The document summarizes key highlights from the Union Budget for 2018-19 presented by the Finance Minister in India. Some key points include:
- The budget continued fiscal discipline while targeting spending on rural development, education, healthcare, and MSME sector.
- GDP growth is projected to be 6.75% for 2017-18 and 7-7.5% for 2018-19.
- Changes were announced in direct taxes including income tax slabs and deductions. Capital gains tax was introduced for equity investments.
- Agriculture, rural development, and health sectors saw increased allocations for schemes.
- Corporate tax rate was reduced for small and medium enterprises.
This slide deck includes the highlights of the recent Union Budget of India for the financial year 2017-18 announced by Mr Arun Jaitley (Finance Minister) on 2nd Feb 2017.
This presentation has been prepared to give a glimpse of Union Budget 2017-18. It will come handy for management students who have Finance as one of their subjects.
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.
For Salient Features of Union Budget 2017 created by Lunawat Team click at - http://lunawat.com/Uploaded_Files/Attachments/F_3558.pdf
Regards
CA Pramod Jain
Missed out on the Union Budget 2017 Presentation?
Indian Finance Minister, Mr. Arun Jaitely has once again taken the nation by wave with his pro-poor, pro-growth, pro-middle class, pro-youth & paradigm shifting Budget. Read the highlights of the Budget here.
A budget is a quantitative expression of a financial plan, we all know that but, not everyone understands the whole of Budget. For this reason alone, the budget views are presented in a PPT format for your reference.
A presentation by CA Manish Hingar
An Analysis of Budget 2018-19 and details impact analysis on your investment. Simple Strategy, Suggesting for efficient Tax Planning and wealth creation for Long Term
This slide deck includes the highlights of the recent Union Budget of India for the financial year 2017-18 announced by Mr Arun Jaitley (Finance Minister) on 2nd Feb 2017.
This presentation has been prepared to give a glimpse of Union Budget 2017-18. It will come handy for management students who have Finance as one of their subjects.
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.
For Salient Features of Union Budget 2017 created by Lunawat Team click at - http://lunawat.com/Uploaded_Files/Attachments/F_3558.pdf
Regards
CA Pramod Jain
Missed out on the Union Budget 2017 Presentation?
Indian Finance Minister, Mr. Arun Jaitely has once again taken the nation by wave with his pro-poor, pro-growth, pro-middle class, pro-youth & paradigm shifting Budget. Read the highlights of the Budget here.
A budget is a quantitative expression of a financial plan, we all know that but, not everyone understands the whole of Budget. For this reason alone, the budget views are presented in a PPT format for your reference.
A presentation by CA Manish Hingar
An Analysis of Budget 2018-19 and details impact analysis on your investment. Simple Strategy, Suggesting for efficient Tax Planning and wealth creation for Long Term
The much-awaited Budget is finally out.Finance Minister Shri Arun Jaitley announced the Union Budget 2018-19 on 01st February. Overall, the government in an effort to achieve its objective of reducing poverty, expediting infrastructure creation and building a strong, confident and a New India, in its Budget, has retained its focus on giving a push to the rural economy and the agricultural sector.
Corporate India shall be majorly benefited by rationalization of corporate Income Tax to 25% whereby 99% of the corporate tax payers who clock turnover below.
Rs. 250 Cr in the previous year will be benefited.
We at APMH are determined to demystify the budget from a compliance angle and are excited to present our "Union Budget E - Booklet 2018-19 on various developments in Direct & Indirect Taxes announced in the Union Budget and their implications for Businesses.
Understand how Union Budget 2018 will impact you with in-depth analysis and insights from our tax and industry experts.
We are sure that it will prove as a useful reference material for you and your team throughout the year.
Tax world reacts to interim budget 2019Radhabajaj987
Who's who of India Tax world reacts to the Interim Budget 2019 presented by the acting FM
Dinesh Kanabar Ketan Dalal sudhir kapadia Gautam Mehra TP Oswal Uday Ved Rohit Jain SUNIL KAPADIA Amit Singhania Pankaj Vasani @Amit Maheshwari Sanjay Sanghvi Tejas Desai Milind S Kothari Rajendra Nayak
The basic schemes, reforms, policy announced by our financial minister Mr. Arun Jetley was described in the slides. It will be more useful for everyone. It helps even a common man to learn about our country's budget.
