Prime Minister Datuk Seri Najib Razak unveiled Budget 2014 on 25 October 2013, seeking to address a large fiscal deficit, shrinking current account surplus and growing debt pile that are sources of concern for investors and ratings agencies.
Introduction:
Section 11 deals with Income from property held for “Charitable or Religious purposes.”
The income shall be subjected to the provisions of
Section 60 - Transfer of Income where there is no transfer of assets
Section 61 - Revocable Transfer of Assets
Section 62 - Transfer irrevocable for a specified period
The document provides an acknowledgement for a project on income from other sources. It thanks the professor for guidance and opportunity to do the project. It also thanks group members for their efforts in completing the project on time and understanding the topic. It hopes the project provides satisfaction and welcomes comments to improve future projects.
Objectives
Introduction
What is Remittance???
Who are Non-residents???
Relevant Notifications and Circulars
Which assets can be remitted?
How are assets remitted?
Legal Compliances (In special cases)
This document provides income information for multiple domestic companies and cooperative societies. It includes line items such as profits, donations, capital gains, interest income, and book profits. The assistant is asked to compute the taxable income and tax liability for each entity based on the information provided.
Malaysia Budget 2015 was an importance milestone to enhance the tax collection especially the upcoming Goods And Services Tax (GST) which will be impose by 1 April 2015.
Therefore, it is a final budget prior of GST era. Where there will highlighted a few significant tax policy to smooth transit to GST implementation.
Budget 2016 is an overall review of annual budget and revenue tax treatment. It will serve a guide to entreprenuer to plan ahead for YA 2016. For more understanding explore today!
The document summarizes key proposals in the Indian Budget 2013 relating to direct and indirect taxes. For direct taxes, it outlines changes such as increased surcharge rates for foreign companies, a new tax on commodities derivatives trading, increased royalty and technical fee rates, and incentives for manufacturing investments over $20 million. It also covers proposals relating to power sector incentives, dividend distributions, and taxation of alternative investment funds. For indirect taxes, it notes customs, excise, and service tax changes.
Introduction:
Section 11 deals with Income from property held for “Charitable or Religious purposes.”
The income shall be subjected to the provisions of
Section 60 - Transfer of Income where there is no transfer of assets
Section 61 - Revocable Transfer of Assets
Section 62 - Transfer irrevocable for a specified period
The document provides an acknowledgement for a project on income from other sources. It thanks the professor for guidance and opportunity to do the project. It also thanks group members for their efforts in completing the project on time and understanding the topic. It hopes the project provides satisfaction and welcomes comments to improve future projects.
Objectives
Introduction
What is Remittance???
Who are Non-residents???
Relevant Notifications and Circulars
Which assets can be remitted?
How are assets remitted?
Legal Compliances (In special cases)
This document provides income information for multiple domestic companies and cooperative societies. It includes line items such as profits, donations, capital gains, interest income, and book profits. The assistant is asked to compute the taxable income and tax liability for each entity based on the information provided.
Malaysia Budget 2015 was an importance milestone to enhance the tax collection especially the upcoming Goods And Services Tax (GST) which will be impose by 1 April 2015.
Therefore, it is a final budget prior of GST era. Where there will highlighted a few significant tax policy to smooth transit to GST implementation.
Budget 2016 is an overall review of annual budget and revenue tax treatment. It will serve a guide to entreprenuer to plan ahead for YA 2016. For more understanding explore today!
The document summarizes key proposals in the Indian Budget 2013 relating to direct and indirect taxes. For direct taxes, it outlines changes such as increased surcharge rates for foreign companies, a new tax on commodities derivatives trading, increased royalty and technical fee rates, and incentives for manufacturing investments over $20 million. It also covers proposals relating to power sector incentives, dividend distributions, and taxation of alternative investment funds. For indirect taxes, it notes customs, excise, and service tax changes.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
This document provides information about computing income from business in India, including the process of determining different sources of income and the format for calculating business income. It discusses adding inadmissible expenses and income not included in the profit and loss account, and subtracting admissible expenses and income included in the profit and loss account to arrive at the total business income. It then provides a sample problem solving the computation of business income for a manufacturing concern based on information from its profit and loss account.
This document provides an overview of capital allowances under Malaysian tax law. It discusses that while accounting depreciation is not tax deductible, taxpayers are granted tax depreciation or "capital allowances" on qualifying capital expenditures to determine taxable income. Capital allowances are only given for business sources and only to the person who incurs the qualifying expenditure. The document outlines the types of capital allowances (initial allowance, annual allowance, notional allowance), eligibility requirements, qualifying expenditures, treatment of plant and machinery purchases and disposals, and other related topics.
This document provides the TDS and TCS rate charts for the financial year 2021-22 in India. It outlines the various sections where tax is deducted at source, the threshold limits, and applicable tax rates. Some key points include:
- TDS is deducted on interest, dividends, professional fees, rent, commission, contract payments, and withdrawals over certain thresholds at rates ranging from 1-30%.
- TCS is collected on scrap, tendu leaves, minerals, liquor, parking lots, motor vehicle sales, overseas tour packages, and goods sales over Rs. 50 lakhs at 0.1-5%.
- Higher rates of TDS/TCS apply to non-
For income to be classified under the head "Profits and Gains of Business," three conditions must be met: 1) there must be a business or profession, 2) the business must be carried out by the assessee, and 3) the business must have been carried out during the previous year. Income that would be charged under this head includes profits from business/profession, compensation related to termination of certain management roles, income from professional associations, export incentives, and more. Interest income may be considered business income if it was derived from business activities, or income from other sources if incidental to the business. Several deductions are allowed when computing income from this head, including insurance premiums, employee bonuses/comm
Concept of Cross Charge & Input Service Distributor in GST- My PresentationCA PRADEEP GOYAL
Let us accept the fact most of us are confused between concept of Cross Charge and concept of Distribution of Input Tax Credit related to services among distinct persons (Input Service Distributor Concept) in GST. Let me tell you, both concepts have own legal backing as per GST provisions.
I have prepared this presentation in most simplified manner which will remove all your doubts and clarify the concept. I am sure after reading this, you will not make a mistake.
The document discusses various case studies related to tax deduction at source (TDS) under the Indian Income Tax Act and analyzes related legal issues and case laws. It covers topics like TDS on salary, interest, rent, technical services fees, etc. and discusses whether the relevant sections were applicable in each case and if penalties for non-deduction/short deduction of TDS were justified. It also briefly discusses some other related topics like consequences of failure to deduct TDS and provisions for disallowance of expenses if TDS is not deducted.
