Ppt on budet 2013

04-03-2013 1

Surcharge with effect for A.Y. 2014-15 (TDS Provisions only) Non-resident (other than a company) : 10% if income > 1Crore (In case of TDS also) Foreign Company : (In case of TDS) 2% if income >1cr but upto 10cr. 5% if income > 10cr. Note: a) No Surcharge in any other case of TDS. b) ED. Cess & SHEC will also apply to NR and Foreign

CO.

04-03-2013 Confidential 2

(Other then TDS) Every Individual, Hindu undivided family, association of persons, body

of individuals, artificial juridical person and his total Income exceeds Rs.1crore then surcharge @ 10%.

Cooperative Society, Firms, Local Authorities and his total Income

exceeds Rs.1crore then surcharge @ 10%. Domestic Company : 5% If income >1cr but upto 10cr. 10% if income > 10cr.


Foreign Company : (In case of TDS) 2% if income >1cr but upto 10cr. 5% if income > 10cr. Note: a) Marginal Relief allowed on the Surcharge. b) Education Cess & SHEC applied in all cases and marginal

relief allowed.


Agriculture Land should not be situated in any area (a) in any area which is comprised within the jurisdiction of a municipality or a

cantonment board and which has a population of not less than ten thousand. (b) In any area within such distance namely Not being more than 2 km from local limits of any municipality or

cantonment board referred in (a) above and having population of more than ten thousand but not exceeding one lakh;

Not being more than 6 km from local limits of any municipality or cantonment board referred in (a) above and having population of more than one lakh but not exceeding ten lakh;

5

Not being more than 8km from local limits of any municipality or

cantonment board referred in (a) above and having population of more than 10 lakhs.

Conclusion : Redifining of area and population for Agriculture land .


In case the premium payable during the tenure of the policy exceeds 15 % (earlier was 10 %) of the actual capital sum assured then the sum received along with bonus is taxable{ clause (d) of 10D w.e.f. A.Y. 2014-15}

If any sum received on policy: Except : Death of the person (earlier) and (new third proviso) Policy issued on or after 1.4.2013 for the insurance on

life of any person who is –

(i) disable person with severe disability mentioned in Sec. 80U or (ii) suffering from disease or ailment mentioned u/s 80DDB Note :Under KMP , the assignment of a policy with or without consideration is

now covered. 04-03-2013 Confidential 7

10(23D) : Income from Securitisation trust from the activity of securitisaion is exempt.

10(23ED): Any Income by way of contribution received from a depository, of such investor protection fund is now exempt.

10(34A) : Any income arising to a Shareholder assessee on account of

buy back of shares is now exempt . Note : This clause is N.A. in case of listed shares. 10(49) : any income of the national financial Holdings company limited

set up by Central govt. is exempt on or before 1.4.14.


Assessee covered : Any Company Conditions for availing deduction: Manufacture/production of article or thing , acquire or install new asset

after 31.3.13 but before 1.4.15.

Actual cost of the new asset exceeds Rs. 100 crore.

New asset not to be sold within a period of 5 years from date of installation other than amalgamation/demerger.


New Asset mean : New plant or machinery (other than ship or aircraft ) but does not include : Any plant or machinery was used by the assessee before its installation

within or outside India. Installed in any office premised or any residential accomodation

including guest house. Any office appliances including computers or compute software. Any Vehicle Plant or machinery, the whole of the actual cost is allowed as deduction

by way of dep. Or otherwise under PGBP. Amount of deduction : (a) For A.Y. commencing from 1.4.14 : - 15 % of the actual cost installed

between 31.3.13 to 1.4.14 and (b) For A.Y. commencing from 1.4.15 :- 15 % of the actual cost less deduction

mentioned in (a) above.


Clarificatory Amendment in clause (vii) and clause(v) of sub section 2.

Provision of bad and doubtful debts created under sub section (vii a) to

include all types of Advances including advances made by rural branches of Banks specified in (viia).


New Clause (xvi) :

Commodity Transaction tax is allowed as deduction if income is taxable under PGBP


Commodities Transaction Tax applicable from 1st March 2013

CTT to be levied on taxable commodities transactions entered into in a recognized association.

Sale of commodity derivative (other than agriculture commodity)

CTT :- 0.01% , payable by seller.

Commodity Transaction Tax paid by assessee allowed as deduction u/s 36 applicable from 01.04.2014.

Income arising from taxable commodity transaction is taxable

under PGBP.


Applicability : Transfer of Asset (other than capital asset), being land or building or both i.e. Stock in trade.

Full consideration : If consideration received is less than the value adopted or assessed or assessable by State Govt. authority for Stamp duty, then the value adopted/assessed/ assessable shall be full consideration for computing Profits/Gains .

The same value adopted or assessed or assessable shall

apply for Sec. 50C.


Date of determination of the Value : Where date of agreement for fixing consideration and date of

registration are not same then value on the date of the agreement shall be taken.

Condition : Above mentioned shall apply only when full or part value

received by any other mode other than cash on or before the date of agreement.


Inadequate consideration (earlier only without consideration

was covered)

Consideration Stamp duty value

Difference is more than Rs.50,000 then, Stamp duty value Consideration Income from other sources


Taxability of immovable property received for inadequate

consideration.

Date of agreement Date of registration

Stamp duty on the date of agreement (if consideration is fixed

before the date of agreement).


Are not same

w.e.f. 01/04/2014, Limit has been increased for premium for life insurance

policies of persons with disability or disease from 10% to 15% of actual capital sum assured.


