Khimji Kunverji & Co (Registered) Chartered Accountants UNION BUDGET 2018 ANALYSIS OF DIRECT TAX PROPOSALS.
|
|
- Imogen Kelly
- 5 years ago
- Views:
Transcription
1 Khimji Kunverji & Co (Registered) Chartered Accountants UNION BUDGET 2018 ANALYSIS OF DIRECT TAX PROPOSALS
2 A Step towards a New India - Swachh, Swasth & Samriddha India The Modi Government has successfully implemented a series of fundamental structural reforms aimed towards realising the vision of honest, clean and transparent Government - Minimum Government and Maximum Governance and improving ease of doing business in India. As a result, India now stands out amongst the fastest growing economies of the world. The government is confident of achieving 8% together with fiscal deficit target of 3.3% of GDP. The journey of economic reforms during the past few years has been challenging but rewarding. The indirect tax system, with introduction of Goods and Services Tax (GST), has been made simpler. Benefits to the poor have been targeted more effectively with use of digital technology. The demonetization of high value currency has reduced the quantum of cash currency and its circulation in India. It has increased the taxation base and spurred greater digitization of the economy. The Insolvency and Bankruptcy Code (IBC) has changed the lender-debtor relationship. The recapitalized banks will now have a greater ability to support growth. All these structural reforms in the medium and long run will help Indian economy achieve stronger growth. With this background in the present Budget, our Government has taken Ease of Doing Business further and stresses on Ease of Living for common men of this country, especially for those belonging to poor and middle class of the society. Thus, this year s Budget particularly focuses on:- Strengthening agriculture and rural economy Provision for good health care to economically less privileged & senior citizens and social security Infrastructure creation, financial sector development, increasing employment, strengthening MSME and working with the States to provide more resources for improving quality of education in the country 2
3 A Step towards a New India - Swachh, Swasth & Samriddha India The major Tax proposals are highlighted herein below:- Corporate tax rate reduced to 25% for companies having turnover up to Rs.250 crore 100% tax deduction to Farmer Producer Companies having annual turnover up to Rs.100 crore Deduction u/s. 80JJAA for new employment rationalized for footwear & leather industry Standard deduction of Rs.40,000 to salaried taxpayer in lieu of transport allowance & medical reimbursement Benefits to Senior citizens - exemption of interest on fixed deposits / post-offices up to Rs.50,000. Deduction for health insurance premium & general medical expenditure increased to Rs.50,000. Deduction for medical treatment of specified diseases increased to Rs.1 lakh Education Cess has now been renamed to Health & Education Cess and increased to 4% LTCG on transfer of listed equity shares & equity oriented MF units 10% without indexation benefit on LTCG > Rs.1 lakh DDT on dividend payouts to unit holders of equity oriented MFs to be 10% Proposal to roll out E-assessment across the country Increase in custom duty on import of mobile phones, LED panels, high end cosmetics, luxury vehicles etc. Levy of 3% Education cess replaced by a Social welfare surcharge at the rate of 10% on import of goods We hope that our analysis of the tax proposals will help you to analyse the provisions of the Finance Bill Team Khimji Kunverji & Co. 3
4 TABLE OF CONTENTS Tax Rates Personal Tax Charitable Trusts & Institutions Business & Other Sources Real Estate Sector Income Computation & Disclosure Standards (ICDS) Facilitating Insolvency Resolution Measures to promote International Financial Services Centre (IFSC) Capital Gains Dividend International Tax & Transfer Pricing Return Processing & Assessment Procedures Penalty & Prosecution 4
5 TAX RATES
6 TAX RATES SUBSTITUTION OF EDUCATION CESS WITH HEALTH & EDUCATION CESS Education 2% & Secondary and Higher Education 1% have been discontinued. Health and Education Cess (HEC) introduced: Proposed to be 4% on income tax including surcharge, wherever applicable No HEC on TDS / TCS in case of domestic company & any other person resident in India HEC applicable on TDS in case of salary payments, non-residents & foreign companies FOR INDIVIDUALS, HUFs, AOPs, BOIs & ARTIFICIAL JURIDICAL PERSONS (AJPs) Tax Rates, Surcharge and Rebate remain unchanged TAX RATES < 60 years of age years of age > 80 years of age Slab of Income Tax Rates Slab of Income Tax Rates Slab of Income Tax Rates 2.5L NIL 3L NIL 2.5L 5L 5% 3L 5L 5% 5L NIL 5L 10L 20% 5L 10L 20% 5L - 10L 20% 10L 30% 10L 30% 10L 30% SURCHARGE Total Income Rate of Surcharge Between Rs.50 Lakhs Rs.1 Crore 10% > Rs.1 crore 15% REBATE U/S. 87A (only for Resident Individuals) Total Income Amount of Rebate u/s. 87A < Rs.3.5 Lakhs Rs.2,500 6
7 TAX RATES FOR INDIVIDUALS, HUFs, AOPs, BOIs & AJPs: IMPACT ON TAX LIABILITY Total Income Slabs Total Income Tax Liability (Rs. in Lakh) Before 80C After 80C Current Proposed Decrease / (Increase) in Tax Liability 2.5 L - 3 L L L (5) ,575 2,600 (25) ,725 7,800 (75) 4 L - 5 L ,300 10,400 (100) ,875 13,000 (125) ,075 54,600 (525) ,26,963 18,44,700 (17,738) 5 L L ,36,813 23,59,500 (22,688) ,46,663 28,74,300 (27,638) ,86,563 32,17,500 (30,938) > 100 L ,10,98,906 2,13,03,750 (2,04,844) NCLUDING LLPs) & LOCAL AUTHORITIES ALTERNATE MINIMUM TAX (AMT) Current Proposed If Adjusted Total Income 1 Cr > 1 Cr If Adjusted Total Income 1 Cr > 1 Cr Tax rate 18.5% 18.5% Tax rate 18.5% 18.5% Surcharge - 15% Surcharge - 15% Edu. Cess 3% 3% Health & Edu. Cess 4% 4% Total 19.06% 21.91% Total 19.24% 22.13% 7
8 TAX RATES FOR CO-OPERATIVE SOCIETIES: Tax Rates remain unchanged. 12% in case total income > Rs.1 crore Edu. 3% substituted with Health & Edu. 4% - applicable on (tax + surcharge) Slab of income Tax Rate Rs.10,000 10% Rs.10,000 Rs.20,000 20% > Rs.20,000 30% FIRMS (INCLUDING LLPs) & LOCAL AUTHORITIES Current Proposed Total income Rs.1 Cr. > Rs.1 Cr. Total income Rs.1 Cr. > Rs.1 Cr. Tax rate 30% 30% Tax rate 30% 30% Surcharge 0 12% Surcharge 0 12% Edu. Cess 3% 3% Health & Edu. Cess 4% 4% Total 30.90% 34.61% Total 31.20% 34.94% ALTERNATE MINIMUM TAX (AMT) FOR CO-OPERATIVE SOCIETIES, FIRMS (INCL. LLPs) & LOCAL AUTHORITIES Current Proposed If Adjusted Total Income 1 Cr > 1 Cr If Adjusted Total Income 1 Cr > 1 Cr Tax rate 18.5% 18.5% Tax rate 18.5% 18.5% Surcharge - 12% Surcharge - 12% Edu. Cess 3% 3% Health & Edu. Cess 4% 4% Total 19.06% 21.34% Total 19.24% 21.55% 8
9 TAX RATES FOR DOMESTIC COMPANIES: If Total Income (Rs.) If Total Turnover / Gross Receipts (Rs.) Current Proposed < 1 Cr. 1 Cr Cr. > 10 Cr. < 1 Cr. 1 Cr Cr. > 10 Cr. In FY In FY Cr. > 50 Cr. 50 Cr. > 50 Cr. 50 Cr. > 50 Cr. 250 Cr > 250 Cr 250 Cr > 250 Cr 250 Cr Tax rate 25% 30% 25% 30% 25% 30% 25% 30% 25% 30% 25% 30% Surcharge 0% 0% 7% 7% 12% 12% 0% 0% 7% 7% 12% 12% EC / HEC (#) 3% 3% 3% 3% 3% 3% 4% 4% 4% 4% 4% 4% Total (in %) > 250 Cr TAX ON INCOME OF CERTAIN DOMESTIC COMPANIES [S.115BA] Currently, certain domestic companies have an option of paying 25% tax rate, if company: is engaged solely in business of manufacture or production of any article or thing and research in relation thereto, or distribution of such article or thing manufactured by it has not claimed any benefit u/s.10aa, additional depreciation, investment allowance, expenditure on scientific research & any deduction under Part-C of Chapter-VI-A other than S.80JJAA; and furnished its option before the due date of filing ROI It is proposed to clarify that: such option of paying 25% shall be restricted to income from the business of manufacturing, production, research or distribution of any article or thing as referred to above; and income which are at present taxed at a scheduler rate will continue to be so taxed at such rates. [w.r.e.f. AY ] 9
10 TAX RATES FOR FOREIGN COMPANIES: Current Proposed If Total Income (Rs.) < 1 Cr 1 Cr - 10 Cr > 10 Cr If Total Income (Rs.) < 1 Cr 1 Cr - 10 Cr > 10 Cr Tax rate 40% 40% 40% Tax rate 40% 40% 40% Surcharge 0 2% 5% Surcharge 0 2% 5% Edu. Cess 3% 3% 3% Health & Edu. Cess 4% 4% 4% Total Total MINIMUM ALTERNATE TAX (MAT) FOR DOMESTIC & FOREIGN COMPANIES: Current Proposed BOOK PROFIT < 1 Cr 1 Cr - 10 Cr > 10 Cr BOOK PROFIT < 1 Cr 1 Cr - 10 Cr > 10 Cr Tax rate 18.5% 18.5% 18.5% Tax rate 18.5% 18.5% 18.5% Surcharge - 7% 12% Surcharge - 7% 12% Edu. Cess 3% 3% 3% Health & Edu. Cess 4% 4% 4% Total Total TAX ON DIVIDEND DISTRIBUTED (DDT) BY DOMESTIC COMPANIES [S.115-O] Particulars CURRENT PROPOSED DDT 15% 15% Surcharge 12% 12% EC / HEC 3% 4% DDT on grossed-up dividend % % Effective DDT 20.92% % 10