The document discusses key aspects of income from business and profession under the Income Tax Act in India. It defines business, profession, and vocation. It outlines essential features of a business like regular transactions, profit motive, use of labor and skill. It also discusses what constitutes a business under section 2(13) and explains concepts like trade, commerce, and manufacture. The document then covers important points about income from business like the business must be carried out by the assessee during the previous year, and income includes losses. It also discusses the cash and mercantile systems of accounting and conditions for claiming depreciation.
This document defines key terms related to companies under the Income Tax Act such as company, Indian company, company in which public are substantially interested, domestic company, foreign company, industrial company, and investment company.
It also summarizes provisions related to Minimum Alternative Tax (MAT) under section 115JB, which specifies that the tax payable for any assessment year cannot be less than 18.5% of the company's book profit. It provides details on how book profit is computed for MAT purposes.
Finally, it outlines rules around carrying forward and set off of losses for closely held companies under section 79 when there is a change in shareholding.
This document provides an overview of deductions allowed for business profits and gains under the Indian Income Tax Act. It discusses specific deductions like rent, repairs, taxes, depreciation, and others. It also describes the general scheme for calculating taxable profits, including the methods of accounting, specific vs general deductions, and presumptive taxation provisions. The key points covered are the types of expenses that are deductible, the conditions for claiming depreciation, and the overall framework for determining taxable business income.
1. The document discusses the topics of input tax credit (ITC) under the GST law, including eligibility and conditions for availing ITC, time limits, blocked credits, and apportionment of credit.
2. It provides details on the four conditions for availing ITC, the time limit for availing ITC on invoices of a financial year, and the categories of blocked credits where ITC is not available.
3. The document also explains the methodology for apportionment of ITC when inputs/services are used for both taxable and exempt supplies, including the calculation to determine the credit attributable to exempt supplies.
Key Takeaways:
South Africa in Numbers
How to Register Business in South Africa
Time and Cost involved in Registrations
Regulations and Reforms
Key Statistics
Profits and Gains of Business or ProfessionChella Pandian
This document provides information about an income tax course taught by Dr. K. Chellapandian. It includes details about the course code, credit hours, outcomes, units covered, textbooks, and assessment details. The key points are:
- The course is Income Tax Law & Practice - II taught by Dr. K. Chellapandian at Vivekananda College.
- It has 5 units covering topics like computation of profits/capital gains, deductions, assessment of individuals/firms, and tax authorities.
- The course aims to enable students to learn income tax provisions and assessment procedures.
- Assessment includes 40% theory and 60% problems, following amendments up to 6 months
Latest Updates And All Latest Issues Of Income Tax IndiaPraveen Kumar
Income Tax Act classifies income into four main heads: salary, house property, capital gains, and business/profession. Key points include: (1) employees can sometimes claim both HRA and interest on housing loans; (2) losses from rent properties can offset income from other heads; and (3) surplus from derivative contracts is non-speculative capital gains. Certain items like art are now considered capital assets. Various deductions and compliances like TDS, advance tax payments, and annual returns are required under the Income Tax Act.
Assessment of firms under Income Tax Act, 1961cacentre
This document provides a quick reference guide on the assessment of firms and LLPs under the Indian Income Tax Act. It covers topics such as the residential status of firms, key features of firm assessment, conditions to be fulfilled under section 184, and the treatment of remuneration and interest paid to partners. The summary discusses that the firm will be taxed separately at a flat rate of 30%, the partner's share of income will be exempt, and remuneration/interest deductions are subject to certain restrictions and authorization in the partnership deed.
The document summarizes several proposed amendments to the Indian Income Tax law from the 2020 budget. Key points include:
1) Individuals and HUFs can now choose to be taxed at new optional slab rates but must forego many deductions. Dividend income from companies and mutual funds will now be taxable for all taxpayers.
2) The threshold for being considered a resident in India has reduced from 182 to 120 days. Any Indian citizen who is not liable to tax in another country will be deemed a resident of India.
3) Companies will no longer pay Dividend Distribution Tax but shareholders will pay tax on dividends as per their slab rate.
4) Several changes have been
The document summarizes key proposals from the Union Budget 2014-15 in India. Some highlights include:
- The budget aims for 7-8% economic growth over the next 3-4 years while keeping the fiscal deficit target at 4.1%.
- Increased FDI limits in sectors like insurance and defense. Uniform KYC norms for the financial sector.
- No changes to corporate or indirect tax rates but some personal income tax exemption limits were increased.
- Customs duty rates were largely unchanged with some minor changes to baggage allowance limits. Service tax exemptions were removed for some sectors.
The document discusses various types of perquisites that are taxable in the hands of an employee. It defines perquisites as casual emoluments or benefits provided to an employee in addition to their salary. Some key points include:
- Rent-free accommodation provided by the employer is taxable as a perquisite. The taxable amount depends on factors like location and whether the property is owned or rented by the employer.
- Other common taxable perquisites include utilities like gas, electricity and water paid by the employer, as well as facilities like transport and education for employees' families.
- There are certain exemptions, like a fixed allowance of up to Rs. 100 per child for education or Rs. 300
The document outlines proposed amendments to various sections of the Income Tax Act related to phasing out of exemptions and deductions. Key points include:
- Profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate taxpayers by FY 2020-21.
- Accelerated depreciation rates will be restricted to 40% from FY 2017-18.
- Weighted deductions for scientific research will be restricted to 150% from FY 2017-18 to FY 2019-20, and 100% from FY 2020-21.
- No deductions shall be available for new units set up in Special Economic Zones or for eligible projects/schemes commencing after
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
This document provides information about computing income from business in India, including the process of determining different sources of income and the format for calculating business income. It discusses adding inadmissible expenses and income not included in the profit and loss account, and subtracting admissible expenses and income included in the profit and loss account to arrive at the total business income. It then provides a sample problem solving the computation of business income for a manufacturing concern based on information from its profit and loss account.
