-06-2010Bullion included
      Property
      = Capital Asset only.
      Does not cover Stock in Trade
      Condition of inadequate consideration Removed
      Taxed only if
      Property is received
      without any consideration
      23
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • 56(2)(vii)(b)Income from other sourcesw.e.f. 01-06-2010
      Where a Firm or Pvt Ltd. Co
      receives
      From any person(s)
      In any PY
      Shares of Pvt Ltd.Co
      24
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Expl’n: FMV meaning same as given in Expl’n to clause (vii)
      Proviso: This clause shall not apply to cases covered u/s 47
      56(2)(vii)(a)Income from other sourcesw.e.f. 01-06-2010
      25
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
      Expl’n of Property
      Not applicable here.
      Hence, covers
      Stock in Trade also.
    • Sec 72A (6A) New clauseC/f & Setoff in amalgamation/demergerw.e.f. 1-04-2011
      Proviso: fresh period of 8 years
      will be available for set off of loss in the hands of LLP upon conversion
      Company
      Succeeded by
      LLP
      Six conditions satisfied?
      Can C/f & Setoff accumulated Loss & Dep'n
      26
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80A(7)Deductions claimed in Total Incomew.e.f. 01-04-2011
      Claimed deduction under this sec?
      Deduction Sec 35 AD
      Not Available
      27
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80CCFDeduction on long term infrastructure bondsw.e.f. 01-04-2011
      Limit = Rs.20,000
      In addition to
      Rs.100,000 under Sec 80CCE
      28
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80DDeduction for Health Insurance Premiaw.e.f. 01-04-2011
      Benefit Extended
      Contribution made to
      Central Government Health Scheme
      within Rs.15,000
      29
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80GGA Deduction in respect of certain donationsfor scientific research or rural developmentw.e.f. 01-04-2011
      Scope Extended
      Research in
      Social Science
      Statistical Research
      30
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80IB(10)(a)Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakingsw.e.f. 01-04-2010
      Period of completion
      Extended from
      5 Years
      4 Years
      31
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80IB(10)(d)Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakingsw.e.f. 01-04-2010
      Built up Area of shops & commercial estb.
      included in Housing Project
      5% of the aggregate built-up area of the housing project or
      2,000 square feet, whichever is less
      3% of the aggregate built-up area of the housing project or
      5,000 square feet, whichever is higher
      Revised
      32
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 80ID(2)(i)Deduction in respect of profits and gains from business of hotels and convention centres in specified areaw.e.f. 01-04-2011
      Deadline for construction of the centre
      extended to 31st July, 2010
      33
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
      For special impetus to ensuing
      Common Wealth Games
    • Sec 115JJA(7)Tax credit in respect of tax paid on deemedincome relating to certain companiesw.e.f. 01-04-2011
      Company
      Succeeded by
      LLP
      Credit of MAT paid available?
      NO
      34
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 115JB(1)MATw.e.f. 01-04-2011
      Minimum Alternative Tax
      Increased
      18%
      15%
      35
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 115WE(1B)FBT Assessmentw.e.f. 01-04-2010
      Time limit for issuance of direction
      by Central Govt increased
      to 31.03.2011
      36
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 139(4C)Return of Incomew.e.f. 01-04-2011
      Scope Extended
      Research Association
      Social Science
      Statistical Research
      37
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • 142A(1)Estimate by Valuation Officer in certain casesw.e.f. 01-07-2010
      AO is now empowered
      to make reference to the
      Valuation Officer for making an estimate of
      FMV
      of any property referred to in
      sub-section (2) of section 56 of the Act.
      38
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 143(1B)Assessmentw.e.f. 01-04-2010
      Time limit for issuance of direction relating to processing of returns By Central Govt increased to 31.03.2011
      39
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 143(1B)Assessmentw.e.f. 01-04-2011
      Time limit for issuance of direction relating to processing of returns By Central Govt increased to 31.03.2011
      Proviso: AO shall not withdraw exemption u/s10(21) unless intimation has been given by him to the prescribed authority and the approval granted to the association has been withdrawn
      40
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 143(3)Assessmentw.e.f. 01-04-2011
      References to
      scientific research association
      are proposed to be substituted by references to
      research association
      41
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Changes in TDS Threshold Limitsw.e.f. 1-07-2010
      42
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 201(1A)Consequences of failure to deduct or pay taxw.e.f. 01-07-2010
      Interest on delayed Deposit
      Rate increased
      18% p.a.