11 TAX RATES COMPARATIVE ANALYSIS OF DOMESTIC CO. V/S FOREIGN CO. V/S FIRM (OR LLP) CURRENT PROPOSED Domestic Co. Foreign Co. Firm / LLP Domestic Co. Foreign Co. Firm / LLP Turnover 50 crore 250 crore NA NA in FY in FY NA NA Effective Tax Rate * 28.84% 43.26% 34.61% 29.12% 43.68% 34.94% PBT Less: Tax PAT Less: DDT Cash-on-hand CURRENT PROPOSED Domestic Co. Foreign Co. Firm / LLP Domestic Co. Foreign Co. Firm / LLP Turnover > 50 crore > 250 crore NA NA in FY in FY NA NA Effective Tax Rate * 34.61% 43.26% 34.61% 34.94% 43.68% 34.94% PBT Less: Tax PAT Less: DDT Cash-on-hand (*) Effective Tax Rate is inclusive of maximum rate and Edu. 3% (current) or Health & Edu. 4% (proposed) 11
12 PERSONAL TAX
13 PERSONAL TAX TAX-EXEMPTION FOR PARTIAL WITHDRAWAL FROM NATIONAL PENSION SYSTEM (NPS) EXTENDED TO ALL SUBSCRIBERS [S.10(12A)] Currently, payment from NPS trust to an employee on closure of his account or opting out is exempt up to 40% of total amount payable to him. This exemption is not available to non-employee subscribers. It is proposed to extend this benefit to all subscribers. DEDUCTION IN RESPECT OF MEDICLAIM / HEALTH CHECKUP [S. 80D] Currently, a deduction up to Rs.30,000/- is allowed to an individual & HUF, in respect of payments towards annual premium on health insurance policy, or preventive health check-up, of a senior citizen, or medical expenditure in respect of very senior citizen. It is proposed to raise this limit to Rs.50,000/- In case of single premium health insurance policies having cover of > 1 year, it is proposed that deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the specified monetary limit. HEALTH INSURANCE PREMIUM (INCLUDING PREVENTIVE HEALTH CHECKUP) + MEDICAL EXPENDITURE CASE CURRENT PROPOSED Individual & his family (Age<60 Yrs.) 25,000 25,000 Individual & his family (Age>60 Yrs.) 30,000 50,000 Parents (Age <60 yrs., resident) 25,000 25,000 Parents (Age >60 yrs., resident) 30,000 50,000 Agg. deduction if a ee & his parents are not a senior citizen 50,000 50,000 Agg. deduction if a ee is not a senior citizen & his parents are a senior citizen 55,000 75,000 Agg. deduction if a ee & his parents are a senior citizen 60,000 1,00,000 13
14 PERSONAL TAX DEDUCTION IN RESPECT OF MEDICAL TREATMENT [S.80DDB] Currently, a deduction is available to an individual & HUF in respect of amount paid for medical treatment of specified diseases for senior citizens up to Rs.60,000/- & in case of very senior citizens, up to Rs.80,000/-. It is proposed to raise the limit of deduction to Rs.1,00,000/- for both senior citizens & very senior citizens. DEDUCTION IN RESPECT OF INTEREST INCOME TO SENIOR CITIZEN [New S.80TTB & S.194A] Currently, a deduction up to Rs.10,000/- is allowed to an individual & a HUF in respect of interest income from savings account with a banking company, a co-operative society engaged in carrying on business of banking & a Post Office. It is proposed to increase the limit of this deduction up to Rs.50,000/- in respect of interest income from such deposits held by senior citizens. Consequently, it is proposed to increase the threshold limit for TDS on such interest income paid to senior citizens from Rs.10,000/- to Rs.50,000/-. [w.e.f ] DEDUCTION FOR SALARIED ASSESSEES [S. 16] Currently, while computing income chargeable under the head Salaries, exemptions of Rs.1,600/- per month & up to Rs.15,000/- per annum are allowed for Transport Allowance & reimbursement of medical expenses by the employer respectively It is proposed to withdraw the aforesaid exemptions (except Transport Allowance in case of differently abled persons) & allow a standard deduction up to Rs.40,000/- or the amount of salary received, whichever is less. 14
15 CHARITABLE TRUSTS AND INSTITUTIONS
16 CHARITABLE TRUSTS AND INSTITUTIONS DISALLOWANCE IN CASE OF PAYMENTS MADE WITH NON-DEDUCTION OF TDS & CASH PAYMENTS [S.10(23C), S.11, S.40(a)(ia), S.40A(3), S.40A(3A)] Currently, payments made by charitable trusts & other exempt entities covered u/s. 11 and clauses (iv), (v), (vi) & (via) of S.10(23C) are not subject to any disallowance u/s. 40(a)(ia) or 40A(3) or 40A(3A). It is proposed that payments made without deducting applicable TDS would attract a disallowance of 30% of sum payable by the above mentioned entities. If TDS for the same payment is deducted in the subsequent year, then the 30% previously disallowed will be allowed as a deduction in the subsequent year. Also, if such an entity makes cash payment > Rs.20,000 per person per day, then the whole amount would not be allowed as deduction. 16
17 BUSINESS & OTHER SOURCES
18 BUSINESS & OTHER SOURCES TAXABILITY OF COMPENSATION IN CONNECTION TO BUSINESS OR EMPLOYMENT [S.28 & S.56] The scope of compensation taxed so far is proposed to be expanded to include any compensation received/receivable, whether of revenue/capital nature, in connection with termination/modification of terms & conditions of any contract: relating to business to be taxable u/s 28(ii)(e) relating to employment to be taxable u/s 56 PRESUMPTIVE INCOME IN CASE OF GOODS CARRIAGE [S.44AE] Currently, the presumptive income scheme of Rs.7,500 p.m. per goods carriage is applicable uniformly to all classes of goods carriages irrespective of their tonnage capacity For heavy goods vehicle (gross vehicle weight of > 12,000 kg): It is proposed to enhance income to Rs.1,000 per ton of gross vehicle weight/unladen weight, p.m. or part of the month during which vehicle is owned by assessee. INCOME OF FARM PRODUCER COMPANIES [New S.80PA] Currently, S.80P provides for 100% deduction in respect of profit of co-operative society which provides assistance to its members engaged in primary agricultural activities. It is proposed to extend this benefit to Farm Producer Companies, having a total turnover up to Rs.100 Crore, whose gross total income includes any income from: marketing of agricultural produce grown by its members, or purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for purpose of supplying them to its members, or processing of agricultural produce of its members The benefit shall be available for a period of 5 years from FY
19 BUSINESS & OTHER SOURCES MEASURES TO PROMOTE START-UPS [S.80IAC] 100% deduction is available in respect of profits derived by an eligible start-up from an eligible business : At the option of the assessee, benefit can be availed for 3 consecutive years out of 7 years beginning from year of incorporation Eligible start-up is a Co. engaged in eligible business provided that: It is incorporated on or after but before Total turnover of business Rs. 25 crore in any year from PY to PY It holds a certificate of eligible business from Inter-Ministerial Board of Certification as notified by Govt. ( IMBC ) Eligible business means a business involving innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property To improve the effectiveness of the scheme for promoting start-ups in India, it is proposed as under: The benefit of 100% deduction of profits to be extended to start ups incorporated up to The requirement of turnover Rs.25 crore would apply to 7 PYs commencing from the date of incorporation The definition of eligible business has been expanded means an eligible start-up engaged in innovation, development or improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation [w.e.f. AY ] INCENTIVE FOR EMPLOYMENT GENERATION [S.80-JJAA] Currently, in case of tax payers subject to tax audit, a deduction of 30% is allowed (in addition to normal deduction of 100%) in respect of emoluments paid to new employees employed for a minimum period of 240 days during the year (relaxed to 150 days in case of apparel industry). The minimum period of employment of 150 days is proposed to be extended to footwear & leather industry. Further, it is also proposed to allow deduction of 30% for employee who is employed for less than the minimum period during the 1 st year but continues to remain employed for the minimum period in subsequent years.