This document provides an overview of capital allowances under Malaysian tax law. It discusses that while accounting depreciation is not tax deductible, taxpayers are granted tax depreciation or "capital allowances" on qualifying capital expenditures to determine taxable income. Capital allowances are only given for business sources and only to the person who incurs the qualifying expenditure. The document outlines the types of capital allowances (initial allowance, annual allowance, notional allowance), eligibility requirements, qualifying expenditures, treatment of plant and machinery purchases and disposals, and other related topics.
This document provides the TDS and TCS rate charts for the financial year 2021-22 in India. It outlines the various sections where tax is deducted at source, the threshold limits, and applicable tax rates. Some key points include:
- TDS is deducted on interest, dividends, professional fees, rent, commission, contract payments, and withdrawals over certain thresholds at rates ranging from 1-30%.
- TCS is collected on scrap, tendu leaves, minerals, liquor, parking lots, motor vehicle sales, overseas tour packages, and goods sales over Rs. 50 lakhs at 0.1-5%.
- Higher rates of TDS/TCS apply to non-
For income to be classified under the head "Profits and Gains of Business," three conditions must be met: 1) there must be a business or profession, 2) the business must be carried out by the assessee, and 3) the business must have been carried out during the previous year. Income that would be charged under this head includes profits from business/profession, compensation related to termination of certain management roles, income from professional associations, export incentives, and more. Interest income may be considered business income if it was derived from business activities, or income from other sources if incidental to the business. Several deductions are allowed when computing income from this head, including insurance premiums, employee bonuses/comm
Concept of Cross Charge & Input Service Distributor in GST- My PresentationCA PRADEEP GOYAL
Let us accept the fact most of us are confused between concept of Cross Charge and concept of Distribution of Input Tax Credit related to services among distinct persons (Input Service Distributor Concept) in GST. Let me tell you, both concepts have own legal backing as per GST provisions.
I have prepared this presentation in most simplified manner which will remove all your doubts and clarify the concept. I am sure after reading this, you will not make a mistake.
The document discusses various case studies related to tax deduction at source (TDS) under the Indian Income Tax Act and analyzes related legal issues and case laws. It covers topics like TDS on salary, interest, rent, technical services fees, etc. and discusses whether the relevant sections were applicable in each case and if penalties for non-deduction/short deduction of TDS were justified. It also briefly discusses some other related topics like consequences of failure to deduct TDS and provisions for disallowance of expenses if TDS is not deducted.
The document discusses key aspects of income from business and profession under the Income Tax Act in India. It defines business, profession, and vocation. It outlines essential features of a business like regular transactions, profit motive, use of labor and skill. It also discusses what constitutes a business under section 2(13) and explains concepts like trade, commerce, and manufacture. The document then covers important points about income from business like the business must be carried out by the assessee during the previous year, and income includes losses. It also discusses the cash and mercantile systems of accounting and conditions for claiming depreciation.
This document defines key terms related to companies under the Income Tax Act such as company, Indian company, company in which public are substantially interested, domestic company, foreign company, industrial company, and investment company.
It also summarizes provisions related to Minimum Alternative Tax (MAT) under section 115JB, which specifies that the tax payable for any assessment year cannot be less than 18.5% of the company's book profit. It provides details on how book profit is computed for MAT purposes.
Finally, it outlines rules around carrying forward and set off of losses for closely held companies under section 79 when there is a change in shareholding.
This document provides an overview of deductions allowed for business profits and gains under the Indian Income Tax Act. It discusses specific deductions like rent, repairs, taxes, depreciation, and others. It also describes the general scheme for calculating taxable profits, including the methods of accounting, specific vs general deductions, and presumptive taxation provisions. The key points covered are the types of expenses that are deductible, the conditions for claiming depreciation, and the overall framework for determining taxable business income.
1. The document discusses the topics of input tax credit (ITC) under the GST law, including eligibility and conditions for availing ITC, time limits, blocked credits, and apportionment of credit.
2. It provides details on the four conditions for availing ITC, the time limit for availing ITC on invoices of a financial year, and the categories of blocked credits where ITC is not available.
3. The document also explains the methodology for apportionment of ITC when inputs/services are used for both taxable and exempt supplies, including the calculation to determine the credit attributable to exempt supplies.
Key Takeaways:
South Africa in Numbers
How to Register Business in South Africa
Time and Cost involved in Registrations
Regulations and Reforms
Key Statistics
Profits and Gains of Business or ProfessionChella Pandian
This document provides information about an income tax course taught by Dr. K. Chellapandian. It includes details about the course code, credit hours, outcomes, units covered, textbooks, and assessment details. The key points are:
- The course is Income Tax Law & Practice - II taught by Dr. K. Chellapandian at Vivekananda College.
- It has 5 units covering topics like computation of profits/capital gains, deductions, assessment of individuals/firms, and tax authorities.
- The course aims to enable students to learn income tax provisions and assessment procedures.
- Assessment includes 40% theory and 60% problems, following amendments up to 6 months
Latest Updates And All Latest Issues Of Income Tax IndiaPraveen Kumar
Income Tax Act classifies income into four main heads: salary, house property, capital gains, and business/profession. Key points include: (1) employees can sometimes claim both HRA and interest on housing loans; (2) losses from rent properties can offset income from other heads; and (3) surplus from derivative contracts is non-speculative capital gains. Certain items like art are now considered capital assets. Various deductions and compliances like TDS, advance tax payments, and annual returns are required under the Income Tax Act.
Assessment of firms under Income Tax Act, 1961cacentre
This document provides a quick reference guide on the assessment of firms and LLPs under the Indian Income Tax Act. It covers topics such as the residential status of firms, key features of firm assessment, conditions to be fulfilled under section 184, and the treatment of remuneration and interest paid to partners. The summary discusses that the firm will be taxed separately at a flat rate of 30%, the partner's share of income will be exempt, and remuneration/interest deductions are subject to certain restrictions and authorization in the partnership deed.
The document summarizes several proposed amendments to the Indian Income Tax law from the 2020 budget. Key points include:
1) Individuals and HUFs can now choose to be taxed at new optional slab rates but must forego many deductions. Dividend income from companies and mutual funds will now be taxable for all taxpayers.
2) The threshold for being considered a resident in India has reduced from 182 to 120 days. Any Indian citizen who is not liable to tax in another country will be deemed a resident of India.
3) Companies will no longer pay Dividend Distribution Tax but shareholders will pay tax on dividends as per their slab rate.
4) Several changes have been
The document summarizes key proposals from the Union Budget 2014-15 in India. Some highlights include:
- The budget aims for 7-8% economic growth over the next 3-4 years while keeping the fiscal deficit target at 4.1%.
