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 discusses amendments to taxation of individuals and corporations announced in the Indian Union Budget 2012. Key points include:
1) Personal income tax rates were reduced for those earning between Rs. 8-10 lakhs from 30% to 20%.
2) Corporate tax rates remained unchanged at 30% but some deductions and exemptions were introduced or expanded for sectors like power.
3) The Minimum Alternate Tax (MAT) was amended and an Alternate Minimum Tax (AMT) of 18.5% was introduced for non-corporate taxpayers.
4) General Anti-Avoidance Rules (GAAR) were formulated to tackle aggressive tax planning, effective April 2013.
The document provides an overview and analysis of key provisions in the Indian Union Budget 2020 relating to direct and indirect taxation. Some key highlights include:
- Introduction of a new optional tax regime with lower tax slabs but without deductions for individuals and HUFs.
- Reduction of corporate tax rates for new domestic manufacturing companies.
- Tax incentives for affordable housing, startups, and investments in electricity generation plants.
- Measures to simplify tax administration such as expansion of faceless assessment proceedings and introduction of a taxpayer's charter.
- A dispute resolution scheme called "Vivaad Se Vishwas" to reduce pending direct tax litigation.
- Changes to tax rates for employer contributions to
The document provides an overview of key highlights of the Direct Tax Code 2009 proposed by the Government of India. Some of the major changes proposed include lowering of corporate tax rates, introduction of a minimum alternate tax on gross assets for companies, expansion of the scope of business income and international taxation, rationalization of capital gains tax and introduction of an advance pricing agreement mechanism for transfer pricing. It also proposes moderation of individual tax rates and moving certain savings schemes to an exempt-exempt-tax regime.
The new Direct Tax Code of 2012 makes several changes to taxation in India that will go into effect on April 1, 2012. Key changes include slightly higher tax brackets, reduced tax savings options under Section 80C, and certain investments like 5-year FDs and NSC no longer providing tax benefits. The new code also lowers long-term capital gains tax and indexes the base year for assets to 2000. It makes some employee benefits like LTC and entertainment allowance fully taxable and increases the medical expense reimbursement exemption limit.
The document provides an analysis of the Union Budget of India for 2011. It includes sections on understanding the budget, the finance minister's speech, budget estimates, direct taxes, indirect taxes covering various sectors like agriculture, manufacturing, environment and infrastructure. It also discusses service tax and other proposals. The document aims to provide an overview of the key aspects of the Union Budget to internal stakeholders.
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.
Oifc webinar on impact of union budget 2015 on overseas indiansKeystrokes Management
The Indian economy is looking up and the investment scenario is improving. The new Government is committed to improving ease of doing business in India. There are lot of opportunities for Overseas Indians to do business with India.
The Union Budget announced on Feb 28, 2015, makes investment prospects in India better and offers opportunities for Overseas Indians to forge stronger economic linkages with their motherland & be a part of the Indian growth story.
OIFC's interactive webinar had a panel of subject matter experts from Deloitte and APJ-SLG Law Offices share an analysis of the impact of the budget on Overseas Indians and the investment opportunities that this budget opens up for the Indian diaspora.
This document summarizes the key points from a presentation on India's 2013 budget analysis. It discusses the state of the Indian economy, including a GDP growth rate of 5% in 2012-13. It also summarizes direct and indirect tax measures from the budget, including no changes to corporate or personal tax rates but an increase in surcharge for some. Key highlights on customs, excise, service tax and the planned introduction of a goods and services tax are also provided.
The document discusses amendments to taxation of individuals and corporations announced in the Indian Union Budget 2012. Key points include:
1) Personal income tax rates were reduced for those earning between Rs. 8-10 lakhs from 30% to 20%.
2) Corporate tax rates remained unchanged at 30% but some deductions and exemptions were introduced or expanded for sectors like power.
3) The Minimum Alternate Tax (MAT) was amended and an Alternate Minimum Tax (AMT) of 18.5% was introduced for non-corporate taxpayers.
4) General Anti-Avoidance Rules (GAAR) were formulated to tackle aggressive tax planning, effective April 2013.
The document provides an overview and analysis of key provisions in the Indian Union Budget 2020 relating to direct and indirect taxation. Some key highlights include:
- Introduction of a new optional tax regime with lower tax slabs but without deductions for individuals and HUFs.
- Reduction of corporate tax rates for new domestic manufacturing companies.
- Tax incentives for affordable housing, startups, and investments in electricity generation plants.
- Measures to simplify tax administration such as expansion of faceless assessment proceedings and introduction of a taxpayer's charter.
- A dispute resolution scheme called "Vivaad Se Vishwas" to reduce pending direct tax litigation.
- Changes to tax rates for employer contributions to
The document provides an overview of key highlights of the Direct Tax Code 2009 proposed by the Government of India. Some of the major changes proposed include lowering of corporate tax rates, introduction of a minimum alternate tax on gross assets for companies, expansion of the scope of business income and international taxation, rationalization of capital gains tax and introduction of an advance pricing agreement mechanism for transfer pricing. It also proposes moderation of individual tax rates and moving certain savings schemes to an exempt-exempt-tax regime.
The new Direct Tax Code of 2012 makes several changes to taxation in India that will go into effect on April 1, 2012. Key changes include slightly higher tax brackets, reduced tax savings options under Section 80C, and certain investments like 5-year FDs and NSC no longer providing tax benefits. The new code also lowers long-term capital gains tax and indexes the base year for assets to 2000. It makes some employee benefits like LTC and entertainment allowance fully taxable and increases the medical expense reimbursement exemption limit.
The document provides an analysis of the Union Budget of India for 2011. It includes sections on understanding the budget, the finance minister's speech, budget estimates, direct taxes, indirect taxes covering various sectors like agriculture, manufacturing, environment and infrastructure. It also discusses service tax and other proposals. The document aims to provide an overview of the key aspects of the Union Budget to internal stakeholders.
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.
