DIRECT TAX PRAPOSAL |
Section |
With Effect From. |
Provision |
Particulars |
Sec. 2 Cl(15) |
01/04/15(Amendment) |
Charitable Trust |
1.‘YOGA’ can now be object of charitable trust 2. Business activity allowed to charitable trust up to12% of total receipt (Existing limit Rs. 25 Lacs) |
Sec. 9 Clause(i |
01/04/15(Amendment) |
Taxation of income |
1.Company registered out of India, having business in India, the transaction done out of India by or on behalf of Indian arm will be taxable in India |
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VODAFONE Effect |
2. If one foreign company sells its shares to other foreign company the capital gain will not be taxed in India only if the first (seller) company does not hold control more than 5% on any Indian business Arm. 3. Foreign Bank having branch in India paying interest to its Head Office will be treated as accrued in India |
Sec. 10 Clause (23FCA) |
01/04/15(Amendment) |
Business Trust |
Rent income of business trust will now be exempt. |
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TDS |
No TDS is required on above. |
Sec. 11 |
01/04/15(Amendment) |
Charitable Trust |
Time limit for investment to the trust is reduced from 10 years to 5 years |
Sec.32 Sub Sec. 1 Clause (ii) |
01/04/15(Amendment) |
Additional depreciation |
1. Balance of additional depreciation 50% of 20% can be taken in next year. 2. Additional depreciation @35% to Andhra Pradesh , Telangana and backward areas notified by Central Government. |
Sec.32AD |
01/04/15 (New Section) |
Investment allowance |
15% investment allowance to units as referred above. Note Total benefit to above referred units will be Normal Dep. 15% Additional Dep. 35% Investment Allowance 15% Total 65% |
Sec. 35 (2AA) |
01/04/15(Amendment) |
Research |
Research Association can now submit their feasibility report to C.C. or C.I.T instead of director of income Tax |
Sec. 80C (4) Clause(ba) |
01/04/15(Amendment) |
Sukanya |
Sukanya investment can be made in the name of self, spouse or girl child |
Sec.80CCC (1) |
01/04/15(Amendment) |
New Pension scheme |
Subscription limit to NPS increase from Rs. 1 lac to Rs. 1.50 lacs |
Sec. 80 CCD(1B) |
01/04/15(Amendment) |
Employee P.F |
Central Government employee voluntary pension contribution restricted to Rs. 50000 |
Sec. 80D (2) |
01/04/15(Amendment) |
Medical Exp/Premium |
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Assessee |
Self |
Very Senior Parent |
Other parent |
Total(Max) |
|
Very senior assessee |
Premium or Exp – 30000 |
Premium or Exp - 30000 |
-------- |
60000 |
|
H.U.F Assessee |
Premium – 25000 |
Premium or Exp - 30000 |
Premium - 30000 |
30000 |
|
Other Assessee |
Premium – 30000 |
Premium or Exp - 30000 |
Premium - 30000 |
60000 |
Sec. 80 DD/80U |
01/04/15(Amendment) |
Disable Person |
Expenses or Premium – Severe Disability - Rs. 125000 Other Disability – Rs. 75000 (Earlier Rs. 100000 & 50000) |
Sec.80DDB |
01/04/15(Amendment) |
Medical Treatment of certain |
- No need to file the proof (being e-filing)
- Exp. Limit for exp. On very senior citizen increased from Rs. 60000 to Rs. 80000/-
|
Sec. 80G (2) Clause (a) |
01/04/15(Amendment) |
Donation |
100% to Swaccha Bharat kosh A.Y. 15-16 100% to clean ganga fund A.Y. 15-16 100% to national fund for control of drug abuse A.Y. 16-17 |
Sec. 80JJAA(2) |
01/04/15(Amendment) |
Employment Generation |
-Now this Deduction is available to foreign companies also. -Limit of additional employment is reduced from 100 to 50 |
Sec. 92BA |
01/04/15(Amendment) |
Domestic trans pricing |
Limit for audit has been increased from Rs. 5Cr. to 20Cr. |
Sec.95(2) |
01/04/17 (Amendment) |
GAAR |
0 |
Sec.139 (4C)Clause (e) |
01/04/15(Amendment) |
Return of income |
1. Now all universities & other educational institutes also file return of income 2. All Charitable hospitals shall also file their return of income. |
Sec.158AA |
01/06/15 (New Sec.) |
Appeal by dept. |
When in an appeal by revenue an identical question of law is pending before S.C., No need to file new appeal by dept. only to take concent from assessee to bide with pending decision in other case whenever decided. |