The Union Budget for 2017-18 pledged relief for rural India, middle class taxpayers and small and medium-sized companies in the Union Budget 2017-18, saying the government would spend thousands of crores to double farmers' incomes, upgrade infrastructure and provide affordable housing. While unveiling the budget the Hon’ble Finance Minister emphasised that the budget is built on three pillars “Transform, Energise and Clean India”, that is, TEC India. This agenda of TEC India seeks to transform the quality of governance and quality of life of the citizens of India, energise various sections of society, especially the youth and the vulnerable sections of the society and enable them to unleash their true potential. The emphasis of TEC India is also to clean the country from the evils of corruption, black money, and non-transparent political funding. The main focus of the Budget has been to boost government expenditure in order to increase growth, and to muster employment generation.
The Finance Minister said the Indian economy was doing well despite global trends of slowing growth in other emerging economies. He also delivered a big relief to foreign portfolio investors by exempting them from indirect transfer provisions. The centre’s budget size has been pegged at Rs. 21.47 lakh crore, with an increase of 25.47 per cent in capital expenditure. As regards fiscal consolidation, the FM has targeted fiscal deficit of 3.2 per cent for 2017-18 as against earlier target of 3 per cent. For agriculture and rural sector, Mr Jaitley has increased the allocation by 24 per cent to Rs. 1.87 lakh crore for 2017-18. In the case of infrastructure, the planned public investment stood at massive Rs. 3.96 lakh crore.
We have developed an analysis of the budget, which includes opinion pieces from eminent economists and experts.
Union Budget 2017 - A Pitchfork Partners AnalysisAshraf Engineer
Finance Minister Arun Jaitley presented a Union Budget of many firsts today. Apart from integrating the Rail Budget into itself, the presentation was advanced to February 1 to enable better operationalisation. Also, plan and non-plan classifications were eliminated for a holistic view of allocations.
The Budget was presented in the wake of demonetisation and all eyes were on what the government would do next. The finance minister focused on rural development and agriculture, while laying emphasis on tax compliance, affordable housing and social investment as part of a 10-point agenda.
Here's an overview and analysis of the Budget.
Budget 2018 impact on your taxes: Who saves and who pays more :-
No change in income tax slab for individuals
Cess on income tax hiked to 4%
EPF contribution of new women workers capped at 8%
Exemption of interest income on deposits to be hiked for senior citizens
Budget proposes to hike PMVVY limit to rs 15 lakh
FM proposes DDT on equity MF, dividend seekers to be hit .
Edelman India Public Affairs team provides an analysis of the Union Budget 2018-19 tabled in Parliament on Feb 1 -- featuring opinions from eminent economists and industry experts.
Contributors include:
Mr. T.S. Vishwanath
Partner, APJ-SLG Law Offices and Senior Advisor, Edelman India
Mr. Nirankar Saxena
Deputy Secretary General, FICCI
Dr. Geethanjali Nataraj
Professor of Applied Economics, Indian Institute of Public Administration
Dr. Amir Ullah Khan
Development Sector Economist, Professor and Director at the Maulana Azad National Urdu University, Visiting faculty of Economic Policy at the Indian School of Business
Mr. Neeraj Bansal
Partner and Head – ASEAN Corridor and Building, Construction and Real Estate sector, KPMG in India
Mr. Ravi S. Kochak
Former Additional Member (Production Units), Indian Railways
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020. This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
We bring you our analysis of Direct Tax proposals announced by the Hon'ble Finance Minister at her budget speech. Some of the key takeaways are highlighted below:
• 15% concessional tax regime for new domestic manufacturing companies will now be applicable to Power-generating companies as well;
• Alternative personal tax regime made available for Individual/ HUFs
• Abolition of Dividend Distribution Tax (DDT);
• Advance Pricing Agreement and Safe Harbour Rules to cover Income Attribution to a Permanent Establishment (PE);
• Thin Capitalization provisions liberalized and have been made inapplicable to a debt provided by PE of non-resident engaged in the business of banking in India;
• TDS on e-commerce transactions;
• TCS on overseas remittances under Liberalised Remittance Scheme (LRS), purchase of overseas tour packages and purchase of goods;
• Threshold of residency for citizens & PIOs visiting India reduced from 182 days to 120 days. Further, definition of ‘Not ordinarily resident’ is also narrowed;
• Donations to charitable institutions made to be pre-filled in IT return form to claim exemptions for donations easily. Further the Income Tax exemption approvals to Charitable Institutions is made subject to renewal every five years
We are pleased to share our June 2022 edition of the GST Bulletin covering recent amendments/ updates in the realm of GST.
This issue covers in detail the following:
1. Judicial Updates
• No GST on services by security manager located outside India for subscription to secured notes placed in USA.
• Concessional GST rate of 0.75% on construction applies to promoter and not to sub-contractor.
• Ocean freight levy violates 'Composite supply' principle under GST.