Rajiv Gandhi Equity Savings Scheme : Deduction for investment by new retail investors in listed

equity shares or listed units :

allowed for 3 consecutive assessment years.

beginning with year in which above shares or units were first acquired.

GTI of new retail investor does not exceed ` 12 Lakh.


W.e.f. 01/04/2014, Inclusion of other health schemes of the Central & State Governments which are similar to the Central Government Health Scheme as may be notified by the Central government.


Section 80EE If an assessee being individual first times takes a home loan, he will be

allowed deduction of Rs. 1.00 lacs on interest on loan taken from financial institution for residential house property for A.Y.2014-15 and if the interest is less than 1.00 lacs then balance will be allowed in A.Y.2015-1 6.

The deduction shall be subject to the following conditions, namely:— (i) the loan has been sanctioned between 01-04-2013 to 31-03-2014 (ii) the amount of loan sanctioned for acquisition of the residential house

property does not exceed twenty-five lakh rupees; (iii) the value of the residential house property does not exceed forty lakh

rupees; (iv) the assessee does not own any residential house property on the date

of sanction of the loan.

21

Section 80GGB (Co. contribution in Political party or Electoral Trust ) Any sum contributed by way of cash will be disallowed w.e.f. 01-4-2014 Section 80GGC (Other than Co. contribution in political party or Electoral

Trust)

Any sum contributed by way of cash will be disallowed w.e.f. 01-04-2014 Section 80-IA (Extension of sunset date to Power Sector) sub-section (4), 31-03-2013 substituted by 31-03-2014 w.e.f. 01-04-2014 Section 80JJAA (Deduction for additional wages) the word “undertaking” substituted by the word “factory”

“factory” shall have the same meaning as assigned to it in clause (m) of section 2 of the Factories

Act, 1948.’.

22

W.e.f. 01/04/2014, 100% deduction for donation to

National Children’s Fund.


Individual resident in India, whose total

income upto Rs. 5,00,000 shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for tax, of an amount equal to 100% of such income-tax or Rs. 2,000 whichever is less


Provisions of this chapter shall apply to the assessee even if such provisions are not beneficial to him applicable w.e.f. 01-04-2016

It is clarifactory in nature providing that

submission of tax residency certificate is necessary but not an essential condition for claiming benefits under the DTAA.


The rate of tax has been increased from 10% to 25% in respect of royalty or FTS paid to non resident for the agreement entered on or after 01.06.2005.

W.e.f.01.04.2014


Received by the domestic company during the financial year, if

such dividend is received from its subsidiary and,— (a) where such subsidiary is a domestic company, the subsidiary

has paid the tax which is payable under this section on such dividend; or

(b) where such subsidiary is a foreign company, the tax is payable

by the domestic company under section 115BBD on such dividend: Provided that the same amount of dividend shall not be taken into

account for reduction more than once


Section 144C : Sub Section inserted w.e.f. 1.4.2016. (14A) : No Assessment /Reassessment order shall be passed by A.O.

without the prior approval of Commissioner. Section 153 : Time Limit excluded Time period commenced from the date of order of A.O. to get the

accounts audited and ends u/s 142(2A) with the last of furnishing the audit report or

Where such order is challenged in the court, then ends with the date on which direction regarding the setting aside the order is received by the Commissioner.


Amendment in clause (viii) w.e.f. 1.6.2013 :-

Period starts from the date on which a reference or first of the reference for exchange of information is made by competent authority u/s 90 or u/s 90A and ending the date on which information is received by the commissioner or 1 Year whichever is less.


Amendment in clause (iii) of Explanation 1 w.e.f. 1.6.2013 :

In computing the Time limit for completing the assessment/reassessment :

When A.O. direct to get the accounts audited u/s 142(2A) and

ends when the report is furnished is excluded or

Amendment : If above mentioned direction is pending before a court, then the date on which the order of setting aside such direction is received by the commissioner shall also be excluded.


Clause (ix) :

The period starts from date on which a reference for declaration of an arrangement to be an impermissible avoidance arrangement is received by the commissioner u/s 144BA(1) and ending on which direction sub section (3) or (6) or


Eligible person : Any person being a transferee, responsible for paying to resident transferor, any consideration for transfer of any immovable property except Agriculture Land,

Deduction : 1 % of such amount. Immovable property mean land other than agriculture land , building or

part of a building.

Agriculture Land : As mentioned u/s 2(14) (iii) Mode : Cash or cheque or draft or any other mode.

Note : This section is N.A. if amount of such consideration is less than ` 50

lakh.


Applicability of Section 194LC : New proviso :

Applicability : Non resident non corporate assessee or foreign company

has deposited the foreign currency in designated a/c. Such sum as converted in rupees used by non-resident or foreign

company to purchase Long Term infrastucture bond issued by the Indian company.

Such borrowing shall be treated to have been made by such Indian

company in Foreign currency. Rate : 5 % T.D.S. on interest of such borrowing.


TAX PROPOSALS TAX PROPOSALS 2013 AT A GLANCE2013 AT A GLANCE

ON DIRECT TAXON DIRECT TAX

MANOJ KUMAR MITTAL & CO.MANOJ KUMAR MITTAL & CO.


INDIVIDUAL (OTHER THAN SENIOR CITIZEN & senior most Citizen)

Including WOMAN & HUF, AOP, BOI- TAX SLAB –Same as in PY

UPTO 200000UPTO 200000NILNIL

ABOVE 2000000 TO 500000ABOVE 2000000 TO 500000 10%10%

ABOVE 500000 TO 1000000ABOVE 500000 TO 1000000 20%20%

ABOVE 1000000ABOVE 1000000 30%30%

MANOJ KUMAR MITTAL & CO.MANOJ KUMAR MITTAL & CO.MANOJ KUMAR MITTAL & CO.MANOJ KUMAR MITTAL & CO.