20 BUSINESS & OTHER SOURCES CONVERSION OF STOCK-IN-TRADE INTO CAPITAL ASSET [S.2(24), S.2(42A), S.28 & S.49] Currently, conversion of capital asset into stock in trade is taxable. It is now proposed to tax income arising on conversion/ treatment of stock in trade into capital asset. For this purpose: Fair market value of inventory on date of conversion/ treatment as capital asset shall be: Full value of consideration for the purpose of computing business profits Cost of acquisition for computation of capital gains arising on subsequent transfer of such capital asset Period of holding of such capital asset shall be from date of conversion/ treatment as capital asset DEDUCTIONS IN RESPECT OF CERTAIN INCOMES NOT TO BE ALLOWED UNLESS RETURN IS FILED BY DUE DATE [S.80AC] Currently, no deduction is admissible u/s. 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID & 80-IE, unless return is filed on or before due date specified u/s. 139(1) It is proposed to extend condition of mandatory filing of return before due date for claiming any deduction under the head Chapter VI-A: C Deductions in respect of certain incomes (i.e., S.80H to S.80TT) [w.e.f. AY ] 20
21 REAL ESTATE SECTOR
22 REAL ESTATE SECTOR VARIATION BETWEEN STAMP DUTY VALUE & SALE CONSIDERATION [S.50C, S.43CA & S.56] Currently, while taxing income from capital gains (S.50C), business profits (S.43CA) & other sources (S.56) arising out of transactions in immovable property, the higher of sale consideration or stamp duty value is adopted To minimize hardship in case of genuine transactions, it is proposed that consideration so received shall be deemed to be full value of consideration in cases where variation between stamp duty value & sale consideration is 5% of sale consideration 22
23 INCOME COMPUTATION & DISCLOSURE STANDARDS (ICDS) CA Kamlesh Vikamsey 23
24 INCOME COMPUTATION & DISCLOSURE STANDARDS (ICDS) The Hon ble Delhi High Court in the case of Chamber of Tax Consultants v. Union of India [2017] (87 taxmann.com 92) struck down various provisions of ICDS notified u/s. 145(2) as ultra-vires the provisions of the Act. In order to bring certainty on the issue of applicability & legitimacy of ICDS, it is proposed to amend the provisions of the Act to legitimize the provisions of ICDS as under: ALLOWABILITY OF MARKED-TO-MARKET (MTM) LOSS OR OTHER EXPECTED LOSS [New S.36(1)(xviii), New S.40A(13)] MTM loss or other expected loss shall be allowed as a deduction, to the extent and in the manner provided in the relevant ICDS TAX ON GAIN/LOSS ARISING ON ACCOUNT OF EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES [NEW. S.43AA] Subject to S.43A, any gain or loss arising on account of effects of changes in foreign exchange rates shall be taxed in the manner provided in the relevant ICDS in respect of all foreign currency transactions including those relating to: i. monetary items and non-monetary items ii. translation of financial statements of foreign operations iii. forward exchange contracts iv. foreign currency translation reserves REVENUE RECOGNITION FOR CONSTRUCTION CONTRACTS & SERVICES [NEW S.43CB] Profits arising from construction contract or provision of services shall be determined on the basis of percentage of completion method (POCM) except in the following cases: For service contracts with duration of 90 days: Follow project completion method Services involving indeterminate number of acts over a specific period of time: Follow straight line method Contract revenue shall include retention money Contract cost shall not be reduced by incidental interest, dividend & capital gains [w.r.e.f. AY ] 24
25 INCOME COMPUTATION & DISCLOSURE STANDARDS (ICDS) METHOD OF ACCOUNTING IN CERTAIN CASES [Substituted S.145A, New S.145B] Valuation of various inventory for the purpose of determining Business Income to be: a) At lower of actual cost or net realizable value (NRV) computed in the manner provided in ICDS b) In case of Unlisted securities or listed but not quoted securities: At actual cost initially recognised in the manner provided in ICDS c) In case of Listed securities: At lower of actual cost or NRV, category-wise, in the manner provided in ICDS Interest received by an assessee on compensation or on enhanced compensation shall be deemed to be income of the year in which it is received Claim for escalation of price in a contract or export incentives shall be deemed to be income of the year in which reasonable certainty of its realisation is achieved, irrespective of whether the claims have been accepted by the other party or the Government. Assistance in the form of subsidies or grants or incentives, by whatever name called, shall be deemed to be income of the year in which it is received, if not charged to income tax for any earlier year, irrespective of whether the conditions attached to such grant have been fulfilled or not. [w.r.e.f. AY ] 25
26 Variation between stamp duty value & sale consideration [S.50C, S.43CA & S.56] Currently, while taxing income from capital gains (S.50C), business profits (S.43CA) & other sources (S.56) arising out of transactions in immovable property, the higher of sale consideration or stamp duty value is adopted FACILITATING INSOLVENCY RESOLUTION To minimize hardship in case of genuine transactions, it is proposed that consideration so received shall be deemed to be full value of consideration in cases where variation between stamp duty value & sale consideration is 5% of sale consideration 26
27 FACILITATING INSOLVENCY RESOLUTION RELIEF FROM LIABILITY OF MINIMUM ALTERNATE TAX (MAT) [S.115JB] Currently, while computing book profit for all classes of companies, S.115JB provides for a deduction in respect of lower of loss brought forward or unabsorbed depreciation except where either of the amounts is Nil. In case a company s application for corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC) has been admitted by the Adjudicating Authority, it is proposed that, for computing book profit, a deduction in respect of aggregate amount of unabsorbed depreciation and loss brought forward shall be allowed. [w.e.f. AY ] BENEFIT OF CARRY FORWARD & SET OFF OF LOSSES IN CASE OF CHANGE IN OWNERSHIP [S.79] S.79 provides for carry forward & set off of losses in a closely held company only if there is a continuity in the beneficial owner of shares carrying 51% of voting power, on the last day of the years in which loss was incurred Generally, the case of a company seeking insolvency resolution under IBC involves a change in beneficial owners of shares beyond permissible limit u/s. 79 It is proposed to relax the rigors of S.79 in case of companies whose resolution plan has been approved under IBC after affording a reasonable opportunity of being heard to jurisdictional PCIT or CIT [w.e.f. AY ] VERIFICATION OF RETURN OF INCOME [S.140] It is proposed that in case of a company admitted for resolution process under IBC, the return shall be verified by an insolvency professional appointed by the Adjudicating Authority under IBC [w.e.f ] 27
28 MEASURES TO PROMOTE IFSC
29 MEASURES TO PROMOTE INTERNATIONAL FINANCIAL SERVICES CENTRE (IFSC) TAX NEUTRALITY RELATING TO CERTAIN TRANSFERS[S.47] It is proposed that transactions in following assets by a non-resident on a recognized stock exchange located in any IFSC shall not be treated as transfer if consideration is paid or payable in foreign Currency: Bond or Global Depository Receipt, as referred to in S.115AC(1), or Rupee denominated bond of an Indian company, or Derivative REDUCTION IN RATE OF ALTERNATE MINIMUM TAX (AMT) [S.115JC, S.115JF] Currently, Alternate Minimum Tax (AMT) is 18.50% of adjusted total income in the case of a non-corporate person. Further, Minimum Alternate Tax (MAT) is 9% of Book Profit in case of a company, being a unit located in an IFSC, and deriving its income solely in convertible foreign exchange. It is proposed that rate of AMT for a person (other than a company), being a unit located in an IFSC, and deriving its income solely in convertible foreign exchange, shall 9% of adjusted total income. 29
30 CAPITAL GAINS