• Secondment of employees by Overseas Group Company is covered under Manpower Supply & liable to service tax.
• Charitable clubs imparting sports training exempt, however entrance/membership fees taxable.
2. Notifications/ Circulars
• Due date for filing GSTR-3B for April 2022 extended.
• Due date for payment of tax in GST PMT-06 for April 2022 extended.
• Late fee for delay in filing of Form GSTR-4 waived off.
3. GST Compliance Calendar for June 2022
Pleased to share the third edition of "Income Tax Compliances Handbook" wherein our Tax team has summarized the important compliance related provisions of Income Tax Act 1961 as applicable to FY 2022-2023 (AY 2023-2024)
In a recent ruling, the Uttar Pradesh Authority for Advance Ruling (‘AAR’) has ruled that Input Tax Credit (ITC) shall be available on expenses incurred to comply with the requirements of Corporate Social Responsibility (CSR) under Companies Act, 2013 (CSR Expenses). In this video, we have discussed the aforesaid AAR ruling and relevant legal provisions on the subject.
This ruling would enable companies to consider taking ITC on various Covid relief expenses incurred which are being claimed as CSR expenditure in accordance with the FAQs issued by Ministry of Corporate Affairs through General Circular No.15/2020 dated 10th April 2020.
Further the ruling only deals with CSR mandated under Companies Act, 2013 and ITC eligibility in case of CSR activities undertaken voluntarily or beyond the limits prescribed under Companies Act, 2013 still remain an open area. Though according to rationale given by UP AAR, ITC would only be available if the expenditure is mandatory and not voluntary.
Link of Article : https://taxguru.in/goods-and-service-tax/detailed-analysis-itc-csr-expenditure.html
Recently Karnataka AAR has given a ruling in the matter of “Mr. Anil Kumar Agrawal” holding that salary paid to executive director is not liable to GST as it is covered under schedule III of CGST Act, 2017, thus not to be considered for computing aggregate turnover for registration. This ruling has effectively put aside the confusion of applicability of GST under RCM on director’s remuneration ruled by Rajasthan AAR in the matter of “Clay Craft India Private Limited”. Brief facts and findings of the present ruling are analysed in this update.
#gst #gstupdate #gstupdate #update #snr #krestonsnr
Recently Hon’ble Delhi High Court has given a landmark judgment in the matter of “Brand Equity Treaties Limited & Others Vs The Union of India & Others” holding that all the taxpayers are allowed to the transitional claim of tax credit as available as on 30th June, 2017 under Pre-GST regime by filing form TRAN-1 till 30th June 2020. Hon’ble High Court has held that the statutory time limit given is only directory and therefore, the period of limitation of 3 years under the Limitation Act would apply. More details about this ruling is given in this update #gst #gstupdate #snr #krestonsnr
Amidst extended lockdown period due to coronavirus outbreak, the Central Board of Indirect Taxes & Customs (CBIC) has extended various GST compliance deadlines. Brief of the notifications issued is provided in this GST update. #gstupdate #cbic #snr #krestonsnr #gst
Recently Hon’ble Karnataka Authority of Advance Ruling (AAR) has given a ruling in the matter of “M/s T&D Electricals” holding that no Registration is required under the CGST Act, 2017 for execution of a works contract in other state where there no fixed establishment in that state. In this update, we have analysed the captioned AAR ruling.
#taxlaws #gstupdate #gst #krestonsnr #snr
In the attached handbook, we have included major legal compliance applicable on NGOs in India under Income Tax Act, Foreign Contribution Regulation Act, Payment of Gratuity Act, Provident Fund & Misc Provisions Act. #ngos #Taxation #Compliances #SNR #krestonsnr
Recently Hon’ble Rajasthan Authority of Advance Ruling (AAR) has given a ruling in the matter of “Clay Craft India Private Limited” holding that the remuneration paid to Director whether whole time or not will attract GST under Reverse Charge Mechanism (RCM). In this update, we have analysed the captioned AAR ruling along with capturing the current legal position on the matter. #taxlaws #gst #gstupdate #krestonsnr #snr
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
In the Finance bill passed by Lok Sabha, the government has made certain significant changes predominantly with regard to the applicability of various provisions as were originally introduced in the Finance Bill. Our tax alert providing brief summary of the significant changes in relation to Income Tax Act, 1961
Summary of announcements made by Hon'ble Finance Minister on 24th March 2020 regarding extension of due dates and other relaxations in compliances pertaining to Income Tax & GST.
Vivaad Se vishwas scheme has been introduced by Government of India to provide one time opportunity for settlement of pending litigation by paying the basic tax amount and complete waiver of interest and penalty.