Oifc webinar on impact of union budget 2015 on overseas indiansKeystrokes Management
The Indian economy is looking up and the investment scenario is improving. The new Government is committed to improving ease of doing business in India. There are lot of opportunities for Overseas Indians to do business with India.
The Union Budget announced on Feb 28, 2015, makes investment prospects in India better and offers opportunities for Overseas Indians to forge stronger economic linkages with their motherland & be a part of the Indian growth story.
OIFC's interactive webinar had a panel of subject matter experts from Deloitte and APJ-SLG Law Offices share an analysis of the impact of the budget on Overseas Indians and the investment opportunities that this budget opens up for the Indian diaspora.
This document summarizes the key points from a presentation on India's 2013 budget analysis. It discusses the state of the Indian economy, including a GDP growth rate of 5% in 2012-13. It also summarizes direct and indirect tax measures from the budget, including no changes to corporate or personal tax rates but an increase in surcharge for some. Key highlights on customs, excise, service tax and the planned introduction of a goods and services tax are also provided.
This document summarizes key aspects of the Income Tax Ordinance 1984 of Bangladesh. It has 23 chapters and 187 sections that outline the procedural aspects of income tax law. Some key points include:
- It establishes different classes of income tax authorities like the National Board of Revenue, Commissioners of Taxes, Deputy Commissioners of Taxes, and Inspectors of Taxes.
- It covers the computation of income from various sources like wages, salaries, dividends, interest and rents.
- Other chapters address tax assessment, penalties, appeals, recovery of unpaid taxes, and provisions for double taxation relief and tax refunds.
- Schedules provide more details on assessment procedures, penalties that can be imposed
The document discusses India's direct tax code. It defines direct and indirect taxes, with direct taxes paid directly to the government like income tax and indirect taxes paid on goods and services. It notes that India has an established tax regime and the tax to GDP ratio has increased in recent decades. The majority of taxpayers are in the 1-5 lacs income group. The proposed direct tax code aims to benefit this group by introducing tax slabs of 10% for income from 2-5 lacs, 20% from 5-10 lacs, and 30% over 10 lacs. The code also lowers corporate tax to 30% and introduces reforms like potentially increasing income tax exemptions and abolishing securities transaction tax.
This document provides guidelines on income tax management and reimbursement processes. It outlines Indian income tax slabs and various deductions available under sections such as 80C, 80D, 80DD, 80E, and 80U. It discusses deductions based on salary structure such as HRA, children education allowance, medical reimbursement, LTA reimbursement, and more. The document also details reimbursement and payroll schedules that must be followed, including deadlines for submitting reimbursement statements, obtaining approvals, passing journals, verifying documents, and processing payments.
Eye on Washington: Quarterly Business Tax UpdateCBIZ, Inc.
1) The Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. This means that same-sex couples who are legally married must now be treated the same as opposite-sex married couples for federal tax purposes.
2) The IRS delayed the employer mandate provision of the Affordable Care Act until 2015. However, other ACA provisions such as mandatory employee notices remain in effect.
3) The Senate Finance Committee plans to start tax reform discussions with a "blank slate" - a tax code without any deductions or credits. Senators will then propose which provisions should be added back.
MAT or Minimum Alternate Tax was introduced in 1987 to collect taxes from zero tax companies. It levies a tax rate of 15% on the book profits of companies to bring them in the tax net. Companies can claim MAT credit for taxes paid over their normal tax liability which can be carried forward for 15 years. All companies, including those in Special Economic Zones, are required to pay MAT and file MAT reports. The introduction of MAT helps reduce tax evasion and ensures that companies pay a minimum level of tax.
This document defines key terms related to companies under the Income Tax Act such as company, Indian company, company in which public are substantially interested, domestic company, foreign company, industrial company, and investment company.
It also summarizes provisions related to Minimum Alternative Tax (MAT) under section 115JB, which specifies that the tax payable for any assessment year cannot be less than 18.5% of the company's book profit. It provides details on how book profit is computed for MAT purposes.
Finally, it outlines rules around carrying forward and set off of losses for closely held companies under section 79 when there is a change in shareholding.
Income tax is a tax paid to the government on income. There are different types of taxes including direct taxes like income tax paid directly by taxpayers. Income tax is assessed based on an individual's gross total income, which is the aggregate income from five heads - salaries, house property, business/profession, capital gains, and other sources. Key concepts include taxable income, tax exemption limits, tax rates, residential status, tax deductions, and different types of income like casual income, capital gains income 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
This document summarizes Canada's tax system and provides strategies for tax planning. It discusses key concepts like marginal tax rates, deductions, credits, and preparing a tax return. It also outlines tax-deferred plans, tax-friendly investments, and eligible deductions. Recent tax changes and how an advisor can help with tax planning are briefly mentioned.
Income tax is an important source of revenue for the central government in India. It is levied on the total taxable income of individuals and companies in the previous financial year, as per the tax rates and slabs applicable for the current year. The Income Tax Department operates under the Central Board of Direct Taxes and the Ministry of Finance to assess, collect and enforce income taxes as outlined in the Income Tax Act of 1961. The Act defines key terms related to income tax calculation and assessment such as assessee, income sources, deductions, taxable income and exemptions.
This document provides an overview and introduction to income tax concepts for the 2012 tax year. It covers topics such as taxation policy, authority in taxation law, tax reform, an overview of the Australian tax system, income tax rates for residents and non-residents, Medicare levy, tax offsets and rebates, taxable income calculation, and taxation of other entities like companies, trusts and partnerships.
Loop holes in tax codes allow exploitation of ambiguities and technicalities to reduce or eliminate taxes legally. Some ways to avoid taxes include contributing to charity, deferring income, or doing a bond swap. However, exploiting loopholes may lead to intensive tax audits. The Direct Tax Code aims to simplify taxes through a standardized tax slab and removal of most exemptions.
The document summarizes key proposals from the Indian Union Budget 2018-19. Some highlights include:
- Long term capital gains tax of 10% introduced for gains over Rs. 1 lakh from sale of equity shares.