- Increased FDI limits in sectors like insurance and defense. Uniform KYC norms for the financial sector.
- No changes to corporate or indirect tax rates but some personal income tax exemption limits were increased.
- Customs duty rates were largely unchanged with some minor changes to baggage allowance limits. Service tax exemptions were removed for some sectors.
The document discusses various types of perquisites that are taxable in the hands of an employee. It defines perquisites as casual emoluments or benefits provided to an employee in addition to their salary. Some key points include:
- Rent-free accommodation provided by the employer is taxable as a perquisite. The taxable amount depends on factors like location and whether the property is owned or rented by the employer.
- Other common taxable perquisites include utilities like gas, electricity and water paid by the employer, as well as facilities like transport and education for employees' families.
- There are certain exemptions, like a fixed allowance of up to Rs. 100 per child for education or Rs. 300
The document outlines proposed amendments to various sections of the Income Tax Act related to phasing out of exemptions and deductions. Key points include:
- Profit linked, investment linked and area based deductions will be phased out for both corporate and non-corporate taxpayers by FY 2020-21.
- Accelerated depreciation rates will be restricted to 40% from FY 2017-18.
- Weighted deductions for scientific research will be restricted to 150% from FY 2017-18 to FY 2019-20, and 100% from FY 2020-21.
- No deductions shall be available for new units set up in Special Economic Zones or for eligible projects/schemes commencing after
Budget 2016 was recently announced by the Finance Minister of India. This Presentation unravels the Transfer Pricing and International Tax proposals of the Budget 2016.
The document provides a summary of key direct tax proposals in India's Union Budget 2017-18, including reductions in individual income tax rates for those earning up to Rs. 5 lacs, introduction of surcharges for higher income individuals and corporations, penalties for late filing of tax returns and furnishing incorrect information by professionals, changes to long term capital gains rules and housing provisions, and measures to promote digital payments and increase tax transparency in electoral funding.
This presentation takes one through the impact of budget 2014 on the direct tax provisions. Efforts have been made to simplify the amendments in the best way
What Is Life After Coronavirus? New Tax-Related Provisions For Increased Cash...Rea & Associates
Presented by Rea & Associates and featuring Christopher Axene, CPA, and Greg Speece, CPA, this one-hour webinar will help you learn about the major tax provisions included in recent legislation, discussion of tax planning opportunities, and what you may expect in the future.
Specifically, you will hear:
• Insights on the major tax provisions included in recent COVID 19 legislation that impacts the cash flow for small to mid-size businesses and individuals.
• How recent provisions put in place will interact with other non-tax provisions of COVID-19 legislation, and the impact that it will have on businesses.
• Guidance about tax planning opportunities and discussions about what we still don’t know, the clarification we expect to receive, and resources to help guide your business.
For more insight and information into the financial resources for business owners, please visit https://www.reacpa.com/coronavirus to view our dedicated COVID-19 resource center. You can also visit https://www.reacpa.com/covid19-webinar-series to view this webinar and many others in our What Is Life After Coronavirus webinar series.
For additional questions, you can contact us directly at rea.news@reacpa.com.
Budget Analysis of Union Budget 2017 in relation to amendments made in Income Tax Act, 1961 and Service Tax. A comprehensive and detailed analysis in simple language for better understanding of every class of readers.
This document provides highlights of the Union Budget 2014-2015 for India. Some key points include:
- The basic income tax exemption limit has been increased by Rs. 50,000. Tax rates remain unchanged.
- Deduction limits under Section 80C have been increased from Rs. 100,000 to Rs. 150,000.
- Service tax rate remains at 12% and is extended to new services like radio taxis.
- Exemptions under the mega exemption notification have been extended to some services and withdrawn from others.
- Changes have been made to provisions around interest on late payment of taxes, e-payment of service tax, and the reverse charge mechanism.
Newsletter on daily professional updates- 07/01/2020CA PRADEEP GOYAL
“If four things are followed –
having a great aim,
acquiring knowledge,
hard work, and
perseverance –
then anything can be achieved.”
Here is your Daily dose of professional updates 07.01.2020
The document summarizes key highlights from India's 2010-2011 budget related to indirect taxes, direct taxes, deductions and exemptions, and tax rates. Some key points include:
- Service tax rate remained unchanged at 10% but new services were taxed, while some services were excluded.
- Income tax slabs and exemption limits for individuals remained largely unchanged. Surcharge on personal income tax was removed.
- Corporate tax rate remained at 30% for domestic companies. MAT was increased to 18% and surcharge reduced to 7.5% for companies with income over Rs. 1 Crore.
- Deductions were introduced or increased for infrastructure bonds, health insurance, and research and development expenditures.
We are excited to share our annual Clients Circular on the amendments by Finance Act 2020.
The writeup covers important amendments that impact you directly and consciously we have avoided to mention the amendments which are procedural in nature. This writeup we believe would help you in complying with the law during the new financial year now underway.
Do get back to us if you have any questions and we would be delighted to help you out.
The document summarizes key highlights of the Union Budget 2014-2015 for direct and indirect taxes in India. For direct taxes, it outlines changes to income tax slabs and rates for individuals, senior citizens, companies and firms. It also discusses changes to deductions, exemptions and tax rates for capital gains and dividends. For indirect taxes, it summarizes changes to service tax rates and exemptions, and introduces service tax on radio taxis. It also discusses changes to interest rates on late payment of taxes.
The document summarizes various tax proposals from the Indian Budget for 2009-2010. It outlines changes to personal income tax rates and the abolition of the 10% surcharge for individuals. For corporations, the tax rate remains unchanged but the MAT has increased. Other taxes like CTT have been abolished while DDT and fringe benefits tax have remained the same. Procedural changes include mandatory PAN requirements. Limits for deductions have been increased for partner salaries, cash payments, and dependent disability. Indirect taxes like service tax have been extended to new services but exemptions have also been introduced.
The document provides an overview and analysis of key provisions in the Indian Union Budget 2020 relating to direct and indirect taxation. Some key highlights include:
- Introduction of a new optional tax regime with lower tax slabs but without deductions for individuals and HUFs.
- Reduction of corporate tax rates for new domestic manufacturing companies.
- Tax incentives for affordable housing, startups, and investments in electricity generation plants.