31 CAPITAL GAINS NEW REGIME FOR TAXATION OF LONG-TERM CAPITAL GAINS ON SALE OF EQUITY SHARES ETC. [S.10(38), New S.112A] Currently, long term capital gains (LTCG) arising from transfer of long term capital assets, being equity shares of a company or an unit of equity oriented fund or an unit of business trusts is exempt from income-tax if In case of equity share in a company: Securities Transaction Tax (STT) has been paid on both acquisition & transfer; and In case of Unit of an equity oriented fund or a unit of a business trust: STT has been paid on transfer It is proposed to withdraw this exemption & to tax such LTCG > Rs.1 lakh arising from such 10%. Such LTCG will be computed without inflation indexation. The benefit of computation of capital gains in foreign currency in the case of a non-resident will also not be allowed. Cost of acquisition for such capital assets acquired 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 (FMV) of such asset; and full value of consideration received on transfer of such capital asset. FMV means In case of listed security: Highest quoted price on 31st January 2018 However, where the security is not traded on 31st January 2018, the highest quoted price of such security on a date immediately preceding 31st January 2018 when such security was traded In case of unlisted security: Net asset value of such security as on 31st January 2018 Equity oriented fund means a fund set up under a scheme of a mutual fund specified u/s. 10(23D) and In a case where the fund invests in the units of another fund which is traded on a recognized stock exchange- Minimum of 90% of total proceeds of such funds is invested in units of such other fund; and such other fund also invests a minimum of 90% of its total proceeds in equity shares of domestic companies listed on recognized stock exchange; and In any other case, a minimum of 65% of total proceeds of such fund is invested in equity shares of domestic companies listed on recognized stock exchange. Similar treatment to be extended to Foreign Institutional Investors (FII) (S.115AD) In case of non-residents / foreign companies, TDS to be 10% on such LTCG. 31
32 CAPITAL GAINS TAX NEUTRAL TRANSFERS [S.56] Currently, S.56 taxes receipts without adequate consideration subject to certain exclusions. Such exclusions include certain transactions not regarded as transfer u/s. 47 for the purpose of capital gains tax. Transfers between a wholly owned subsidiary company & its holding company were earlier not considered in such exclusions. It is now proposed to exclude such transfers between a wholly owned subsidiary company & its holding company from the scope of S.56. RESTRICTING SCOPE OF EXEMPTIONS FROM LTCG [S.54EC] Currently, capital gains arising from transfer of any long-term capital asset are exempt from tax if the same are invested within a period of 6 months of such transfer in the long-term specified asset, being any bond, redeemable after 3 years and issued by the National Highways Authority of India (NHAI) or by the Rural Electrification Corporation Limited (RECL); or any other bond notified by the Central Government in this behalf. It is proposed to: restrict this exemption only to capital gains arising from long-term capital assets, being land or building or both and increase tenure of the bonds from 3 years to 5 years. MEASURES TO PROMOTE INTERNATIONAL FINANCIAL SERVICES CENTER (IFSC) [S.47, S.115JC, S.115JF] It is proposed that transactions in following assets by a non-resident on a recognized stock exchange located in any IFSC shall not be treated as transfer if consideration is paid or payable in foreign Currency: Bond or Global Depository Receipt, as referred to in S.115AC(1), or Rupee denominated bond of an Indian company, or Derivative Currently, Alternate Minimum Tax (AMT) is 18.50% of adjusted total income in the case of a non-corporate person. It is proposed that rate of AMT for a unit located in IFSC shall 9%. 32
33 CAPITAL GAINS TAX TREATMENT OF TRANSACTIONS IN RESPECT OF TRADING IN AGRICULTURAL COMMODITY DERIVATIVES [S.43(5)] It is proposed that trading in agricultural commodity derivatives on a recognized stock exchange shall not be treated as a speculative transaction even if no Commodities Transaction Tax (CTT) has been paid in respect of those derivative transactions. PROVISIONS RELATING TO COMMODITY TRANSACTION TAX [S.116, S. 117, S.118 of Finance Act, 2013] Currently, CTT is 0.01% of price at which the commodity derivative is traded (in respect of commodities, other than agricultural commodities, traded in recognised association) which is payable by the seller. It is proposed to levy CTT on sale of an option on commodity derivatives as under: SR. NO. TAXABLE COMMODITIES TRANSACTION RATE VALUE PAYABLE BY 1. Sale of an option on commodity derivative 0.05% the option premium Seller 2. Sale of an option on commodity derivative, where option is exercised % the settlement price Purchaser [w.e.f. AY ] 33
34 DIVIDEND
35 DIVIDEND DEEMED DIVIDEND & DDT THEREON [S.2(22), Chapter XII-D of Income Tax Act,1961, S.115-O] Currently, distribution of accumulated profits (whether capitalized or not) to its shareholders by a company is Deemed Dividend for purpose of income tax whether it is in the nature of a) release of all or any of its assets, b) issue of debentures in any form (with or without interest) or distribution of bonus to its preference shareholders, c) distribution of proceeds on liquidation, d) on the reduction of capital, or e) in the case of an unlisted company, any loan or advance given to a shareholder having shareholding of 10% or above, or to a concern in which such shareholder holds substantial interest (> 20% of shareholding or interest) or any payment by such company on behalf of or for the individual benefit of such shareholder. Currently, accumulated profits for this purpose, is defined as all profits of the company up to the date of distribution or payment or liquidation, subject to certain conditions With a view to prevent the abusive arrangement by companies with large accumulated profits of adopting the amalgamation route to reduce capital and circumvent deemed dividend, it is proposed that in the case of an amalgamated company, accumulated profits, whether capitalised or not, or losses, as the case may be, shall be increased by the accumulated profits of the amalgamating company, whether capitalized or not, on the date of amalgamation. [w.e.f. AY ] Currently, deemed dividend u/s. 2(22)(e) [mentioned in point (e) above] is taxed in the hands of the recipient at the applicable marginal rate. It is proposed to bring such deemed dividend at par with the taxation of other dividend/ deemed dividends, whereby such deemed dividend would be exempt in the hands of recipient and would be subject to dividend distribution tax (DDT) u/s. 30% (without grossing up) [w.e.f ] 35
36 DIVIDEND DDT ON DIVIDEND PAYOUTS TO UNIT HOLDERS IN AN EQUITY ORIENTED FUND [S.115R] Currently, any income distributed to a unit holder by Mutual Fund being, an equity oriented fund, is not subject to DDT. DDT Rates Payable (by MF) Current Type of Mutual Fund Individual / HUF Any Other Person Non Resident Individual Company Equity Oriented Schemes (*) Nil Nil Nil Nil Money Market Mutual Fund or Liquid fund 25% 30% 25% 30% Other Funds 25% 30% 25% 30% Infrastructure Debt Fund 25% 30% 5% 5% (*) It is proposed that any income distributed by a Mutual Fund being, an equity oriented fund, the mutual fund will be subject to 10% on income so distributed. For this purpose, equity oriented fund will have the same meaning assigned to it in the new S.112A as discussed above. [w.e.f ] 36
37 INTERNATIONAL TAX & TRANSFER PRICING
38 INTERNATIONAL TAX & TRANSFER PRICING ALIGNING SCOPE OF BUSINESS CONNECTION WITH MODIFIED PE RULE AS PER MULTILATERAL INSTRUMENT (MLI) [Explanation 2(a) to S. 9(1)(i)] Income of a non-resident through or from a Business Connection in India is deemed to accrue or arise in India. A Business Connection is defined to include any business activity carried out through a person who, acting on behalf of a nonresident, has and habitually exercises in India, an authority to conclude contracts on behalf of the non-resident To align the scope of business connection with the provisions of DTAAs, as modified by MLI, it is proposed that Business Connection shall, in addition to the above, include any business activity carried through a person who, acting on behalf of the non-resident: habitually concludes contracts or habitually plays the principal role leading to conclusion of contracts by that non-resident and the contracts are in the name of the non-resident; or for the transfer of the ownership of, or for the granting of the right to use, property owned by that non-resident or that the nonresident has the right to use; or for the provision of services by that non-resident Scope of Business connection expanded to include Significant Economic presence [New Explanation 2A to S.9(1)(i)] Currently, S.9(1)(i) provides for physical presence based nexus or existence of a Dependent Agent for taxation of business income of a non-resident in India resulting in exclusion of emerging business models such as digitized businesses which do not require physical presence of itself or any agent in India In line with the OECD BEPS Action Plan 1, to address tax challenges in a digital economy, it is proposed: To expand the scope of business connection to include significant economic presence in the form of: any transaction in respect of any goods, services or property carried out by a non-resident in India including provision of download of data or software in India if the aggregate of payments arising from such transactions during the year exceeds a prescribed amount; or systematic and continuous soliciting of business activities or engaging in interaction with such number of users as may be prescribed, in India through digital means whether or not the non-resident has a residence or place of business in India or renders services in India that only so much of income as is attributable to such transactions or activities shall be deemed to accrue or arise in India 38