      12% p.a.
      43
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 203(3) & 206(C)Certificate of TDSw.e.f. 01-04-2010
      It is proposed to omit the
      sub-section (3)
      which provides that
      on or after 1st April, 2010
      there is no need to issue
      a TDS Certificate
      44
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 245Aexpression “case”w.e.f. 01-06-2010
      The expression “case” amended so as to include Assessment
      in case of search or requisition
      45
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
      It also
      removes the prohibition in cases where the AO has to proceed u/s. 153C of the
      Act.
    • Sec 245CSettlement of casesw.e.f 01-06-2010
      46
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 245D(4A)Procedure on receipt of an application forsettlement of casesw.e.f 01-06-2010
      The SC shall make an Order
      47
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 256(2A)Statement of case to the High Courtw.e.f. 01-06-1981
      48
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 260A(2A)Statement of case to the High Courtw.e.f. 01-10-1998
      49
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • 271BPenalty for failure toget accounts auditedw.e.f. 01-04-2011
      50
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 282B Document Identification No.w.e.f 01-10-2010
      Effective Date for use of
      computer generated
      Document Identification Number extended to 01-10-2011
      51
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Rule 5(b) First ScheduleComputation of Profits & Gains of other insurance Business
      52
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • WEALTH TAX ACT, 1957
      53
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 22A(b)expression “case”w.e.f 01-06-2010
      Definition of “case” altered to include the proceedings of
      assessment or reassessment
      which may be initiated on the basis of
      a search or requisition
      Expl’n amended to specify the date on which the proceedings for assessment or reassessment shall be deemed to have been initiated and concluded pursuant to a search or requisition
      54
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 22DProcedure on receipt of an application forsettlement of casesw.e.f 01-06-2010
      The SC shall make an Order
      55
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 27(3B)Reference to the High Court.w.e.f. 01-06-1981
      56
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Sec 27AStatement of case to the High Court.w.e.f. 01-10-1998
      57
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • CENTRAL SALES TAX ACT, 1956
      58
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • Major Amendments
      • Amendment -sub-section 2 of Section 6 A
      ‒The assessing authority should satisfy himself that the declaration filed by a dealer is true and there is no inter-state sale
      •Insertion –sub-section 3 of Section 6 A
      ‒Assessing authority is empowered to do re-assessment
      on discovery of new facts or revision by higher authority
      •Insertion of new Chapter V A to the CST Act, -
      “Appeals to the Highest Appellate Authority of the State”
      •The Central Sales Tax Appellate Authority has been empowered to direct refund of tax collected
      3.3.2010
      CA. Kalyan Chakravarthy Vennety
      59
    • SERVICE TAX ACT
      60
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • New services introduced in the tax net –effective from a date to be notified
      • Commercial use or exploitation of any event
      •Copyrights on recording of cinematographic films/sound recording
      •Health Services for employees of business entities/services
      •Services of maintenance of medical records
      •Electricity Exchange Services
      •Additional services provided by a builder to the prospective buyers
      •Brand Endorsement Services
      •Promotion, marketing or organizing of games of chance including lottery
      3.3.2010
      CA. Kalyan Chakravarthy Vennety
      61
    • End of Presentation.
      62
      CA. Kalyan Chakravarthy Vennety
      3.3.2010
    • THANK YOU !
      CA. Kalyan Chakravarthy Vennety
      BCOM, ACA, DISA(ICAI), CISA
      V R Jogeswara Rao & Co., Chartered Accountants
      Phone: 99700-88669
      Email: ca.vkalyanc@gmail.com
      3.3.2010
      63
      CA. Kalyan Chakravarthy Vennety