1) The document summarizes various direct tax proposals in India for assessment year 2014-15, including changes to corporate tax rates, individual income tax rates, and incentives for new manufacturing investments.
2) Key proposals include a new commodity transaction tax, increased tax rates on royalties and FTS to 25%, and a new deduction of 15% of costs for new plant and machinery acquired by manufacturing companies investing over 100 crore rupees.
3) Other proposals include an increased surcharge on incomes over 1 crore rupees, expanded tax benefits for equity investments, and restrictions on tax benefits for buybacks of unlisted company shares.
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 key tax proposals in India's budget, including:
1) Increasing basic income tax exemption limits and deductions for investments, housing loans, and pension plans.
2) Raising long-term capital gains tax rates for mutual funds other than equity funds.
3) Clarifying real estate investment deductions only apply to one residential property in India.
4) Expanding transfer pricing provisions and certain service tax exemptions.
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- Exemptions under the mega exemption notification have been extended to some services and withdrawn from others.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.
The document summarizes several proposed amendments to the Income Tax Act of India that were proposed in the 2012 Union Budget.
1) The threshold for mandatory tax audit and presumptive taxation was increased from 60 lakh rupees to 1 crore rupees to reduce compliance burden on small businesses.
2) Senior citizens without business income were exempted from paying advance tax to reduce their compliance burden.
3) The limit for deducting life insurance premium under section 80C was reduced from 20% to 10% of the sum assured for policies issued on or after April 1, 2012.
4) Tax deduction at source of 1% was introduced for transfer of immovable property other than agricultural
This document provides a summary of tax proposals and changes to the Goods and Services Tax (GST) in India. Key tax proposals include reducing the corporate tax rate for certain companies to 25% and changing individual tax slab rates. Changes to the GST include requiring 37 tax returns for each registration, only allowing input tax credit upon receipt of goods and services, and separate inventory and receipt recording. The document also outlines other potential impacts of the tax proposals and transition to GST such as new billing patterns, credit transfers, and changes to ERP systems.
This document discusses tax deductions available to Indian manufacturing companies under Section 80JJAA for additional wages paid to new regular employees. Specifically:
1) Indian manufacturing companies can claim a tax deduction of 30% of additional wages paid to new regular employees for three consecutive years.
2) Additional wages refers to wages paid to new regular employees over 100, or over a 10% increase in regular employees from the previous year.
3) Only manufacturing or production companies qualify for this deduction - service companies like BPOs do not.
VGGlobal - Highlights of union budget 2015Jatin Gupta
The document summarizes key aspects of the Finance Bill 2015 presented by the Indian government. It highlights that the bill aims to create a more investment-friendly environment by lowering the corporate tax rate to 25% over 4 years and providing tax exemptions for REITs and offshore fund management. However, it also notes that the burden of economic spending has been shifted to states and public sector units. The document also provides details on changes to personal income tax, corporate tax, indirect taxes like service tax and customs duty.
The budget provides for reductions in corporate tax rates from 30% to 25% over the next four years. It also increases surcharges for those with income over Rs. 1 crore. Tax rates for individuals are largely unchanged, though some deductions have increased marginally. Key deductions include those for health insurance premiums, medical expenditures, pension contributions, and donations to certain funds. The budget aims to boost manufacturing via incentives like additional depreciation and deductions for hiring new employees. It also restores the lower 10% tax rate on royalty and FTS payments received by non-residents from Indian entities.
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 key tax proposals in India's budget, including:
1) Increasing basic income tax exemption limits and deductions for investments, housing loans, and pension plans.
2) Raising long-term capital gains tax rates for mutual funds other than equity funds.
3) Clarifying real estate investment deductions only apply to one residential property in India.
4) Expanding transfer pricing provisions and certain service tax exemptions.
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.
The document summarizes several proposed amendments to the Income Tax Act of India that were proposed in the 2012 Union Budget.
1) The threshold for mandatory tax audit and presumptive taxation was increased from 60 lakh rupees to 1 crore rupees to reduce compliance burden on small businesses.
2) Senior citizens without business income were exempted from paying advance tax to reduce their compliance burden.
3) The limit for deducting life insurance premium under section 80C was reduced from 20% to 10% of the sum assured for policies issued on or after April 1, 2012.
4) Tax deduction at source of 1% was introduced for transfer of immovable property other than agricultural
This document provides a summary of tax proposals and changes to the Goods and Services Tax (GST) in India. Key tax proposals include reducing the corporate tax rate for certain companies to 25% and changing individual tax slab rates. Changes to the GST include requiring 37 tax returns for each registration, only allowing input tax credit upon receipt of goods and services, and separate inventory and receipt recording. The document also outlines other potential impacts of the tax proposals and transition to GST such as new billing patterns, credit transfers, and changes to ERP systems.
This document discusses tax deductions available to Indian manufacturing companies under Section 80JJAA for additional wages paid to new regular employees. Specifically:
1) Indian manufacturing companies can claim a tax deduction of 30% of additional wages paid to new regular employees for three consecutive years.
2) Additional wages refers to wages paid to new regular employees over 100, or over a 10% increase in regular employees from the previous year.
3) Only manufacturing or production companies qualify for this deduction - service companies like BPOs do not.
VGGlobal - Highlights of union budget 2015Jatin Gupta
The document summarizes key aspects of the Finance Bill 2015 presented by the Indian government. It highlights that the bill aims to create a more investment-friendly environment by lowering the corporate tax rate to 25% over 4 years and providing tax exemptions for REITs and offshore fund management. However, it also notes that the burden of economic spending has been shifted to states and public sector units. The document also provides details on changes to personal income tax, corporate tax, indirect taxes like service tax and customs duty.
The budget provides for reductions in corporate tax rates from 30% to 25% over the next four years. It also increases surcharges for those with income over Rs. 1 crore. Tax rates for individuals are largely unchanged, though some deductions have increased marginally. Key deductions include those for health insurance premiums, medical expenditures, pension contributions, and donations to certain funds. The budget aims to boost manufacturing via incentives like additional depreciation and deductions for hiring new employees. It also restores the lower 10% tax rate on royalty and FTS payments received by non-residents from Indian entities.
The document analyzes changes to India's service tax relating to the 2015 Union Budget. Key changes include:
- The service tax rate is increased from 12% to 14%.
- Education and SHE cess are subsumed into the 14% tax rate.
- A new 2% Swachh Bharat cess will be imposed on taxable services, resulting in a total service tax rate of 16%.
- Various penalty provisions and rates are amended.
This section provides a deduction for profits and gains from businesses that collect and process bio-degradable waste. It is available to taxpayers whose income includes profits from collecting and processing bio-degradable waste to generate power, produce bio-fertilizers, bio-pesticides, biological agents, bio-gas, or make pellets/briquettes for fuel or organic manure. The deduction equals the full amount of such profits and gains over 5 consecutive years starting from when the qualifying business commences.
VGGlobal highlights of finance budget 2013Jatin Gupta
ü The document summarizes key proposals in the Finance Budget 2013-14 related to direct taxes (income tax and wealth tax) and indirect taxes (custom duty, excise duty, and service tax).
ü Some key income tax proposals include introducing a 10% surcharge for high income individuals/entities, increasing the surcharge rate for companies, and providing tax benefits for investments in housing and equity savings schemes.
ü Customs duty rates were increased for certain goods like cars and motorcycles, while reduced for items like agricultural products, metals, and capital goods. Duty structures were also amended for various sectors.
Grauer and Weil (India) Ltd reported a 17% year-over-year increase in revenues for the second quarter of FY2015 to Rs. 1009 million, slightly above estimates. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 17% to Rs. 180 million, in line with estimates. Net profit increased 14% to Rs. 92 million, above estimates of a 9% rise. The company's chemical segment continued to be the largest revenue contributor at 67% of total revenue and saw a 4% yearly increase. Management expects continued growth in the chemical segment and other segments to drive overall revenue growth in FY2015 and FY2016.