- Standard deduction of Rs. 40,000 introduced for salary income.
- Tax benefits for startups extended and eligibility criteria expanded.
- Corporate tax rate reduced to 25% for companies with turnover up to Rs. 250 crores.
- Several goods and services brought under lower GST rates of 5%, 12%, and 18%.
In this presentation, we will discuss new slab rates, their comparison with old rates and limitations of the new tax regime.
you can also download the calculator from the below link which helps you to calculate tax liability under both the old tax regime and new tax regime.
https://drive.google.com/open?id=1yYYMEAs0VnEU0M3laHFgT89hXVchm2a2&fbclid=IwAR1QwBW5Cqr2lWXvzVl7hCrA46Pr_J_ZPjJF2MQyOEj5epY6Oleilfgp0bw
This document summarizes the 2014 tax update and hot topics presented by Drew Rogers, CPA. It discusses the impact of 2013 tax law changes such as rate increases and limitations on deductions. For businesses, it covers expiring tax provisions, deductions, and credits. It also discusses entity choice, multistate planning, and exit planning strategies. For individuals, it summarizes rate schedules and provides planning tips for items like the Net Investment Income Tax, deductions, charitable giving, and the Alternative Minimum Tax. The presentation concludes with an overview of South Carolina tax credits that may provide benefits.
Income Tax Planning for financial Year 2016-17 & Expected Slab and deduction ...Vivek Kumar
Income Tax Slab and Tax Planning for F.Y-2016-17, Assessment Year 2017-18 and Expected Tax slab for financial year 2017-18, Keeping all the burden on government in mind like OROP (16000Crore), 7th Pay Commission(1.2Lakh Crore) etc.
This document defines and explains different types of taxes. It begins by defining tax as a financial charge imposed by a state on taxpayers to fund government expenditures. It then distinguishes between direct and indirect taxes. Direct taxes are paid directly by individuals or organizations to the government, such as income tax and wealth tax, while indirect taxes increase the price of goods so consumers pay the tax. The document provides examples of indirect taxes like excise duty, VAT, sales tax, and service tax. It also defines key tax-related terms like assessment year, previous year, and person.
The document summarizes key aspects of the Direct Taxes Code Bill, 2009 introduced in India, including proposed changes to tax rates, definitions, and tax deduction at source rules. Some notable changes include substantial increases to individual income tax slabs, reduction of corporate tax rate to 25%, expansion of income deemed to accrue in India, removal of the concept of "resident but not ordinarily resident", and modifications to tax deduction at source rates and exemptions across various categories including interest, rent, commission, and payments to contractors.
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.
This document provides a summary and analysis of the key proposals in the Indian Union Budget for the 2013-14 fiscal year. It begins with a comparison of tax revenue figures over the last five years, showing an increase each year. It then discusses estimates of black money held overseas and proposals to tackle the issue. The main part of the document analyzes important direct tax proposals, outlining the new rates of income tax for individuals and firms, the minimum alternate tax, and changes to capital gains tax, investment allowances, and deductions for home loans, equity investments, hiring new employees and more. Key proposals around general anti-avoidance rules are also summarized.
This document summarizes key aspects of the Income Tax Ordinance 1984 of Bangladesh. It has 23 chapters and 187 sections that outline the procedural aspects of income tax law. Some key points include:
- It establishes different classes of income tax authorities like the National Board of Revenue, Commissioners of Taxes, Deputy Commissioners of Taxes, and Inspectors of Taxes.
- It covers the computation of income from various sources like wages, salaries, dividends, interest and rents.
- Other chapters address tax assessment, penalties, appeals, recovery of unpaid taxes, and provisions for double taxation relief and tax refunds.
- Schedules provide more details on assessment procedures, penalties that can be imposed
The document discusses India's direct tax code. It defines direct and indirect taxes, with direct taxes paid directly to the government like income tax and indirect taxes paid on goods and services. It notes that India has an established tax regime and the tax to GDP ratio has increased in recent decades. The majority of taxpayers are in the 1-5 lacs income group. The proposed direct tax code aims to benefit this group by introducing tax slabs of 10% for income from 2-5 lacs, 20% from 5-10 lacs, and 30% over 10 lacs. The code also lowers corporate tax to 30% and introduces reforms like potentially increasing income tax exemptions and abolishing securities transaction tax.
This document provides guidelines on income tax management and reimbursement processes. It outlines Indian income tax slabs and various deductions available under sections such as 80C, 80D, 80DD, 80E, and 80U. It discusses deductions based on salary structure such as HRA, children education allowance, medical reimbursement, LTA reimbursement, and more. The document also details reimbursement and payroll schedules that must be followed, including deadlines for submitting reimbursement statements, obtaining approvals, passing journals, verifying documents, and processing payments.
Eye on Washington: Quarterly Business Tax UpdateCBIZ, Inc.
1) The Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. This means that same-sex couples who are legally married must now be treated the same as opposite-sex married couples for federal tax purposes.
2) The IRS delayed the employer mandate provision of the Affordable Care Act until 2015. However, other ACA provisions such as mandatory employee notices remain in effect.
3) The Senate Finance Committee plans to start tax reform discussions with a "blank slate" - a tax code without any deductions or credits. Senators will then propose which provisions should be added back.
MAT or Minimum Alternate Tax was introduced in 1987 to collect taxes from zero tax companies. It levies a tax rate of 15% on the book profits of companies to bring them in the tax net. Companies can claim MAT credit for taxes paid over their normal tax liability which can be carried forward for 15 years. All companies, including those in Special Economic Zones, are required to pay MAT and file MAT reports. The introduction of MAT helps reduce tax evasion and ensures that companies pay a minimum level of tax.
This document defines key terms related to companies under the Income Tax Act such as company, Indian company, company in which public are substantially interested, domestic company, foreign company, industrial company, and investment company.
