Recent Amendments in Income tax in Finance Act 2015

1. Recent Amendments in Income
Tax in Finance Act, 2015
Presented by
CA. Bharat Aggarwal
Partner
M/s Ashok Bharat & Associates

2. Rate of IncomeTax
PARTICULARS A.Y. 2016-17
Male / Female 0 - 250000 = Nil
250001 - 500000 = 10%
500001 - 1000000 = 20%
Above 1000000 = 30%
Senior Citizen
(Age ≥ 60 but less than 80 Years)
0 - 300000 = Nil
300001 - 500000 = 10%
500001 - 1000000 = 20%
Above 1000000 = 30%
Super Senior Citizen
(Age ≥ 80 Years)
0 - 500000 = Nil
500001 - 1000000 = 20%
Above 1000000 = 30%
Partnership Firm 30% (No Change )
Company Domestic 30% (No Change)
Foreign 40% (No Change)

3. Surcharge – 2 % Increase (Applicable w.e.f. A.Y.2016-17
to all assessee other than Foreign Company)
Total Income is in the
Range of Rs 1 Crore – Rs.
10 Crore
Total Income Exceeds Rs.
10 Crore
A.Y.2015-16 A.Y.2016-17 A.Y.2015-16 A.Y.2016-17
Individual / HUF
/ AOP / BOI /AJP
10% 12% 10% 12%
Firm /
Co-operative
Society / Local
Authority
10% 12% 10% 12%
Domestic
Company
5% 7% 10% 12%
Foreign Company 2% 2% 5% 5%

4. Section 32 (1)(iia) - Additional Depreciation
If the asset is put to use for less than 180 days in the year of acquisition,
then additional depreciation would be
 10% of Cost of Acquisition in the 1st year
and
 Balance 10% in the immediately succeeding previous year.
Imp. Points
For manufacturing and Power sector, additional depreciation of 20%
on New Plant & Machinery is available over and above normal
depreciation.
Previously it was not clear in the law whether the assessee can claim
balance 10% depreciation in next year or not. Assessee was dependent
of Judicial rulings for claiming balance 10% depreciation.
The said amendment is applicable w.e.f A.Y.2016-17

5. Deductions under Chapter VI A
Section 80 C
 Deposit under Sukanya Samridhi Account Scheme will be
qualified for deduction under section 80C within the overall
ceiling of Rs.1,50,000/- (w.e.f. A.Y. 2015-16)
 As per the amendment in Finance Act, 2015, w.e.f. A.Y.
2015-16 deduction is allowed if the sum is deposited by the
individual in the name of
• Individual (if Girl Child is assessee)
• Any Girl Child of the Individual
• In the name of girl child for whom the individual is legal
guardian

6. Section 80 CCC (Contribution to Annuity Policy)
• Limit increased from Rs.1,00,000/- to Rs.1,50,000/-
Section 80 CCD (Contribution to NPS)
Section
80CCD
80 CCD (1)
(Rs.1,50,000/-
Limit Applicable)
10 % of Salary / GTI or
Rs.1,00,000/- Which
ever is less (deleted
w.e.f. A.Y.2016-17)
80 CCD (1B)
(Newly Inserted
w.e.f. A.Y.2016-17)
Rs.50,000/- Additional
Deduction for
contribution to NPS by
Individual

7. Section 80 D (Mediclaim)
Section
80D
Mediclaim
Insurance Premium
1. Family
2. Parents
3. HUF
Contribution to
CGHS / Notified
Scheme
1. Family
Preventive Health
checkup Payment
1. Family
2. Parents

8. Section 80 D
 In case Individual or any family member or any parent is senior citizen
then additional deduction of Rs.5000/- is available.
 W.e.f. A.Y. 2016-17, medical expenditure upto
Rs.30,000/- is allowed as deduction in case of Super
Senior Citizen (80 years and above) if medical
insurance is not in force.
 Deduction U/s 80D is limited to Rs.30,000/- in case of Self and Family
and Rs.30,000/- in case of Parents.
 The aggregate payment on account of Preventive health checkup cannot
exceed Rs.5000/-
Particulars Deduction upto
A.Y.2015-16
Deduction w.e.f.
A.Y. 2016-17
Family (Individual, Spouse,
Dependent Children)
Rs.15,000/- Rs.25,000/-
Parents (Father and Mother) Rs.15,000/- Rs.25,000/-

9. Section 80DD (Medical Expenditure on Dependent)
 Dependent means spouse, children, parents, brothers and sisters
wholly or mainly dependent on such individual for support and
maintenance.
Section 80DDB (Medical Expenditure on Chronic Diseases)
 No need of Certificate from Specialist doctor in Government Hospital
(Now w.e.f A.Y.2016-17, prescription from specialist doctor is sufficient)
 A sum of Rs.80,000/- or expenditure incurred which ever is lower, is
available as deduction for expenditure on medical treatment of Super Senior
citizen.
 Expenditure on Self , Dependent spouse, children, parents, brothers and
sisters.
Particulars Deduction upto
A.Y.2015-16
Deduction w.e.f.
A.Y. 2016-17
Disability ≥ 40% but less than 80% Rs.50,000/- Rs.75,000/-
Disability 80% or above Rs.1,00,000/- Rs.1,25,000/-