Senior Citizen from the age of 60 years to less than80 years

UPTO 2,50,000UPTO 2,50,000NILNIL

ABOVE 250000 TO 500000ABOVE 250000 TO 500000 10%10%

ABOVE 500000 TO 1000000ABOVE 500000 TO 1000000 20%20%

ABOVE 1000000ABOVE 1000000 30%30%

Senior Citizen of 80 years and above :TAX SLAB

UPTO 500000UPTO 500000NILNIL

ABOVE 500000 TO 1000000ABOVE 500000 TO 1000000 20%20%

ABOVE 1000000ABOVE 1000000 30%30%


SurchargeSurcharge

Surcharge of 10% in case of person Surcharge of 10% in case of person (other than company) having (other than company) having total total

incomeincome exceeding 1.00 crores exceeding 1.00 crores however subject to limit of amount however subject to limit of amount more than 1 crores rupees.more than 1 crores rupees.

In the case of In the case of domestic companies domestic companies having total income more than 1 having total income more than 1 crores but less than Rs. 10.00 crores, crores but less than Rs. 10.00 crores, surcharge @ 5% in case income surcharge @ 5% in case income exceeds 10.00 crores, surcharge @ exceeds 10.00 crores, surcharge @ 10% subject to marginal relief.10% subject to marginal relief.


In the case of In the case of companies other than companies other than domestic companiesdomestic companies having total having total income more than 1 crores but less income more than 1 crores but less than Rs. 10.00 crores, surcharge @ than Rs. 10.00 crores, surcharge @ 2%, in case income exceeds 10.00 2%, in case income exceeds 10.00 crores, surcharge @ 5%.crores, surcharge @ 5%.

Marginal relief will be available.Marginal relief will be available.


No change in Education & Secondary No change in Education & Secondary Higher Education Cess of 3%Higher Education Cess of 3%


Commodity Transaction Tax Commodity Transaction Tax (CTT)-Chapter VII of FA,2013(CTT)-Chapter VII of FA,2013

A new tax called CTT is levied on A new tax called CTT is levied on taxable commodities taxable commodities transaction transaction entered in a recognized association entered in a recognized association @0.01% payable by [email protected]% payable by seller.

Taxable Commodities transaction means a transaction of Taxable Commodities transaction means a transaction of sale of commodity derivatives in respect of commodity, sale of commodity derivatives in respect of commodity, other than agriculture produce, traded in a recognized other than agriculture produce, traded in a recognized association.association.

Procedural requirement relating to collection, filling of Procedural requirement relating to collection, filling of return, assessment procedure, chargeability of interest, return, assessment procedure, chargeability of interest, appeal is also provided.appeal is also provided.


Applicable from the date notifiedApplicable from the date notified

Deductible u/s 36 (xvi) if the income arising Deductible u/s 36 (xvi) if the income arising from such taxable commodity transaction is from such taxable commodity transaction is computable under profit from business or computable under profit from business or profession.profession.

Amendment in Section 36(xvi) w.e.f Amendment in Section 36(xvi) w.e.f 01.04.2014.01.04.2014.


Taxation of income by way of royalty or fee Taxation of income by way of royalty or fee for technical servicefor technical service

Section 115A-Section 115A- The rate of tax has been increased The rate of tax has been increased

from 10% to 25% in respect of royalty from 10% to 25% in respect of royalty or FTS paid to non resident for the or FTS paid to non resident for the agreement entered on or after agreement entered on or after 01.06.2005.01.06.2005.

W.e.f.01.04.2014W.e.f.01.04.2014


Sec 32AC-Investment in P&MSec 32AC-Investment in P&M

If a company invest more than 100 crores in If a company invest more than 100 crores in new assets (being P&M) during the F.Y.2013-14 new assets (being P&M) during the F.Y.2013-14 to 2014-15, deduction of 15% of the aggregate to 2014-15, deduction of 15% of the aggregate amount of actual cost of new assets will be amount of actual cost of new assets will be allowed.allowed.

No transfer of such assets for next five years No transfer of such assets for next five years except for amalgamation or merger or except for amalgamation or merger or demerger.demerger.

W.e.f.01.04.2014W.e.f.01.04.2014


Sec 80IA(4)(iv)- Extension of sun Sec 80IA(4)(iv)- Extension of sun set date to power sectorset date to power sector

The deduction of profit under this is available to The deduction of profit under this is available to the undertaking engaged in generation or the undertaking engaged in generation or distribution of power or transmission or distribution of power or transmission or distribution by laying new lines or substantial distribution by laying new lines or substantial renovation or modernization in this area.renovation or modernization in this area.

This benefit is extended for A.Y.2014-15 also This benefit is extended for A.Y.2014-15 also


Section 87A- Rebate Section 87A- Rebate

An individual resident having total An individual resident having total income up to Rs. 5 lakh will be income up to Rs. 5 lakh will be allowed a rebate of Rs. 2000/- from allowed a rebate of Rs. 2000/- from income tax.income tax.


Sec 80EE- deduction in respect Sec 80EE- deduction in respect of interest on housing loanof interest on housing loan

If an assessee being individual first times takes a home loan, he If an assessee being individual first times takes a home loan, he will be allowed deduction of Rs. 1.00 lacs on interest on loan taken will be allowed deduction of Rs. 1.00 lacs on interest on loan taken from financial institution for residential house property for from financial institution for residential house property for A.Y.2014-15 and if the interest is less than 1.00 lacs then balance A.Y.2014-15 and if the interest is less than 1.00 lacs then balance will be allowed in A.Y.2015-16.will be allowed in A.Y.2015-16.