It also summarizes provisions related to Minimum Alternative Tax (MAT) under section 115JB, which specifies that the tax payable for any assessment year cannot be less than 18.5% of the company's book profit. It provides details on how book profit is computed for MAT purposes.
Finally, it outlines rules around carrying forward and set off of losses for closely held companies under section 79 when there is a change in shareholding.
Income tax is a tax paid to the government on income. There are different types of taxes including direct taxes like income tax paid directly by taxpayers. Income tax is assessed based on an individual's gross total income, which is the aggregate income from five heads - salaries, house property, business/profession, capital gains, and other sources. Key concepts include taxable income, tax exemption limits, tax rates, residential status, tax deductions, and different types of income like casual income, capital gains income 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
This document summarizes Canada's tax system and provides strategies for tax planning. It discusses key concepts like marginal tax rates, deductions, credits, and preparing a tax return. It also outlines tax-deferred plans, tax-friendly investments, and eligible deductions. Recent tax changes and how an advisor can help with tax planning are briefly mentioned.
Income tax is an important source of revenue for the central government in India. It is levied on the total taxable income of individuals and companies in the previous financial year, as per the tax rates and slabs applicable for the current year. The Income Tax Department operates under the Central Board of Direct Taxes and the Ministry of Finance to assess, collect and enforce income taxes as outlined in the Income Tax Act of 1961. The Act defines key terms related to income tax calculation and assessment such as assessee, income sources, deductions, taxable income and exemptions.
This document provides an overview and introduction to income tax concepts for the 2012 tax year. It covers topics such as taxation policy, authority in taxation law, tax reform, an overview of the Australian tax system, income tax rates for residents and non-residents, Medicare levy, tax offsets and rebates, taxable income calculation, and taxation of other entities like companies, trusts and partnerships.
Loop holes in tax codes allow exploitation of ambiguities and technicalities to reduce or eliminate taxes legally. Some ways to avoid taxes include contributing to charity, deferring income, or doing a bond swap. However, exploiting loopholes may lead to intensive tax audits. The Direct Tax Code aims to simplify taxes through a standardized tax slab and removal of most exemptions.
The document summarizes key proposals from the Indian Union Budget 2018-19. Some highlights include:
- Long term capital gains tax of 10% introduced for gains over Rs. 1 lakh from sale of equity shares.
- Standard deduction of Rs. 40,000 introduced for salary income.
- Tax benefits for startups extended and eligibility criteria expanded.
- Corporate tax rate reduced to 25% for companies with turnover up to Rs. 250 crores.
- Several goods and services brought under lower GST rates of 5%, 12%, and 18%.
In this presentation, we will discuss new slab rates, their comparison with old rates and limitations of the new tax regime.
you can also download the calculator from the below link which helps you to calculate tax liability under both the old tax regime and new tax regime.
https://drive.google.com/open?id=1yYYMEAs0VnEU0M3laHFgT89hXVchm2a2&fbclid=IwAR1QwBW5Cqr2lWXvzVl7hCrA46Pr_J_ZPjJF2MQyOEj5epY6Oleilfgp0bw
This document summarizes the 2014 tax update and hot topics presented by Drew Rogers, CPA. It discusses the impact of 2013 tax law changes such as rate increases and limitations on deductions. For businesses, it covers expiring tax provisions, deductions, and credits. It also discusses entity choice, multistate planning, and exit planning strategies. For individuals, it summarizes rate schedules and provides planning tips for items like the Net Investment Income Tax, deductions, charitable giving, and the Alternative Minimum Tax. The presentation concludes with an overview of South Carolina tax credits that may provide benefits.
Income Tax Planning for financial Year 2016-17 & Expected Slab and deduction ...Vivek Kumar
Income Tax Slab and Tax Planning for F.Y-2016-17, Assessment Year 2017-18 and Expected Tax slab for financial year 2017-18, Keeping all the burden on government in mind like OROP (16000Crore), 7th Pay Commission(1.2Lakh Crore) etc.
This document defines and explains different types of taxes. It begins by defining tax as a financial charge imposed by a state on taxpayers to fund government expenditures. It then distinguishes between direct and indirect taxes. Direct taxes are paid directly by individuals or organizations to the government, such as income tax and wealth tax, while indirect taxes increase the price of goods so consumers pay the tax. The document provides examples of indirect taxes like excise duty, VAT, sales tax, and service tax. It also defines key tax-related terms like assessment year, previous year, and person.
The document summarizes key aspects of the Direct Taxes Code Bill, 2009 introduced in India, including proposed changes to tax rates, definitions, and tax deduction at source rules. Some notable changes include substantial increases to individual income tax slabs, reduction of corporate tax rate to 25%, expansion of income deemed to accrue in India, removal of the concept of "resident but not ordinarily resident", and modifications to tax deduction at source rates and exemptions across various categories including interest, rent, commission, and payments to contractors.
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.
This document provides a summary and analysis of the key proposals in the Indian Union Budget for the 2013-14 fiscal year. It begins with a comparison of tax revenue figures over the last five years, showing an increase each year. It then discusses estimates of black money held overseas and proposals to tackle the issue. The main part of the document analyzes important direct tax proposals, outlining the new rates of income tax for individuals and firms, the minimum alternate tax, and changes to capital gains tax, investment allowances, and deductions for home loans, equity investments, hiring new employees and more. Key proposals around general anti-avoidance rules are also summarized.
This document provides an overview of key economic indicators and tax reforms in India. It discusses GDP growth rates, fiscal deficit, foreign exchange reserves, and inflation rates. It also summarizes recent changes to direct taxes like corporate tax rates, thin capitalization rules, and the introduction of GAAR. International tax reforms regarding place of effective management, indirect transfers, and secondary adjustments are also covered at a high level.