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 discusses the rules for set off and carry forward of business losses under the Income Tax Act. It can be summarized as follows:
1) Section 70 allows for set off of losses from one source of income against profits from another source within the same head. Section 71 allows set off of losses under one head against income under another.
2) Business losses can be carried forward for 8 years and set off against future profits of any business. Speculation losses can be carried forward for 4 years against future speculation profits only.
3) Capital losses can be carried forward for 8 years against capital gains. House property losses can be carried forward for 8 years against future house property income. Losses from specified businesses
The document summarizes key points from India's 2013 budget related to direct taxes, indirect taxes, customs, excise duty, and service tax. Some highlights include a tax credit for individuals earning up to Rs. 5 lakhs, increased surcharges for high income individuals and companies, and changes to excise duties on SUVs, cigarettes, and mobile phones. It also mentions the proposed introduction of a goods and service tax.
Chapter VI A - Deductions while Computing Total Income - Part IIDVSResearchFoundatio
OBJECTIVE
Every assessee earning more than the basic exemption limit is eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilment of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which relate to Corporate Assessees.
This document outlines various tax deductions available under Section 80 of the Indian Income Tax Act. It lists the codes for different tax deductions (e.g. 80C, 80D, 80DD, etc.) and provides a brief description of eligibility requirements and calculation of deduction amounts for key deductions related to investments, medical expenses, disability, education loans, donations, business profits and income from patents/royalties.
The document provides an analysis of key amendments proposed in the Budget 2013 relating to direct taxes, indirect taxes, and other recommendations. Some key highlights include:
- No change in income tax slabs but rebate up to Rs. 2000 for income up to Rs. 5 lakhs. Surcharge increased for high income individuals and companies.
- Commodities transaction tax of 0.01% introduced on commodity derivative sales.
- Additional tax of 20% introduced on buyback of shares of unlisted companies.
- Investment allowance of 15% introduced for new capital investments over Rs. 100 crores between FY14-15.
- Higher deduction limits for health insurance, equity savings schemes, and interest
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.
The document outlines the agenda for a two-day training event on financial auditing hosted by Palmetto IT Solutions from March 12-13, 2019. The event will cover various topics through a series of presentations and speakers, including an inaugural speech, sessions on compliance requirements under taxation laws, audit documentation, and soft skills. It will take place at Palmetto IT Solutions' office in Hyderabad, India. The document provides the detailed schedule listing the session topics and speakers for each time slot on both days of the event.
Project Office For Communication Purposes: Will It Constitute A PE?DVSResearchFoundatio
Key Takeaways:
- Background of the Case
- Contentions of the Department and Assessee
- Principles and Precedents Governing the Rule of PE
- Supreme Court's Verdict
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.
Compliance manual for the the financial year 2020-21 (A.Y. 201-22). This covers basic compliance of Income Tax , GST , Covid 19 relaxation , Companies and Limited liability partnership .
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.
Kenya provides opportunities for business growth across several sectors such as agriculture, mining, and tourism. Setting up a business involves registering the company with the Business Registration Service and obtaining necessary licenses. Kenya offers a relatively business friendly tax system with corporate tax at 25% and various incentives. Obtaining proper visas and permits is important for foreign investors. Key sectors for investment include agriculture around popular towns like Thika and mining in areas like Garissa due to infrastructure projects. The COVID-19 pandemic impacted the economy but the government responded with various reforms to support businesses.
Dear Friends,
We enclose herewith our analysis of the Income Tax & Service Tax proposals in the Finance Bill, 2016, which was presented to the Parliament by the Finance Minister. We hope you will find this to be informative and useful.
Warm Regards,
Ajit Shah
Lecture Meeting on Filing of Income-tax Returns for A.Y. 2010-11 by Chetan Shahbcasglobal
The document summarizes key amendments to the Indian Income Tax rates and rules for the 2010-11 assessment year. It outlines new tax rates for individuals, HUFs, women, senior citizens, firms, domestic companies, and foreign companies. It also summarizes changes to sections related to charitable purposes, tax holidays, research and development deductions, cash payment restrictions, partner remuneration, TDS defaults, gift tax, Chapter VI-A deductions, disability deductions, pension contributions, education loans, electoral trusts, MAT rates, LLP taxation, advance tax thresholds, dividend distribution tax, and wealth tax limits.
U.S. Gandhi Budget 2015 - 2016 AnalysisKunal Gandhi
The document provides information about a multi-disciplinary chartered accountancy firm, including details about its founding, vision, services offered, and team members.
It discusses the firm's founding in 1983 with a vision to provide advisory and support services to domestic and international businesses and organizations. It explains how the firm blends knowledge, analytics, quality assurance, and high-quality professionals to meet client needs.
Biographies are provided for the founder and managing partner and another partner, outlining their specializations, experience, and roles within the firm.
The document analyzes changes to India's service tax relating to the 2015 Union Budget. Key changes include:
- The service tax rate is increased from 12% to 14%.
- Education and SHE cess are subsumed into the 14% tax rate.
- A new 2% Swachh Bharat cess will be imposed on taxable services, resulting in a total service tax rate of 16%.
- Various penalty provisions and rates are amended.
This section provides a deduction for profits and gains from businesses that collect and process bio-degradable waste. It is available to taxpayers whose income includes profits from collecting and processing bio-degradable waste to generate power, produce bio-fertilizers, bio-pesticides, biological agents, bio-gas, or make pellets/briquettes for fuel or organic manure. The deduction equals the full amount of such profits and gains over 5 consecutive years starting from when the qualifying business commences.
VGGlobal highlights of finance budget 2013Jatin Gupta
ü The document summarizes key proposals in the Finance Budget 2013-14 related to direct taxes (income tax and wealth tax) and indirect taxes (custom duty, excise duty, and service tax).
ü Some key income tax proposals include introducing a 10% surcharge for high income individuals/entities, increasing the surcharge rate for companies, and providing tax benefits for investments in housing and equity savings schemes.
ü Customs duty rates were increased for certain goods like cars and motorcycles, while reduced for items like agricultural products, metals, and capital goods. Duty structures were also amended for various sectors.
Grauer and Weil (India) Ltd reported a 17% year-over-year increase in revenues for the second quarter of FY2015 to Rs. 1009 million, slightly above estimates. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 17% to Rs. 180 million, in line with estimates. Net profit increased 14% to Rs. 92 million, above estimates of a 9% rise. The company's chemical segment continued to be the largest revenue contributor at 67% of total revenue and saw a 4% yearly increase. Management expects continued growth in the chemical segment and other segments to drive overall revenue growth in FY2015 and FY2016.
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 discusses the rules for set off and carry forward of business losses under the Income Tax Act. It can be summarized as follows:
1) Section 70 allows for set off of losses from one source of income against profits from another source within the same head. Section 71 allows set off of losses under one head against income under another.
2) Business losses can be carried forward for 8 years and set off against future profits of any business. Speculation losses can be carried forward for 4 years against future speculation profits only.
3) Capital losses can be carried forward for 8 years against capital gains. House property losses can be carried forward for 8 years against future house property income. Losses from specified businesses
The document summarizes key points from India's 2013 budget related to direct taxes, indirect taxes, customs, excise duty, and service tax. Some highlights include a tax credit for individuals earning up to Rs. 5 lakhs, increased surcharges for high income individuals and companies, and changes to excise duties on SUVs, cigarettes, and mobile phones. It also mentions the proposed introduction of a goods and service tax.
Chapter VI A - Deductions while Computing Total Income - Part IIDVSResearchFoundatio
OBJECTIVE
Every assessee earning more than the basic exemption limit is eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilment of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which relate to Corporate Assessees.