- Measures to simplify tax administration such as expansion of faceless assessment proceedings and introduction of a taxpayer's charter.
- A dispute resolution scheme called "Vivaad Se Vishwas" to reduce pending direct tax litigation.
- Changes to tax rates for employer contributions to
Greetings
Union budget for FY 2018-19 was presented by Hon'ble Finance Minister Shri. Arun Jaitely . As most of you are aware, this budget is unique being presented before election in 2019
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.
The budget document provides an analysis of key aspects of the Union Budget 2013 presented by the Finance Minister. Some key points:
1) No changes were made to personal income tax slab rates but a 10% surcharge will be levied on incomes over Rs. 1 crore for one year. Tax rebates and deductions for home loans, donations, and disability insurance were introduced or increased.
2) Excise duties were increased for SUVs, cigarettes and mobile phones but decreased for trucks. Complete exemption was provided for certain agricultural and handicraft products.
3) Custom duties were increased for imported cars, motorcycles, boats and set top boxes but decreased for agricultural products like oats and rice bran.
The document summarizes key aspects of India's 2017-18 Union Budget. It outlines the agenda for the year, which focuses on transforming governance, energizing various sections of society, and cleaning the country from issues like corruption. It also summarizes major policy announcements, including liberalizing FDI rules and listing railway PSEs, as well as key proposals for direct taxes like income tax rates and corporate tax rates, and indirect taxes including changes to customs and excise duty tariffs.
The budget highlights the key economic indicators, new legislations, and major tax proposals. On direct taxes, exemption limits were increased and surcharge rates reduced. Service tax was unchanged at 10% and its scope expanded. Excise duty rates on some items were reduced. Customs duty rates largely remained the same, with exemptions for some agriculture items. The conclusions note concerns around the impact of certain tax changes.
Malaysia was hit by Covid 19, therefore, resulted the economy recession, thousand of company shut down and million of employee retrench from the employment, therefore Budget 2021 aim to stimulus the weak economy and protect the Malaysian from Covid threatening.
After Geran Khas Prihatin 1.0 was release last Mar 2020, some of the business group was not aware or eligible to any financial assistance. However, the enhance financial support not only to boost the economic growth domestically and ensure the none of the SME neglected.
Malaysia sme economy stimulation package and Penang Government aidsB.H. Loh & Associates
This document summarizes Malaysia's SME economic stimulus package and aid from the Penang government. It provides details on special grants for micro-SME owners worth RM3,000 for businesses with turnover less than RM300K and 5 or fewer employees. It also outlines an employee wage subsidy program that provides RM1,200-RM800 per employee for businesses with 75 or fewer employees, and RM600 for those with 76-200 employees, for a period of 3 months. The programs are estimated to benefit 700,000 business owners and 4.8 million workers. Eligibility requirements and application process are also described.
Malaysia economy stimulation 2020 & Penang Government Finance AssistanceB.H. Loh & Associates
Malaysia was announced the economy stimulation 2020 by Prime Minister on 27 March 2020. Let us take a close look, how both Federal Government and Penang State Government economiy package could benefited you and your's family.
Budget 2018 has been long awaiting, any surprise? Emm..Let us check out, who and how to benefit. In fact, the Budget 2018 retain the similar relief as per Budget 2017.
The LLP is an alternative choice for those who are sole proprietorship. But now there are more choice to select. Let us examined what are the difference between the LLP & company
Budget 2017, continue from the previous year, Malaysia Government granted some relief to medium income group and bottom group, beside the government increase the Brim, to sustain the people from adverse economic condition.
The personal reliefs 2016 would further enhance the personal taxpayers as they can claim more tax relief if compare previous YA. Therefore, by studying this slideshare, the taxpayer needs to understand how could they benefit
YA 2015, personal reliefs & tax rate, is assisting the Malaysia taxpayer to reduce their tax liability legally.
This slide share would cover the various aspects, including the personal, spouse, child, parent and as well as medical and financial related reliefs.
Besides that, we also cover the tax rate and tax submission calendar for easy reference.
Exploit it today!
Cambodia a newly emerged South East Asia Country, the effort of the government to liberalize the international trade with the rest of the world. The Cambodia has their own advantage compared to other countries
Limited Liability Partnership (LLP) is a new form of business vehicle. However, the treatment of tax is totally difference with conventional tax computation. This presentation slide serves as a guide to understand how the LLP being taxed and the treatment of unabsorbed business loss and unabsorbed capital allowance.
Winding up of a company and Limited Liability Partnership (LLP)B.H. Loh & Associates
Winding up is a process where the company dissolve from the registration. We will guide you through on how to step by step to strike off from the registration.
This document provides instructions for obtaining a Tax Clearance Letter in Malaysia. It lists the necessary tax forms that must be submitted, including Form C, Form R, and amendments to previous tax forms. It also lists the forms required for voluntary liquidation by members or creditors of a company, such as Form 66 and Form 65A. Finally, it mentions that Form CP 7 must be submitted for the strike off of dormant companies.
The document discusses several tax incentives and changes in Malaysia, including:
1) Double tax deductions for GST training expenses and expanded capital allowances for information and communication technology purchases between 2014-2016;
2) Increased deductions for secretarial and tax professional fees up to RM5,000 and RM10,000 respectively from YA2015;
3) Reduced tax rates for resident companies to 19% for income up to RM500,000 and 24% for remaining income from 2016.
This document discusses various topics related to GST for legal practitioners in Malaysia, including client accounts, advance payments, contingency fees, disbursements, and costs awarded by courts. It provides definitions and guidelines for how different types of funds and payments should be treated for GST purposes. For example, it states that money kept in client accounts is only taxable when transferred for legal fees, while disbursements paid to third parties on a client's behalf are not subject to GST.
Setting Up A Foreign Limited Liability Partnership (Foreign LLP)B.H. Loh & Associates
etting up a foreign limited liability partnership (Foreign LLP) as simple as a local limited liability partnership (Local LLP). One of the criteria of LLP is simple to manage and protection to the partner. Therefore, LLP become wider and wiser choice to those who want to manage their business efficiently and effectively.
What is your choice of business vehicle?