The budget highlights the introduction of a new optional income tax regime that allows taxpayers to forgo 70 exemptions in exchange for lower tax rates. Key allocations include Rs. 2.83 lakh crore for agriculture, Rs. 99,300 crore for education, and Rs. 1.7 lakh crore for transport infrastructure. Bank deposit insurance is increased to Rs. 5 lakh per depositor. The budget also removes the dividend distribution tax paid by companies and instead taxes dividends in the hands of recipients.
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.
The document provides an overview of key proposals in the Indian Union Budget for 2017, including:
- Reducing personal income tax rates for individuals earning between 2.5-5 lakhs INR from 10% to 5%.
- Introducing a 10% surcharge on individuals earning between 50 lakhs-1 crore INR.
- Reducing the holding period for long term capital gains tax on immovable property from 3 to 2 years.
- Reducing the corporate tax rate for small companies with turnover under 50 crores INR in FY 2016 to 25%.
- Proposing changes to promote digital payments for small unorganized businesses.
The document provides an overview of key proposals in the Indian Union Budget for 2017, including:
- Reducing personal income tax rates for individuals earning between 2.5-5 lakhs INR from 10% to 5%.
- Introducing a 10% surcharge on individuals earning between 50 lakhs-1 crore INR.
- Reducing the holding period for long term capital gains tax on immovable property from 3 to 2 years.
- Reducing the corporate tax rate for small companies with turnover under 50 crores INR in FY 2016 to 25%.
- Proposing changes to promote digital payments for small unorganized businesses.
The document summarizes key proposals from the Union Budget of India for 2015-2016. Some highlights include:
- Personal income tax rates remained unchanged but surcharges were introduced for individuals earning over INR 1 crore.
- The corporate tax rate may be reduced from 30% to 25% over 4 years. Surcharges were introduced for companies earning over INR 1 crore.
- Alternate investment funds were given pass through status and a new tax regime.
- Tax rates on royalty and FTS payments to non-residents were reduced from 25% to 10%.
- Threshold for domestic transfer pricing was increased from INR 5 crore to INR 20 crore. Wealth tax was abolished.
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 summarizes several key proposed changes in the Finance Bill 2023 related to tax rates, deductions and exemptions, tax benefits for Agniveers, income from business or profession, capital gains, charitable and religious trusts, assessment and appeals, set-off and carry forward of losses, and TDS and TCS. Some of the major changes proposed include increasing tax slab limits and deductions, reduced tax rates for manufacturing cooperatives, tax benefits for contributions to the Agniveer corpus fund, increased thresholds for presumptive taxation schemes, and changes to rules for charitable trusts regarding exemptions and registrations.
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.
India Budget 2018 ...Changing Landscape - Presentation by K. C. Mehta & Co.Prashant Kotecha
This document provides a summary of key points from the Union Budget of India for the fiscal year 2018-19. It discusses economic indicators like GDP growth, fiscal deficit targets, FDI trends, and inflation rates. It then covers direct tax proposals including corporate tax rates, capital gains tax, incentives for startups, and personal income tax deductions. Indirect tax proposals on service tax, excise duty, customs duty, and GST are also summarized. Key proposals regarding transfer pricing and international taxation are highlighted.
India Budget 2018...Changing Landscape (by KCM)Jaimish Patel
Over the past few years, we have witnessed both, explicit and subtle changes being made to the overall tax system in India. Be it moving towards substance over form or adopting international practices or paperless administration and the latest, withdrawal of one of the biggest tax exemptions. From Finance Bills filled with hundreds of amendments, India's tax system is on the path of Budgets with fewer changes to bring in consistency with the ultimate objective of implementing a new, redefined and robust direct tax law in the years to come.
Yes, the landscape is changing!
Read through KCM's analysis of the Union Budget 2018 - "India Budget 2018 - Changing Landscape".
#Budget2018
India Budget 2018 - Changing Landscape (by KCM)Dhaval Trivedi
This presentation would give you an overview and KCM's analysis of various direct tax and indirect tax proposals put forth by the Finance Minister. This presentation was delivered by Mr. Milin Mehta in Ahmedabad (on 02 Feb 2018) and Baroda/Vadodara (03 Feb 2018).
The budget document highlights changes made in the 2015 budget related to taxation. Key points include reducing the corporate tax rate, enacting new laws against black money, increasing penalties for black money holders and evaders, and amending laws like FEMA and the Benami Transactions Act to tackle black money in real estate and allow seizure of foreign assets. It also includes tax proposals related to individuals like increasing deductions for health insurance and medical expenditure. Service tax was increased and new proposals for excise, CENVAT credit and mutual funds were introduced.
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.
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
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 document summarizes key highlights from the Union Budget 2017 regarding direct taxes and measures to promote economic growth and a digital economy in India. Some of the key points include:
- Income tax rates were reduced for individuals with an annual income up to Rs. 500,000.
- The period for claiming tax deductions for startups was increased from 3 to 7 years.
- Measures were introduced to promote affordable housing and the real estate sector, such as relaxing conditions for tax exemptions.
- Cash transaction limits were set to discourage the use of cash and promote digital payments.
- Transparency in political party funding was increased by introducing electoral bonds and limiting cash donations.
Similar to Union budget 2014 15 - for the common man (20)
The recent move of the Indian government to demonetise the currency notes of Rs. 500 & Rs. 1000 denominations has resulted in a huge furore throughout India. It has thrown up a large number of tax related issues. Some of these are covered in this presentation that was prepared on 20th November.
Unravelling the income tax annual information returnAmeet Patel
The Annual Information Return that the income-tax department of India gets from various agencies contains a treasure trove of information for a tax officer to work upon. All tax payers should be aware of this and also of how the AIR affects their tax assessments. This presentation takes you through the AIR and also the reports of the Central Information Branch (CIB).
I have also dealt with the tax aspects of the recent demonetisation of Rs. 500 & Rs. 1,000 currency notes by the Govt of India.
A simple presentation that explains the complex subject of Capital Gains and its taxation in India. Not meant for tax professionals but only for the common man.