This document outlines various tax deductions available under Section 80 of the Indian Income Tax Act. It lists the codes for different tax deductions (e.g. 80C, 80D, 80DD, etc.) and provides a brief description of eligibility requirements and calculation of deduction amounts for key deductions related to investments, medical expenses, disability, education loans, donations, business profits and income from patents/royalties.
The document provides an analysis of key amendments proposed in the Budget 2013 relating to direct taxes, indirect taxes, and other recommendations. Some key highlights include:
- No change in income tax slabs but rebate up to Rs. 2000 for income up to Rs. 5 lakhs. Surcharge increased for high income individuals and companies.
- Commodities transaction tax of 0.01% introduced on commodity derivative sales.
- Additional tax of 20% introduced on buyback of shares of unlisted companies.
- Investment allowance of 15% introduced for new capital investments over Rs. 100 crores between FY14-15.
- Higher deduction limits for health insurance, equity savings schemes, and interest
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.
The document outlines the agenda for a two-day training event on financial auditing hosted by Palmetto IT Solutions from March 12-13, 2019. The event will cover various topics through a series of presentations and speakers, including an inaugural speech, sessions on compliance requirements under taxation laws, audit documentation, and soft skills. It will take place at Palmetto IT Solutions' office in Hyderabad, India. The document provides the detailed schedule listing the session topics and speakers for each time slot on both days of the event.
Project Office For Communication Purposes: Will It Constitute A PE?DVSResearchFoundatio
Key Takeaways:
- Background of the Case
- Contentions of the Department and Assessee
- Principles and Precedents Governing the Rule of PE
- Supreme Court's Verdict
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.
Compliance manual for the the financial year 2020-21 (A.Y. 201-22). This covers basic compliance of Income Tax , GST , Covid 19 relaxation , Companies and Limited liability partnership .
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.
Kenya provides opportunities for business growth across several sectors such as agriculture, mining, and tourism. Setting up a business involves registering the company with the Business Registration Service and obtaining necessary licenses. Kenya offers a relatively business friendly tax system with corporate tax at 25% and various incentives. Obtaining proper visas and permits is important for foreign investors. Key sectors for investment include agriculture around popular towns like Thika and mining in areas like Garissa due to infrastructure projects. The COVID-19 pandemic impacted the economy but the government responded with various reforms to support businesses.
Dear Friends,
We enclose herewith our analysis of the Income Tax & Service Tax proposals in the Finance Bill, 2016, which was presented to the Parliament by the Finance Minister. We hope you will find this to be informative and useful.
Warm Regards,
Ajit Shah
Lecture Meeting on Filing of Income-tax Returns for A.Y. 2010-11 by Chetan Shahbcasglobal
The document summarizes key amendments to the Indian Income Tax rates and rules for the 2010-11 assessment year. It outlines new tax rates for individuals, HUFs, women, senior citizens, firms, domestic companies, and foreign companies. It also summarizes changes to sections related to charitable purposes, tax holidays, research and development deductions, cash payment restrictions, partner remuneration, TDS defaults, gift tax, Chapter VI-A deductions, disability deductions, pension contributions, education loans, electoral trusts, MAT rates, LLP taxation, advance tax thresholds, dividend distribution tax, and wealth tax limits.
U.S. Gandhi Budget 2015 - 2016 AnalysisKunal Gandhi
The document provides information about a multi-disciplinary chartered accountancy firm, including details about its founding, vision, services offered, and team members.
It discusses the firm's founding in 1983 with a vision to provide advisory and support services to domestic and international businesses and organizations. It explains how the firm blends knowledge, analytics, quality assurance, and high-quality professionals to meet client needs.
Biographies are provided for the founder and managing partner and another partner, outlining their specializations, experience, and roles within the firm.
Union budget 2014 15 - for the common manAmeet Patel
The Union Budget of India always evokes a great amount of interest. This time, it was even more keenly awaited since it was the 1st Budget of the new Modi government. This presentation contains a few important pointers on how the Budget affects the common man.
The document summarizes key changes in India's Budget 2013-2014 for direct taxes. Some key points include:
1) Income tax rates remain unchanged for companies and individuals but surcharge rates were increased for higher income levels.
2) No change in personal income tax slabs but a Rs. 2000 tax credit for those earning up to Rs. 5 lacs.
3) New deductions for first-time home buyers and life insurance policies for certain medical conditions.
4) General anti-avoidance rules will take effect from 2016-17 to curb abusive tax avoidance.
The document summarizes key proposals in India's 2014 corporate tax legislation. It discusses clarifications that corporate social responsibility (CSR) expenditures will not be tax deductible. It also discusses proposals to extend the time limit for depositing tax deducted at source and to limit tax disallowance to 30% for expenses where full TDS was not deposited. Additionally, it outlines incentives for manufacturing companies investing over Rs. 25 crores, as well as extensions of sunset dates for power sector tax breaks and incentives for semiconductor manufacturing. Proposals regarding transfer pricing documentation and deemed transactions between residents and non-residents are also covered.
Rule 6 of the CENVAT Credit Rules specifies how businesses that produce both taxable and exempted goods or services can claim credit on common inputs. It allows firms to either pay a percentage of the value of exempted outputs or use a proportionate method. The proportionate method requires firms to calculate the credit attributable to exempted outputs monthly on a provisional basis and annually on a final basis, paying any difference by June 30th of the next year. The rule also defines exempted goods and services, provides valuation methods, and outlines exclusions and special provisions for certain industries.
Finance Act 2016 Amendments in Income Tax Laws - A Y 2017-18CA Janardhana Gouda
Finance Act 2016 Amendments in Income Tax Laws applicable for Assessment year 2017-18 on wards. Major Amendments for Individuals, Companies and Changes in TDS and TCS Provisions etc
The document summarizes key points from the Union Budget of India for 2015, including:
- No change in personal or corporate income tax rates. A surcharge of 12% will be levied on incomes over 1 crore INR.
- Measures to curb black money include prohibiting cash transactions over 20,000 INR for immovable property.
- Job creation incentives like deferring the General Anti-Avoidance Rule, tax benefits for REITs/InvITs, and incentives for manufacturing in AP and Telangana.
- Improving ease of doing business by modifying indirect transfer tax provisions and raising the threshold for transfer pricing.
- Benefits for individual taxpayers like raising
The document outlines changes to India's personal taxation laws and deductions for businesses. It increases the basic income tax exemption limit to Rs. 1,60,000 and modifies subsequent slab rates from 10%-30%. It also increases exemption limits for women to Rs. 1,90,000 and for senior citizens to Rs. 2,40,000. For businesses, it enhances deductions for research and development spending from 150% to 200% and for payments to scientific institutions from 125% to 175%. It also increases the tax audit limit for businesses from Rs. 40,00,000 to Rs. 60,00,000 and for professionals from Rs. 10,00,000 to Rs. 15,00,000.
Budget 2015 : A crisp analysis of Income Tax provisions by Blue Consulting Pv...Chandan Goyal
This document provides an analysis of key changes proposed to India's income tax provisions. Some key points include:
- Corporate tax rates remain unchanged at 30% for domestic companies and 40% for foreign companies, but a phased reduction to 25% is proposed for domestic companies over next 4 years.
- Wealth tax has been proposed to be abolished to simplify tax administration.
- Tax incentives like additional depreciation and investment allowance have been introduced for manufacturing sectors in Andhra Pradesh and Telangana.
- Rates of TDS on royalty and FTS payments to non-residents have been reduced from 25% to 10%.
- Limits for deductions under section 80C, 80D for health insurance
The Chapter comprises of Carry Forward and Set Off of Losses in the case of Companies, Computation of Taxable Income of Companies; Computation of Corporate Tax Liability; Minimum Alternate Tax; and Tax on Distributed Profits of Domestic Companies. Surcharge, Minimum Alternate Tax, Problems on MAT.