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
How MJ Global Leads the Packaging Industry.pdfMJ Global
MJ Global's success in staying ahead of the curve in the packaging industry is a testament to its dedication to innovation, sustainability, and customer-centricity. By embracing technological advancements, leading in eco-friendly solutions, collaborating with industry leaders, and adapting to evolving consumer preferences, MJ Global continues to set new standards in the packaging sector.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
2. B.H. Loh & Associates
Real Property Gain
Tax
Act (RPGT)1976
3. RPGT Penalty
B.H. Loh & Associates
Current provision (Sec 14 & 15, RPGT 1976)
If disposer provides incorrect notification (CKHT 3)
to acquirer resulting in no retention made, penalty
will be charged at 10% of tax payable,
Proposal (Sec 14(5), 15(4) & 29(4), RPGT 1976)
Tax payable means amount of tax charged on
chargeable gain excluding allowable loss.
(Coming into operation of this Act)
4. RPGT calculation
B.H. Loh & Associates
RM RM
Sales 180,000
Purchase cost 100,000
Incidental cost 30,000 (130,000)
Net profit 50,000
Waiver (RM10,000 or 10%,
whichever the higher)
(10,000)
Chargeable gain 40,000
5. Purchase of property
B.H. Loh & Associates
Raise the minimum price of property that can be
purchase by foreigner to 1 million ringgit from
RM500,000.
Prohibited developers from implementing projects
that have features of Developer Interest Bearing
Scheme (DIBS) to prevent developers from
incorporating interest rates on loans in house
prices during the construction periods.
6. Director’s liabilities
B.H. Loh & Associates
Director’s liabilities (Para 5(4)(b), Sch 1 RPGT)
Current provision
Company director with more than 50% ownership
jointly liable for company’s tax or debt.
Proposal
Company director with not less than 20% ownership
jointly liable. (W.e.f coming into operation of this
Act)
7. Real Properties RPGT current rates
B.H. Loh & Associates
Companies Citizen
Individua
l
Non-
citizen
Individua
l
Within 2th years 15% 15% 15%
In 3th years 10% 10% 10%
In the 6th year
and subsequent
years
0% 0% 0%
8. Real Properties RPGT proposed
rates
B.H. Loh & Associates
Companies Citizen
Individual
Non-
citizen
individual
Within the 3rd
years
30 30 30
In the 4th year 20 20 30
In the 5th year 15 15 30
In the 6th year and
subsequent years
5 0 5
W.e.f 1st Jan 2014
9. B.H. Loh & Associates
Good And Service
Tax (GST)
10. Good and Service Tax (GST)
B.H. Loh & Associates
The GST will be effective from 1 April
2015 and fixed at 6%. GST replaces current
sales tax (10%) and service tax (6%).
Exemption
The GST will not impose on basic food items
such as rice, sugar, salt, piped water supply,
200 units of electricity /month.
11. Good and Service Tax (GST)
B.H. Loh & Associates
The GST will not impose on the issuance of
passports, licenses, health services and
transportation service such as bus, train,
LRT, Taxi and highway tolls.
Sales, purchase and rental of resident
properties and selected financial services are
exempted from GST.
12. Incentive to accommodate GST
B.H. Loh & Associates
1. The deduction allowed (w.e.f 2015)
Secretarial fees up to RM5,000
Tax filing fees up to RM10,000
2. Further deduction for resident company on
expenses in relation to training of full-time
employee in accounting and ICT for the
implementation of GST. (W.e.f YA 2014 – YA
2015)
13. Incentive to accommodate GST
B.H. Loh & Associates
Accelerated capital allowance on capital
expenditure incurred on ICT equipment
used for business. (W.e.f YA 2014 – YA 2016)
(Initial allowance 20% and annual allowance
80%)
One-off assistance of RM300.00 to households who
are BR1M recipients to cope with GST.
15. Basis period of business
B.H. Loh & Associates
Basis period of business(Sec 21A(3) ITA 1967)
Current provision
Basis period may be directed by DGIR if
taxpayer with 12 months accounts ending on
other than 31st December fails to make up
account on the same day the following year.
16. Basis period of business
B.H. Loh & Associates
Proposal
Direction on basis period applicable to all 12 months
account which fails to close account at normal date.
(W.e.f YA 2014)
Current provision (Sec 21A(4))
Taxpayer commences operation in basis year and
makes up 12 months accounts ending other than 31
December, shall have no basis period for the first
year. (W.e.f YA 2014)
17. Basis period of business
B.H. Loh & Associates
Proposal
Accounting period shall be the basis period for the
first year of assessment where the account prepared
for :
Period < 12 months ending in that basis year
Any period of months ending in the following basis
year,
Period > 12 months ending in the following 2 basis
years (W.e.f YA 2014)
18. Basis period of business (First commence)
B.H. Loh & Associates
More that 12
months
YA months Filing
deadline
1/2/13 – 30/4/14 2014 15 30/11/14
1/5/14 – 30/4/15 2015 12 30/11/15
Less that 12
months
YA Months Filing
deadline
1/5/13 – 31/3/14 2014 11 31/10/14
1/4/14 – 31/3/15 2015 12 31/10/15
19. Basis period of business (First commence)
B.H. Loh & Associates
More that 12 months YA Months Filing
deadline
1/11/13 – 30/4/15 2015 18 30/11/2015
1/5/15 – 30/4/16 2016 12 30/11/2016
Overlapping period
(change of accounting)
YA Filing
deadline
1/1/13 – 31/12/13 2013 31/07/2013
1/1/14 – 31/12/14 2014 31/03/2016
1/10/14 – 30/9/15 2015 31/03/2016
20. Basis period of business (Change of accounting
period)
B.H. Loh & Associates
Less that 12
months
YA months Filing
deadline
1/1/13 – 31/12/13 2013 12 31/07/2014
1/1/14 –
30/09/14
2014 9 30/04/2015
1/10/14 –
30/9/15
2015 12 30/04/2016
21. Business income
B.H. Loh & Associates
Current provision (Sec 24(1), ITA 1967)
Business income arises from any stock in trade sold
(or disposed of by requisition or compulsory
acquisition),
Proposal (Sec 24(1)(aa)
Debt owing from any stock in trade parted with by
any element of compulsion including on
requisition or compulsory acquisition shall be
treated as gross business income. (W.e.f YA
2014)
22. Interest obtainable on demand
B.H. Loh & Associates
Interest obtainable on demand (Sec 29(3) ITA 1967)
Current provision
Interest receivable shall be treated as income when
received,
Interest income treated as being received when
obtainable on demand,
Proposal
Loan between related parties –
Interest deemed obtainable on demand when
interest is due to be paid (W.e.f YA 2014)
23. Deductible expenses
B.H. Loh & Associates
1) Minimum wage (Income tax rules)
Further deduction to employer who pays minimum
wage to employee
The employer includes SME and cooperative society,
The difference between wage paid (For example) in
Jan 2014 and Dec 2013.