Undisclosed foreign income and assets and imposition of tax actAmeet Patel
The Black Money Act of India has garnered a lot of attention in India and abroad. It is being projected as a harsh law to tackle the menace of unaccounted wealth accumulated in foreign countries by Indians. This presentation gives some idea about the various provisions of the law.
The Central Board of Direct Taxes of India has recently notified the new Income-tax return forms for a few categories of tax payers. This presentation deals with these new ITR forms - ITR-1, ITR-2, ITR-2A and ITR-4S.
Issues in e filing of tax audit reports for ay 2014-15Ameet Patel
The format of the tax audit report that an Indian tax auditor issues has undergone considerable changes in July, 2014. The e-filing of the same also throws up multiple challenges. This presentation deals with some of the important issues that an auditor is likely to face while electronically filing the tax audit report.
Tax Audit - Changes in form 3CD - August 2014Ameet Patel
The Indian tax authorities have amended the tax audit report format recently. The changes are drastic and cast a huge responsibility on the already burdened tax auditors. The changes are discussed in this presentation.
The Revised Guidance Note on Tax Audit issued by ICAI has also been considered while preparing this presentation.
Only the new clauses or the amended clauses have been considered. The clauses that have not undergone any change have not been considered.
Issues on filing of e tds returns and statementsAmeet Patel
Over the past few months, tax deduction at source in India has become a major pain point for most tax deductors. The complexities in the various provisions have given rise to various headaches for the tax deductors. Not only on the issue of which section to apply and what rate to apply, the issue of filing of the quarterly TDS statements has also become a serious problem. There are a number of problems that are encountered while preparing and filing the statements. This presentation highlights some of the important issues on e-filing of TDS statements.
This document discusses various technologies including social media, mobile technology, and cloud computing. It provides details on the growth of social media platforms and how professionals like accountants can benefit from using social media to build relationships, generate leads, and monitor reputation. Mobile technology is evolving rapidly with new devices like bendable phones and wearable technology. The document discusses how mobile phones can help professionals and be used by accountants to improve efficiency. It also covers emerging technologies like contactless payments and issues around customer relationship management, version control, and data security when working with cloud computing. The key message is that technology is changing rapidly and accountants need to adapt and leverage new technologies to remain relevant.
Basics of income tax assessments and appealsAmeet Patel
A brief presentation made be me to an audience consisting of semi qualified accountants giving the basics of Income-tax assessments and appeals in India. The contents may undergo a change from time to time based on amendments to the Indian Income-tax Act, 1961.
Filing tax returns - pitfalls and precautionsAmeet Patel
This document provides information on filing individual income tax returns in India, including:
- When filing a return is mandatory based on income thresholds
- Due dates for filing depending on taxpayer category
- Penalties for late or non-filing
- The filing process and appropriate forms to use
- Key deductions and exemptions to claim correctly
- Obtaining tax credits and ensuring TDS is reflected in Form 26AS
- Precautions like maintaining documents and making payments by cheque
- New requirements introduced in recent income tax return forms
This is a short presentation for beginners wanting to learn a bit about the Indian Income-tax Act. It gives a snapshot of some of the basic terms in the Indian income-tax law. Hard core tax practitioners may kindly stay away! It's only the common man.
Unlike the e-filing utility for tax audit reports, the utility for e-filing of transfer pricing reports does not seem to be posing too many problems to Indian tax advisors. This presentation brings out certain issues that are being faced. Hope viewers find it useful.
E filing of income tax returns & tax audit reports for A.Y. 2013-14Ameet Patel
The Income-tax department of India has made several changes to the e-filing provisions for tax returns. These have added considerable responsibility on tax payers and their Chartered Accountants. The presentation talks about the changes to the e-filing requirements that are effective F.Y. 2012-13 (Assessment Year: 2013-14)
This is a presentation made at the mPower Summit arranged by Infotech & 4i Committee of Bombay Chartered Accountants' Society. It covers issues that would typically be faced by a small sized CA/CA firm when he/she/it merges with another larger firm. It also covers some thoughts on Innovation and the concept of Delivery v/s. Discovery. The Summit was about Mergers, Managing Growth & Mentoring Talent in the context of CA firms.
The document discusses issues faced by taxpayers in processing of income tax returns due to mismatches in TDS details. Some key points:
1. Mismatches occur when TDS details filed by deductors don't match with taxpayer's return, leading to denial of TDS credit. This causes refund delays and demands.
2. Rectification is a lengthy process as taxpayers have to follow up with deductors and AO to correct errors.
3. Incorrect outstanding demands uploaded by AO also cause refund adjustments without following due process.
4. Relief measures have been announced but implementation remains a challenge, keeping taxpayers in hardship. Streamlining of processes is needed to reduce processing errors and expedite issue resolution.
This is a presentation made by me at a National Conference organised by the Southern India Regional Council of the Institute of Chartered Accountants of India in Mangalore in Feb 2013. I have tried to bring out some ways in which Information Technology can/should be harnessed by Chartered Accountants.
Qf Is Tax Related Issues Assocham ConferenceAmeet Patel
This is a brief presentation made by me at the National Conference on QFIs arranged by Assocham at Delhi on 5th July, 2012. It brings out the various tax related issues that a Qualified Foreign Investor is likely to face on the basis of the law as it stands today.
This is a presentation made by me to a batch of Indian tax officers at their training academy on 28th May 2012. It is on the head of income called "Income from Other Sources"
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
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3. 3
What were the most
important expectations?
Reduction in tax rates / changes in slabs
Simplification of law
Steps for reducing inflation
Introduction of GST
Changes in subsidies doled out
Spurring economic growth
No more populism
Removal of retrospective amendments of past
Push back of GAAR provisions
Clear signal to foreign investors to come to India
4. And what did the Finance Minister give us?
• A marathon Budget Speech with a 5 minute break
thrown in
• Not too many heavy duty policy decisions
• No indication of what is being done about inflation
• No roll back on retrospective amendments
• A few changes aimed at reducing litigation
• Quite a few changes affecting stock markets
• Resolve to push GST forward
• Committee to review Expenditure of the Govt
• Resolve to reduce wastage of food grains
• And lots more
6. No change in rates of taxes
No abolition of / changes in Surcharge & Education Cesses
DDT to be grossed up
Tax slabs increased
For Resident senior citizens (above 60 years but below 80
years) – threshold limit increased from Rs. 2,50,000 to Rs.