The Finance Act, 2022 has inserted a new section 79A to the Income-tax Act to restrict set off of losses consequent to search, requisition and survey. It has been provided that in case the total income of any previous year of an assessee includes any undisclosed income detected as a result of:
(a) Search initiated under section 132; or
(b) A requisition made under section 132A; or
(c) A survey conducted under section 133A other than under section 133A(2A).
Then, no set-off of any loss, whether brought forward or otherwise, or unabsorbed depreciation, shall be allowed against such undisclosed income while computing the total income of the assessee for such previous year.
The total income of accompany is also computed in the manner in which income of any assessee is computed. A company is assessed in its own name; i.e. a company pays tax on its income as a distinct unit. A tax paid by a company is not deemed to have been paid on behalf of its shareholders. It is determined as follows:
1. First ascertain income under the different heads of income.
2. Income of other persons may be included in the income of the company under sections 60 and 61( para 206 and 207)
3. Current and brought forward losses should be adjusted according to the provisions of sections 70 to 80 (as per para 226 to 233).Para 335 of section 79 provides all the provisions regarding set off and carry forward of losses of closely held companies.
4. The total income so derived under computation of different heads of income is “Gross Total Income”.
5. Following deductions are allowed from the Gross total income so computed, under section 80C to 80 U
Union Budget 2020:Clause by Clause Analysis of Direct Tax ProvisionsDVSResearchFoundatio
The document provides a clause by clause analysis of direct tax provisions in the Union Budget 2020-21. It summarizes key changes related to income tax slabs and rates, capital gains tax, taxation of dividends, rationalization of tax audit provisions, introduction of tax deducted at source on e-commerce transactions, and widening the scope of tax collected at source. The analysis covers amendments proposed to various sections of the Income Tax Act relating to these provisions. The changes are aimed at simplifying compliance, reducing litigation and widening the tax base.
The document summarizes key highlights from the Union Budget related to trusts, tax rates for small companies, house property, business income, capital gains, deductions, transfer pricing, special tax rates, TDS, and return filing provisions. Some key changes include an increased tax rate of 25% for small companies with turnover up to 50 crores, reduced holding period for long term capital gains on immovable property from 36 to 24 months, and increased contribution limits for NPS deductions.
This document summarizes various sections related to presumptive taxation for both resident and non-resident taxpayers in India. For residents, Sections 44AD, 44ADA and 44AE provide for presumptive taxation for certain eligible businesses and professions with deemed income percentages of 6-8%, 50% and Rs. 1000-7500 per month respectively. Similar provisions for non-residents include Sections 44B for shipping, 44BBA for aircraft, 44BB for mineral extraction services, and 44BBB for turnkey project services, with deemed income percentages of 7.5%, 5%, 10% and 10% respectively. Taxpayers opting for presumptive taxation have simplified compliance requirements but restrictions on expense deductions.
This document provides a summary of key proposals in the Indian Budget 2014-2015 relating to direct taxes, transfer pricing, international taxation, indirect taxes, and other proposals. Some of the key points included are:
- No change in individual or corporate tax rates. Basic exemption limit increased for individuals and senior citizens. Deductions under section 80C and for housing loans increased.
- New investment allowance introduced for manufacturing companies investing over Rs. 25 crores.
- Changes introduced to alternate minimum tax calculations and restrictions on certain expense disallowances.
- Presumptive taxation amounts increased for certain businesses.
- Clarifications provided on taxation of foreign dividends, CSR contributions, and trading losses for
The document summarizes important direct tax proposals in India. Some key points include:
- No changes proposed to individual tax slabs, thresholds, or surcharges but a new 4% health and education cess is introduced.
- Standard deduction of Rs. 40,000 for salaried individuals and increased deductions for senior citizens for health insurance and medical treatments.
- Changes to capital gains tax provisions including the removal of long-term capital gains tax exemption and a new provision to calculate tax on long-term capital gains from listed shares.
- Corporate tax rate reduced to 25% for companies with turnover up to Rs. 250 crores.
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.
The document provides an introduction to the Companies Auditor's Report Order (CARO) 2016 for auditors. Some key points:
- CARO 2016 was notified on March 29, 2016 and applies to financial years starting April 1, 2015. It consists of 16 clauses, with 7 new clauses added and 3 removed from CARO 2015.
- The eligibility criteria for exemption of private companies from CARO was increased, such as the paid-up capital limit rising from Rs. 50 lakh to Rs. 1 crore.
- New clauses require auditors to report on compliance with Sections 185 and 186 of the Companies Act regarding loans to directors and investments exceeding thresholds. Title deeds of properties must also be verified
1. Section 14A of the Income Tax Act was introduced to ensure that no deduction is allowed against taxable income for expenditure incurred in earning exempt income.
2. There is an ongoing debate around whether disallowance under section 14A can be made in a year where the assessee has not earned any exempt income. While the tax department and a Special Bench view was that disallowance can be made irrespective of exempt income, various High Courts have held that no disallowance can be made in the absence of exempt income in a year.
3. The current legal position, based on recent High Court rulings, is that no disallowance under section 14A should be made for a year
The document summarizes key aspects of Limited Liability Partnerships (LLPs) under Indian law, as presented by CA. Kalyan Chakravarthy Vennety. It covers topics like the reasons for introducing LLPs, how to form an LLP by registering with the Registrar of Companies, requirements around partners and designated partners, accounting and audit procedures for LLPs, how firms and companies can convert to LLPs, and winding up of LLPs. The presentation concludes that LLPs provide flexibility for small businesses while limiting personal financial liability of partners.
This document summarizes proposed changes to the Indian Income Tax Act of 1961 as presented by CA. Kalyan Chakravarthy Vennety on March 3, 2010. It outlines numerous proposed amendments to sections of the tax code related to individual and corporate tax rates, deductions, exemptions, and procedures. Key changes include reductions in individual tax rates and corporate surcharge, expanded deductions for health insurance and research, and increased thresholds for tax audit requirements and tax-deducted at source.
The presentation discusses the key provisions and procedures related to Tax Deducted at Source (TDS) in India. It explains that TDS is a form of advance tax collection where the onus is on the payer to deduct tax and deposit it with the government. It outlines the TDS process flow and key sections related to TDS for salaries, interest, rent, professional fees, and other payments. It provides thresholds limits for deducting TDS and due dates for payment. The presentation emphasizes best practices for TDS compliance to avoid penalties.
The document summarizes proposed changes to the Indian Income Tax Act of 1961 as presented in a talk on March 3rd, 2010. Some key changes include:
- Introduction of a new tax slab structure for individuals with rates from 0-30% depending on income level.
- Increase in surcharge on income tax for domestic companies with income over 1 crore from 7.5% to 10%.
- Expansion of the definition of "charitable purpose" and changes to provisions around cancellation of trusts.
- Changes to depreciation, research and development deductions, and provisions around carried forward losses for companies converting to LLPs.
- Increased thresholds for tax audit from 40 to 60
The document summarizes key aspects of Limited Liability Partnerships (LLPs) under Indian law. It outlines the registration process for forming an LLP, requirements for designated partners, accounting and audit procedures, provisions around partner relationships and liability, and processes for converting other business structures like firms and companies to LLPs. The presentation concludes by noting the advantages LLPs provide over other structures like flexibility of operations and limited personal financial liability of partners.
3. Rates of Corporate-tax for the AY 2014-15
• Surcharge – Domestic Co.
Nature of Co. Pecentage Marginal Relief
Domestic Co. TI 5% Yes
1cr to 10 cr
Domestic Co. TI >10cr 10% Yes
Company 115JB>1cr as above Yes
• Surcharge – Other than Domestic Co.
