Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Part 4) - V. K. Subramani - Article published in Business Advisor, dated March 25, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Direct Tax Amendments Applicable From 1st April 2017Amarpal Jakhar
As Financial Year is ending, tax proposals in the Budget 2017 have now become law. This Budget focused on rewarding honest taxpayers, taxing the rich and bringing to task economic offenders. Here we are listing some of the major changes in direct taxation that would apply from April 2017.
Case laws update - V. K. Subramani - Article published in Business Advisor, dated September 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Finance Bill Vs Finance Act - Dewan P.N. Chopra & Co. Sandeep Gupta
The Finance Bill, 2016 received the presidential assent on May 14, 2016. Thus, it has become the Finance Act, 2016 now.
However, the Bill which was presented originally in the Lok Sabha on February 29, 2016 has not been passed in its original shape. Various changes have been made in the Bill and new amendments have been brought in.
Budget 2017: Clause by clause analysis of amendments to direct tax laws - V. ...D Murali ☆
Budget 2017: Clause by clause analysis of amendments to direct tax laws - V. K. Subramani - Article published in Business Advisor, dated February 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document discusses refunds under tax law. It states that a taxpayer who has paid excess tax may apply for a refund within two years of the tax assessment or payment. The Commissioner must refund any excess paid after applying it against other outstanding taxes. If a refund is not paid within three months, the taxpayer is entitled to additional compensation at the KIBOR interest rate until the refund is paid. Appeals procedures are outlined for taxpayers aggrieved by refund decisions.
This regulation establishes procedures for collecting fees by the Financial Services Authority (OJK) of Indonesia. It outlines the types of fees OJK charges, including license fees, annual regulatory fees, and penalties. It specifies deadlines and processes for fee payments. If fees are not paid by deadlines, OJK can issue warnings and impose penalties of up to 48% of unpaid fees. After 1 year of non-payment, unpaid fees will be designated as non-performing receivables and handed over to the State Receivables Committee for collection.
The document summarizes key changes to the Indian Income Tax law. Some of the major changes include:
- The corporate tax rate has been reduced to 25% for domestic companies with turnover less than 250 crores in FY 2016-17.
- Long term capital gains from equity shares exceeding 1 lakh will be taxed at 10%.
- Deductions have been increased for medical expenditures for senior citizens to Rs. 50,000 and Rs. 1 lakh for very senior citizens.
- Benefits have been extended to startups including a 100% deduction for 3 years for eligible startups incorporated between April 1, 2019 to March 31, 2021 with turnover less than 25 crores.
Direct Tax Amendments Applicable From 1st April 2017Amarpal Jakhar
As Financial Year is ending, tax proposals in the Budget 2017 have now become law. This Budget focused on rewarding honest taxpayers, taxing the rich and bringing to task economic offenders. Here we are listing some of the major changes in direct taxation that would apply from April 2017.
Case laws update - V. K. Subramani - Article published in Business Advisor, dated September 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Finance Bill Vs Finance Act - Dewan P.N. Chopra & Co. Sandeep Gupta
The Finance Bill, 2016 received the presidential assent on May 14, 2016. Thus, it has become the Finance Act, 2016 now.
However, the Bill which was presented originally in the Lok Sabha on February 29, 2016 has not been passed in its original shape. Various changes have been made in the Bill and new amendments have been brought in.
Budget 2017: Clause by clause analysis of amendments to direct tax laws - V. ...D Murali ☆
Budget 2017: Clause by clause analysis of amendments to direct tax laws - V. K. Subramani - Article published in Business Advisor, dated February 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document discusses refunds under tax law. It states that a taxpayer who has paid excess tax may apply for a refund within two years of the tax assessment or payment. The Commissioner must refund any excess paid after applying it against other outstanding taxes. If a refund is not paid within three months, the taxpayer is entitled to additional compensation at the KIBOR interest rate until the refund is paid. Appeals procedures are outlined for taxpayers aggrieved by refund decisions.
This regulation establishes procedures for collecting fees by the Financial Services Authority (OJK) of Indonesia. It outlines the types of fees OJK charges, including license fees, annual regulatory fees, and penalties. It specifies deadlines and processes for fee payments. If fees are not paid by deadlines, OJK can issue warnings and impose penalties of up to 48% of unpaid fees. After 1 year of non-payment, unpaid fees will be designated as non-performing receivables and handed over to the State Receivables Committee for collection.
The document summarizes key changes to the Indian Income Tax law. Some of the major changes include:
- The corporate tax rate has been reduced to 25% for domestic companies with turnover less than 250 crores in FY 2016-17.
- Long term capital gains from equity shares exceeding 1 lakh will be taxed at 10%.
- Deductions have been increased for medical expenditures for senior citizens to Rs. 50,000 and Rs. 1 lakh for very senior citizens.
- Benefits have been extended to startups including a 100% deduction for 3 years for eligible startups incorporated between April 1, 2019 to March 31, 2021 with turnover less than 25 crores.
This document outlines procedures for filing tax returns in Pakistan. It specifies that companies, high income individuals, non-profit organizations, and others must file an annual tax return. Returns must be filed electronically and include information about income, taxes paid, and assets/wealth. Exceptions to filing are provided for low income salaried individuals and certain property owners. Extensions may be granted for returns in cases of travel, illness or other reasonable causes.
Dear Professional Colleagues,
Sharing with you "Budget Updates-2019". A brief analysis of:
1. Transfer Pricing Amendments
2. Individual Taxation-Tax Incentives
3. Tax Rates
Hope you will find it useful and informative too.
Regards
CA. Reetika G Agarwal
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
This document provides a summary of tax updates from February 2019 in India. Key points include:
- The due date for filing ITR was extended to February 28, 2019 for taxpayers in Kerala affected by floods.
- Angel tax rules were relaxed and no tax will be imposed on share issuances up to Rs. 25 crore.
- The income tax rebate under Section 87A was increased so that no tax is payable on income up to Rs. 5 lakh.
- Monetary limits for filing income tax appeals now also apply to wealth tax appeals.
RBI
Prudential Guidelines – Banks’ investment in units of REITs and InvITs
Guidelines on compliance with Accounting Standard (AS) 11 [The Effects of Changes in Foreign Exchange Rates] by banks
Additional Provisions For Standard Advances At Higher Than The Prescribed Rates
MCA
Revision of E-forms
SEBI
Review of the framework of position limits for Interest Rate Futures contracts
TAXATION
GST Bill gets President Assent now becomes The Central Goods and Service Tax Act, 2017
Central Government amends Pradhan Mantri Garib Kalyan Deposit Scheme through a Notification.
