Finance bill 2010 kalyan

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Finance bill 2010 kalyan

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