Nature of Co. Pecentage EC + SHEC
Non-Resident TI >1 cr 10% 2%+1%
Foreign Co. TI >1cr 2% 2%+1%
<10cr
3
Foreign Co. TI >10cr 5% 2%+1%
V R Jogeswara Rao & Co., Chartered Accountants
4. Rates of Income-tax for the AY 2014-15
• Individuals, HUF, AOP, BOI, AJP
Slab 0-60Yrs 60Yrs- >80Yrs Surcharge
% 80Yrs %
%
Upto ` 2L NIL Slab NA Slab NA NIL
Upto ` 2.50L Slab NA 10% Slab NA NIL
Upto ` 5L Slab NA Slab NA NIL NIL
` 2L - ` 5L 10% Slab NA Slab NA NIL
` 2.5L - ` 5L Slab NA 10% Slab NA NIL
` 5L - ` 10L 20% 20% 20 NIL
Above ` 10L 30% 30% 30% NIL
Above 1Crore 30% 30% 30% 10%
• Companies, Co-op Soc., Firms, LA. No change in 4
rates from AY 2013-14 except Surcharge of 10%
V R Jogeswara Rao & Co., Chartered Accountants
5. Rates of Income-tax for the AY 2014-15
• The only benefit this financial year is there is a
tax credit of `2000 under section 87 for people
having an annual income up to RS 5 Lakh. There is
no other benefit as compared to previous financial
year.
• The surcharge in cases of persons referred to in
this paragraph, having income above one crore
rupees shall be levied at the rate of ten per cent.
Marginal relief will be provided.
• No marginal relief in case of Education cess.
5
V R Jogeswara Rao & Co., Chartered Accountants
6. Commodities Transaction Tax
• New Commodities Transaction Tax is proposed on
commodity transactions entered in Recognised
Stock exchanges.
• Taxable Commodity Transaction would mean sale
of commodity derivatives in respect of
commodities other than agricultural commodities,
traded in recognised stock exchange.
• Separate Administrative procedures also provided.
• To come into force by way of notification.
• Deduction of CTT paid available u/s.36.
• Provisions applicable with effect from 1.4.2014 6
V R Jogeswara Rao & Co., Chartered Accountants
7. Taxation of Royalties & FTS
• Section 115A. India has tax treaties with 84
countries.
• Royalty is taxed @ 10% to 25%, but Section 115A was
10% due to which in some cases it has resulted in
taxation @ 10%.
• Hence proposed to amend to 25%.
• Provisions applicable with effect from 1.4.2014
7
V R Jogeswara Rao & Co., Chartered Accountants
8. Incentive for New Plant & Machinery
As appeared in a financial newspaper…
8
V R Jogeswara Rao & Co., Chartered Accountants
9. Incentive for New Plant & Machinery
• New section 32AC introduced for acquisition and
installation of new Plant & Machinery by a
manufacturing company.
• Conditions:
• It should be a company
• Engaged in business of manufacture of goods.
• Invests more than `100 crore in new assets during 1.4.2013 to 31.3.2015
• Deduction of 15% of the aggregate cost of new
assets acquired and installed during the FY 2013-14.
• If the cost is more than 100 crore, deduction in FY
2014-15 is equal to aggregate cost of new asset Acq
& Inst during 1.4.2013 to 31.3.2015 less: deduction
claimed in FY 2013-14.
9
• Contd…
V R Jogeswara Rao & Co., Chartered Accountants
10. Incentive for New Plant & Machinery
• “New Asset” is defined as New P&M but does not
include:
• Previously used P&M in India or outside India,
• P&M installed in office, residential unit including guest house,
• Appliances including computers and software,
• Vehicle,
• Ship or Aircraft,
• Any P&M, whole of cost which is allowed as a deduction in computation of
PGBP of any previous year.
• Lock in period of 5 years.(NA in case of amalgation)
• The above Investment allowance is over & above
the additional depreciation allowance u/s.32(1)(iia)
• Applicable with effect from AY 2014-15 & 10
subsequent years.
V R Jogeswara Rao & Co., Chartered Accountants
11. Rebate of `2,000 & Sunset clause 80IA
• Section 87 Rebate of `2,000 for Individuals having
Total Income upto `5,00,000.
• Rebate is equal to amount of tax or `2,000
whichever is less.
• Applicable with effect from AY 1.4.2014.
• Sec 80IA: Terminal date for power sector to
commence the eligible activity to avail the tax
incentive extended by a further period of one year
i.e.upto 31.03.2014
• Applicable with effect from 01.04.2014
11
V R Jogeswara Rao & Co., Chartered Accountants
12. Interest on Housing Loan
As appeared in one of the financial newspaper…
12
V R Jogeswara Rao & Co., Chartered Accountants
13. Interest on Housing Loan
• Deduction in respect of interest on housing loan
sanctioned during AY 2014-15
• New sec 80EE for Individual for interest on Loan
• Deduction shall not exceed `1 Lakh
• If Interest paid in AY 2014-15 is less than `1 Lakh,
balance deduction available in AY 2015-16.
• Conditions:
• Loan should be sanctioned between the year 1.4.2013 & ending on 31.3.2015;
• Amount of Loan should not exceed `25 Lakhs;
• Value of the new house property should not exceed `40 Lakhs;
• Assessee should not own any house property on the date of sanction.
• Proviso: if deduction allowed under this section, no
deduction allowed under any other provisions of the
act for the same year or any year. 13
• Applicable with effect from AY 1.4.2014.
V R Jogeswara Rao & Co., Chartered Accountants
14. Sec 10(10D)Limit of % of eligible premium
• Existing sum received from Life Insurance incl.
bonus is exempt subject to premium not > 10% of
actual sum assured.
• Existing sec 80C(3A) provides deduction up to
maximum limit of 10% of actual sum assured.
• Proposed: In case of Life Insurance policy issued on
or after 1.4.2013 on life of person claiming
deduction u/s.80U or 80DDB, any sum received as
bonus or otherwise, is exempt u/s.10(10D) subject
to premium payable for any of the year of the term
not more than 15% of the actual sum assure.
• Similarly section 80C(3A) also to be amended.
• Applicable with effect from AY 1.4.2014. 14
V R Jogeswara Rao & Co., Chartered Accountants
15. Expanding scope of sec 80CCG
• Rajiv Gandhi Equity Savings scheme.
• Existing section 80CCG provides deduction of 15%
deduction subject to maximum of `25,000
• Conditions:
• Resident Individual acquires listed equity shares;
• One time deduction;
• Only to new retail investor whose GTI not more than `10 Lakhs;
• Notified scheme was Rajiv Gandhi Equity Saving Scheme.
• Proposed: Investment in units of Equity Oriented
fund as per section 10(38)
• Applicable with effect from 1.4.2014.
15
V R Jogeswara Rao & Co., Chartered Accountants
16. Some other amendments
• Sec 80D Deduction upto `15,000 for contribution
to health schemes extended to more schemes to
be notified.
• Exemption to income of Investor Protection Fund
of depositories on lines of IP fund by Stock Ex.
• 100% deduction to donation to National Children's
Fund u/s.80G
• Exemption to National Financial Holdings Co. Ltd
on lines of Specified U/t of UTI created vide UTI.
• Lower rate of tax (15%) on dividends received from
foreign co. sec 115BBD extended to 1 more year 16
• Applicable with effect from 1.4.2014.
V R Jogeswara Rao & Co., Chartered Accountants
17. Removal of cascading effect of DDT
• Existing section 115O: 15% DDT by co. paying Div.
• Existing section 115BBD: Exemption of 15% Dividend recd by
Indian co. from foreign co. i.e. 26% case.
• Existing section 115O: Dividend payable by a co. is reduced
by an amount of dividend received from subsidiary if
subsidiary has paid DDT.
• This ensured removal of cascading effect.
• Now it is proposed to amend section 115O in order to
remove cascading effect in respect of dividend received by
a company from a similarly placed foreign co. i.e. 50% case.