Cabinet approves signing of the Protocol amending the Convention between India and Portugal for avoidance of Double Taxation
OTHERS
The Employee's Compensation Act, 1923
Company website-
www.acquisory.com
Analysis of audit provision under income tax & companies actAmit Mahipal
The document analyzes provisions of the Companies Act 1956 and Income Tax Act 1956 relating to audit of accounts. Section 44AB of the Income Tax Act requires audit of accounts if total sales exceed Rs. 60 lakhs or gross receipts exceed Rs. 15 lakhs. It must be conducted before September 30th. Failure to do so can result in a penalty of Rs. 150,000 under Section 271B. Section 210 of the Companies Act requires companies to present audited financial statements at the AGM. The penalty for non-compliance is a fine up to Rs. 10,000 and possible imprisonment of up to 6 months.
Understanding the Impact of Finance Act, 2020 on the Taxation of ESOPsTaxmann
What all has been covered in this Presentation:-
1. About ESOPs
a. What are ESOPs?
b. How ESOPs Work?
c. Stages in ESOPS
2. Taxation of ESOPs
a. Computation of Perquisite Value
b. Determination of Fair Market Value of Listed Shares
c. Determination of Fair Market Value of Un-Listed Shares
d. Deduction of Tax
3. Deferment of Tax
a. Amendments by the Finance Act, 2020
b. Meaning of Eligible Start-Up
c. Deferment of TDS under Section 192
d. Calculation of Tax to be Deferred
e. Consequences of Failure to Deduct Tax
f. Direct Payment of Tax by Employee
4. Taxation of ESOPs (Transfer of Share)
a. Computation of Capital Gains
5. Taxation of ESOPs - Summary
CORPORATE
MCA
Revision of E-Form
Updation of Forms
TAXATION
Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
Procedure for registration and submission of statement of financial transactions (SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
Cabinet approves Listing of Government owned General Insurance Companies at the stock exchanges
Company Website-
www.acquisory.com
CBDT Representation - Comments on Draft Rules for Grant of FTC - PRB CAsHarshal Bhuta
The document is a letter from an accounting firm providing comments on India's draft rules for granting foreign tax credit. It summarizes key issues with the draft rules and provides suggestions. Specifically, it notes that Rule 1 could deny credit due to timing mismatches between countries. It suggests allowing credit on an accrual basis subject to redetermination. For Rule 4, it suggests allowing disputed foreign tax credits accrued. For Rule 5, it notes credit limits should consider India's deductions and rates. Rule 8 requirements are also suggested to be reasonably relaxed to avoid hardship.
This document provides an overview of the Indian Bonus Act of 1965. Some key points:
- The Act was passed to provide for the payment of bonus to employees in certain establishments based on profits or production.
- It applies to factories and other establishments with 20 or more employees.
- Eligible employees must have worked at least 30 days in an accounting year to qualify for bonus.
- Bonus is calculated based on allocable surplus, with a minimum of 8.33% of wages and maximum of 20% of wages.
- Any disputes around bonus payments are treated as industrial disputes and can be referred to labor courts.
- The Act establishes requirements for maintenance of registers and records by employers and provides
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Par...D Murali ☆
The document provides a clause by clause analysis of amendments to India's direct tax laws as part of Budget 2017. Some key points:
1. Section 43 is amended to clarify how depreciation will be calculated if an asset previously used for a business covered under Section 35AD is later used for regular business.
2. Section 43B is amended to allow interest deduction on an actual payment basis for cooperative banks from assessment year 2018-19.
3. Threshold limits for maintenance of books of accounts by individuals and HUFs are increased under Section 44AA.
4. Presumptive income rate under Section 44AD is reduced to 6% for receipts via banking channels vs. 8% otherwise.
MCA
Insolvency and Bankruptcy Board of India notifies Fast Track Insolvency Resolution Process for Corporate Persons Regulations
MCA – Eforms - DIR-5 (Application for surrender of Director Identification Number) will be deployed as an e-form for filing purposes w.e.f 21st June 2017. Stakeholders who wish to surrender DINs shall be required to file this e-form instead of it being filed as an attachment to form RD-1.
TAXATION
Relaxation in return filing procedure for first two months of GST implementation
CBDT notifies rule for Computation of interest income pursuant to secondary adjustments
Company website:
www.acquisory.com
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a Company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). Provisions under Companies Act, 2013 with respect to voluntary winding up are omitted and shifted to Insolvency and Bankruptcy Code, 2016 (“the Code”). The webinar covers the aspects of provisions involved in voluntary winding up as enshrined under the Code read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017.
The Must-Read Analysis of Finance Act 2020, Straight from the Taxmann's Edito...Taxmann
The document summarizes changes made in the Finance Act, 2020 compared to the original Finance Bill, 2020 passed by the Lok Sabha. Key changes include:
1) Restricting relaxed residency rules for Indian citizens/PIOs visiting India to those with total income exceeding Rs. 15 lakhs.
2) Introducing a deemed residency provision for Indian citizens not liable to tax in any other country, but also restricting it to those with total income exceeding Rs. 15 lakhs.
3) Expanding the scope of equalization levy to include e-commerce supply/services by non-resident e-commerce operators, levying a 2% tax on such transactions. E-commerce operators
Tax Bulletin Draft Notification on POEM - Section 115JH of the ActVispi T. Patel
The CBDT has issued a Draft Notification issued on June 15, 2017 for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, under Section 115JH of the Income-tax Act, 1961.
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Par...D Murali ☆
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Part 3) - V. K. Subramani - Article published in Business Advisor, dated March 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document provides an analysis of key direct tax proposals in the Union Budget 2017 relating to transfer pricing, thin capitalization rules, taxation of individuals and companies, capital gains, real estate transactions, startups, and measures to promote digital payments and discourage cash transactions. Some key changes include reduced tax rates for individuals, introduction of secondary adjustment and thin capitalization rules for transfer pricing, relaxation of conditions for affordable housing tax exemption, and restrictions on cash donations and transactions above certain thresholds.