This deduction is subject to following condition:This deduction is subject to following condition: 1- The loan is from Financial Institution during 2013-14.1- The loan is from Financial Institution during 2013-14. 2-The amount of loan does not exceed Rs. 25.00 lacs.2-The amount of loan does not exceed Rs. 25.00 lacs. 3- The value of Residential house not to exceed Rs. 45 lacs3- The value of Residential house not to exceed Rs. 45 lacs 4- The assessee does not own any other residential house on the 4- The assessee does not own any other residential house on the

date of sanction of loan.date of sanction of loan. W.e.f. 01.04.2014W.e.f. 01.04.2014


Sec 10(10D) and 80C(3A)- Raising the limit of Sec 10(10D) and 80C(3A)- Raising the limit of premiumpremium

In case the person is suffering from disability In case the person is suffering from disability u/s 80U or from diseases u/s 80DDB, then limit u/s 80U or from diseases u/s 80DDB, then limit of premium of the capital sum assured including of premium of the capital sum assured including bonus has been increased from 10% to 15%.bonus has been increased from 10% to 15%.

W.e.f.01.04.2014W.e.f.01.04.2014


Sec-80D-MediclaimSec-80D-Mediclaim

The list of contribution to various The list of contribution to various organization for health of assessee or organization for health of assessee or his family has been extended to his family has been extended to various health scheme of the central various health scheme of the central government or state government as government or state government as may be notified.may be notified.

W.e.f 01.04.2014W.e.f 01.04.2014


80CCG- Investment in listed 80CCG- Investment in listed equity shares of a companyequity shares of a company

A resident individual who invest in listed equity shares A resident individual who invest in listed equity shares as per scheme notified by the govt is allowed a as per scheme notified by the govt is allowed a deduction of 50% of the amount invested subject to deduction of 50% of the amount invested subject to limit of allowability of Rs. 25000/-. This deduction is one limit of allowability of Rs. 25000/-. This deduction is one time deduction. This is available to new retail investors time deduction. This is available to new retail investors whose gross income does not exceed Rs. 10 lacs.whose gross income does not exceed Rs. 10 lacs.( RGESS)( RGESS)

The benefit under this has been extended for The benefit under this has been extended for three three consecutive yearsconsecutive years beginning from the year in which the beginning from the year in which the investment is made first time by new retail investor and investment is made first time by new retail investor and whose income does not whose income does not exceed Rs. 12 lacs.exceed Rs. 12 lacs.

W.e.f. 01.04.2014W.e.f. 01.04.2014


80G-Donation to National Children’s Fund80G-Donation to National Children’s Fund

Under Section 80G- A new clause (iiib) Under Section 80G- A new clause (iiib) has been inserted providing for 100% has been inserted providing for 100% deduction to contribution to National deduction to contribution to National Children’s fund.Children’s fund.

W.e.f. 01.04.2014W.e.f. 01.04.2014


115BBD- Dividend from specified foreign 115BBD- Dividend from specified foreign companycompany

The rate of taxation is 15% as The rate of taxation is 15% as provided by the finance Act 2012 and provided by the finance Act 2012 and it will continue for A.Y.2014-15.it will continue for A.Y.2014-15.


115O-Dividend Distribution Tax-removing of cascading 115O-Dividend Distribution Tax-removing of cascading effectseffects

Where tax on dividend received by a domestic Where tax on dividend received by a domestic company from a foreign subsidiary (in which the company from a foreign subsidiary (in which the domestic company holds more than 50% of domestic company holds more than 50% of equity share capital) is payable u/s 115BBD by equity share capital) is payable u/s 115BBD by the holding company, then any dividend the holding company, then any dividend distributed by the holding company, distributed by the holding company, in the same in the same year, to the extent of such dividends year, to the extent of such dividends shall not shall not be subject to DDT U/S 115O.be subject to DDT U/S 115O.

W.e.f.01.06.2013W.e.f.01.06.2013


194LC-Concessional rate of withholding tax-194LC-Concessional rate of withholding tax-Benefit extendedBenefit extended

It provides that if an Indian company borrows money in foreign It provides that if an Indian company borrows money in foreign currency from non resident, it will be subject to TDS @5%.currency from non resident, it will be subject to TDS @5%.

It is now provided that where a non resident deposits foreign It is now provided that where a non resident deposits foreign currency in designated bank account and such money as converted currency in designated bank account and such money as converted in Indian rupees is utilized for subscription to long term in Indian rupees is utilized for subscription to long term infrastructure bond issue of an Indian company, then borrowing for infrastructure bond issue of an Indian company, then borrowing for the purpose of this section shall be deemed to be in foreign the purpose of this section shall be deemed to be in foreign currency and interest on that shall be subject to 5% TDS.currency and interest on that shall be subject to 5% TDS.

W.e.f 01.06.2013 W.e.f 01.06.2013


Taxation of Securitisation trust-Chapter XII-Taxation of Securitisation trust-Chapter XII-EA, Sec 115TA to 115TDEA, Sec 115TA to 115TD

The income of it will be exempt u/s 10(23DA)The income of it will be exempt u/s 10(23DA) Additional tax on income distributed to Additional tax on income distributed to

individual or HUF @25%individual or HUF @25% In other case,30% on the income distributed.In other case,30% on the income distributed. No addition tax for person if income below No addition tax for person if income below

taxable limit.taxable limit. In hand of other investors, it shall be tax free.In hand of other investors, it shall be tax free. W.e.f 01.06.2013W.e.f 01.06.2013


Sec-98 of FA for securities Transaction Tax, Sec-98 of FA for securities Transaction Tax, w.e.f.01.06.2013w.e.f.01.06.2013

S.NO.