• Where tax on dividend received from foreign subsidiary is
payable u/s115BBD by holding co., then dividend distributed
by holding co. in the same year, to the extent of such
dividend shall not be subject to DDT u/s.115O
17
• Applicable with effect from 1.6.2013.
V R Jogeswara Rao & Co., Chartered Accountants
18. Concessional rate of Withholding tax
• Existing sec 194LC: if Indian co. borrows money in
foreign currency from source outside India either
by way of Loan agmt. or by issue of Long Term
Infrastructure bonds, then the interest payment to
Non-resident subject to concessional rate of
5%TDS.
• To promote subscription of Infrastructure bonds by
foreign companies:
• Where a Non-Resident deposits foreign currency in designated bank
account and such money is converted in rupees;
• Utilised for subscription of Long Term Infrastructure Bond issue of Indian
Co.;
• Then for the purpose of this section, the borrowing
deemed to be in foreign currency 18
• Applicable with effect from 1.6.2013.
V R Jogeswara Rao & Co., Chartered Accountants
19. Taxation of Securitisation Trusts
• Existing section 161: If Trust income consists or
includes PGBP, taxation would be @MMR.
• The taxation at the level of Trust was considered to
be restrictive particularly where investors in the
trust are persons exempt from tax like M-Funds.
• Therefore to facilitate Securitisation, it is proposed
to amend section 10 and add new chapter XII-EA
and provide exemption.
• Applicable with effect from 1.6.2013.
19
V R Jogeswara Rao & Co., Chartered Accountants
20. Securities Transaction Tax
• Proposed to amend section 98 of Finance Act no.2
of 2004 to reduce STT as under:
Sr. Particulars Who pays Existing Proposed
% %
1. Delivery based units Purchaser 0.1 NIL
2. Delivery based units Seller 0.001 0.1
3. Sale of Futures Seller 0.017 0.1
4. Sale of Units to MF Seller 0.25 0.001
• Applicable with effect from 1.6.2013.
20
V R Jogeswara Rao & Co., Chartered Accountants
21. TDS on Trf. of certain Immo. properties
• Existing provisions have statutory requirement to
quote PAN in property transactions;
• But it was found by department that majority did
not quote PAN or quoted invalid PAN;
• No provision was existing of TDS on trf. of Immo.
Property except in the case of compulsory acqn.
• New section 194IA: every transferee at the time of
making payment or at the time of crediting of any
sum as consideration to resident transferor, for
transfer of immovable property(OTHER THAN AGRI
LAND), shall deduct tax @ 1% of such sum.
• No TDS where total amount of Cons’n < `50Lakhs
21
• Applicable with effect from 1.6.2013.
V R Jogeswara Rao & Co., Chartered Accountants
22. Taxation on Buyback of Unlisted shares
• Existing section 46A provides that consideration
received by a shareholder on buy back of shares is
not treated as dividend but taxed as capital gain.
• Unlisted companies are resorting to buy-back
instead of dividend to avoid DDT u/s.115O.
• New chapter XII-DA: provides that the
consideration paid by the Co. for purchase of
unlisted shares exceeding the sum received by the
Co. at the time of issue of such shares would be
treated as distributed income and would be taxed
@20%
• Applicable with effect from 1.6.2013.
22
V R Jogeswara Rao & Co., Chartered Accountants
23. Taxation on Buyback of Unlisted shares
• May Overrule the case reported inArmstrong
World Industries Mauritius Multiconsult Ltd.(210)
Taxman 303 (AAR) Held that the capital gains
arising out of the proposed buyback of shares is
not taxable in India in view of paragraph 4 of
Article 13 of the DTAC between India and Mauritius.
23
V R Jogeswara Rao & Co., Chartered Accountants
24. New section 43CA
• Existing: Section 50C did not cover stock in trade.
• New section 43CA: Where consideration for trf of asset
(other than Capital asset) being Land or L&B or both, is
less than stamp duty value, the value so adopted,
assessed, assessable shall be deemed to be full value of
consideration for the purpose of computing income
u/h Profits & Gains of Business or Profession.
• Where date of agmt for fixing value of consideration
and date of registration of transfer ARE NOT SAME,
stamp duty value as on date of agmt and not as on
date of registration will be considered.
• However, exception shall apply only in those cases
where amount of Consideration or a part thereof has
been received either in cash or on or before date of
agreement.
24
• Applicable with effect from 1.4.2014.
V R Jogeswara Rao & Co., Chartered Accountants
25. New section 43CA
• May Overrule the case reported in CIT vs. Kan
Constructions and Collonisers Ltd 2012 208
Taxman 478 (ALLAHABAD) held that section 50C
has no application as it was a case of transfer of
plots which was stock in trade. An income earned
from such transaction is liable to be taxed as
income from business activity.
25
V R Jogeswara Rao & Co., Chartered Accountants
26. Taxability of Property recd w/o cons’n
• Existing section 56(2)(vii)(b): Any immovable
property received by an INDIVIDUAL/HUF without
consideration, where stamp duty value > `50,ooo,
then such value is taxed in the hands of Ind/HUF.
• This provision did not cover a situation of in-
adequate consideration.
• New amendment proposed where any immovable
property received for a consideration < SDV by
`50,ooo, then such value as exceeds cons’n is
taxable in the hands of Ind/HUF
• Where date of Agmt. is different from date of
registration, SDV as on date of Agmt. to be taken.
• Applicable with effect from 1.4.2014. 26
V R Jogeswara Rao & Co., Chartered Accountants
27. TDS on Trf. of certain Immo. properties
• May Overrule the case reported CIT vs.
Khubsoorat Resorts P Ltd (2012) 211 Taxman 510
(DELHI) , Section 50C enabling the revenue to treat
the value declared by an assessee for payment of
stamp duty, ipso facto, cannot be a legitimate
ground for concluding that there was
undervaluation, in the acquisition of immovable
property.
27
V R Jogeswara Rao & Co., Chartered Accountants
28. Some other amendments
• Tax on distributed income by M-Funds increased
from 12.5% to 25% u/s.115R.
• New sections 14A & 14B in Wealth Tax Act on the
lines of sec 139C & 139D of IT Act for e-filing.
with effect from 1.6.2013.
• Disallowance of certain fee, charge etc
appropriated by SG from State Govt U/t. sec 40.
• Applicable with effect from 1.6.2013.
• Extension of time to a Provident Fund for approval
in Part A of Fourth Schedule of the act to retain
recognition. Applicable with effect from 1.4.2013 28
V R Jogeswara Rao & Co., Chartered Accountants
29. Amendment in Definition of Capital Asset
• Existing section 2(14) defines “capital asset”
• Sec 2 (14)(iii) provides that
a) agricultural land in any area within the
jurisdiction of a municipality or cantonment board
with a population of less than 10,000 or;
b) agricultural land in any area within such
distance not exceeding 8Kms from local limits of
municipality or cantonment board as notified.,
forms part of capital asset.
• Contd…
29
V R Jogeswara Rao & Co., Chartered Accountants
30. Amendment in Definition of Capital Asset
• Now it is proposed to amend item b) of sub clause
iii of clause 14 of section 2 so as to provide that:
• Land situated in any area within the
distance measured Aerially (Shortest Distance)
-Not being >2kms -Not being >6kms -Not being >8kms
from local limits ; from local limits ; from local limits ;
& & &
popultion>10K popultion >1L popultion
but <1Lakh but <10 Lakhs 10Lakhs & above
• Also proposed: define population as per last census
30
• Similar amendments in sec2(1A) of WT Act
V R Jogeswara Rao & Co., Chartered Accountants
31. Keyman Insurance Policy
• Existing section 10(10D) covers Keyman policy;
• It is noticed that policies taken as keyman are
being assigned to keyman before it’s maturity;
• The keyman pays the remaining premium and
claims the sum received under the policy as
exempt saying it is no longer keyman policy after
assignment;
• Thus exemption u/s.10(10D) is wrongly claimed.