This document outlines procedures for filing tax returns in Pakistan. It specifies that companies, high income individuals, non-profit organizations, and others must file an annual tax return. Returns must be filed electronically and include information about income, taxes paid, and assets/wealth. Exceptions to filing are provided for low income salaried individuals and certain property owners. Extensions may be granted for returns in cases of travel, illness or other reasonable causes.
Dear Professional Colleagues,
Sharing with you "Budget Updates-2019". A brief analysis of:
1. Transfer Pricing Amendments
2. Individual Taxation-Tax Incentives
3. Tax Rates
Hope you will find it useful and informative too.
Regards
CA. Reetika G Agarwal
Key Takeaways:
- Facts of the case
- Issues and Orders of the case
- Contention of the parties
- Observations by Honourable Supreme Court
- Conclusions
This document provides a summary of tax updates from February 2019 in India. Key points include:
- The due date for filing ITR was extended to February 28, 2019 for taxpayers in Kerala affected by floods.
- Angel tax rules were relaxed and no tax will be imposed on share issuances up to Rs. 25 crore.
- The income tax rebate under Section 87A was increased so that no tax is payable on income up to Rs. 5 lakh.
- Monetary limits for filing income tax appeals now also apply to wealth tax appeals.
RBI
Prudential Guidelines – Banks’ investment in units of REITs and InvITs
Guidelines on compliance with Accounting Standard (AS) 11 [The Effects of Changes in Foreign Exchange Rates] by banks
Additional Provisions For Standard Advances At Higher Than The Prescribed Rates
MCA
Revision of E-forms
SEBI
Review of the framework of position limits for Interest Rate Futures contracts
TAXATION
GST Bill gets President Assent now becomes The Central Goods and Service Tax Act, 2017
Central Government amends Pradhan Mantri Garib Kalyan Deposit Scheme through a Notification.
Cabinet approves signing of the Protocol amending the Convention between India and Portugal for avoidance of Double Taxation
OTHERS
The Employee's Compensation Act, 1923
Company website-
www.acquisory.com
Analysis of audit provision under income tax & companies actAmit Mahipal
The document analyzes provisions of the Companies Act 1956 and Income Tax Act 1956 relating to audit of accounts. Section 44AB of the Income Tax Act requires audit of accounts if total sales exceed Rs. 60 lakhs or gross receipts exceed Rs. 15 lakhs. It must be conducted before September 30th. Failure to do so can result in a penalty of Rs. 150,000 under Section 271B. Section 210 of the Companies Act requires companies to present audited financial statements at the AGM. The penalty for non-compliance is a fine up to Rs. 10,000 and possible imprisonment of up to 6 months.
Understanding the Impact of Finance Act, 2020 on the Taxation of ESOPsTaxmann
What all has been covered in this Presentation:-
1. About ESOPs
a. What are ESOPs?
b. How ESOPs Work?
c. Stages in ESOPS
2. Taxation of ESOPs
a. Computation of Perquisite Value
b. Determination of Fair Market Value of Listed Shares
c. Determination of Fair Market Value of Un-Listed Shares
d. Deduction of Tax
3. Deferment of Tax
a. Amendments by the Finance Act, 2020
b. Meaning of Eligible Start-Up
c. Deferment of TDS under Section 192
d. Calculation of Tax to be Deferred
e. Consequences of Failure to Deduct Tax
f. Direct Payment of Tax by Employee
4. Taxation of ESOPs (Transfer of Share)
a. Computation of Capital Gains
5. Taxation of ESOPs - Summary
CORPORATE
MCA
Revision of E-Form
Updation of Forms
TAXATION
Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
Procedure for registration and submission of statement of financial transactions (SFT) as per section 285BA of Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
Cabinet approves Listing of Government owned General Insurance Companies at the stock exchanges
Company Website-
www.acquisory.com
CBDT Representation - Comments on Draft Rules for Grant of FTC - PRB CAsHarshal Bhuta
The document is a letter from an accounting firm providing comments on India's draft rules for granting foreign tax credit. It summarizes key issues with the draft rules and provides suggestions. Specifically, it notes that Rule 1 could deny credit due to timing mismatches between countries. It suggests allowing credit on an accrual basis subject to redetermination. For Rule 4, it suggests allowing disputed foreign tax credits accrued. For Rule 5, it notes credit limits should consider India's deductions and rates. Rule 8 requirements are also suggested to be reasonably relaxed to avoid hardship.
This document provides an overview of the Indian Bonus Act of 1965. Some key points:
- The Act was passed to provide for the payment of bonus to employees in certain establishments based on profits or production.
- It applies to factories and other establishments with 20 or more employees.
- Eligible employees must have worked at least 30 days in an accounting year to qualify for bonus.
- Bonus is calculated based on allocable surplus, with a minimum of 8.33% of wages and maximum of 20% of wages.
- Any disputes around bonus payments are treated as industrial disputes and can be referred to labor courts.
- The Act establishes requirements for maintenance of registers and records by employers and provides
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Par...D Murali ☆
The document provides a clause by clause analysis of amendments to India's direct tax laws as part of Budget 2017. Some key points:
1. Section 43 is amended to clarify how depreciation will be calculated if an asset previously used for a business covered under Section 35AD is later used for regular business.
2. Section 43B is amended to allow interest deduction on an actual payment basis for cooperative banks from assessment year 2018-19.
3. Threshold limits for maintenance of books of accounts by individuals and HUFs are increased under Section 44AA.
4. Presumptive income rate under Section 44AD is reduced to 6% for receipts via banking channels vs. 8% otherwise.
MCA
Insolvency and Bankruptcy Board of India notifies Fast Track Insolvency Resolution Process for Corporate Persons Regulations
MCA – Eforms - DIR-5 (Application for surrender of Director Identification Number) will be deployed as an e-form for filing purposes w.e.f 21st June 2017. Stakeholders who wish to surrender DINs shall be required to file this e-form instead of it being filed as an attachment to form RD-1.
TAXATION
Relaxation in return filing procedure for first two months of GST implementation
CBDT notifies rule for Computation of interest income pursuant to secondary adjustments
Company website:
www.acquisory.com
OBJECTIVE
Winding up is the final stage in the business cycle of a Company. It is the process of closing down the legal existence of a Company. It can be done either by the Company on its own (voluntary winding up) or by an order passed by the Tribunal (compulsory winding up). Provisions under Companies Act, 2013 with respect to voluntary winding up are omitted and shifted to Insolvency and Bankruptcy Code, 2016 (“the Code”). The webinar covers the aspects of provisions involved in voluntary winding up as enshrined under the Code read with Insolvency and Bankruptcy Board of India (Voluntary Liquidation Process) Regulations, 2017.