Sec. 192(2D) |
01/06/15 (Amendment) |
TDS from Salary |
Now in the era of e-filing employer is given the responsibility to preserve proofs of all deduction / Exemptions allowed in form 16 |
Sec 192A |
01/06/15 (New Sec.) |
TDS from PF. withdrawal |
TDS @ 10% to be deducted from the withdrawal of P.F. |
Sec. 194A |
01/06/15 (Amendment) |
TDS on Interest |
Now all co-op banks (not other co-op. societies) shall deduct TDS from interest on deposits @ 10% Now TDS on interest on RD account also TDS on interest > 50000 paid by insurance company. |
Sec.194C (3) Clause(V) |
01/06/15 (Amendment) |
TDS from contract |
Now TDS to be made from the transporter payments of the transporter is owner of 10 or more vehicles |
Sec. 195 |
01/06/15 (Amendment) |
TDS Information |
In case of foreign remittances information in respect of transactions from whom TDS is made and transactions where tax not deducted or no required to be deducted shall also be furnished. |
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TDS |
TDS on Royalty & Prof. Fees to non-resident will be @ 10% (non 25%) Rates:- additional surcharge on income tax @ 2% for the assessee having income > 1 Cr. |
Sec.197A (1A) |
01/06/15 (Amendment) |
Form 15H/15G |
Form 15H and 15G can be submitted for non deduction from P.F. withdrawal & LIC maturity proceeds, (if applicable) |
Sec.197A/206C |
01/06/15 (Amendment) |
TDS/ TDS returns |
In case govt. employer, drawing & disbursement officer(DDO) shall file TDS Returns / statements. As well as TCS returns / statements |
Sec.200A (1) Clauses ( c to e) |
01/06/15 (Amendment) |
Late fees |
Fees for default in TDS return has be came mandatory to be levied along with processing of TDS return itself. |
Sec. 206CB |
01/06/15 (New Sec.) |
TCS returns |
Separate provisions are introduced for processing of TCS returns (like TDS returns) and here to late fees U/S 234 became mandatory. |
Sec. 220 (2C) |
01/06/15 (Amendment) |
Interest on late payment of tax. |
To avoid levy of Double interest, interest U/S 220 need not be charged where interest U/S 206C or 206CB has been levied. |
Sec.245K (1) |
01/06/15 |
Settlement commission |
Once a particular assessee is barred by settlement commission, any related person of that assessee shall also get barred from applying to settlement commission on same issue. |
Sec.255(3) |
01/06/15 |
ITAT |
A single member bench of ITAT can decide the case up to Rs. 15lacs income (Existing limit Rs. 5lacs) |
Sec263(1) |
01/06/15 |
Revisionby CIT |
Fresh guidelines are issued for making revision by CIT. |
Sec.269SS |
01/06/15 New sec. |
Cash Deposits |
Any person including builder cannot accept advance or consideration against sale of land or building in cash/(JV/bearer ch.) > 20000/- exception:- transaction between 2 agriculturists, both not having taxable income is allowed. |
Sec.269T |
01/06/15 |
Cash Repayment |
Advance/ Consideration received as above can not be repaid in cash (JV/Bearer Ch.) > 20000/- |
Sec.271(1) |
01/04/15 |
Penalty For inaccurate income |
Tax for the per pose of penalty is tax on added income + amt on added income |
Sec.271I |
01/06/15 New sec. |
Penalty for inaccurate information |
Penalty will be Rs. 1lac for inaccurate reporting of foreign remittances U/S 195. |
Sec.272A (2) |
01/06/15 |
Penalty to govt. DDO |
@ Rs 100/- per day for late/ non filing of TDS/ TCS return by govt. office DDO |
Sec.288 (2) |
1/06/2015 |
Authorised Reprensentative |
- A Practicing Chartered Accountant not being, director, employee, partner, trustee, karta, relative or assessee himself can be a authorized representative
- Also he should not be
1. indebted Rs. 100000 to assessee 2. guarantor > Rs 100000 to the assessee 3. having business relationship with the assessee 4. convicted by court up to 10yrs back. 5. Insolvent |
Sec.3(2) of wealth tax act 1957 |
01/04/15 |
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Wealth tax is withdrawn from 01.04.2015 however old cases of wealth tax will continue. Even the A.O. can issue notices for wealth tax up to AY 2014-15 |