Full time employee but excluding domestic servant.
(W.e.f 1/1/2014 – 31/12/2014)
24. Deductible expenses
B.H. Loh & Associates
Minimum wage for employee in Peninsular Malaysia
is RM900.00. Further deduction for employee in
Selangor who pays minimum wage to employee A.
RM
Wage paid on 31st Jan 2014 900.00
Less : Wage paid on 31st December 2013 550.00
Amount of further deduction for 1
month
350.00
Total amount of further deduction for a year is
RM350 x 12 = RM4,200
25. Deductible expenses
B.H. Loh & Associates
2) Flexible work arrangement (FWA) (Income tax
rules)
Further deduction for company on expenses incurred
for
(a) training program for employee (FWA)
(b) consultation for preparation structure (FWA)
Malaysia resident company approved as FWA status
by the Talent Corporation Malaysia Berhad.
26. Deductible expenses
B.H. Loh & Associates
Effective for applications received by Talent
Corporation Malaysia Berhad from 1/1/2014 –
31/12/2016.
27. Deductible expenses
B.H. Loh & Associates
3) Entertainment (Sec 18, ITA 1967)
The definition of entertainment previously as
provision of food, drink, recreation and hospitality
of any kind and accommodation or travel,
The definition of entertainment expanded to any
expenses incurred for the promotion of a
business with or without consideration. The
deduction would be 100% or 50%. (W.e.f 2014)
28. Deductible expenses
B.H. Loh & Associates
4) Interest obtainable on demand (Sec 33(4), ITA
1967)
Current provision
Deduction allowed includes any sum payable by
way of interest in arriving at adjusted business
income.
Proposal
Interest payable shall be deducted when it is due to
be paid,
Deduction to be given in the respective YA. (W.e.f
YA 2014)
29. Deductible expenses
B.H. Loh & Associates
5) Approved organisation (Sec 44(6) & 44(7))
Current provision
Deduction is allowed on donation made to an
approved building fund used for construction,
improvement or maintenance of building,
Proposal
Deduction is extended to fund for the purchase of
a building, (W.e.f 2014)
30. Double deduction
B.H. Loh & Associates
1. Venture development program (VDP) (Income Tax
Rules)
VDP is a structured program to develop new vendor
or strengthening existing vendor company at
domestic and international level,
Double deduction given to anchor company on
operational expenses in related to VDP for 3 YAs,
(1/1/2014 – 31/12/2016)
31. Double deduction
B.H. Loh & Associates
Expenditure must be verified by MITI and incentive
shall not exceed RM300,000 each year,
Qualifying expenses : product development, R & D,
innovation, quality improvement, capacity
improvement and human capital development.
(W.e.f 1/1/2014 – 31/12/2016)
32. Not deductible expenses
B.H. Loh & Associates
Deduction not allowed (Sec 39(1A), ITA 1967)
The deduction not allowed if information required by
DGIR under Sec 81 – power to call for information is
not furnished within specified or extended time.
(W.e.f YA 2014)
33. Capital expenditure
B.H. Loh & Associates
Accelerate Capital Allowance (ACA)
A person incurs capital expenditure to purchase ICT
equipment to be used in his business is entitle to
claim an initial allowance 20% & annual allowance
80%.
Effective for YA 2009 – YA 2013, to extend the
incentive for another 3 YAs. (W.e.f – YA2014 –
YA2016)
34. Capital expenditure
B.H. Loh & Associates
Conversion to Limited Liability Partnership (LLP)
Proposal
1) Para 38B and 40 Sch 3, ITA 1967
Control transfer provisions apply on assets
transferred,
35. Capital expenditure
B.H. Loh & Associates
2) Para 76A, Sch 3, ITA 1967
LLP is not entitled to claim allowances for the YA in
which conversion takes place unless no allowance
has been claimed by the partners or the company for
that YA. (W.e.f coming into operation of this act)
36. Permitted expenses
B.H. Loh & Associates
Permitted expenses (Sec 60F, 60H and 63B)
Current Provision
Deduction allowed on fraction of expenses incurred
by company in accordance with a specified formula
:
Permitted expenses = A x B / 4C
“C” in the formula differs from one section to
another.
37. Permitted expenses
B.H. Loh & Associates
Proposal
To clarify the gross income in “C” as mentioned in the
formula refers to gross income whether exempt or not.
(W.e.f YA 2014)
38. Estimation of tax payable
B.H. Loh & Associates
Estimation of tax payable (Sec 107C(4A))
Current provision
Upon commencement SME need not submit
estimate of tax payable (CP 204) for 2 years,
Proposal (Sec 107C(4A)(c))
Where company has no basis periods for 1st and
following YA : -
Estimate of tax payable is not required for first
3 YAs and
39. Estimation of tax payable
B.H. Loh & Associates
Paid up capital of company is not more than
RM2.5M at commencement date and at beginning of
2 following YAs. (W.e.f YA 2014)
40. Return of income
B.H. Loh & Associates
Return of income (Sec 77A, ITA 1967)
Current provision
Company must furnish tax return within 7
months after closing of account either
manually or through E-filing.
Proposed
E-filing of tax return compulsory for
company
Tax return must be based on audited
accounts (W.e.f YA 2014)
41. Corporate Tax rates
B.H. Loh & Associates
Corporate income tax rate be reduced by 1% from
25% to 24%,
Income tax rate for small and medium companies
will be reduced by 1% from 20% to 19%. (W.e.f YA
2016)
42. Right of appeal
B.H. Loh & Associates
Right of appeal (Sec 99, ITA 1967)
Current provision
An appeal can be made on any assessment by way of
Form Q,
Proposal
Not applicable to :
Deemed assessment and
Deemed amended assessment
43. Right of appeal
B.H. Loh & Associates
Except where the taxpayer is appealing against a
deemed assessment on the issue of a tax treatment in
Public Ruling. (W.e.f coming into operation of this
act)
44. Disposal of appeal
B.H. Loh & Associates
Disposal of appeal (Sec 102, ITA 1967)
Current provision
Appeal via Form Q and Mutual Agreement
Procedure (MAP) may be made concurrently,
Proposal
Appeal via Form Q will be suspended if applicant
invokes MAP on the same issue
45. Disposal of appeal
B.H. Loh & Associates
Taxpayer may request to forward Form Q to SCIT
within 1 month after determination of MAP,
Form Q will be forwarded to SCIT within 3
months after the request. (W.e.f coming into
operation of this Act)
46. Power to disregard transaction
B.H. Loh & Associates
Power to disregard transaction (Sec 140(2A), ITA
1967)
Current provision
DGIR has power to disregard or vary transaction and
make adjustment to counter effect of such
transaction by issuing assessment or additional
assessment.