The Must-Read Analysis of Finance Act 2020, Straight from the Taxmann's Edito...Taxmann
The document summarizes changes made in the Finance Act, 2020 compared to the original Finance Bill, 2020 passed by the Lok Sabha. Key changes include:
1) Restricting relaxed residency rules for Indian citizens/PIOs visiting India to those with total income exceeding Rs. 15 lakhs.
2) Introducing a deemed residency provision for Indian citizens not liable to tax in any other country, but also restricting it to those with total income exceeding Rs. 15 lakhs.
3) Expanding the scope of equalization levy to include e-commerce supply/services by non-resident e-commerce operators, levying a 2% tax on such transactions. E-commerce operators
Tax Bulletin Draft Notification on POEM - Section 115JH of the ActVispi T. Patel
The CBDT has issued a Draft Notification issued on June 15, 2017 for exception, modification and adaptation in respect of a foreign company said to be resident in India due to its place of effective management (POEM) being in India, under Section 115JH of the Income-tax Act, 1961.
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Par...D Murali ☆
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Part 3) - V. K. Subramani - Article published in Business Advisor, dated March 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
The document provides an analysis of key direct tax proposals in the Union Budget 2017 relating to transfer pricing, thin capitalization rules, taxation of individuals and companies, capital gains, real estate transactions, startups, and measures to promote digital payments and discourage cash transactions. Some key changes include reduced tax rates for individuals, introduction of secondary adjustment and thin capitalization rules for transfer pricing, relaxation of conditions for affordable housing tax exemption, and restrictions on cash donations and transactions above certain thresholds.
The document summarizes various corporate, taxation, and other regulatory updates from October 24-25, 2017. Specifically:
1) MCA notified that powers under Section 247 of the Companies Act regarding valuation by registered valuers will be delegated to IBBI.
2) CBDT clarified guidelines regarding "Place of Effective Management" for deciding company residency status and that regional headquarters operations will not alone constitute a case for establishing POEM.
3) CBDT invited comments on amending Income Tax Rules regarding registration of charitable/religious trusts following amendments to the Income Tax Act.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
Finance Bill 2023 Full Description of Latest GST Changes | Academy Tax4wealthAcademy Tax4wealth
The Finance Bill, 2023, as introduced in Parliament on February 1, 2023, suggested several modifications to CGST/IGST rules under clauses 128 to 144 of the Finance Bill, 2023. Learn more!
For more information, visit us at:-
https://academy.tax4wealth.com/blog/gst-changes-finance-bill-2023
Finance Bill 2023 Full Description of Latest GST Changes | Academy Tax4wealthAcademy Tax4wealth
The Finance Bill, 2023, as introduced in Parliament on February 1, 2023, suggested several modifications to CGST/IGST rules under clauses 128 to 144 of the Finance Bill, 2023. Learn more!
For more information, visit us at:-
https://academy.tax4wealth.com/blog/gst-changes-finance-bill-2023
Latest Corporate Updates:
TAXATION
1. CBDT Notifies Tax Exemption to Startups from 'Rigour' of Section 56(2)(viib) of Income Tax Act
2. No TDS on Section 10(23DA) payment received by securitisation trust
3. No TDS on payment to payment systems company authorised by RBI
4. Furnishing Annual Information Return- Rules for registration, due diligence & information maintenance
5. CBDT Clarification on Threshold Limit of tax audit U/s. 44AB & 44AD
6. Amendment in Rule 114H of Income-tax Rules, 1962
7. Establishment of Fund of Funds for funding support to Start-ups
8. Cabinet approves Protocol amending the Agreement for avoidance of double taxation and prevention of fiscal evasion with Belgium
OTHERS
1. Premature Closure of PPF Account
SEBI
1. Consultation Paper on Amendments to SEBI (Portfolio Managers) Regulations, 1993 Pursuant to Introduction of Section 9A in The Income Tax Act, 1961
The document summarizes key proposed amendments to corporate taxation in the Union Budget 2017-18 in India. Some key points include:
1. The corporate tax rate has been reduced to 25% for domestic companies with turnover less than 50 crore rupees.
2. Conversion of preference shares to equity shares will now be tax neutral and the period of holding preference shares will count towards long term capital gains calculation for equity shares.
3. Secondary adjustments are proposed for transfer pricing to align profits in company books with actual profits determined during assessment.
The document summarizes key proposed amendments to corporate taxation in the Union Budget 2017-18 of India. Some key points include:
1) The corporate tax rate is reduced to 25% for domestic companies with turnover less than 50 crore rupees.
2) Conversion of preference shares to equity shares is proposed to be made tax neutral and the period of holding preference shares will count towards long term capital gains calculation for equity shares.
3) Capital gains arising from the transfer of rupee denominated bonds between non-residents is proposed to be exempt from taxation.
The document discusses changes made by the Central Board of Direct Taxes to Form 3CD, which is used for tax audit reports. Key changes include the addition of GST registration numbers under indirect tax laws (Clause 4) and the addition of new reporting requirements for deductions claimed under Section 32AD and deemed profits/gains from Section 32AD (Clauses 19 and 24). New Clauses 29A and 29B were also added related to reporting income from forfeiture of advances for capital asset transfers and deemed gifts under Section 56(2)(x). Guidance is provided on implementation of the new and modified clauses.
our comprehensive presentation covering the key tax as well as financial proposals discussed during the Union Budget 2021-22 speech, which was delivered by Finance Minister Nirmala Sitharaman.
With plenty of hype surrounding the Budget owed to its arrival at a time when the country is reeling from a pandemic and an economic slowdown, the Budget covered various proposals which were centered around reducing the period of reopening of tax assessments, giving tax relief on certain fronts, streamlining tax litigation, corporate law, GST & other indirect taxes, and increasing the ease of doing business.
Section 206AA – Rule 37BC
Central Board of Direct Taxes vide Notification No. 53/2016 dated 24.06.2016 has amended the Income Tax Rules, 1962 by inserting a new Rule 37BC through the IT (17th Amendment) Rules, 2016.