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020.This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
Visit Now: https://www.tumblr.com/trademark-quick/751620857551634432/ensure-legal-protection-file-your-trademark-with?source=share
Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
ASHWINI KUMAR UPADHYAY v/s Union of India.pptxshweeta209
transfer of the P.I.L filed by lawyer Ashwini Kumar Upadhyay in Delhi High Court to Supreme Court.
on the issue of UNIFORM MARRIAGE AGE of men and women.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
How to Obtain Permanent Residency in the NetherlandsBridgeWest.eu
You can rely on our assistance if you are ready to apply for permanent residency. Find out more at: https://immigration-netherlands.com/obtain-a-permanent-residence-permit-in-the-netherlands/.
2. Introduction to Budget 2018
Page 2 of 25Private & Confidential
Union Finance Minister Arun Jaitley presented the Union Budget for the year 2018-19 on
1st February, 2018 in the Lok Sabha with strong emphasis on Agriculture, Healthcare,
Education and Infrastructure development. This budget is the last full budget of Modi
Government and thus it was expected to be populist in view of the general election -
2019. However the budget continued the trend of adhering to fiscal discipline and
targeted spending on development of rural economy, education, health care facilities,
infrastructure (Road, Rail, Ports and Airports) and providing support to MSME sector.
Finance minister said in his budget speech that budget focuses on agriculture, rural
economy, health and infrastructure to increase the ‘ease of living’ for India’s poor and
middle classes.
Finance minister also slightly loosened his government’s fiscal deficit targets for the new
financial year– partly as a result of unsure tax revenue from GST and partly to step up
public spending on the agriculture and health sectors. He also emphasized on the fact
that India is now a USD 2.5 Trillion economy – 7th largest in the world and expected to
become 5th largest in the year 2018. GDP growth in the year 2017-18 is expected to be
6.75% and expected to rise to 7-7.5% in the year 2018-19.
Finance Minister said that “Prime Minister Shri Narendra Modi has always stressed
importance of good governance. He has articulated the vision of ‘‘Minimum Government
and Maximum Governance’’. This vision has inspired Government agencies in carrying out
hundreds of reforms in policies, rules and procedures. This transformation is reflected in
improvement of India’s ranking by 42 places in last three years in the World Bank’s ‘Ease
of Doing Business’ with India breaking into top 100 for the first time. I would like to
congratulate all those who worked to achieve this.’
While there is no major change in indirect taxes as most of them are now under the
purview of the Goods and Service Tax Council, Budget 2018 consists several changes in
direct taxes as well as custom duties.
4. Tax Proposals – Widening and Deepening of Tax Base
❖ PAN will become Unique Entity Number (UEN) for non-individual entities. In view of
this, it is proposed that following persons shall be mandatorily required to obtain
Permanent Account Number (PAN):
➢ Non-Individual entity entering into a financial transaction of INR 2,50,000 or
more in a financial year.
➢ In order to link financial transactions with the natural persons, Managing
Director, Director, Partner, Trustee, author, founder, Karta, chief executive
officer, principal officer or officer bearer or any person competent to act on
behalf of such entities.
❖ It is proposed to include deemed dividend of section 2(22)(e) under the scope of
section 115-O which results in taxation of such deemed dividend in the hands of
company itself rather than the recipient. Further, such deemed dividend is to be
taxed at 30 % (without grossing up).
❖ Long term capital gain arising from transfer of a long term capital asset being an
equity share or a unit of equity oriented fund or unit of a business trust shall be taxed
at 10% of such capital gains exceeding INR 1,00,000.
❖ Disallowance of payment of cash exceeding INR 10,000 under section 40A(3) & 40A(3A)
and disallowance of expenditure under section 40(a)(ia) for non-compliance with TDS
provisions applicable to specified entities claiming exemption under section 10(23C)
and section 11 of Income Tax Act. (Registered charitable entities)
❖ Education Cess and Secondary Higher Education Cess of 3% (of tax and surcharge)
discontinued. Health and Education Cess introduced at the rate of 4% (of tax and
surcharge)
Budget 2018 – Key Highlights
Page 4 of 25Private & Confidential
5. Budget 2018 – Key Highlights
❖ Exemption under Section 80D has been increased from INR 30,000 to INR 50,000 in
respect of payment towards annual premium on health insurance policy or preventive
health check up of a senior citizen.
❖ It is proposed to amend the provisions of section 80DDB so as to raise the monetary
limit of deduction to INR 1,00,000 for both senior citizens and very senior citizens
(from existing INR 60,000 for senior citizens and INR 80,000 for very senior citizens)
with regards amount paid for medical treatment of specified diseases.