39 INTERNATIONAL TAX & TRANSFER PRICING PROVISIONS OF MAT NOT APPLICABLE FOR FOREIGN COMPANIES HAVING CERTAIN INCOMES [Explanation 4A to S.115JB] It is proposed to clarify that provisions of MAT shall be deemed never to have been applicable to foreign companies whose total income comprises solely of profits & gains from business referred to in: S.44B Shipping business S.44BB Exploration etc. of mineral oils S.44BBA Operation of aircrafts S.44BBB Civil Construction etc. in certain turnkey power projects and such income has been offered to tax at specified rates [w.r.e.f. AY ] RATIONALISATION OF PROVISIONS RELATING TO COUNTRY-BY-COUNTRY REPORT (CbCR) [S.286] To improve effectiveness & reduce compliance burden, due date of furnishing CbCR for obligated entities is proposed to be extended to 12 months from end of reporting accounting year It is proposed that a constituent entity resident in India, having a non-resident parent, shall also furnish CbCR in case its parent entity outside India has no obligation to file CbCR in the latter s country or territory It is proposed that due date for furnishing of CbCR by Alternate Reporting Entity (ARE) of an international group, the parent entity of which is outside India, with tax authority of country or territory of which it is resident, will be the due date specified by that country or territory [w.r.e.f. AY ] 39
40 RETURNS PROCESSING & ASSESSMENT PROCEDURES
41 RETURNS PROCESSING & ASSESSMENT PROCEDURES ADJUSTMENTS DURING PROCESSING RETURN OF INCOME [S.143(1)(a)] Currently, at the time of processing of returns, the total income or loss is computed after adjusting, inter alia, addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return. It is proposed to remove the aforesaid adjustment in respect of returns furnished for AY and onwards. [w.e.f. AY ] NEW SCHEME FOR SCRUTINY ASSESSMENT [New S.143 (3A) / (3B) / (3C)] To impart greater transparency & accountability, eliminate interface between Assessing Officer & assessee, for optimal utilization of resources & introduction of team-based assessment, it is proposed to notify: a new scheme for electronic scrutiny assessments any provisions of the Act relating to assessment that shall not apply, or shall apply with exceptions, modifications and adaptations, in this regard (provided that no direction shall be issued for this purpose after ) Every notification in this regard shall be placed before each House of Parliament, as soon as may be. [w.e.f ] 41
42 PENALTY & PROSECUTION
43 PENALTY & PROSECUTION PENALTY FOR FAILURE TO FURNISH STATEMENT OF FINANCIAL TRANSACTION OR REPORTABLE ACCOUNT [S.271FA] Failure to furnish statement u/s. 285BA(1) within prescribed time Failure to furnish statement within time specified in notice issued u/s. 285BA(5) Current Rs.100 for every day of default Rs.500 for every day of default Proposed Rs.500 for every day of default Rs.1,000 for every day of default [w.e.f ] PROSECUTION FOR FAILURE TO FURNISH RETURN [S.276CC] S.276CC provides for prosecution of any person in case of willful delay in furnishing return of income except in cases where tax payable by him, as reduced by advance tax & TDS is < Rs.3,000/-. It is proposed to withdraw this exception in case of a company. [w.e.f ] 43
44 Disclaimer: Information in this document is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Khimji Kunverji & Co, Chartered Accountants, accepts no responsibility for loss arising from any action taken or not taken by anyone using this document. Readers of this document are advised to seek their own professional advice before taking any course of action or decision, for which they are entirely responsible, based on the contents of this document. We neither accept nor assume any responsibility or liability to any reader of this document in respect of the information contained within it or for any decisions readers may take or decide not to or fail to take. This document is meant for private circulation only. Khimji Kunverji & Co Level 19, Sunshine Tower Senapati Bapat Marg Elphinstone Road Mumbai INDIA T: E: info@kkc.in W: sounding BOARD for sound solutions 44
CA. PRAMOD JAIN. B. COM (H), FCA, FCS, FCMA, LL.B, MIMA, DISA Shared at Laxmi Nagar CPE Study Circle of NIRC of ICAI 16 th February 2018
Union Budget 2018 CA. PRAMOD JAIN B. COM (H), FCA, FCS, FCMA, LL.B, MIMA, DISA Shared at Laxmi Nagar CPE Study Circle of NIRC of ICAI 16 th February 2018 INCOME TAX PROPOSALS TAX RATES No change in tax
More informationBudget Highlights
Budget Highlights 2018-19 DIRECT TAX PROPOSALS Chartered Accountants 1 st Floor, Sapphire Business Centre, Above SBI Vadaj Branch, Usmanpura, Ashram Road, Ahmedabad-380013 Email: apcca@apcca.com Website:
More informationLedger Services Private Limited Union Budget 2018 Inside Finance Bill
Key Policy Announcements in Budget 2018 Agriculture and Rural Economy Health, Education and Social Protection MSME & Employment Page 1 Page 2 Ledger Services Private Limited UNION BUDGET 2018 1. Direct
More informationPROPOSED AMENDMENTS FOR INCOME TAX IN FINANCE BILL, 2018 - By PARAS KOCHAR, Advocate NO CHANGE IN PERSONAL INCOME TAX. Education Cess and Secondary and Higher Education Cess shall be discontinued and a
More informationINCOME TAX. BUDGET ANALYSIS All right Reserved with Bizsolindia Services Pvt. Ltd.
INCOME TAX 2 (22) 1 st April 2018 2 (24) & 28, 49 1 st April 2019 2 (24) & 56 1 st April 2019 Definition of Dividend for the purpose of taxation on distribution Definition of Income and Income from Business
More informationJAYESH SANGHRAJKA & CO. LLP CHARTERED ACCOUNTANTS
Income Tax Rates Applicable for Financial Year 2018-19 Status of Person Rate of Income Tax 1.Individual/HUF a. Income: Upto Rs. 2,50,000 Nil b. Income: Rs. 2,50,001 to Rs. 5,00,000 5% c. Income: Rs. 5,00,001
More informationINDIA BUDGET
INDIA BUDGET 2018-19 Author Jairaj Purandare Tags Budget Business Connection Capital Gains India Investment Activity Tax Policy INTRODUCTION All eyes were set on the Indian Finance Minister on February
More informationAmendment to w.e.f. Assessment Year under Income Tax Act.
Amendment to w.e.f. Assessment Year 2019 2020 under Income Tax Act. Section 2(24) The following amendments have been made to the definition of income under section 2(24) with effect from the assessment
More informationW S & Co. Contact us FCA Shipra Walia Domestic & International Tax Advisor
Contact us FCA Shipra Walia Domestic & International Tax Advisor www.wsco.in www.shiprawalia.in mail:info@wsco.in Individuals, HUF, AOP, BOI 1. No change in Tax Rate (a) For a resident senior citizen (who
More informationUNION BUDGET 2018 AMENDMENTS
INCOME TAX RATES UNION BUDGET 2018 AMENDMENTS FOR INDUVIDUALS, HUF, AOP AND BOI Total Income up to 2,50,000 - NIL Total Income from 2,50,000 to 5,00,000-5% Total Income from 5,00,000 to 10,00,000-20% Total
More informationInterim Union Budget 2019 & Important changes for AY CA. PRAMOD JAIN B. COM (H), FCA, FCS, FCMA, LL.B, MIMA, DISA, IP
Interim Union Budget 2019 & Important changes for AY 2019-20 CA. PRAMOD JAIN B. COM (H), FCA, FCS, FCMA, LL.B, MIMA, DISA, IP Shared at Nehru Place CPE Study Circle of NIRC of ICAI 7 th February 2019 INCOME
More informationFinance Bill Understanding certain impacts. A j i n k ya J a g o j e Pa r t n e r abm & associates LLP Chartered Accountants
Finance Bill 2018 - Understanding certain impacts A j i n k ya J a g o j e Pa r t n e r abm & associates LLP Chartered Accountants 1 Introduction The national budget must be balanced. The public debt must
More informationTHE UNION BUDGET Select Direct Tax Proposals
THE UNION BUDGET 2018-19 Select Direct Tax Proposals By B. D. JOKHAKAR & CO. Chartered Accountants 8, Ambalal Doshi Marg, Raja Bahadur Mansion, Fort, Mumbai 400 001 INDEX Sr. No. Particulars Pg. No. 1.
More informationMajor direct tax proposals in Finance Bill, 2017
Major direct tax proposals in Finance Bill, 2017 Member firm Individual, HUF, BOI, AOP, AJP Tax Rates There is no change in the basic exemption limit for individuals/hufs. It is proposed to reduce the
More informationTax Rates and Tax Tables 1. Tax Rates
Tax Rates and Tax Tables 1. Tax Rates The proposed tax rates for the next financial year 2018-19 are given in following tables. The rate of tax in case of every individual whether he is below the age of
More informationFINANCE BILL, 2018 PROVISIONS RELATING TO DIRECT TAXES. Introduction
FINANCE BILL, 2018 PROVISIONS RELATING TO DIRECT TAXES Introduction The provisions of Finance Bill, 2018 relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act')
More informationJ.B.Nagar Study Circle. ISSUES ON AMENDMENTS IN INCOME TAX ACT, 1961 applicable for AY Meeting on 16 th March, 2019
J.B.Nagar Study Circle ISSUES ON AMENDMENTS IN INCOME TAX ACT, 1961 applicable for AY 2019 20 Meeting on 16 th March, 2019 CA Jayesh J Shah, JMT & ASSOCIATES 1. Relevant Amendments in brief applicable
More informationBeing good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art.