This document is the July 2016 issue of Tax Quest, an e-newsletter from K. Vaitheeswaran & Co. advocating tax law. It summarizes recent changes to international taxation, income tax, service tax, central excise, VAT, and CENVAT. For international taxation, it discusses relaxations to TDS for non-residents without PAN, the precedence of DTAAs over section 206AA, and new rules for foreign tax credit. For income tax, it covers the Income Declaration Scheme and recent circulars, as well as expansions to the scope of tax collection at source.
Service tax voluntary compliance encouragement scheme, 2013ANAND KANKANI
This document provides details about the Service Tax Voluntary Compliance Encouragement Scheme introduced in India in 2013. Key points:
- The scheme allows service providers who have not filed returns or paid taxes since 2007 to disclose true tax liabilities and pay owed taxes to avoid penalties.
- Eligible taxpayers can pay disclosed taxes in installments by 2014 to be exempt from interest and penalties if taxes are otherwise paid on time.
- The goal is to encourage voluntary compliance and collect unpaid taxes from the many service providers who are not currently filing returns.
Budget 2016-2017 - analysis of direct tax proposalsoswinfo
This document provides an analysis of key changes proposed in the Indian Budget 2016 relating to direct taxes. Some key points summarized are:
1. No change in basic tax exemption limits and rates for individuals. Surcharge of 15% for income over Rs. 1 crore. Section 87A rebate limit increased to Rs. 5,000. Section 80GG deduction limit for individuals without HRA enhanced to Rs. 5,000 per month.
2. Section 80CCC deduction limit increased from Rs. 1 lakh to Rs. 1.5 lakh. Section 10(12) and 10(13) exemptions for provident fund and superannuation fund limited to 40% of accumulated amount for contributions made
Finance Bill, 2018 Amendments Passed by the Lok SabhaUpasanaTaxmann
The Lok Sabha on Wednesday passed the Finance Bill, 2018 amendments. Here're the snippets of changes made in finance bill, 2018. For more information visit https://www.taxmann.com/.
This newsletter summarizes recent Indian tax law updates from December 2016. Key points include:
- Premiums paid on keyman insurance for partners are deductible business expenses.
- PAN is now mandatory for cash deposits over Rs. 50,000 per day or Rs. 250,000 total by December 31, 2016.
- The upcoming Union Budget will be presented on February 1.
- The highest tax depreciation rate is now capped at 40% for all assets.
- Amendments were introduced to tax undisclosed cash deposits post demonetization.
- Recent court cases addressed issues like interest under section 234C and defects in tax applications.
- International tax agreements were updated or signed with countries like
Corporate Udates
#SEBI
Charging of additional expenses of upto 0.20% in terms of Regulation 52 (6A) (c) of SEBI (Mutual Funds) Regulations, 1996 -
SEBI issues Circular w.r.t. Total Expense Ratio (TER)– change and disclosure which shall be applicable on All Mutual Funds/AMCs/Trustee Companies
MCA
MCA exempts Government Company from complying with Ind AS 12 for 7 years w.e.f April 2017
MCA designates Special Courts in Kerala, Odisha and Guwahati for speedy Trial of offences
TAXATION
GST: Government Notifies Postponement of E-Way Bill
CBDT has issued Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018.
OTHERS
DGFT – Issues a public notice to notify the amendment in the procedure of seeking modification in IEC
Company Website-
www.acquisory.com
This document summarizes key changes from the Indian Budget 2017 relating to direct taxes, indirect taxes, and other financial measures. For individuals, the document outlines changes such as reduced income tax rates, increased deduction limits, and simplified income tax returns. For corporates and professionals, it discusses changes like the corporate tax rate and presumptive taxation. The document also summarizes changes to capital gains tax, TDS/TCS provisions, and introduces new penalties for non-compliance. Regarding indirect taxes, it notes that the Goods and Services Tax is expected to be implemented soon and replaces existing service tax and excise duty laws.
Similar to Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Part 4) - V. K. Subramani (20)
The good of all is what is good for oneselfD Murali ☆
May Day post by S. Prabhu in his blog prtraveller
Link: https://prtraveller.blogspot.com/2020/05/d-murali-journalist.html
Ref:
1) A whistleblowing story in SlideShare https://www.slideshare.net/MuraliD1/a-whistleblowing-story-part-1
2) Whistleblowing story - Sequence of mails https://www.slideshare.net/MuraliD1/whistleblowing-story-sequence-of-mails
3) Audiobiography in Soundcloud https://soundcloud.com/muralid/audiobiography-d-murali
4) Be agitated about gender prejudice https://soundcloud.com/muralid/sound-clip-27-be-agitated
5) Demand for apology https://soundcloud.com/muralid/apo
6) Why are you agitated https://soundcloud.com/muralid/why
7) Mylapore Times article by S. Prabhu https://www.slideshare.net/MuraliD1/online-content-useful-for-sanskrit-students
8) This article in SlideShare https://www.slideshare.net/MuraliD1/the-good-of-all-is-what-is-good-for-oneself
9) Mylapore Times article link http://www.mylaporetimes.com/2020/04/senior-journo-posts-online-content-useful-for-sanskrit-students-young-and-old/
10) Tweet in CopyTasterDM handle https://twitter.com/CopyTasterDM/status/1256489049264537601
11) LinkedIn post https://www.linkedin.com/posts/muralide_d-murali-journalist-activity-6661878686062645248-9Zp0/
12) Facebook post https://www.facebook.com/dMurali/posts/10214668257814386
Business Journos Chennai WhatsApp Group infoD Murali ☆
188 participants as on April 29, 2020
Group created on August 19, 2014
Group description:
"Focus: Biz news & events in Chennai. Biz=What's typically in a biz newspaper. Ground rules: NO wishes, jokes, videos, audio, unverified fwds. Cite sources, share yr tweets. Vision: Aim for thoroughness.
A few tips: Be agile, alert, diverse, inclusive, engaging, truthful, empathetic, independent, curious, & human. Steer clear of cash/ vouchers! Ask questions. Seek clarity. Demand accountability. Demystify jargon. Wander to where spotlights don't shine.