❖ Deduction from interest income on deposits in case of senior citizens increased from
INR 10,000 to INR 50,000. (Section 80TTB)
❖ Standard deduction of INR 40,000 introduced for salaried individuals. In view of this,
the present exemptions in respect of transport allowance and reimbursement of
medical expenses stand withdrawn.
❖ Minimum period of employment under section 80JJAA (which provides for deduction in
respect of employment of new employees) relaxed to 150 days for footwear and
leather industry.
❖ No TDS on interest income upto INR 50,000 for senior citizens U/s 194A.
Page 5 of 25Private & Confidential
Tax Proposals –Tax Savings/Incentives
6. Budget 2018 – Key Highlights
❖ It is proposed to amend section 115JB to provide that the aggregate amount of
unabsorbed depreciation and loss brought forward (excluding unabsorbed
depreciation) shall be allowed to be reduced from the book profit, if a company’s
application for corporate insolvency resolution process under the Insolvency and
Bankruptcy Code, 2016 has been admitted by the Adjudicating Authority.
❖ To Improve transparency and accountability by eliminating interface between Income
Tax Officers and taxpayer, a new scheme for E-assessments to be introduced.
❖ No Deduction under chapter VIA – C “Deductions in respect of certain incomes” would
be admissible if return of income is not filed within prescribed due-date.
❖ No adjustments would be made while processing of return of income on account of
mismatch of income appearing in Form 26AS/Form 16/Form 16A and return of income
from AY 2018-19 onwards.
❖ Relief from prosecution for failure to furnish return that was available for taxpayers
whose tax liability determined under regular assessment did not exceed INR 3,000
would not be applicable to companies.
Other Proposals
Page 6 of 25Private & Confidential
8. ❖ Agriculture market and Infra fund of INR 2000 Crore will be setup to strengthen the
market connectivity.
❖ A sum of INR 500 Crore will be allocated for Operation Green to be launched.
❖ Special scheme to manage crop residue in Haryana, Punjab, Uttar Pradesh and Delhi to
reduce air pollution.
Economic Proposals
Agriculture
Page 8 of 25Private & Confidential
❖ Govt. to increase digital intensity in education. Technology to be the biggest driver in
improving quality of education.
❖ Aims to move from black board to digital board schools by 2022.
❖ By 2022, every block with more than 50% ST population will have Eklavya Vidyalya at
par with Navodaya Vidyalayas.
Education
Rural Economy
❖ Target to give new LPG connections increased from 5 Crores to 8 Crores.
❖ Government target house for all by 2022. 51 Lakh affordable houses to be constructed
in rural areas in financial year 2018-19.
❖ Govt gives INR 9975 Crore for social security schemes for the next fiscal year.
9. ❖ Allocation to Digital India Scheme doubled to INR 3073 Crores
❖ 5 Lakh WiFi Hotspots to provide broadband access to 5 crore rural citizens, at the cost
of INR 10000 Crores.
❖ Aadhar for Corporates- Government will evolve a scheme to assign a Unique ID for
companies.
Economic Proposals
Digital India
Page 9 of 25Private & Confidential
❖ 1.5 Lakh centres will be setup to provide health facilities closer to home. INR 1200
Crore to be allocated for this programme.
❖ INR 600 Crore allocated for tuberculosis patients, at the rate INR 500 per month
during the course of their treatment.
❖ It is proposed to setup one medical college for every three parliamentary
constituencies. 24 New government medical colleges also being envisioned.
Health Sector
Fiscal Deficit
❖ The fiscal Deficit in 2018-19 is projected to be 3.3%
10. Budget 2018 – Presentation Outline
Page 10 of 25Private & Confidential
Budget Key Highlights
Indirect Tax
Policy Changes
Direct Tax
Direct Tax
Economic Proposals
11. Direct Taxes
Individual Tax Payers
(Till 60 Years of Age)
Senior Citizens
(60 to 80 Years of Age)
Senior Citizens
(80 Years and above)
Income Tax Rate
Upto 2,50,000 Exempt
2,50,001 to 5,00,000 5%
5,00,001 to 10,00,000 20%
Above 10 Lacs 30%
Income Tax Rate
Upto 3,00,000 Exempt
3,00,001 to 5,00,000 5%
5,00,001 to 10,00,000 20%
Above 10 Lacs 30%
Income Tax Rate
Upto 5,00,000 Exempt
5,00,001 to 10,00,000 20%
Above 10 Lacs 30%
Page 11 of 25Private & Confidential
Surcharge : Applicable @ 10% in cases of income between 50 Lacs to 1 Crores and @ 15% in case income is more than
1 Crores
Cess : Education Cess of 2% and Secondary and Higher Education Cess of 1% has been abolished and Health &
Education Cess of 4% would be levied going forward.