Nature of taxable securities transaction

Payable by Existing rateIn percent

Proposed rateIn percent

1 2 3 4 5

1 Delivery based purchase of units of an equity oriented fund entered into in a recognized stock exchange

Purchaser 0.1 Nil

2 Delivery based sale of units of an equity oriented fund entered into in a recognized stock exchange

Seller 0.1 0.001

3 Sale of futures in securities Seller 0.017 0.01

4 Sale of units of EOF to MF Seller 0.25 0.001


194-IA- TDS on transfer of certain 194-IA- TDS on transfer of certain immovable propertyimmovable property

It is proposed to provide tds @1% by It is proposed to provide tds @1% by purchaser if the value of property purchaser if the value of property exceeds Rs. 50.00 lacs.exceeds Rs. 50.00 lacs.

W.e.f.01.06.2013W.e.f.01.06.2013


Chapter XII-DA-DDT on buy back of unlisted Chapter XII-DA-DDT on buy back of unlisted shares of a company Sec-115QA to 115QCshares of a company Sec-115QA to 115QC

If a company buy back its own unlisted shares at a If a company buy back its own unlisted shares at a consideration which is more than the amount received consideration which is more than the amount received by the company at the time of issue of shares, then by the company at the time of issue of shares, then company will deduct DDT @20% of the distributed company will deduct DDT @20% of the distributed income to the shareholders.income to the shareholders.

The income received by the shareholders is exempt The income received by the shareholders is exempt from tax in the hand of shareholders.from tax in the hand of shareholders.

w.e.f.01.06.2013w.e.f.01.06.2013


Sec-43CA- Computation of income on transfer of Sec-43CA- Computation of income on transfer of immovable property held as stock in tradeimmovable property held as stock in trade

Where there is a transfer of an assets(other than capital Where there is a transfer of an assets(other than capital assets) being land or building assets) being land or building held as stock in trade held as stock in trade and and consideration is less than stamp duty value, then consideration is less than stamp duty value, then consideration shall be taken as stamp duty value ( 50C consideration shall be taken as stamp duty value ( 50C brought in case of stock in trade).brought in case of stock in trade).

Where there is a difference between date of transfer of Where there is a difference between date of transfer of an agreement and date of registration of transfer. The an agreement and date of registration of transfer. The SDV shall be taken of the date of transfer of an SDV shall be taken of the date of transfer of an agreement where the consideration or part thereof has agreement where the consideration or part thereof has been received on or before the date of agreement other been received on or before the date of agreement other than in cash.than in cash.

w.e.f 01.04.2014w.e.f 01.04.2014


Allahabad high court in case of Kan Allahabad high court in case of Kan Constructions, latest Delhi High Court Constructions, latest Delhi High Court order in Discovery Estates case order in Discovery Estates case (18.02.2013 order) hold (18.02.2013 order) hold that section that section 50C being limitedly applicable to 50C being limitedly applicable to capital gains assessment cannot apply capital gains assessment cannot apply to assessee holding land/building as to assessee holding land/building as trader (stock in trade) and assessed trader (stock in trade) and assessed for the same under for the same under business head. business head.


Sec 56(2)(vii)-taxability of immovable property Sec 56(2)(vii)-taxability of immovable property received for inadequate considerationreceived for inadequate consideration

Where an individual or HUF purchases an immovable Where an individual or HUF purchases an immovable property for a consideration which is less than SDV, property for a consideration which is less than SDV, then difference will be assessed as income from other then difference will be assessed as income from other

sourcesource.. Where there is a difference between date of transfer of Where there is a difference between date of transfer of

an agreement and date of registration of transfer. The an agreement and date of registration of transfer. The SDV shall be taken of the date of transfer of an SDV shall be taken of the date of transfer of an agreement where the consideration or part thereof has agreement where the consideration or part thereof has been received on or before the date of agreement other been received on or before the date of agreement other than in cash.than in cash.

w.e.f 01.04.2014w.e.f 01.04.2014


Delhi High Court in case of Delhi High Court in case of Khoobsurant Resorts Khoobsurant Resorts and and P&h High P&h High court Chandni Bhucharcourt Chandni Bhuchar where it was where it was held that on basis of deeming rate held that on basis of deeming rate given under section 50C, purchaser given under section 50C, purchaser cannot be straightway assessed for cannot be straightway assessed for differential amount being differential amount being unexplained/undisclosed income. unexplained/undisclosed income.


Chapter X-A- Section 144BAChapter X-A- Section 144BA

GAAR will come effect from GAAR will come effect from 01.04.2016.01.04.2016.


Sec 115R- Rationalization of tax on distributed income by Sec 115R- Rationalization of tax on distributed income by mutual fund, w.e.f.01.06.2013mutual fund, w.e.f.01.06.2013

S.no.

