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Finance bill 2010 kalyan

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Presentation on Finance Act

Presentation on Finance Act

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  • 1. THE JALNA CA CPE STUDY CHAPTER
    Presentation on Proposed Finance Bill 2010Direct Taxes
    3rd March, 2010
    CA. Kalyan Chakravarthy Vennety
  • 2. INCOME TAX ACT, 1961
    2
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 3. NEW TAX RATE SLAB for Individuals & HUF
    3
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 4. Decrease in Surcharge on Income Tax
    4
    CA. Kalyan Chakravarthy Vennety
    Now
    3.3.2010
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. Yes, you all guessed it right ! He is the Tax Auditor
    14
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 15. Sec 44ABTax Audit Provisionw.e.f. 01-04-2011
    15
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 16. Sec 44ADTax Audit Provisionw.e.f. 01-04-2011
    16
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. 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.
  • 26. 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
  • 27. 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
  • 28. 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
  • 29. 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
  • 30. 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
  • 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
    Period of completion
    Extended from
    5 Years
    4 Years
    31
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 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
    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
  • 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
    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
  • 34. 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
  • 35. Sec 115JB(1)MATw.e.f. 01-04-2011
    Minimum Alternative Tax
    Increased
    18%
    15%
    35
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 36. 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
  • 37. 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
  • 38. 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
  • 39. 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
  • 40. 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
  • 41. 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
  • 42. Changes in TDS Threshold Limitsw.e.f. 1-07-2010
    42
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 43. 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
  • 44. 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
  • 45. 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.
  • 46. Sec 245CSettlement of casesw.e.f 01-06-2010
    46
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 47. 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
  • 48. Sec 256(2A)Statement of case to the High Courtw.e.f. 01-06-1981
    48
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 49. Sec 260A(2A)Statement of case to the High Courtw.e.f. 01-10-1998
    49
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 50. 271BPenalty for failure toget accounts auditedw.e.f. 01-04-2011
    50
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 51. 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
  • 52. Rule 5(b) First ScheduleComputation of Profits & Gains of other insurance Business
    52
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 53. WEALTH TAX ACT, 1957
    53
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 54. 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
  • 55. 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
  • 56. Sec 27(3B)Reference to the High Court.w.e.f. 01-06-1981
    56
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 57. Sec 27AStatement of case to the High Court.w.e.f. 01-10-1998
    57
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 58. CENTRAL SALES TAX ACT, 1956
    58
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 59. 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
  • 60. SERVICE TAX ACT
    60
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 61. 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
  • 62. End of Presentation.
    62
    CA. Kalyan Chakravarthy Vennety
    3.3.2010
  • 63. 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

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