12. ❖ Personal Tax- No Change in slab rates and deduction under section 80C.
❖ No Change in Surcharge.
❖ Corporate tax rate of 25% extended to companies with turnover up to INR 250 Crore in
financial year 2016-2017.
❖ Education Cess and Secondary & Higher Education Cess of 3% (of tax and surcharge)
discontinued. Health and Education Cess introduced at the rate of 4% (of tax and
surcharge).
Direct Taxes
Changes in Tax Rates
Page 12 of 25Private & Confidential
Taxation of Salary/ Pension
❖ Standard deduction of INR 40,000 introduced for salaried/ pensioner individuals.
❖ Exemption in respect of transport allowance of Rs.19,200/- per annum (except in case
of differently abled persons) withdrawn
❖ Exemption in respect of perquisite of reimbursement of medical expenses of
Rs.15,000/- per annum withdrawn.
13. ❖ Conversion of stock into capital asset shall be charged to tax as business income by
considering fair market value of stock on the date of conversion as sales
consideration. Further, for the purpose of capital gains, cost shall be the fair market
value on date of conversion and period of holding shall be reckoned from the date of
such conversion.
❖ Section 43(5) to be amended to provide that transaction in respect of trading of
agriculture commodity derivatives, which is not chargeable to CTT, over a registered
stock exchange or registered association, will not be treated as speculative
transaction.
❖ It has been provided under section 28(ii)(e) that any compensation received or
receivable whether capital or revenue in connection with the termination or
modification of the terms and conditions of any contract relating to business shall be
taxable as business income.
Direct Taxes
Income from Business/ Profession
Page 13 of 25Private & Confidential
❖ Provisions of section 115-O relating to DDT extended to deemed dividend under
section 2(22)(e) which deems payment made by way of advance/loan to specified
shareholders as dividend. DDT shall be applicable at 30% (Without Grossing Up)
❖ DDT on dividend payout by equity oriented mutual fund at the rate of 10%.
❖ The accumulated profits/losses shall be increased by the accumulated profits of the
amalgamating company on the date of amalgamation.
Dividend
14. Direct Taxes
Page 14 of 25Private & Confidential
ICDS
❖ In order to bring certainty in the wake of recent judicial pronouncements on the
issue of applicability of ICDS, it is proposed to insert new sections and amend existing
sections retrospectively with effect from 1st April 2017 to provide legal backing to the
provisions of income computation and disclosure standards. Following are the
important changes:
❖ Section 36(1)(xviii) inserted to allow marked to market loss or other expected loss as
computed in accordance with ICDS
❖ Section 40A(13) inserted to restrict deduction or allowance of any marked to market
loss or other expected loss except as computed in accordance with ICDS
❖ Section 43AA inserted to provide that any gain or loss arising on account of any
change in foreign exchange rates shall be treated as income or loss, as the case may
be and it shall be computed as per ICDS and it shall be in respect of all foreign
currency transactions including those relating to monetary and non-monetary items,
translation of financial statements of foreign operations, forward exchange contracts
and foreign currency translation reserves.
❖ Section 43CB inserted to provide that profits & gains arising from construction
contract or a contract for services shall be determined on the basis of percentage of
completion method (except for service contracts of less than 90 days duration where
project completion method can be used.
❖ Section 145A and 145B have also been amended to specify the treatment of
inventories, interest on compensation, income from subsidy, duty drawbacks etc.
15. ❖ Long Term Capital Gains tax exemption on transaction of sale of listed equity shares
and units of equity oriented funds and units of business trust undertaken on stock
exchange and subject to STT is withdrawn.
❖ LTCG in excess of INR 1,00,000/- would also to be taxed in respect of Foreign
Institutional Investors (FII) U/s 115AD @ 10%.
❖ LTCG will be taxable at 10% of capital gains exceeding INR 1,00,000 without
Indexation benefit. Cost of acquisition in respect of long term capital asset acquired
by the assessee before 1st February, 2018 shall be deemed to be the higher of :-
• Actual Cost of acquisition of such asset and
• Lower of
✓ Fair Market Value of such asset as on 31st January, 2018 and
✓ Full Value of consideration received or accruing as a result of the transfer of
capital asset
❖ Benefit of section 54EC to be available only in respect of capital gains arising from
transfer of long term capital assets being land or building or both and not for other
assets. Lock-in-period of the investment is increased from 3 Years to 5 Years.