Particulars Existing rate of DDT in percnet

Proposed rate of DDT in percent

1 Distribution of income by a fund other than equity oriented fund to an individual or HUF

12.5 or 25 depending upon nature of fund

25

2 In case of infrastructure debt fund set up by NBFC, on distribution of income to non resident as on payment of interest in case of loan from NR is 5%

12.5 or 25 depending upon nature of fund

5


Sec-2(14)-Change in the defination of capital Sec-2(14)-Change in the defination of capital assetsassets The Section 2(14)(iii)(b) has been amended to provide that the The Section 2(14)(iii)(b) has been amended to provide that the

land situated in any area within the distance, measured land situated in any area within the distance, measured aerially(shortest aerial distance),aerially(shortest aerial distance),

I) not being more than two kilometers, from the local limits of any I) not being more than two kilometers, from the local limits of any municipality or cantonment board referred to in item(a) and which municipality or cantonment board referred to in item(a) and which has a population of more then ten thousand but not exceeding one has a population of more then ten thousand but not exceeding one lakh orlakh or

II) not being more than 6 kilometers from the local limits of any II) not being more than 6 kilometers from the local limits of any municipality or cantonment board referred to in item a and which municipality or cantonment board referred to in item a and which has a population of more than 1 lakh but not exceeding 10 lakh or has a population of more than 1 lakh but not exceeding 10 lakh or

III) not being more than 8 kilometers from the local limits of any III) not being more than 8 kilometers from the local limits of any municipality or cantonment board referred to in item (a) and which municipality or cantonment board referred to in item (a) and which has a population more than 10 lakh has a population more than 10 lakh

Shall form part of capital assetsShall form part of capital assets W.e.f 01.04.2014W.e.f 01.04.2014


Sec 10(10D)-Taxability of key Sec 10(10D)-Taxability of key man insurance policiesman insurance policies

This section provides that if any amount is received from life This section provides that if any amount is received from life insurance policy, it is exempt from tax except key man insurance insurance policy, it is exempt from tax except key man insurance policy.policy.

Generally, the key man insurance policy is assigned to the person Generally, the key man insurance policy is assigned to the person before his maturity and he pays certain premium and claims tax before his maturity and he pays certain premium and claims tax exemption on the ground that it is not a key man insurance policy. exemption on the ground that it is not a key man insurance policy. It is so held by courts also.It is so held by courts also.

To club this loopholes, it is provided that a keyman insurance policy To club this loopholes, it is provided that a keyman insurance policy which has been assigned to any person during his term with or which has been assigned to any person during his term with or without consideration, it shall continue to be treated as a Keyman without consideration, it shall continue to be treated as a Keyman Insurance Policy.Insurance Policy.

W.e.f. 01.04.2014 W.e.f. 01.04.2014


Sec 80GGB and 80GGC-Contribution to political Sec 80GGB and 80GGC-Contribution to political party or electoral trustparty or electoral trust

The contribution made in cash will be The contribution made in cash will be disallowed disallowed

W.e.f. 01.04.2014W.e.f. 01.04.2014


Sec 179 and 167C- Meaning of Sec 179 and 167C- Meaning of Tax DueTax Due

Tax due means for the purpose of this Tax due means for the purpose of this definition is tax due includes penalty, definition is tax due includes penalty, interest or any other sum payable interest or any other sum payable under the act.under the act.

w.e.f.01.06.2013w.e.f.01.06.2013


80JJAA- Deduction for additional 80JJAA- Deduction for additional wageswages

This section provides for deduction of an This section provides for deduction of an amount equal to 30% of the additional wages amount equal to 30% of the additional wages paid to the new regular workman employed in paid to the new regular workman employed in industrial undertaking engaged in production or industrial undertaking engaged in production or article or things.article or things.

Now it is changed that it will be provided to Now it is changed that it will be provided to Indian company engaged in manufacture of Indian company engaged in manufacture of goods in factory.goods in factory.

W.e.f. 01.04.2014W.e.f. 01.04.2014


Sec 90 & 90A-Tax Residency certificateSec 90 & 90A-Tax Residency certificate

It is clarifactory in nature providing that It is clarifactory in nature providing that submission of tax residency certificate is submission of tax residency certificate is necessary but not an essential condition for necessary but not an essential condition for claiming benefits under the DTAA.claiming benefits under the DTAA.

W.e.f.01.04.2013W.e.f.01.04.2013


Sec 132B- Application of seized Sec 132B- Application of seized assetsassets

The section provides for adjustment of seized The section provides for adjustment of seized assets under section 132B against assets under section 132B against existing existing liability liability under income tax Act, Wealth tax act under income tax Act, Wealth tax act and interest tax act etc.and interest tax act etc.

The The existing liabilityexisting liability is clarified to include all is clarified to include all outstanding tax/interest/penalty and not outstanding tax/interest/penalty and not advance tax liability only.advance tax liability only.

w.e.f.01.06.2013w.e.f.01.06.2013


Sec 139(9)-Extending the scope of defective Sec 139(9)-Extending the scope of defective returnreturn

The scope of defective return has The scope of defective return has been enhanced to include the return been enhanced to include the return where tax together with interest is not where tax together with interest is not paid u/s 140A along with return.paid u/s 140A along with return.

W.e.f. 01.06.2013W.e.f. 01.06.2013


Sec 142(2A)-Direction for special auditSec 142(2A)-Direction for special audit

The section provides power to AO to give direction of audit having The section provides power to AO to give direction of audit having regard to the regard to the nature and complexity of accounts and interest of nature and complexity of accounts and interest of revenuerevenue..

The list of causes for audit has been expanded to includeThe list of causes for audit has been expanded to include– Nature and complexity of accountsNature and complexity of accounts– Volume of accountsVolume of accounts– Doubts about the correctness of accountsDoubts about the correctness of accounts– Multicipility of transaction in accountsMulticipility of transaction in accounts– Specialized nature of business activity of assesseeSpecialized nature of business activity of assessee– Interest of revenueInterest of revenue

– W.E.F. 01.06.2013W.E.F. 01.06.2013

MANOJ KUMAR MITTAL MANOJ KUMAR MITTAL & CO.& CO.