47. Power to disregard transaction
B.H. Loh & Associates
Proposal
DGIR may also demand payment of withholding
tax by way of notice.
49. Fund Manager Of REIT and BT
B.H. Loh & Associates
Proposal
Exemption from tax on fee received by a fund
manager approved by the Securities Commission
who manages shariah compliant investment of Real
Estate Investment Trust (REIT) and Business Trust
(BT)
50. Monthly tax deduction (MTD)
B.H. Loh & Associates
Monthly tax deduction (Sec 77C, ITA 1967)
MTD as final tax and individual taxpayer may elect not
to submit tax return if :
1. He has only one source of income i.e employment
income (without BIK and living accommodation)
2. Tax deducted by his employer in accordance with
Income Tax (Deduction From Remuneration)
Rules 1994
51. Monthly tax deduction (MTD)
B.H. Loh & Associates
3. He was employed by the same employer for 12
months,
4. His tax liability not borne by employer,
5. Spouse did not elect for combine assessment. (w.e.f
YA 2014)
52. Monthly tax deduction (MTD)
B.H. Loh & Associates
Proposal
The individual deemed to have made an election
not to submit return if no return is furnished by
30 April,
MTD deemed as tax payable for that year of
assessment,
DGIR may raise assessment under Sec 90(3) -
assessment or Sec 91 – additional assessment and
the deemed final tax will be disregarded (W.e.f YA
2014)
53. Middle Income Individual
B.H. Loh & Associates
Middle income individual (Income tax rules)
The exemption given to an individual who is resident
in Malaysia from the payment of income tax,
His aggregate income shall not be more than
RM96,000,
RM2,000 chargeable income is exempt, (w.e.f YA
2013 only)
54. Loan to director
B.H. Loh & Associates
Loan to director (Sec 140B, ITA 1967)
A company which gives loans / advances from
internal funds to a director is deemed to derived
interest income from such loan.
Interest income is the aggregate sum of monthly
interest determined by the formula :
1 /12 x A x B
55. Loan to director
B.H. Loh & Associates
Where A = amount loan / advances outstanding
at end of month,
B = average lending rate (ALR) at end of
month,
Where interest is charged on the loan, and
1) Total interest payable is more than deemed
interest, the deemed interest is disregarded,
2) Total interest payable is less than deemed
interest, the interest payable is disregarded
(w.e.f YA 2014)
56. Deemed interest
B.H. Loh & Associates
Gentlemen Sdn. Bhd. has provided an advance of
RM30,000 to director A on 1/3/2014,
The calculation of interest income deemed received
by Gentleman Sdn. Bhd. for the year of assessment
2014 is based on the average lending rate published
by Bank Negara Malaysia (Example : 3% throughout
2013)
57. Deemed interest
B.H. Loh & Associates
Month Monthly interest Deemed interest
March 100,000 x 3% x 1/12 250
April (100,000 – 10,000) x 3% x 1/12 225
May 90,000 x 3% x 1/12 225
Jun 90,000 x 3% x 1/12 225
July 90,000 x 3% x 1/12 225
August 90,000 x 3% x 1/12 225
Sept (90,000 + 30,000) x 3% x 1/12 300
Oct 120,000 x 3% x 1/12 300
Nov 120,000 x 3% x 1/12 300
Dec 120,000 x 3% x 1/12 300
Total interest income under 4(c) 2,575
58. Director’s liabilities
B.H. Loh & Associates
Director’s liabilities (Sec 75A, ITA 1967)
Current provision
Company director with more than 50% ownership
jointly liable for company’s tax or debt.
Proposal
Company director with not less than 20% ownership
jointly liable. (W.e.f coming into operation of this
Act)
59. Deferred Annuity And PRS
B.H. Loh & Associates
Deferred Annuity And PRS (Sec 2, Para 6(1)(l))
Current provision
Maximum deduction RM3,000 given on payment for
any deferred annuity or Private Retirement Scheme
(PRS) ,
Withholding tax on withdrawal before 55 years old of
contribution to PRS except due to death or leaving
Malaysia.
60. Deferred Annuity And PRS
B.H. Loh & Associates
Proposal
To define deferred annuity as those with Retirement
Saving Standard (RSS) features set by BNM,
To extend withholding tax to withdrawal of
deferred annuity,
To extend non-application of withholding tax to
permanent total disablement, serious disease
and mental disability (w.e.f YA 2014)
61. Deferred Annuity And PRS
B.H. Loh & Associates
Deferred Annuity and PRS (Amendment Para 6(1),
Sec 109G and Part XVI, Sch 1)
To extend deduction for deferred annuity to include
deferred annuity on life of spouse. (w.e.f coming
into operation of this act)
62. Deferred Annuity And PRS
B.H. Loh & Associates
A relief a one-off incentive of RM500 within a
year for those who age from 20 to 30 years, has
invested at least RM1,000 in PRS fund and the
incentive for 5 years. (W.e.f 1/1/2014)
63. Personal tax rate
B.H. Loh & Associates
Personal income tax rates be reduced by 1% to 3%
for all tax payers,
Chargeable income subject to the maximum rate
will be increased from exceeding RM100,000 to
exceeding RM400,000,
Current maximum tax rate at 26% to 24%. (W.e.f
YA 2015)
65. Person to compound duty
B.H. Loh & Associates
Person to compound duty (Sec 9, ITA 1967)
Current provision
Banker, dealer, insurer, ROC and TNB authorized to
compound duty on documents like cheques, contract
notes, policies and Article of Association.
66. Person to compound duty
B.H. Loh & Associates
Proposal
The authorized person shall keep and retain books,
records and documents in connection with the
authorization for 7 years.