Chartered Accountant Being good in business is the most fascinating kind of art. Making money is art and working is art and good business is the best art. -Team RSA 1 GUIDE TO BUDGET 2018 Direct Tax &
More informationBUDGET SIGNIFICANT PROPOSALS IN BRIEF GENERAL
2018 BUDGET SIGNIFICANT PROPOSALS IN BRIEF GENERAL INDEX Sr. No. Particulars Page No. HIGHLIGHTS OF FINANCE BUDGET 2018 3-7 DIRECT TAX A Rates of Income Tax 8-10 B Widening and Deepening of Tax Base 11
More informationTAX RECKONER
TAX RECKONER 2018-19 The rates are applicable for the Financial Year 2018-19 (AY 2019-20) and subject to enactment of the Finance Bill, 2018 Note: The tax rate card will be re-visited post enactment of
More informationTotal turnover/ Gross receipts 30% 30% of FY > Rs 50 Cr No change in rate of Surcharge
1. Income Tax Rates: Category of Income New rate of tax Old rate Taxpayer for FY 2017-18 of tax Individuals/ Upto Rs 2.5 L Nil Nil HUF/ BOI/ Rs 2.5 to 5 L 5% 10% AOP/ Rs 5 to 10 L 20% 20% Artificial Above
More informationThe Finance Act, the finer aspects
The Finance Act, 2018 - the finer aspects P a g e 1 The Finance Act, 2018 has been enacted and is operative from April 1, 2018. From live screening to the Finance Bill, 2018 till its enactment and thereafter,
More informationINDIA UNION BUDGET 2018
INDIA UNION BUDGET 2018 A Synopsis Significant budgetary proposals, Flat 1109, New Delhi House 27 Barakhamba Road, New Delhi 110001 Ph: + 91 11 23313016; 41511495-96 Email: vsa@vsasso.com Website: http://www.vsasso.com
More informationFB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment
FB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment Year 2014-15 - SIPOY SATISH Highlights of Change in Direct Taxes in the Union Budget 2013 1. Rate of Income Tax for Individual a) Slab Rate Assessment
More informationFINANCE BILL 2017-DIRECT TAX PROPOSALS AT GLANCE
FINANCE BILL 2017-DIRECT TAX PROPOSALS AT GLANCE COMPILED BY: CA.ARUN GUPTA ca.arungupta77@gmail.com A. Rates of Taxes: 1. It is proposed to make the following changes in tax rates: In case of Resident
More informationUnion Budget 2014 Analysis of Major Direct tax proposals
RATES OF INCOME TAX Union Budget 2014 Analysis of Major Direct tax proposals Basic exemption limit has been increased from Rs 2 lacs to Rs 2.50 lacs for resident individuals or HUF. Income slabs Income
More informationThe Indian Union Budget Foreword
INDIAN UNION BUDGET The Indian Union Budget 2018 - Foreword INDIAN FINANCE BUDGET 2018 The Finance Minister had a tough balancing act in the Budget of 2018 ahead of the national elections in May 2019.
More information(60-79 YEARS) NIL up to 250,000 up to 300,000 up to 500,000 20% 500,001 10,00, ,001 10,00, ,001 10,00,000
Income Tax Rates (A. Y. 2019-20) For Individual/HUF : TAX RATE INDL/HUF/WOMEN SENIOR CITIZEN (60-79 YEARS) VERY SENIOR CITIZEN (80 YEARS ABOVE) NIL up to 250,000 up to 300,000 up to 500,000 5% 250,001
More informationIncome Tax Proposals
Indian Union Budget 2018 An Analysis of Income Tax Proposals Analysis by CA. Tejas K. Andharia B. COM, F.C.A., D.I.S.A.(ICAI), D.I.R.M.(ICAI) Bhavnagar, Gujarat Email: tejasinvites@gmail.com About the
More informationUnion Budget. Flight Towards Better Tomorrow
Union Budget 2018 ` Flight Towards Better Tomorrow FOREWORD For the last couple of years, we have mentioned that with the current government, the budget could not be seen as a one day or a one year event,
More informationWeb:
PRESENTED ON 1st FEB 2017 HIGHLIGHTS 1 A Rates of Income-tax Rates of income-tax in respect of income liable to tax for the assessment year 2017-18. Rates for deduction of income-tax at source during the
More informationSUPPLEMENTARY STATUTORY UPDATES PAPER - 7 [DIRECT TAXATION] [INTERMEDIATE] AND PAPER - 16 [DIRECT TAX LAWS AND INTERNATIONAL TAXATION] [FINAL]
SUPPLEMENTARY STATUTORY UPDATES PAPER - 7 [DIRECT TAXATION] [INTERMEDIATE] AND PAPER - 16 [DIRECT TAX LAWS AND INTERNATIONAL TAXATION] [FINAL] Clarification related to guidelines for establishing 'Place
More informationAs proposed in The Finance Bill, 2017 introduced by Finance Minister of India on 1 st February, 2017.
Budget 2017-18 Highlights for Non-Residents As proposed in The Finance Bill, 2017 introduced by Finance Minister of India on 1 st February, 2017. The Indian Budget has provisions affecting the taxability
More informationSalient features of Direct Tax Proposals of Union Budget 2011
Salient features of Direct Tax Proposals of Union Budget 2011 RATES OF INCOME-TAX FOR THE ASSESSMENT YEAR 2012-13 o Tax slab rates have been changed for individuals and HUF, which is given by way of a
More informationThemes of the Budget
1 Direct Taxes 1. Rates of Income-Tax 1.1 No change in Income Tax Slabs and tax rate for Individuals. HUF, Firms, Co-operative Societies. 1.2 Lower rate of tax at 25% for Companies having turnover upto
More informationBudget 2017 Synopsis Part II Analysis of Rupiya
Budget 2017 Synopsis Part II Analysis of Rupiya Facts & Findings: Out of 125 crore Indians only 15% ie 19 crore pay income tax % of Taxpayers (Out of 19 Crore) % Contribution To Tax Revenue 01% 26% 1%
More informationDeveloping Strategies
Developing Strategies India Budget 2018 Analysis of Tax Changes Impact on Business Contents Foreword... 2 Budget Highlights... 3 Policy and Regulatory Framework... 3 Income Tax... 3 Indirect Taxes... 6
More informationSURENDER KR. SINGHAL & CO
PROPOSED TAX RATES FOR FINANCIAL YEAR 2016-17 A. Y. 2017-18 Income Tax Rates for Individuals, HUF Individuals, Hindu Undivided Families (HUF) and Artificial Jurisdictional Person: Net Income Range Income
More informationUNION BUDGET Santhappa & Co., Chartered Accountants
UNION BUDGET 2018 Santhappa & Co., Chartered Accountants BUDGET 2018 INTRODUCTION ECONOMIC SURVEY DIRECT TAXES SLAB RATES FOR INDIVIDUALS/HUF AND COMPANIES INCOME FROM SALARIES INCOME FROM BUSINESS OR
More informationIssues in Taxation of Income (Non-Corporate)
Issues in Taxation of Income (Non-Corporate) By CA Mahavir Jain B.Com.; DISA; FCA Partner : JMT & Associates Email: jmtca301@gmail.com Issues in Taxation of Non-Corporate Income is a very vast subject.