Sec 271FA- Penalty for non filling of Annual information Sec 271FA- Penalty for non filling of Annual information returnreturn

If a person fails to furnish AIR within the time If a person fails to furnish AIR within the time prescribed under that section then AO prescribed under that section then AO maymay direct the direct the assessee to pay penalty at Rs. 100 per day for the assessee to pay penalty at Rs. 100 per day for the default continues.default continues.

It is provided further, that if the return is not filed within It is provided further, that if the return is not filed within the period prescribed in notice u/s 285BA(5), then the period prescribed in notice u/s 285BA(5), then assessee assessee shallshall pay penalty under section 271FA @ 500 pay penalty under section 271FA @ 500 per day from day immediately following the day on per day from day immediately following the day on which the time specified in such notice for furnishing the which the time specified in such notice for furnishing the return expires.return expires.

W.e.f 01.04.2014W.e.f 01.04.2014

MANOJ KUMAR MITTAL & MANOJ KUMAR MITTAL &

COCO..

Sec 14A and 14B- Annexure less Sec 14A and 14B- Annexure less return under wealth Tax Actreturn under wealth Tax Act

The amendments is provided to The amendments is provided to enable filling e wealth tax return enable filling e wealth tax return without annexure.without annexure.

W.e.f. 01.04.2013W.e.f. 01.04.2013


THANKSTHANKS From Manoj Kumar Mittal & Co.From Manoj Kumar Mittal & Co. Chartered AccountantsChartered Accountants 305, Dakha Chamber, 2068/38305, Dakha Chamber, 2068/38 Nai Wala. Karol Bagh, New Delhi-110005Nai Wala. Karol Bagh, New Delhi-110005 Ph: 011-28756284, 41557022, 9810764620Ph: 011-28756284, 41557022, 9810764620


(Office: 431/D-22, II Floor, Chattarpur Hills, New Delhi 110074)

SKS Associates – Law Firm

SNAPSHOT – BUDGET 2013 – INDIRECT TAX

Customs Customs Customs Customs –––– Non TariffNon TariffNon TariffNon Tariff

� Protection provided to designs and geographical indications along with patents,

trademarks and copyrights

� Allow provisional attachment of property belonging to any person to whom notice

served for cases of collusion; or wilful misstatement; or suppression of facts,

� Advance Ruling available for any new business of import or export by an existing

importer or exporter.

� Allow electronic filing of import / export manifest and to insert a proviso that where

this is not feasible, the Commissioner of Customs may allow the delivery of such

manifest in any other manner.

� Where imported goods are not immediately entered for home consumption goods it is

permitted to be stored for a period not exceeding thirty days in a public warehouse

and the private warehouse with a further possible extension of 30 days

� Certain specified offences made non-bailable

� Vacation of Stay order where appeal is not disposed of within the total period of 365

days from the date of order

� Department allowed to recover money due to the Central Government from any other

person other than the defaulter after giving such other person a notice in writing

� Duty deferment under Section 143A when any material is imported under an import

licence belonging to the category of Advance Licence is withdrawn

� No duty liability on any sample of goods which is consumed or destroyed during the

course of testing or examination

� Agents made equally liable for any act or omission when the agent is expressly or

impliedly authorised by the owner, importer or exporter of any goods


ExciseExciseExciseExcise---- Non tariffNon tariffNon tariffNon tariff

� Duty evasion limit enhanced from thirty lakh rupees to fifty lakh for offences

punishable with a term of imprisonment extending to seven years

� Offences relating to excisable goods where the duty leviable exceeds fifty lakh rupees

and the person has committed evasion of payment of duty or contravened any of the

provisions in relation to credit of any duty allowed has been made cognizable and non

bailable.

� Department allowed to recover money due to the Central Government from any other

person other than the defaulter after giving such other person a notice in writing

� Service of a statement containing details of duty not paid, short levied or erroneously

refunded shall be deemed to be a service of notice

� Provisional attachment provisions amended to include offences involving extended

period of limitation also.

� Advance Ruling application allowed for credit of excise duty paid or deemed to have

been paid. The scope of admissibility has been expanded to include credit of service

tax paid or deemed to have been paid on input services.

� Speed post with proof of delivery or courier approved by the Central Board of Excise

& Customs included as additional modes of delivery.

Service taxService taxService taxService tax

� 'Approved vocational education course' provided in section 65B to include State

Council of Vocational Training' (SCVT) and excluding National Skill Development

Corporation since it is not an affiliating body

� Definition of "process amounting to manufacture or production of goods", amended

to include processes on which duties of excise are leviable under the Medicinal and

Toilet Preparations (Excise Duties) Act, 1955

� Testing activities directly related to production of any agricultural produce like soil

testing, animal feed testing, testing of samples from plants or animals, for pests and

disease causing microbes will be covered by the negative list;

� If a show cause notice issued for longer period of limitation is not found sustainable

by an appellate authority or tribunal or court, the same will be deemed to be a notice

issued for a period of eighteen months;

� Maximum penalty for failure to obtain registration has been made ten thousand

rupees only

� Nee Section 78A introduced, to make provision for imposition of penalty on director,

manager, secretary or other officer of the company, who is in any manner knowingly

concerned with specified contraventions

� Tribunal can admit an appeal or permit the filing of memorandum of cross objections

after the expiry of the relevant period;


� Section 89 is being rearranged and amended to specifically provide that in the case

of failure to pay service tax collected, within six months, for amount exceeding fifty

lakh rupees shall be punishable with an imprisonment for a term which may extend

upto seven years but not less than six months

� Section 91 is being introduced to provide for power to arrest by an authorized officer

not below the rank of Superintendent of Central Excise particularly for nonpayment of

collected service tax;

� Abatement in case of 'construction of complex, building or civil structure, or a part

thereof..” where the carpet area of residential unit exceeds 2000 square feet or the

amount charged is more than One Crore Rupees, taxable portion for service tax

increased to 30%. This is effective 01 March 2013.