• To plug this loophole, the proposed amendment
states that a keyman policy which has been
assigned during the term of policy with or without 31
consideration shall be treated as Keyaman.
V R Jogeswara Rao & Co., Chartered Accountants
32. Keyman Insurance Policy
• May Overrule the case Escorts Heart Institute & Research
Centre v. CIT (2013) 30 Taxman 4(DELHI) Held that, The insurance
company has itself clarified that on assignment, it does not
remain a keyman policy and gets converted into an ordinary
policy. It is not open to the Revenue to still allege that the policy
in question is keyman policy and when it matures, the advantage
drawn there from is taxable; no doubt, the parties here, viz., the
company as well as the individual taken huge benefit of these
provisions, but it cannot be treated as the case of tax evasion. It
is a case of arranging the affairs in such a manner as to avail the
state exemption as provided in Section 10(10D); law is clear.
Every assessee has right to plan its affairs in such a manner which
may result in payment of least tax possible, albeit, in conformity
with the provisions of Act. It is also permissible to the assessee to
take advantage of the gaping holes in the provisions of the Act.
The job of the Court is to simply look at the provisions of the Act
and t see whether these provisions allow the assessee to arrange
their affairs to ensure lesser payment of tax. If that is permissible,
no further scrutiny is required and this would not amount to tax 32
evasion.
V R Jogeswara Rao & Co., Chartered Accountants
33. Deduction u/s. 80GGB, 80GGC
• Both the above sections deal with deductions with
respect to contribution to political party or
electoral trust made by a company or any other
person.
• It is proposed to that no deduction will be allowed
is such sum is contributed by cash.
• Applicable with effect from 1.4.2014
33
V R Jogeswara Rao & Co., Chartered Accountants
34. Clarification on “Tax Due”
• Existing section 179 states that a director of a
Private Ltd Co. is jointly and severally responsible
for irrecoverable tax dues of the company unless
he proves that such non-recovery cannot be
attributed to gross neglect, misfeasance or breach
of trust on his part;
• Courts have interpreted “tax due” used in section
179 to hold that it does not include penalty, interest
or any other sum.
• Now amendment proposes to include the same
with effect from 1.4.2014
34
V R Jogeswara Rao & Co., Chartered Accountants
35. Clarification on “Tax Due”
• May Overrule the case of Sanjay Ghai (2012) 26Taxman203
(DELHI) where the Court is of the opinion that the structure
and construct of the Act has consciously used different
words to create constructive liability on third parties, in the
case of default in payment of taxes by an assessee. The
treatment of the same subject matter by using different
terms - in some instances expansive and in others,
restrictive, mean that the Court has to adopt a circumspect
approach and limit itself to the words used in the given case
(in the present case, "tax due" under Section 179) and not
"travel outside them on a voyage of discovery“ (Magor &
St. Mellons RDC v. Newport Corporation 1951 (2) All ER
839). Therefore, the petitioner cannot be made liable for
anything more than the tax (defined under Section 2 (43)).
The respondent is consequently directed to determine the
liability of the Petitioner, in the light of the finding. 35
V R Jogeswara Rao & Co., Chartered Accountants
36. Deduction u/s.80JJAA
• Existing section 80JJAA provides deduction of 30%
of additional wages subject to certain conditions;
• It was intended for blue collared workers, but
found to be used for other section of workers also.
• Therefore now proposed to amend so as to
provide that deduction shall be available to “Indian
company deriving profits from manufacture of
goods in factory”
• The deduction is equal to 30% of additional wages
paid to new regular workmen for 3 AYs
• Applicable with effect from 1.4.2014 36
V R Jogeswara Rao & Co., Chartered Accountants
37. Deduction u/s.80JJAA
• May overrule the case of M/s Texas Instruments
(India) The Deputy Pvt. Ltd., 66/3, Bagmane Tech
Commissioner of Income Park, C V Raman Nagar,
vs Tax (LTU), Bangalore
37
V R Jogeswara Rao & Co., Chartered Accountants
38. Application of Seized Assets u/s.132B
• Existing provisions state that seized assets may be
adjusted against existing liability towards IT, WT,
Expenditure tax, Gift Tax & Interest Tax Act;
• Various courts have taken a view that the term
“existing liability” includes advance tax liability of
the assessee which is not in consonance with the
intention of the legislature.
• The legislative intent behind the this provision is to ensure the recovery of
O/s tax/interest/penalty and also to provide for recovery of
tax/interest/penalty, which may arise subsequent to the assessment
pursuant to search.
• Accordingly, it is proposed to amend the aforesaid
section to clarify that “existing liability” does not
include Advance Tax liability. 38
• Applicable with effect from 1.6.2013
V R Jogeswara Rao & Co., Chartered Accountants
39. Application of Seized Assets u/s.132B
• May Overrule an Bombay High court ruling in the
case of Shri Jyotindra B. Mody, Whether the ITAT
was justified in holding that the seized cash
amounting to Rs. 18,00,000/and the amount of
Rs.1.98 Crores deposited by the Assessee on 31st
January, 2007 could be adjusted against the
Advance Tax liability while computing the interest
under sections 234B and 234C of the Income Tax
Act, 1961? Held, yes
39
V R Jogeswara Rao & Co., Chartered Accountants
40. Return of income w/o SA Tax=Invalid
• Existing 139(9) provides that AO may intimate
defect to assessee.
• It is now proposed to amend the explanation to
the section so to provide that the return of income
shall be regarded as defective unless the tax
together with interest if any , payable with
accordance with sec 140A has been paid on or
before date of furnishing of the return.
• Applicable with effect from 1.6.2013
40
V R Jogeswara Rao & Co., Chartered Accountants
41. Tax Residency Certificate
• It was held by the hon’ble SC in Union of India vs
Azadi Bachao Andolan(2003)263 ITR706 that CBDT
circular no.789 dt.13.4.2000 (stating Certificate of
Residence will constitute sufficient evidence for
accepting the status as well as beneficial
ownership for applying DTAA agreement) is valid.
• It is proposed to amend Sec90 & Sec 90A in order
to provide that submission of tax residency
certificate is a necessary but not a sufficient
condition for claiming benefits of agreements
referred to in sections 90 and 90A.
• These amendments will take effect retrospectively
from 1.4.2013 and will accordingly apply to AY 2013- 41
14 and subsequent assessment years.
V R Jogeswara Rao & Co., Chartered Accountants
42. Direction of Special Audit u/s.142(2A)
• Existing section provides that the AO having
regard to the nature, complexity of accounts and in
the interest of revenue, with approval of CC or
Commissioner may direct the assessee to get his
accounts accounted by an accountant and furnish
report.
• Nature & Complexity have been interpreted in a
restrictive manner by various courts.
• Hence proposed to amend sub-section to provide
that if at any stage of proceedings before him…
• Contd…
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V R Jogeswara Rao & Co., Chartered Accountants
43. Direction of Special Audit u/s.142(2A)
• AO having regard to:
• nature, complexity of accounts;
• Volume of accounts;
• Doubts about correctness of accounts;
• Multiplicity of transactions;
• Specialised nature of business;
• and in the interest of revenue,
is of the opinion that it is necessary
to do so, he may with the Prior approval of CC or
Commissioner may direct the assessee to get his
accounts accounted by an accountant and furnish
report.
• Applicable with effect from 1.6.2013 43
V R Jogeswara Rao & Co., Chartered Accountants
44. Direction of Special Audit u/s.142(2A)
• May Overrule the case of Delhi Development
Authority (DELHI High court) where it was held,
Irregularities can be examined and verified by the
Assessing Officer and for this purpose, special
audit is not required.
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V R Jogeswara Rao & Co., Chartered Accountants
45. Exclusion in period of Limitation
• Existing provisions of sec 153 provide time limit for
assmt or re-assmt by the ITO.