3,00,000
For others – threshold limit increased from Rs. 2,00,000 to Rs.
2,50,000
Individuals above 80 years – No change. Rs 5,00,000
continues
Tax Rates
7. Tax Rates
Slab Rates: For persons other than
Resident senior citizens (below 60 years)
Slabs Tax Rate
Up to Rs 2,50,000 NIL
Rs 2,50,001 to Rs 5,00,000 10%
Rs 5,00,001 to Rs 10,00,000 20%
Above Rs 10,00,000 30%
8. Tax Rates
• Slab Rates: For Resident senior citizens (60
years and above but below 80 years)
Slabs Tax Rate
Upto Rs 3,00,000 NIL
Rs 3,00,001 to Rs 5,00,000 10%
Rs 5,00,001 to Rs 10,00,000 20%
Above Rs 10,00,000 30%
9. Effective Tax Rates
• Individuals earning more than INR 1 crore 33.99%
• Corporate Tax – Domestic Company
– Income less than INR 1 crore 30.90%
– Income from INR 1 crore to INR 10 crore 32.445%
– Income more than INR 10 crore 33.99%
• Corporate Tax – Foreign Company
– Income less than INR 1 crore 41.20%
– Income from INR 1 crore to INR 10 crore 42.024%
– Income more than INR 10 crore 43.26%
• Firm/LLPs
– Income less than INR 1 crore 30.90%
– Income up to INR 1 crore 33.99%
11. Two important changes
• The limit for deduction of interest on Self Occupied
Property has been increased from 1.5 lakh to 2 lakh
• Limit of Investment under section 80C has been
increased from 1 lakh to 1.5 lakh
• PPF Limit to be increased to Rs 1.5 lakh (look at past
experience when limit was raised from 70,000 to
100,000)
12. NET IMPACT OF 3 IMPORTANT CHANGES
• Increase in threshold limits
• Increase in 80C limit
• Increase in deduction for Interest on Housing Loans
As a result of the above, if you are having taxable income
exceeding Rs. 10 lakh but less than Rs. 1 crore, then you will
pay a lower tax and save about Rs. 36,050. Eg:
Present Amended
Gross Income 1,800,000 1,800,000
Less: Interest on Housing Loan 150,000 200,000
Less: 80C deduction 100,000 150,000
Taxable Income 1,550,000 1,450,000
Tax payable 295,000 260,000
Education Cess 8,850 7,800
Total tax payable 303,850 267,800
Net Saving 36,050
14. Exemptions From Long Term Capital
Gains by investing in Residential House
Property – Sections 54 / 54F
• When a residential house or any other long term capital asset
is sold, exemption is available if a new residential house is
purchased or constructed within the specified time limit and
subject to conditions
• Controversy on whether exemption is available if 2 residential
houses are constructed/purchased
• Amendment : Exemption available only in respect of one
residential house purchased / constructed
• Additional condition now laid down: The new house should
be in India
15. Exemptions From Long Term Capital Gains
by investing in Specified Bonds –
Section 54EC
• If any long-term capital asset is sold, an exemption is available if
the amount of Capital Gains is invested within 6 months in
o REC Bonds
o NHAI Bonds
• Maximum deduction was prescribed as Rs. 50 Lakh per financial
year
• Tax planning : To pace 6 months in such a way that 2 financial
years fall within the period - exemption claimed : Rs. 1 Crore
• Amendment: Rs. 50 Lakh is maximum exemption that can be
claimed over both years (what about exemption for gain
earned in next year?)
16. • Period of holding for qualifying as long-term capital
asset increased from 12 months to 36 months
– This will immediately impact FMPs
• Tax rate of 20% applicable in case of debt fund - 10%
tax without indexation has been done away with
– This will also immediately impact FMPs
• Does this amount to retrospective amendment?
• What about the redemptions that have already taken
place post 1st April, 2014 ?
Unlisted Securities & Units of Debt Funds
17. Advance Money Forfeited
• Money received as an advance in the course of negotiation
for transfer of a capital asset is taxable if the negotiation
does not result in transfer of such capital asset in the same
year
• Earlier, the same effectively became taxable as part of
capital gains when the asset for which negotiation was
unsuccessful was actually sold
• Now, it will be treated as income from other sources.
Hence exemptions available for capital assets shall not be
available
19. DDT to be Grossed Up
After Amendment
• Dividend Distributed : 85
• Increased by Rs 15
[85*0.15)/(1-0.15)]
• Increased amount : Rs 100
• DDT @ 15% of Rs 100 = Rs 15
• Total outgo for company: Rs.
100
(Sur charge and EC not
considered above)
Before Amendment
Dividend Distributed : 85
DDT Rate : 15%
DDT @ 15% paid by company
on Rs 85 = 85*15% = 12.75%
Total outgo for company : Rs.
97.75
(Sur charge and EC not
considered above)
20. DDT to be Grossed Up
The impact is even more dramatic and
disastrous for income distributed on units of
mutual fund
Mutual fund industry is shaken up
Present Amended
DDT – Companies 15% 17.65%
DDT – Mutual Funds – Individuals
and HUF
25% 33.33%
DDT – Mutual Funds – Others 30% 42.86%
Plus applicable surcharge and cess.
The provisions is effective from 1st October, 2014.
21. Are there any positives out of this
amendment ?
• Possibility of getting out of the web of Section
14A
• Possibility of getting a credit for the tax in
another country (in case of Non Residents
from a DTAA country)
23. Disallowance of expenses in case
of non- withholding of tax
• Payments to non residents brought at par with
payments to residents - eligible to claim deduction of
expenses if withholding taxes paid upto due date of
filing of Return.