❖ No Adjustments shall be made under section 50C, 43CA or 56 in case of sale/ purchase
of immovable property if the difference in stamp duty value and actual sale
consideration does not exceed 5% of the sale consideration.
Capital Gains
Direct Taxes
Page 15 of 25Private & Confidential
16. ❖ Deduction to Senior citizens in respect of Income from deposits with Bank, Post
Offices & Cooperative Societies of INR 50,000 proposed U/s 80TTB.
❖ Deduction to Senior citizens of INR 50,000 per annum for medical insurance premium
under section 80D.
❖ It is proposed to amend the provisions of section 80DDB so as to raise the monetary
limit of deduction to INR 1,00,000 for both senior citizens and very senior citizens
(from existing INR 60,000 for senior citizens and INR 80,000 for very senior citizens)
with regards amount paid for medical treatment of specified diseases.
❖ Beneficial provision of minimum employment of 150 days instead of 240 days for
additional 30% deduction U/s 80JJAA in case of emoluments paid to new employees
proposed to be extended to footwear and leather industry. Further, It is proposed to
allow the deduction in respect of new employees who do not satisfy the minimum
employment period criteria in the first year but satisfy it in the subsequent year.
❖ The present benefit of tax free withdrawal from NPS which is available to employee
subscribers proposed to be extended to non-employee subscribers to the extent of
40%.
❖ 100% deduction U/s 80PA for 5 years extended to Farm producer companies having
turnover upto 100 Crores whose income is derived from its members by marketing/
processing of their agricultural produce or from purchase of agricultural implements/
other articles for agriculture for purpose of supplying to its members.
❖ 100% deduction U/s 80IAC extended for start-ups being incorporated between 1st April
2019 to 1st April 2021.
Direct Taxes
Exemptions & Deductions
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17. Direct Taxes
Page 17 of 25Private & Confidential
Transfer Pricing/ International Taxation
❖ Scope of dependent agent PE under section 9(1)(i) widened to include agent playing
principal role in concluding the contracts on behalf of non-resident. This is in line with
Multi-lateral Convention related to Tax Treaty matters.
❖ Section 9(1)(i) amended to provide that ‘significant economic presence’ in India shall
also constitute ‘business connection’. Significant economic presence to be determined
on the basis of aggregate payments received or interaction with users. CBDT shall
prescribe the value of payments and number of users to attract this.
❖ Time Limit for country by country (CBC) reporting by parent entity or alternate
reporting entity resident in India would be 12 months from the end of reporting
accounting year. Earlier it was the due date of filing of return of income U/s 139(1).
Further in case the parent entity is resident outside India, then the due date for CBC
reporting would be the due date specified by that country or territory where the
parent entity is resident.
Trusts
❖ At present, there are no restrictions on cash payments made by charitable or
religious trusts or institutions. It has been proposed to disallow all expenses in cash
exceeding Rs.10,000/- in terms of section 40A(3) and 40A (3A) from the amount of
application of income.
❖ Further payments made without deduction of applicable tax at source (TDS) would
also be disallowed in terms of section 40(a)(ia) from the amount of application of
income.
18. ❖ INR 7.5 lakh per senior citizen limit for investment in LIC schemes doubled to INR 15 Lakh.
❖ ‘Options in commodity futures’ would now be subject to commodities transaction tax.
❖ Receipt of property by a wholly owned subsidiary from its holding and by an Indian holding company from its subsidiary shall
not be deemed to be Income from other sources.
❖ Limit for deduction of TDS U/s 194A in respect of interest income for senior citizens raised from 10,000/- to 50,000/-
❖ It is proposed to amend section 115JB to provide that the aggregate amount of unabsorbed depreciation and loss brought
forward (excluding unabsorbed depreciation) shall be allowed to be reduced from the book profit, if a company’s application
for corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 has been admitted by the
Adjudicating Authority.
❖ To Improve transparency and accountability by eliminating interface between Income Tax Officers and taxpayer, a new scheme
for scrutiny assessments shall be introduced by way of notification.
❖ No Deduction under heading “C-Deductions in respect of certain incomes’ of Chapter VIA would be admissible if return of
income is not filed within prescribed due-date.
❖ Relief from prosecution for failure to furnish return that was available for taxpayers whose tax liability determined under
regular assessment did not exceed INR 3,000 would not be applicable to companies.
❖ Section 115BBE is amended w.e.f. from AY 2017-18 to provide that no expenditure or allowance or set off of any loss shall be
allowed in respect of undisclosed income determined by the Assessing Officer U/s 68, 69, 69A, 69B, 69C or 69D.