• Explanation to section provides exclusions of certain
periods.
• Under section 153(1)(iii), period starting on the date on
which AO directs special audit and ending with the last
date for submission of report is excluded.
• However, no exclusion in case direction is set aside by
a court.
• It is proposed to amend explanation to clause (iii) to
change the period ending to the last date for
submission of report or where such direction is
challenged before a court, ending with the date of
such order of setting aside received by commissioner
45
• Contd…
V R Jogeswara Rao & Co., Chartered Accountants
46. Exclusion in period of Limitation
• Similarly under section 153(1)(vii), period starting
on the date on which AO makes a reference for
exchange of information u/s.90 & 90A and ending
date of receipt of such reference is excluded.
• Sometimes, more than one reference is made.
• Hence, It is proposed to amend above clause so a
as to provide that the period commencing from the
date on which a reference or first of the references
is made and ending with the date on which the info
requested is last received by the Commissioner or a
period of one year, whichever is less, shall be
exluded. Similar amendments proposed to sec153B
• Applicable with effect from 1.6.2013 46
V R Jogeswara Rao & Co., Chartered Accountants
47. Penalty u/s. 271FA for non-filing AIR
• Existing provision provides that if a person who is
required to furnish AIR as required under sub section(1)
of sec 285BA, fails to furnish such return with the time
prescribed under that sub-section, the Income Tax
Authority may direct that such person shall pay, by way
of penalty, a sum of `100 for every day during which
the failure continues;
• It is proposed to amend the aforesaid sub-section so as
to provide that if a person fails to furnish such return
with the time prescribed under sub-section (2), the
Income Tax Authority may direct that such person shall
pay, by way of penalty, a sum of `100 for every day
during which the failure continues;
• Contd… 47
V R Jogeswara Rao & Co., Chartered Accountants
48. Penalty u/s. 271FA for non-filing AIR
• It is further proposed to provide that where such
person fails to furnish the return under sub section
(5) of section 285BA, he shall pay by way of penalty
a sum of `500 for every day during which the
failure continues, beginning with the day
immediately following the day on which the time
specified in such notice for furnishing the return
expires.
• Applicable with effect from 1.4.2014
48
V R Jogeswara Rao & Co., Chartered Accountants
49. Bad debts in case of Banks
• Existing section 36(1)(viia) provides a deduction of bad debts
subject to limits;
• 7.5% of GTI of co-operative Banks;
• 10% of aggregate average advances made by rural branches
• This limit is 5% of GTI(before deduction under this clause) under
sub clause (b) and (c) for banks incorporated outside India &
certain Fin. Inst’ns.
• Clause (vii) provides for deduction of B/d actually w/off as
irrecoverable in books.
• The proviso for this clause provides that for an assessee, to which
clause (viia) applies, deduction under clause (vii) shall be limited
to the amount by which the B/d w/off exceeds the cr.bal in
Provision for BDD made clause (viia).
• The provisions of clause (vii) are subject to provision of section
36(2)(v) which provides that the assesee to which 36(1)(viia)
applies, should debit the amount of B/d w/off to the Provision to
BDD account u/s. 36(1)(viia).
• Therefore banks or FI are entitled to claim deduction for B/d 49
actually w/off under clause (vii) only to the extent it is in excess
of the cr. Bal in the Provision for BDD account made clause (viia).
V R Jogeswara Rao & Co., Chartered Accountants
50. Bad debts in case of Banks
• However, certain judicial pronouncements have
created doubts about the scope and applicability of
proviso to section 36(1)(vii) and held that the
proviso applies only to provision for BDD made for
rural advances.
• In order to clarify the scope and applicability of
provision of clause (vii),(viia) of subsection (1) and
subection (2), it is proposed to insert an
explanation in clause (vii) of sec 36(1) stating that
for the purposes of of proviso to sec 36(1)(vii) &
36(2)(v), only one account is made for Provision for
BDD u/s. 36(1)(viia) & such account relates to all
types of advances, whether rural or other adv. 50
V R Jogeswara Rao & Co., Chartered Accountants
51. Bad debts in case of Banks
• Therefore, for an assessee to which clause(viia)
applies, the amount of deduction for B/d actually
w/off under clause (vii) shall be limited to the
amount by which such B/d exceeds the cr.bal in the
Provision for BDD account made under clause(viia)
WITHOUT ANY DISTINCTION between rural
advances and other advances.
• Applicable with effect from 1.4.2014
51
V R Jogeswara Rao & Co., Chartered Accountants
52. Bad debts in case of Banks
• May overrule the case Catholic Syrian Bank Ltd (343)
ITR 270 (SC) where hon’ble SC had considered whether
a bank was eligible to claim a deduction for bad debts
u/s 36(1)(vii) in respect of its (rural & urban) advances
and also claim a provision for bad and doubtful debts
u/s 36(1)(viia) in respect of its rural advances in view of
the Proviso to s. 36(1)(vii) which provides that only the
excess over the credit balance in the provision for bad
and doubtful debts account made u/s 36(1)(viia) can be
claimed and held that bad debts written off in respect
of urban debts were eligible for deduction u/s 36(1)(vii)
without any limits specified in proviso thereto, as the
same were not covered by the provisions of Sec 52
36(1)(viia).
V R Jogeswara Rao & Co., Chartered Accountants
53. Amnesty Scheme for Service Tax
• To increase compliance and encourage assessee to voluntarily
pay service tax and file returns on timely basis, the Government
has come up with Voluntary Compliance Encouragement
Scheme, 2013 with following key features:
i. The scheme can be availed of by non-filers or stop-filers or
persons who have not made a truthful declaration in their return.
However it will not be applicable to persons against whom any
inquiry or investigation is pending by the issue of search warrant or
summon or by way of audit;
ii. The defaulter will be required to make a truthful declaration
of all his pending tax dues (from 01.10.2007 to 31.12.2012) and pay at
least half of that before 31.12.2013; remaining half to be paid by:
(a) 30.06.2014 without interest; or
(b) By 31.12.2014 with interest from 01.07.2014 onwards;
Contd…
53
V R Jogeswara Rao & Co., Chartered Accountants
54. Amnesty Scheme for Service Tax
iii. On compliance with all the requirements the
person will have immunity from interest (as
specified), penalties and other proceedings;
Comments: This is indeed an appreciable step taken
by FM in a country where out of 17 Lakh registered
assesses only 7 Lakh file returns regularly (Budget
Speech). This will encourage genuine assessees to
come forward admit their tax dues without payment
of any interest and penalty. TRU letter has clarified
that tax-payers will need to settle their dues for the
period after 31.12.2012 under the present law. 54
V R Jogeswara Rao & Co., Chartered Accountants
55. From the papers…
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V R Jogeswara Rao & Co., Chartered Accountants
56. A message received on whatsapp…
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V R Jogeswara Rao & Co., Chartered Accountants
57. From the papers…
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V R Jogeswara Rao & Co., Chartered Accountants
58. From the papers…
Opinion of the former member of CBEC…
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V R Jogeswara Rao & Co., Chartered Accountants
59. From the papers…
Summary bullets of an article on Service Tax changes
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V R Jogeswara Rao & Co., Chartered Accountants
60. From the papers…
What better way to end than with the most discussed
statistic of the Budget 2013only 42,800 persons…!
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V R Jogeswara Rao & Co., Chartered Accountants
61. CA. Kalyan Chakravarthy Vennety
B.COM, ACA, DISA(ICAI), CISA
(Proud Member of Jalna CPE Study Chapter of WIRC of ICAI)
Partner
V R Jogeswara Rao & Co.,
Chartered Accountants, Jalna 61
Phone: 9970088669 email: ca.vkalyanc@gmail.com
V R Jogeswara Rao & Co., Chartered Accountants