• In case of payment made to a resident, disallowance of
expenses on account of non-deduction/non-payment
of taxes restricted to 30% instead of 100%
• Disallowance of salary payments if default in
withholding tax payments
24. – Corporate Social Responsibility (CSR) Expenses – not an
allowable business expenditure
– Sec 32AC (1A):- Investment Allowance
– Special provision introduced providing deduction on investment in
plant and machinery for manufacturing companies
– Introduced to promote investments in medium size entities
– Eligible for investment in new plant and machinery of more than
INR 25 crore for each year
– Benefit available between April 2014 to March 2017
– Investment allowance of 15% of the actual cost of machinery
allowed
Other Amendments
25. Other Amendments
• Returns no longer required to be signed?
• Amendment in section 140
• Does this mean that ITR-V is now not required
to be sent to CPC?
• If yes, this is a big change
27. • Ambiguity in case of Foreign Institutional Investors (FII) of
characterization of income from transfer of securities
(business income or capital gains) has been removed
• Definition of ‘capital asset’ includes security held by FII in
accordance with the regulations of SEBI
• Transfer by Foreign Institutional Investors (FII) of such
security would be taxable as capital gains
Question for FM: What about domestic investors? Why can
they not have the same clarity?
Characterisation of Income in case of FIIs
29. • Every time the Government lost an important case in the Supreme
Court, the law was amended
• Post Vodafone defeat in the Supreme Court, a major retrospective
amendment was made
• There was an expectation that the amendment would be removed by
Mr Jaitley
• However, he has not touched the amendment
• But, he has said that in principle, he is not very much in favour of
making such amendments in future
• He has also said that any action sought to be taken on the basis of
the retrospective amendments made 2 years ago will be
scrutinised by a High Level Committee to be constituted by the
CBDT
Retrospective Amendments
30. Loans given/ received through use of Electronic Clearance System (ECS)
not subject to provisions of sections 269SS & 269T (in future, hopefully,
even book entries will be excluded)
New provisions introduced for REITs and INVITs
APA - Roll back mechanism introduced
• ALP or method determined in APA can be applied to the past years
• Can go up to four preceding years from the first year of APA
• Detailed rules procedure and conditions to be prescribed
• Substantial relief to taxpayer and great boost to APA program
• Would result in significant reduction in litigation
• Effective from 1 October 2014
Maturity of LIC policies – TDS to be deducted by Insurance companies in
some cases – good move to curb tax evasion
Other Amendments
32. Service Tax
• Service Tax rate remains unchanged at 12.36%
• Tax base widened to include following
(Effective from a date to be notified after Presidential assent)
– Sale of space or time for advertisements through online and mobile
advertising
– Services provided by radio taxis or radio cabs, whether or not air-
conditioned
Exemption withdrawn with 11 July 2014 -
– Services of Clinical research on human participants
– Services rendered by Air-conditioned contract carriages like buses
– Meaning of auxiliary educational service narrowed to grant exemption
only to specified services rendered to educational institutions
• Exemption available to renting of immovable property given to
educational institutions withdrawn
33. Service Tax
– Ambit of exemptions widened to include the following
Effective 11 July 2014 –
• Transport of organic manure by vessel, rail or road (by GTA)
• Loading, unloading, packing, storage or warehousing,
transport by vessel, rail or road (GTA), of cotton, ginned or
baled
• Specialized financial services received by RBI from global
financial institutions in the course of management of
foreign exchange reserves
• Services provided by Indian tour operators to foreign
tourists in relation to a tour wholly conducted outside India
34. Other Changes
• Color picture tubes exempted from Basic Custom Duty
to make cathode ray TV cheaper and more affordable
to weaker sections
• To encourage production of LCD and LED TVs below 19
inches, Basic custom duty reduced from 10% to NIL
• Specific rates of excise duty increased on cigarettes in
the range of 11% to 72%
• Additional excise duty of 5% on aerated waters
containing added sugar
35. Customs Duty
Baggage rules amended to increase the limit for
duty-free baggage allowance (effective 11 July
2014)
Passengers Old Limit
New
Limit
Passengers of and above 10 years of
age and returning from stay abroad
of > 3 days
INR
35,000
INR
45,000
Passengers of and above 10 years of
age and returning from stay abroad
of < 3 days
INR
15,000
INR
17,500
36. GST
• Finance Minister assured the House that debate on GST should
come to end and before year end the Government would
endeavour to approve legislative scheme
– Though no firm commitment on proposed date of introduction of GST
• It appears that the Government would considered step-by-step
approach to introduce GST
– First, CenGST (CGST) would be introduced at Central level and then
SGST will be introduced to replace the State level indirect taxes
– In particular, CGST would consolidate the following indirect taxes viz;
Central Excise Duty, Service Tax, additional Excise Duties, etc
– GST may streamline the tax administration, avoid harassment of the
business and may result in higher revenue collection both for the
Centre and the States
– The above approach seems simple, but could pose a challenge to the
industries as it will involve two level consolidations namely;
Introduction of CGST and later, SGST introduction
37. BIG TAKE AWAYS
• Several moves to reduce litigation
– INDIRECT TAXES:
• Scheme of Advance Rulings is being extended to resident
private limited companies
• Amendments proposed in the appeal procedures by making
mandatory fixed pre-deposit for appeals to be entertained
by the Commissioner (Appeals) and Tribunals.
– DIRECT TAXES:
• CBDT has issued circular increasing limit for non filing of
appeals to ITAT by the department
• Assurance on retrospective amendments
• AAR & Settlement Commission related changes mentioned
but not enacted
38. BIG TAKE AWAYS
• Clarity / stability being brought in
– Several sunset clauses extended either indefinitely
or for few more years – eg:
• 80IA
• 32AC
– Classification of income for FIIs
– REITs & INVITs – new Chapter brought in
– Amendments to sections 54, 54F, 54EC