-- DM"
Accompanying Twitter handle: @CopyTasterDM - for picking stories to share with the 'Business Journos Chennai' group
(Received from CECRI; CSIR-Council of Scientific & Industrial Research; SERC-Structural Engineering Research Centre; CECRI-Central Electrochemical Research Institute)
CSIR-CECRI-Industrial Conclave - Water treatmentD Murali ☆
CSIR-CECRI-Industrial Conclave - Water treatment
(Received from CECRI; CSIR-Council of Scientific & Industrial Research; SERC-Structural Engineering Research Centre; CECRI-Central Electrochemical Research Institute)
Blog post link: http://bit.ly/2vdIiN1
FICCI Digital Disruption & Transformation Summit DDTS, ELCOT presentation D Murali ☆
'Future of Governance - Transforming the government digitally' - Presentation by Dr Rajendra Kumar, IAS, CMD, ELCOT, in FICCI Digital Disruption & Transformation Summit DDTS
Blog post link: http://bit.ly/2viWgC0
FICCI Digital Disruption & Transformation Summit DDTS agendaD Murali ☆
The document provides an agenda for the Digital Disruption and Transformation Summit 2017 held in Chennai, India. The one-day summit focused on how organizations can survive and thrive during the digital tsunami. The agenda included keynote addresses on disruptive technologies, panel discussions on opportunities in industries undergoing digital transformation, and an exhibition of digital products and services. The summit aimed to help participants understand the skills needed to succeed in the new digital age through discussions on topics such as analytics, automation, cyber security, and digital platforms.
Knight Frank India Real Estate (Jan-June 2017) ReportD Murali ☆
Knight Frank India Real Estate (Jan-June 2017) Report
Knight Frank-17H1
Kanchana Krishnan, Knight Frank on 17H1 January-June 2017 India Real Estate
(Residential, office)
Blog post link: http://bit.ly/2upCz7K
All India and Chennai ppt - India Real Estate (Jan-Jun 2017)D Murali ☆
The document provides an overview of the Indian real estate market in the first half of 2017. Some key findings include:
- Residential launches and sales declined 41% and 11% respectively year-over-year, reaching their lowest levels in the last 5-7 years, due to the impacts of demonetization and new regulations. However, affordable housing saw stronger growth.
- Office transactions declined 10% year-over-year due to industry headwinds facing the major IT/ITeS sector and a supply crunch. Vacancy levels remained low at 12%.
- Specifically in Chennai, the residential market saw marginal recovery with launches and sales up 4-5% year-over-year
Why Government is unfair to Indian Revenue Service officers who strenuously w...D Murali ☆
Why Government is unfair to Indian Revenue Service officers who strenuously work to provide fuel for efficiently running its administration? - T. N. Pandey - Article published in Business Advisor, dated April 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Supreme Court may kindly consider whether SIT appointed on its order needs to...D Murali ☆
The Supreme Court may consider winding up the Special Investigation Team (SIT) it appointed in 2011 to investigate cases of unaccounted money held abroad by Indians. The SIT was established to oversee investigations into cases like Hassan Ali Khan and Tapurias regarding foreign black money. However, its constitution represented an overreach of the judiciary into the executive's powers over tax matters. Further, a new government is now in power and has established its own agencies like the Multi Agency Group to handle similar cases, creating duplication of efforts. It is argued that the time has come for the Supreme Court to review whether continued supervision of the SIT's work falls within its jurisdiction and whether the SIT should continue functioning as a parallel body
Basic tenets of GST - Dr Sanjiv Agarwal - Article published in Business Advisor, dated May 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Possibility of set-off of business loss against cash credit/ unexplained inve...D Murali ☆
The document discusses two court cases regarding whether business losses can be set off against income assessed under sections 68-69D of the Income Tax Act, which deal with unexplained investments and expenditures. The Chensing Ventures case allowed set off of losses, while the Kerala Sponge Iron Ltd case did not. The Finance Act of 2016 amended the law to explicitly disallow set off of losses against such incomes. This amendment applies prospectively from assessment year 2017-18. The conclusion is that while clarificatory amendments are usually retrospective, this one specified prospective application due to the changed legal position.
Irrationalities in giving Padma awards damage their sanctity - T. N. PandeyD Murali ☆
Irrationalities in giving Padma awards damage their sanctity - T. N. Pandey - Article published in Business Advisor, dated May 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax...D Murali ☆
Karnataka HC endorses tax avoidance technique to lessen minimum alternate tax (MAT) - T. N. Pandey - Article published in Business Advisor, dated June 10, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM #BusinessAdvisorArchives
Updates on Circulars and Notifications - V. K. SubramaniD Murali ☆
Updates on Circulars and Notifications - V. K. Subramani - Article published in Business Advisor, dated June 25, 2016 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Tweeted on www.twitter.com/BusinessAdvDM
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
An astonishing, first-of-its-kind, report by the NYT assessing damage in Ukraine. Even if the war ends tomorrow, in many places there will be nothing to go back to.
Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
Budget 2017 - Clause by clause analysis of amendments to direct tax laws (Part 4) - V. K. Subramani
1. Volume XVIII Part 6 March 25, 2017 18 Business Advisor
Budget 2017 - Clause by clause analysis
of amendments to direct tax laws (Part 4)
V. K. Subramani
53. Survey under section 133A on charitable trusts
also: Currently, the scope of survey under section 133A is
limited to the place where the business or profession is
carried on. The Finance Bill, 2017 proposes to explicitly
expand the scope of the legal provision by making
reference to the place where activity for charitable
purpose is carried on. Thus statement could be obtained
from any person being trustee or employee or any other
person who at the time of survey attends in any manner
or helping in carrying on such charitable activity. This
amendment is applicable from 1st April, 2017.
54. Scheme for centralised issuance of notice: Section 133C empowers
the prescribed income-tax authority to issue notice calling for information
and documents for the purpose of verification of information in its
possession. The Finance Bill, 2017 proposes that the CBDT may formulate a
scheme for centralised issuance of notice calling for information and
documents for the purpose of verification of information in its possession,
processing of such documents and making the outcome thereof available to
the Assessing Officer for necessary action, if required. This is applicable
w.e.f.01.04.2017.