❖ No adjustments would be made while processing of return of income on account of mismatch of income appearing in Form 26AS
or Form 16 or Form 16A and return of income from AY 2018-19 onwards.
Direct Taxes
Other Changes
Page 18 of 25Private & Confidential
20. Indirect Taxes
❖ No Change in peak rate of Basic Custom Duty (BCD).
❖ Education cess and Secondary & Higher Education Cess on imported goods abolished.
❖ Social Welfare Surcharge (SWS) is being levied on imported goods to fund education,
health and social security. It will be levied @10% of aggregate duties of customs
except 3% for some specific items. Specified goods exempted from Education Cess
and Secondary & Higher Education Cess would also be exempted from SWS.
❖ Ad-valorem rate of SWS will be on aggregate of Customs Duty (excluding IGST, GST
compensation cess, Anti Dumping Duty, Safeguard Duty, etc).
❖ It is proposed to empower government to exempt the custom duty on goods imported
/reimported after export, in India for repair, further processing or manufacture.
❖ Time Limit to pronounce Advance Ruling reduced from 6 months to 3 months.
❖ Presentation of Bill of Entry/Shipping Bill/Bill of Export can also be made online
through Customs Automated System for Import and Export of Goods.
❖ The requirement for Filing of Import Manifest or Import Report U/s 30, in case of
imported goods, has been extended to Exported Goods as well.
❖ The requirement for filing of Export Manifest Report U/s 41 has been extended to
Imported goods as well. Penalty provision for intentional default in submission of EMR
to the extent of INR 50,000.
❖ Provision for advance payment of duty under Electronic Cash Ledger Introduced.
Customs Duty
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21. ❖ Following changes are made in the rates of duty of specific items:
Indirect Taxes
Customs Duty
Page 21 of 25Private & Confidential
Name of Item Tax Change
Automobiles- Specified Radial Tyres(bus and Truck), Specified
parts of motor vehicles, CKD Parts of motorized four and two
wheelers
BCD increased
from 10% to 15%
Diamond and Precious Stones- Specified Diamond and Colored
Gemstones
BCD increased
form 2.5% to 5%
Cellular Mobile Phones BCD increased
from 15% to 20%
Smart Watches, Video Games, Watches and clocks including stop
watches and alarm clocks
BCD increased
from 10% to 20%
Footwears-
Specified Footwear
Specified parts of footwear
BCD changed from
10% to 20%
10% to 15%
Electronic Goods-
PCBA for chargers of Mobile Phones
Silica (used for Optical fibre cables)
Solar tempered glass for Manufacturing of Solar cells
Specified Inputs for Manufacture of CNC Machine Tools
BCD changed from
Nil to 10%
Nil to 5%
5% to NIL
7.5% to 2.5%
22. Indirect Taxes
❖ Basic Excise Duty on manufacture of Motor Spirit and HSD reduced by INR 2 per litre.
❖ Road Cess of INR 6 per litre on petroleum products abolished.
❖ Road & Infrastructure Cess (R & I Cess) on petroleum products of Rs.8 per litre
introduced.
Excise Duty
Page 22 of 25Private & Confidential
Service Tax
❖ It is proposed to provide retrospective exemption from service tax to services
provided by the Goods and Services Tax Network (GSTN) to the Central Government
/State Governments / Union territory during the period from the 28 March 2013 to
the 30 June 2017.
❖ It is proposed to provide retrospective exemption from service tax to consideration
paid to Government in the form of Government’s share of profit petroleum in
respect of services provided by Government by way of grant of license or lease to
explore or mine petroleum crude or natural gas or both, during the period from the
1 April 2016 to the 30 June 2017.
❖ It is proposed to provide exemption from service tax to life insurance services
provided by the Naval Group Insurance Fund to personnel of Coast Guard,
retrospectively, during the period from the 10 September 2004 up to the 30 June
2017.
24. Policy Changes
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❖ The Government will take all steps to eliminate use of crypto currencies which are
funding illegitimate transactions.
❖ Government to develop separate policy on hybrid instrument to attract foreign
investment, especially for start-ups and venture capital funds.
❖ The government and market regulators have taken necessary measures for
development of monetizing vehicles like Infrastructure Investment Trust (InvIT) and
Real Investment Trust(ReITs) in India.
❖ Reform measures will be taken with respect to stamp duty regime on financial
securities transactions in consultation with the States and necessary amendments
shall be made to the Indian Stamp Act.
❖ SEBI to come-up with a policy on mandatory requirement for large corporates to
access one-fourth of financing requirement through bond market.
Policy Changes