10. Section 80G (Donation)
 100 % on donation to Swachh Bharat Kosh and Clean Ganga Fund
(w.e.f. A.Y. 2015-16) [Donation not available if amount spent by the
assessee in pursuance of CSR under Companies Act,2013]
 100 % on donation to National fund for control of drug abuse
(w.e.f. A.Y. 2016-17)
Section 80U (Person with disability)
Particulars Deduction upto
A.Y.2015-16
Deduction w.e.f.
A.Y. 2016-17
Disability ≥ 40% but less than 80% Rs.50,000/- Rs.75,000/-
Disability 80% or above Rs.1,00,000/- Rs.1,25,000/-

11. TDS Amendments (Applicable w.e.f. 01.06.2015)
Section 194 A
The above threshold limit of Rs.10,000/- is to be calculated Bank wise
and not branch wise by the entities who have adopted CBS
(w.e.f. 01.06.2015)
Section 194 (TDS on Interest)
Particulars Threshold Limit Rate of TDS
1
.
TDS on RD Interest by
Banking Company or Co-
operative Bank
Rs.10,000/- 10%
2
.
TDS on Interest by Co-
operative Banks on Time
Deposit
Rs.10,000/- 10%

12. Section 194 C (Payment made to Resident Transporters)

13. TDS u/s 194 C to Transporters is not applicable if following 3
Conditions are satisfied
1. Recipient is engaged in the business of transport (i.e Plying, hiring or
leasing of goods carriages) and
2. Recipient owns 10 or less goods carriages at any time during the
financial year and
3. Recipient furnishes a declaration to this effect along with PAN

14. Examples on TDS on Transporters
Calculate TDS liability - X Ltd a manufactures makes following payments to
contractors : (All transporters have submitted PAN and declaratons)
a) Rs.1,00,000/- to A Ltd. on 1 May 2015 (A Ltd. Own 25 Goods Carriage during 2015-16)
Ans ) TDS Not Deductible as PAN is given and amendment is applicable from 01.06.2015
b) Rs.5,00,000/- to B Ltd. on 1 Dec 2015 (B Ltd. Own 9 Goods Carriages on 1 April 2015
and purchased 5 GC on 1 Nov 2015)
Ans ) TDS Not Deductible as recipient owns 10 or less than 10 GC even for 1 day during
F.Y. and has also submitted PAN and declaration
c) Rs.6,00,000/- to C Ltd. on 15 June 2015 (C Ltd. Started new business on 1 May 2015 by
purchasing 50 new Goods Carriages )
Ans ) TDS Not Deductible as recipient does not any vehicle in April and hence owns 10 or
less than 10 GC even for 1 day during F.Y. and has also submitted PAN and declaration
d) Rs.5,00,000/- to D Ltd. on 1 Dec 2015 for transportation of employees to another city
(D Ltd. Own 9 buses during F.Y. 2015-16)
Ans ) TDS is Deductible as payment pertains to carriage of passengers (not Goods).
Exemption is only for carriage of Goods

15. Section 269 SS
(Advance received in cash in Property Transactions covered w.e.f. 01.06.2015)
 No Person
o Shall Accept
o From any Person
o Any Loan or deposit or any sum of money
o whether as advance or otherwise
o In relation to transfer of immovable property
o otherwise than by an a/c payee cheque/draft or ECS through bank A/c
o If the amount of such loan or deposit or such specified sum is Rs.20000/- or more
o Penalty U/s 271D, 100% of Loan amount or deposit or advance.
Section 269 T
(Repayment in cash of advance received in property transactions covered w.e.f. 01.06.2015)
 No Person
o Shall repay
o any loan or deposit or any specified advance received
o In relation to transfer of immovable property
o otherwise than by an a/c payee cheque/draft or ECS through bank A/c
o If the amount of such loan or deposit or such specified advance is Rs.20000/- or
more
o Penalty U/s 271E, 100% of Loan amount or deposit or advance.

16. Few more amendments ..
 Form 15CA/CB required to be furnished also for transactions where no income
is chargeable to tax in India.
 Section 80JJAA – Deduction for employment of new regular workmen
extended to all assessees (Only companies upto A.Y.2015-16) having
manufacturing units. Also benefit has been extended to units employing 50
Regular workmen (Instead of 100)
 TDS on Interest on compensation in Motor Accident claim to be made on
receipt basis only.
 Wealth tax abolished w.e.f. A.Y.2016-17
 New ITR Form 2A introduced for Individual and HUF having Income from
o Salary / Pension
o House Property
o Other Sources (Including winning from Lottery and Race Horses)

17. Thanks...
You can mail your Suggestions / queries
on
Email : ashokbharat@taxandlaw.in