55. Mandatory filing of returns by certain entities: Presently, section
139(4C) prescribes mandatory filing of return for certain entities whose
income is fully exempt from tax. The scope of taxpayers who have to file
their returns in spite of their income being tax-free has been enlarged. They
are (i) person referred to in section 10(23AAA), i.e. approved funds meant for
welfare of employees or their dependents; (ii) investor protection fund set up
by commodity exchanges in India (section 10 (23EC); (iii)any income by way
of contributions received from a depository of such Investor Protection Fund
set up in accordance with regulations by a depository referred to in section
10 (23ED); (iv) any specified income of Core Settlement Guarantee Fund, set
up by a recognised clearing corporation referred to in section 10 (23EE); and
certain Boards such as Coffee Board, Tea Board, Rubber Board, Tobacco
Board, Spices Board, Coir Board etc. The objective behind such prescription
is to verify whether these entities that enjoy exemption under section 10
actually carry out the activities for which the exemption is provided under
2. Volume XVIII Part 6 March 25, 2017 19 Business Advisor
the Act. This amendment is applicable from assessment year 2018-19
onwards.
56. Order of appropriation of self-assessment tax paid: The Finance Bill,
2017 proposes to impose „fee‟ for delayed filing of return of income by
inserting section 234F. As a corollary, it proposes to amend the Explanation
to section 140A(1) by setting the priority of appropriation. Now, the self-
assessment tax paid would first be appropriated towards the fee thereafter
towards interest and the balance towards tax. This amendment is also
applicable from 1st April, 2018.
57. Processing of return required even when notice is issued under
section 143(2): The Finance Bill, 2017 seeks to amend section 143(1) by
making reference to „fee‟ proposed to be levied under section 234F. Further,
it proposes to do away with non-processing of return under section 143(1)
where notice under section 143(2) has been issued. This amendment would
apply for returns filed for the assessment year 2017-18 onwards. The
rationale behind the amendment proposed is that the Finance Act, 2016
provided that where the return is selected for scrutiny, it need not be
processed under section 143(1). In order to address the grievance of delay in
issue of refund in genuine cases the Finance Bill, 2017 proposes to omit
section 143(1D) in respect of returns filed for the assessment year 2017-18
onwards.
58. Reduction in time limit for completion of assessments: One of the
far-reaching amendments proposed in the Finance Bill, 2017 relates to
moderation of timelines for completion of assessments and reassessments.
Section 153(1) is proposed to be amended to limit the time for completing
regular assessments from the existing time limit of 21 months to 18 months
from the end of the assessment year. Further, it proposes to limit the time
to 12 months from the end of the relevant assessment year, from
assessment year 2019-20 onwards.
Reduction in timeline for reassessments: The Finance Bill, 2017 also
proposes to reduce the time limit for reassessments to 9 months from the
existing time limit of 12 months from the end of the financial year in which
notice under section 148 was issued. This reduced time limit would apply
for the 148 notices served on or after 01.04.2019.
Increase in time limit for giving effect to appellate orders: Also, the
Finance Bill proposes to extend the time limit for giving effect to the orders
passed under sections 254, 263 or 264 by prescribing the time limit as 12
months from the end of the financial year in which it was received. This
extended time would apply to orders received on or after 01.04.2019.
3. Volume XVIII Part 6 March 25, 2017 20 Business Advisor
59. Threshold limit for invoking section 153A: The Finance Bill, 2017
proposes to fine tooth comb the ambit of search assessments. It prescribes
that the timeline would include the previous year of search or requisition, as
the case may be. Further, it says that provisions of section153A would apply
in respect of search initiated under section 132 or requisition made under
section 132A (on or after 01.04.2017), the income escaping assessment is or
likely to amount to Rs 50 lakh in aggregate.
60 & 61. Rationalisation of provisions relating to 153B/ 153C: The
Finance Bill, 2017 proposes to amend section 153B in line with section153A
by making reference to „assessment years‟ and providing time limit of 12
months where such requisition is made on or after 01.04.2019. Further, in
respect cases requisitioned during financial year, the time limit for
completion of assessment is proposed to be reduced to 18 months from the
end of the financial year in which the last of the authorisations for search
under section132 or for requisition under section 132A was executed. Also,
where the time limit available to the Assessing Officer for assessment under
section153C is less than 12 months, then the available time limit shall be
deemed to be 12 months for the purpose of completing the assessment
under section153C.
62. Credit for income-tax after clearance of dispute: Where credit for
income-tax paid in any country outside India or a specified territory outside
India referred to in section 90, section 90A or section 91 has not be given on
the ground that the payment of such tax was under dispute and if
subsequently such dispute is settled and the assessee has furnished the
evidence of such settlement to the Assessing Officer within 6 months from
the end of the month in which it was settled, the Assessing Officer shall
amend the order of assessment or intimation under section 143(1) by
applying the provisions of section 154. However, the credit of tax which was
under dispute shall be allowed for the year in which such income is offered
to tax or assessed to tax in India.
63. TDS on rent exceeding Rs 50,000: The Finance Bill, 2017 proposes to
insert section 194-IB which is applicable for individual or HUF when they
pay rent exceeding Rs 50,000 for a month or part of a month during the
previous year to a resident. The rate of tax deduction shall be 5% at the time
of credit of rent or payment, whichever is earlier. Such payer deducting tax
at source need not have a TAN to comply with this provision. The term „rent‟
would mean any payment for the use of land or building or both and
includes payment by way of lease, sub-lease, tenancy or any other
agreement or arrangement. Readers may note that this would apply for
4. Volume XVIII Part 6 March 25, 2017 21 Business Advisor
marriage hall booking, hotel booking when the payment exceeds Rs 50,000
whether for a month or part of a month. This is applicable from 01.06.2017.
64. TDS on advance paid for joint development agreement: The Finance
Bill, 2017 has provided some relief to JDUs by deferring the tax liability in
the case of land owner to the year of completion of the project. However, to
provide a trail section 194-IC is proposed to be inserted for tax deduction at
source on any sum paid to a resident @ 10%. However, where the advance is
in kind for the JDU, the TDS requirement will not arise.
65. Lower TDS rate for call centres: The Finance Bill, 2017 proposes to
scale down the TDS rate to 2% in the case of a payee, engaged only in the
business of operation of call centre. This is applicable w.e.f. 01.06.2017.
66. No TDS on compensation under RFCTLARR Act, 2013: The Central
Government has enacted a new law by name Right to Fair Compensation
and Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013 (RFCTLARR) which came into force on 01.01.2014. Section 96 of the
RFCTLARR says that income-tax shall not be levied on award or agreement
made subject to limitations mentioned in section 46 of the said Act.