More informationARTICLE. On Finance Bill (Budget) Proposals 2013 Income Tax Act, 1961 By CA. SATISH AGARWAL
ARTICLE On Finance Bill (Budget) Proposals 0 Income Tax Act, 96 By CA. SATISH AGARWAL Mobile : +99808957 Phone : +95769 Office : 9/4, East Patel Nagar, (Near Jaypee Sidharthe Hotel) New Delhi - 0008 :
More informationCHANGES IN INCOME TAX BY UNION BUDGET 2017
CHANGES IN INCOME TAX BY UNION BUDGET 2017 CA SOHRABH JINDAL The Hon ble Finance Minister has announced the Union Budget 2017 on 1-2-2017. There are various changes in Law related to Income Tax. I have
More informationFINANCE BILL He has proposed to revise the tax slabs upwards as under:
FINANCE BILL - 2010 The 2 nd budget of the 2 nd UPA Government for the year 2010 2011 was presented by the finance minister on 26 th February 2010. The finance minister has attempted to balance his direct
More informationEXPLANATORY NOTES THE PROVISIONS OF THE FINANCE ACT, 2018
F. No. 370142/07/2018-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) CIRCULAR No.-Z/2018 **** Dated, the 26 th of December, 2018 EXPLANATORY NOTES TO
More informationCA Final Paper 7 Direct Tax Laws Ch13 Unit1 CA Sudhindra Kumar Jain
CA Final Paper 7 Direct Tax Laws Ch13 Unit1 CA Sudhindra Kumar Jain 2 Definition Section 2(17) In Which Public Are Substantially Interested Section 2(18) Indian Company Section 2(26) Domestic Company Section
More informationFINANCE (NO.2) ACT, 2014 EXPLANATORY NOTES TO THE PROVISIONS OF SAID ACT AMENDMENTS AT A GLANCE
FINANCE (NO.2) ACT, 2014 EXPLANATORY NOTES TO THE PROVISIONS OF SAID ACT Section/Schedule CIRCULAR NO.1/2015 [F.NO.142/13/2014 TPL], DATED 21 1 2015 AMENDMENTS AT A GLANCE Finance (No.2) Act, 2014 First
More informationMAJOR Income Tax Proposals in UNION BUDGET 2017
MAJOR Income Tax Proposals in UNION BUDGET 2017 LUNAWAT & CO. Chartered Accountants 3 rd February 2017, Nehru Place CA. PRAMOD JAIN FCA, FCS, FCMA, LL.B, MIMA, DISA THE CRUX TIMELY FILING OF RETURNS No
More informationCNK & Associates LLP. Budget 2018 Analysis
CNK & Associates LLP Budget 2018 Analysis CONTENTS Sr. No. Particulars Pg. No. FOREWORD 4 DIRECT TAX A. TAX RATES 5 1 Income Tax Rates for AY 2019-20 5 B. INCOME FROM SALARIES 7 1 Standard Deduction Revived
More informationEXPLANATORY NOTES TO THE PROVISIONS OF THE FINANCE(No.2) ACT, 2014
CIRCULAR NO. 01/2015 F. No. 142/13/2014-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) ******* Dated, the 21st January, 2015 EXPLANATORY NOTES TO THE
More informationBudget Presented For: Klaus Vogel Group Presented By: Mr. Kuntal Dave Date: March 8, 2013
Budget 2013 Presented For: Klaus Vogel Group Presented By: Mr. Kuntal Dave Date: March 8, 2013 Index Direct Tax Proposals Implications of amendments proposed in the Finance Bill, 2013 2 Direct Tax Proposals
More informationTax Deduction at Source FY (AY )
Tax Deduction at Source FY 2017-18 (AY 2018-19) CA Pranjal Joshi M.com, F.C.A., DipIFR (ACCA-UK), Cert. Business Valuation (ICAI) M/s Pranjal Joshi & Co Chartered Accountants TDS introduction - Income
More informationAs proposed in The Finance Bill, 2016 introduced by Finance Minister of India on 29th February, 2016.
1 Budget 2016-2017 Highlights for Non-Residents As proposed in The Finance Bill, 2016 introduced by Finance Minister of India on 29th February, 2016. The Indian Budget presented by the Finance Minister
More informationBudget 2018 An overview. CA C Ramadurai FCA Membership no Chartered Accountant
Budget 2018 An overview Membership no 027220 Chartered Accountant Finance Bill 2018 Analysis of Direct Tax amendments By CA Chandrasekaran Ramadurai M.Com; FCA; ACMA Chartered Accountant Insolvency Professional
More informationRates of Taxes. Rates for deduction of Income
CA Mohan S. Phadke Rates of Taxes I. Rates of Income Tax in respect of income liable to tax for the assessment year 2013-14 a) In respect of income of all categories of assessees liable to tax for the
More informationFinance Bill, 2015 Direct Tax Highlights
Finance Bill, 2015 Direct Tax Highlights Bansi S. Mehta & Co. All the following amendment are made effective from Assessment Years 2016-17, unless specifically mentioned otherwise. I - Residential Status,
More informationAnalysis of Tax Proposals under Union. Budget B K Ramadhyani & Co. LLP Chartered Accountants
Analysis of Tax Proposals under Union Budget 2016 B K Ramadhyani & Co. LLP Chartered Accountants TABLE OF CONTENTS 1. Direct tax proposals a. Individuals and HUFs b. Partnership firms c. Corporates d.
More informationBasics of Income Tax
CHAPTER : Basics of Income Tax CONCEPT 1: Short Title, Extent and Commencement [Section 1] a) Short title : Income Tax Act 1961 b) Extent : Whole of India c) Commencement : 1 st April, 1962 CONCEPT 2:
More informationIMPORTANT AMENDMENTS OF THE FINANCE ACT, /6/2011 Lecture Meeting of BCAS - C.A.Vipul Gandhi
IMPORTANT AMENDMENTS OF THE FINANCE ACT,2010 22/6/2011 Lecture Meeting of BCAS - C.A.Vipul Gandhi 1 TAX RATES AND SLABS OF INCOME TAX RATES FOR INDIVIDUAL,HUF,AOP & BOI, ARTIFICIAL JUDICIAL PERSON U/S
More informationThe Chamber of Tax Consultants
The Chamber of Tax Consultants Proposals in the Finance Bill - 2018 Praful Poladia 15 Contents: Individual taxation Standard deduction on salary income Enhanced deductions to senior citizens Tax-free withdrawal
More informationDecoding thoughts behind the fiscal move. INDIA BUDGET Key Aspects THE POWER OF BEING UNDERSTOOD
Decoding thoughts behind the fiscal move INDIA BUDGET 2018 - Key Aspects THE POWER OF BEING UNDERSTOOD RSM IN INDIA RSM India (comprising of RSM Astute Consulting Group and affiliates) is consistently
More informationINDIA BUDGET 2016 SUMMARY OF IMPORTANT PROPOSED AMENDMENTS.
INDIA BUDGET 2016 SUMMARY OF IMPORTANT PROPOSED AMENDMENTS. Income Tax Amendment - Personal SN Description Impact Author remarks 1 For Income more than one crore surcharge Negative More tax from super
More informationKey Highlights - India Budget 2018
Key Highlights - India Budget 2018 Habibullah & Co. Chartered Accountants India hcoca.com Foreword CA. Vivek Agarwal Managing Partner This Budget is expected to be the last of the Modi Government prior
More informationICDS Impact on Computation of Income
ICDS Impact on Computation of Income Ajinkya Jagoje Partner abm & associates LLP Chartered Accountants 1 Background in brief Introduction ICDS notified by Central Government (CG) as a delegated legislation
More informationCHAPTER 1: BASIC CONCEPTS AND CALCULATION OF INCOME TAX
CHAPTER 1: BASIC CONCEPTS AND CALCULATION OF INCOME TAX (1) TAX RATES FOR INDIVIDUAL, HUF, AOP, BOI AND AJP: The slabs rates for the AY 2018-2019 i.e. PY 2017-2018 are as follows: Total Income Range Basic
More information2.f List of benefits available to Small Businessmen [AY ] S.N. Particulars Section Benefits/Deductions allowed
2.f List of benefits available to Small Businessmen [AY 2017 18] S.N. Particulars Section Benefits/Deductions allowed A. Presumptive Taxation Scheme 1. Computation of income from eligible business on presumptive
More informationINCOME-TAX AND BASED ON FINANCE ACT, FINANCE ACT, 2007 WITH NOTES 49 I.T. NOTES 69 I.T. NOTES 97 I.T. NOTES I.T. NOTES 139 I.T.
EHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA S ITRR VG.G.MEHTA S ITRR V.G.MEHTA S ITRR V.G.MEHTA
More informationA BUDGET FOR A Y From the desk of - B.L. Tulsian Advocate. R. Tulsian & Co LLP Chartered Accountants.
A BUDGET A N A L Y S I S FOR A Y 2020-21 From the desk of - B.L. Tulsian Advocate R. Tulsian & Co LLP Chartered Accountants www.rtulsian.com Page2 Contents Amendment of Section 16... 3 Amendment to Section
More informationTaxation of dividends of mutual fund schemes. Liquid funds 25.75% 28.32% Other debt funds. Equity funds Nil Nil
8 Tax Corner Tax Corner Mutual Fund What tax benefits are available to those who invest in mutual funds? Dividends declared by debt-oriented mutual funds (i.e. mutual funds with less than 65% of assets
More informationFINAL CA May 2018 DIRECT TAXATION
FINAL CA May 2018 DIRECT TAXATION Test Code F 90 Branch: MULTIPLE Date: (50 Marks) compulsory. Note: All questions are Question 1 (10 marks) Computation of Book Profit for levy of MAT under section 115JB
More informationSALIENT FEATURES OF THE FINANCE BILL, [Relating to Direct Taxes]
SALIENT FEATURES OF THE FINANCE BILL, 2013 1 [Relating to Direct Taxes] Published in 351 ITR (Journ.) p.61 (Part-5) - By S.K. Tyagi The Finance Bill, 2013, or the Union Budget, 2013-14, was presented in
More informationIncome Tax Changes made in Income Tax Provisions in the Union Budget which would affect Salaried Class
Income Tax 2013-14 Changes made in Income Tax Provisions in the Union Budget 2013-14 which would affect Salaried Class A. RATES OF INCOME-TAX I. Rates of income-tax in respect of income liable to tax for
More informationUNION BUDGET
UNION BUDGET 2017-18 Hon ble Prime Minister Narendra Modi has shown his determination to come heavily on tax evaders. He has also shown his commitment to eliminate high value cash transactions from the
More informationA DISCUSSION PAPER ON CHAPTER III DIRECT TAXES OF FINANCE BILL, 2017 FEBRUARY 2017.