Therefore, compensation received for compulsory acquisition of land under
the RFCTLARR Act is exempt from levy of income-tax. The CBDT has issued
Circular No.36/2016 dated 25.10.2016 clarifying that such compensation
has been exempted from levy of Income-tax even if there is no specific
provision of exemption for such compensation under the Act. To clarify that
the compensation is not only exempt from tax but also no tax deduction at
source is required, the Finance Bill, 2017 proposes to insert a proviso for
non-deduction of tax at source on such payment.
67. Concessional tax rate on ECB and rupee denominated bonds:
Presently, interest payable to a non-resident by a specified company on
borrowings made in foreign currency from sources outside India under a
loan agreement or by issue of any long-term bond including long-term
infrastructure bond is eligible for concessional rate of tax deduction at 5%.
However, the borrowings eligible for such concessional rate of TDS must be
before 01.07.2017. The Finance Bill, 2017 proposes to extend the time limit
for such borrowings made up to 30.06.2020. This will apply retrospectively
from 01.06.2016 and thus in relation to assessment year 2016-17 and
subsequently.
68. Concessional rate of TDS on interest paid to FIIs and QFIs: In the
case of interest payable at any time from 01.06.2013 to 30.06.2017 to FIIs
and QFIs on their investments in government securities and rupee
denominated corporate bonds, tax is deductible at 5% provided the rate of
interest does not exceed the rate notified by the Central Government in this
5. Volume XVIII Part 6 March 25, 2017 22 Business Advisor
behalf. The Finance Bill, 2017 proposes to extend the concessional rate of
5% TDS on interest payable up to 30.06.2020. This will apply from the
assessment year 2018-19 onwards.
69. Self-declaration in respect of insurance commission: The Finance
Act, 2016 decreased the TDS rate in respect of insurance commission to 5%
though the threshold limit for tax deduction was also reduced from Rs
20,000 to Rs 15,000 w.e.f. 01.06.2016. The Finance Bill, 2017 proposes the
payee to furnish declaration in Form No.15G/ 15H where the tax on
estimated total income of the relevant previous year would be „nil‟. This
would provide relief to small earners and is applicable from 01.06.2017.
70. Meaning of person responsible for paying: The Finance Bill, 2017
proposes to add one more category of person within the meaning of the term
„person responsible for paying‟ contained in section 204. In the case of
furnishing of information relating to payment to a non-resident, not being a
company or to a foreign company, of any sum, whether or not chargeable to
tax, the payer himself or if the payer is a company, the company itself
including the principal officer thereof, is included. Thus, every person
making payment to non-resident must comply with section 285, and if the
payer is a company, it would include the principal officer of the company.
71. TCS requirement of jewellery reduced: The Finance Bill, 2017
proposes to reduce the limit for tax collection at source for jewellery from
the existing limit of Rs 5 lakh to Rs 2 lakh. Thus the classification would
now include only bullion and other goods.
As regards sale of motor vehicle for which TCS would apply when sale
consideration exceeds Rs 10 lakh, the Finance Bill, 2017 proposes to certain
exceptions/ exemptions from TCS, such as sale of such motor vehicle to (a)
the Central Government, a State Government and an Embassy, a High
Commission, legation, commission, consulate and the trade representation
of a foreign State; (b) a local authority defined in Explanation to section
10(20); and (c) a public sector company which is engaged in the business of
carrying passengers.
72. Quoting of PAN in TCS: The Finance Bill, 2017 proposes to insert
section 206CC which is similar to section 206AA meant for mention of PAN
while complying with TDS provisions. It proposes that any person paying
any amount on which tax is collectible at source to furnish PAN, failing
which the tax shall be collected at twice the rate mentioned in the relevant
section under Chapter XVII-BB or at the rate of 5% whichever is higher.
Declaration given under section 206C(1A) shall not be valid unless it has
the PAN of the declarant. Where such declaration is not valid, the payee
shall collect the TCS in accordance with the applicable provision. Certificate
6. Volume XVIII Part 6 March 25, 2017 23 Business Advisor
for non-collection of TCS shall not be granted unless PAN is mentioned in
the application. The PAN must be quoted by both the collector and collectee
in all correspondence, bills and vouchers exchanged between them. This
amendment will apply w.e.f. 01.04.2017.
73. Advance tax for professionals admitting income under section
44ADA: The Finance Act, 2016 extended the scope for advance tax by
prescribing payment of advance tax on or before 15th March for persons
engaged in business and who opt for presumptive provisions contained in
section 44AD. The Finance Bill, 2017 proposes to extend such requirement
to professionals who offer income on presumptive basis under section
44ADA of the Act. Thus from the assessment year 2018-19 persons covered
by section 44AD and section 44ADA have to pay advance tax on or before
15th March of the relevant previous year.
74. Interest under section 234C for persons covered by sections 44AD
and 44ADA: Interest under section 234C will apply in respect of persons
admitting income under presumptive provisions contained in section 44AD
and section 44ADA of the Act. Further relief from levy of interest is extended
to incomes which are covered by section 115BBDA, i.e. dividend received
from domestic companies which become taxable in the hands of recipient
where the aggregate payment exceeds Rs 10 lakh.
75: Fee for late filing of return: The Finance Bill, 2017 proposes to insert
section 234F as a compensatory payment for delayed filing of return of
income. It is applicable from the assessment year 2018-19 onwards. Where
the return is filed beyond the due date prescribed in section 139(1) but
before 31st day of December of the assessment year, the taxpayer has to pay
a fee of Rs 5,000. Where the return is filed beyond 31st day of December, the
fee payable would be Rs 10,000. However, if the total income of the assessee
does not exceed Rs 5 lakh, the fee payable under this section shall not
exceed Rs 1,000.
76: Power to withhold refund: The Finance Bill, 2017 proposes to
empower the Assessing Officer to withhold refund by recording reasons in
writing and with the previous approval of the Principal Commissioner or
Commissioner as the case may be, up to the date on which the assessment
is made. From assessment year 2017-18 onwards, where refund of any
amount becomes due to the assessee on processing of return under section
143(1) and the Assessing Officer has issued notice under section 143(2), he
may withhold such refund by following the procedure stated hereinbefore.
(To be continued)
(V. K. Subramani is Chartered Accountant, Erode.)