A DISCUSSION PAPER ON CHAPTER III DIRECT TAXES OF FINANCE BILL, 2017 FEBRUARY 2017. By CA. V. Vivek Rajan, B. Com, ACA Introduction- Thanking everyone for the response to our Discussion Paper of 2016 The
More informationINCOME TAX. -COPY OF- CIRCULAR NO.19/2015 Dated 27 th November, 2015
INCOME TAX -COPY OF- CIRCULAR NO.19/2015 Dated 27 th November, 2015 F.No.142/14/2015-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) New Delhi ** ** **
More informationCHANGES IN 3CD TAX AUDIT REPORT FOR THE A.Y
CHANGES IN 3CD TAX AUDIT REPORT FOR THE A.Y. 2013-2014 AMENDMENTS IN FINANCE ACT, 2012 HAVING IMPACT ON TAX AUDIT REPORT Rule 12 From A.Y. 2013-14 inter-alia e-filing of Audit Reports u/s. 44AB (Tax Audit
More informationNotes on clauses.
52 Notes on clauses Clause 2, read with the First Schedule to the Bill, seeks to specify the rates at which income-tax is to be levied on income chargeable to tax for the assessment year 2009-2010 Further,
More informationINDIAN INTERIM BUDGET
INDIAN INTERIM BUDGET The Indian Interim Budget 2019 - Foreword INDIAN INTERIM BUDGET 2019 The Finance Minister in his Interim Budget for Fiscal Year 2019-2020 ahead of the national elections in May 2019,
More informationIncomes Which Do Not Form Part of Total Income
3 Incomes Which Do Not Form Part of Total Income Section Key Points Particulars 10(1) Agricultural income is exempt under section 10(1). However, agricultural income has to be aggregated with non-agricultural
More informationRECENT AMENDMENTS MADE BY
RECENT AMENDMENTS MADE BY FINANCE ACT, 2016 PREPARED BY CA. SATISH MANGAL [Ph: 93506-47377] (M.COM. F.C.A., LL.B) SATISH MANGAL SMC (Ph.: 9350647377) INDEX FOR CONTENTS INDEX FOR CONTENTS (FINANCE ACT,
More informationBudget 2017 Important Tax Implications on Saturday, 18th February, 2017 at WIRC, BKC. CA Pritin Kumar CA Vishal Palwe CA Utpal Doshi
Budget 2017 Important Tax Implications on Saturday, 18th February, 2017 at WIRC, BKC CA Pritin Kumar CA Vishal Palwe CA Utpal Doshi 1 Corporate Taxation Corporate tax rate card Corporate tax rate Proposed
More informationIncome Tax Reckoner AY:
1. Rates of Income Tax Individuals having income > 5 Lacs* Individuals & Charitable Trust Senior Citizen (60 to 79) Very Senior citizen (80 and above) Rates Up to ` 2.00 Lacs Up to ` 2.50 Lacs Up to `
More informationDirect Taxation FINANCE ACTS Applicable for Section 87A
1. Benefits to small tax payers Direct Taxation PARTICULARS PREVIOUS FINANCE ACTS FINANCE ACT,2016 APPLICABILITY Rebate under 2000 5000 Applicable for Section 87A income below 5 lakhs Deduction under 2000
More informationFinance (No. 2) Bill 2014
Finance (No. 2) Bill 2014 Proposed Income Tax Amendments Mr. R.N. LAKHOTIA Leading Income Tax Consultant & Author The Finance Minister presented the Finance (No.2) Bill 2014 along with the Union Budget
More informationBrief Note on Provisions of Section 194A(3)(v) relating to Co-operative Banks
Brief Note on Provisions of Section 194A(3)(v) relating to Co-operative Banks Section 194A of the Income-tax Act, 1961 ( the Act ) was introduced through the Finance Act, 1967 with effect from 1 st April,
More informationINCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
3 INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME Question 1 Choose the correct answer with reference to the provisions of the Income-tax Act, 1961. (i) For an employee in receipt of hostel expenditure
More informationDIRECT TAX PROPOSALS OF UNION BUDGET 2012
DIRECT TAX PROPOSALS OF UNION BUDGET 2012 WWW.ITRVAULT.IN ITR VAULT is your one stop solution to store, save, extract, send and print all your important documents. Searching for the required documents
More informationINCOME TAX PROPOSALS in UNION BUDGET 2017
INCOME TAX PROPOSALS in UNION BUDGET 2017 LUNAWAT & CO. Chartered Accountants 10 th February 2017, Bhiwani CA. PRAMOD JAIN FCA, FCS, FCMA, LL.B, MIMA, DISA THE CRUX TIMELY FILING OF RETURNS No exemptions
More informationHighlights of Budget Proposals
A) Income Tax Highlights of Budget Proposals Ambalal Patel & Co. i. Tax rates There is no change in Rates of Income Tax, Surcharge or Education Cess. However there are changes in Slabs of Income tax for
More informationT.D.S/T.C.S AT GLANCE FOR A.Y
T.D.S/T.C.S AT GLANCE FOR A.Y. 2012-2013 Tax Deducted at Source (TDS) was introduced to facilitate the payment of Tax while receiving the income and it follows the concept Pay as you Earn. The tax deducted
More informationSalient features of the Finance Bill, 2015 [Relating to direct taxes]
1 Salient features of the Finance Bill, 2015 [Relating to direct taxes] [Published in 373 ITR (Jour) 1 (Part-1)] By. S.K. Tyagi The Finance Bill, 2015 or the Union Budget, 2015-16, was presented in the
More informationTax & You: Budget Direct Tax
Tax & You: Budget 2015 - Direct Tax The direct tax proposals in Budget 2015 are straight forward and a step ahead towards reducing tax litigation. With no retrospective amendments being proposed, this
More informationAmendment of Direct Tax Dhruv Coaching Classes Pvt. Ltd. CMA Akshay Sen Direct Tax
1 Direct Tax (AMENDMENTS) Finance Act, 2017 For CMA Inter & Final (June-18 & Dec-18 Exam.) By CMA AKSHAY SEN Dhruv Coaching Classes Pvt. Ltd. A1-A2,opposite Saras Dairy,Janta Store, Jaipur E-mail-dhruvcoachingclasses@gmail.com
More informationWe would be happy to personally explain the suggestions if we are presented with an opportunity to do so.
BCAS-Post-Budget Memorandum on Direct Tax Laws 2018 BCAS-Post-Budget Memorandum on Direct Tax Laws 2018 Date: 19 th February, 2018 Shri Arun Jaitley Minister of Finance Government of India North Block
More informationIncome Computation and Disclosure Standards. CA Parul Mittal
Income Computation and Disclosure Standards CA Parul Mittal ICDS Overview In Finance Act 2014, vide amendment made in section 145(2), power granted to Central Government to notify income computation and
More informationLATEST AMENDMENTS. > Deduction of Entertainment Allowance (only for Government Employees);
LATEST AMENDMENTS Amendments made under the head Salaries Finance Bill, 2018 has introduced Standard Deduction amounting to INR 40,000 from Gross Salary as a benefit to the Salaried Employees. Now, total
More informationTax Alert Key amendments at enactment stage of Finance Bill, 2018
14 March 2018 Tax Alert Key amendments at enactment stage of Finance Bill, 2018 Executive Summary The Finance Bill, 2018 (FB 2018 or Bill) was presented by the Finance Minister (FM) on 1 February 2018
More informationINTERMEDIATE (IPC) COURSE/ ACCOUNTING TECHNICIAN COURSE SUPPLEMENTARY STUDY PAPER TAXATION
INTERMEDIATE (IPC) COURSE/ ACCOUNTING TECHNICIAN COURSE SUPPLEMENTARY STUDY PAPER - 2013 TAXATION [A discussion on the amendments made by the Finance Act, 2013 and significant Notifications & Circulars
More informationCHANGES IN ITR FORMS FOR A.Y Presented by: CA. Sanjay K. Agarwal
CHANGES IN ITR FORMS FOR A.Y. 2018-19 1 Presented by: CA. Sanjay K. Agarwal Email: agarwal.s.ca@gmail.com TYPES OF INCOME TAX FORMS: FORM(s) ITR 1 ITR 2 ITR 3 ITR 4 PARTICULAR For individuals being a resident
More informationKey Amendments to Form 3CD [Effective from August 20, 2018] Nihar Jambusaria
Key Amendments to Form 3CD [Effective from August 20, 2018] Nihar Jambusaria Key Amendments to Form 3CD. The Central Board of Direct Taxes (CBDT) via Notification No. 33/2018 dated 20th July, 2018 has
More informationINDIA IMPORTANT CORPORATE TAX UPDATES
INDIA IMPORTANT CORPORATE TAX UPDATES Introduction Reducing tax litigation has been a key focus area for the Modi government. Several initiatives have been taken by the Central Board of Direct Taxes (the
More information