� Exemption to Charitable organizations, providing service towards any other object of

general public utility limited to threshold exemption limit of 10 lacs only (earlier 25

Lacs) effective 01 April 2013.

� All restaurants having air-conditioning or central air heating in any part of the

establishment at any time during the year brought under service tax effective 01 April

2013.

� Exemption to Services provided by an educational institution by way of renting of

immovable property removed.

� Exemption to Temporary transfer or permitting the use or enjoyment of a copyright

relating to cinematographic films limited to exhibition of cinematograph films in a

cinema hall or a cinema theatre.

� Exemption to Services by way of vehicle parking to general public removed.

� Exemption to Services provided to Government, a local authority or a governmental

authority, by way of repair or maintenance of aircraft removed.

� One time amnesty from imposition of interest and penalty and prosecution, provided

to the stop filers, non-filers or non-registrants or service providers (who have not

disclosed true liability in the returns filed by them during the period from October

2007 to December 2012) and who pay atleast 50% of the "tax dues" by 31.12.2013 and

the remaining part by 30 June 2014.


SKS Associates - Law Firm

SNAPSHOT - BUDGET 2013 - INDIRECT TAX

Customs – Tariff Related Changes

I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:

1) Basic customs duty on dehulled oat grain is being reduced from 30% to 15%. 2) Basic customs duty on hazel nuts is being reduced from 30% to 10%. 3) Export duty of 10% on de-oiled rice bran oil cake is being withdrawn.

II. AUTOMOBILES:II. AUTOMOBILES:II. AUTOMOBILES:II. AUTOMOBILES:

1) Basic customs duty on new passenger cars and other motor vehicles (high end cars) with CIF value more than US$ 40,000 and/or engine capacity exceeding 3000cc for petrol run vehicles and exceeding 2500 cc for diesel run vehicles is being increased from 75% to 100%.

2) Basic customs duty on motor cycle with engine capacity of 800cc or more is being increased from 60% to 75%.

III. III. III. III. METALS:METALS:METALS:METALS:

1) Export duty is being levied on ilmenite unprocessed at 10% and on ilmenite, upgraded at 5%.

2) Export duty is being levied on bauxite at 10%. 3) Basic customs duty is being reduced from 10% to 5% on stainless steel wire cloth stripe

and from 7.5% to 5% on wash coat for use in the manufacture of catalytic convertors and their parts.

4) Full exemption from export duty is being provided to galvanized steel sheets falling under certain sub-headings, retrospectively w.e.f. 01.03.2011.

IV. PRECIOUS METALS:IV. PRECIOUS METALS:IV. PRECIOUS METALS:IV. PRECIOUS METALS:

1) Basic customs duty is being reduced from 10% to 2% on pre-forms of precious and semi-precious stones.


V. CAPITAL GOODS/INFRASTRUCTURE:V. CAPITAL GOODS/INFRASTRUCTURE:V. CAPITAL GOODS/INFRASTRUCTURE:V. CAPITAL GOODS/INFRASTRUCTURE:

1) Basic customs duty on steam coal is being increased from Nil to 2% and CVD from 1% to 2%.

2) Basic customs duty on bituminous coal is being reduced from 5% to 2% and CVD from 6% to 2%.

3) Basic customs duty is being reduced from 7.5% to 5% on 20 specified machinery for use in leather and footwear industry.

VI. AIRCRAFTS & SHIPS:VI. AIRCRAFTS & SHIPS:VI. AIRCRAFTS & SHIPS:VI. AIRCRAFTS & SHIPS:

1) Basic Customs Duty on yachts and motor boats is being increased from 10% to 25%. 2) Time limit for consumption of imported goods by ship repair units is being extended from

3 months to 1 year. 3) Time period for consumption/installation of parts and testing equipments imported for

maintenance, repair and overhaul (MRO) of aircrafts by units engaged in such activities is being extended from 3 months to 1 year.

4) Presently, the basic customs duty exemption is available to parts and testing equipments for maintenance, repair and overhaul of aircrafts. This exemption is now being extended to parts and testing equipments for maintenance, repair and overhaul of aircrafts and parts thereof.

VII. ENVIRONMENT PROTECTION:VII. ENVIRONMENT PROTECTION:VII. ENVIRONMENT PROTECTION:VII. ENVIRONMENT PROTECTION:

1) Full exemption from basic customs duty is being provided to lithium ion automotive battery for manufacture of lithium ion battery packs for supply to the manufacturers of hybrid and electric vehicles.

2) Time period of exemption (Nil BCD, CVD of 6% and Nil SAD) for the specified parts of electric and hybrid vehicles is being extended by 2 more years up to 31st March, 2015.

VIII. TEXTILES:VIII. TEXTILES:VIII. TEXTILES:VIII. TEXTILES:

1) Basic customs duty on raw silk (not thrown), of all grades is being increased from 5% to 15%.

2) Basic customs duty is being reduced from 7.5% to 5% on textile machinery & parts. IX. ELECTRONICS/HARDWARE:IX. ELECTRONICS/HARDWARE:IX. ELECTRONICS/HARDWARE:IX. ELECTRONICS/HARDWARE:

1) Basic customs duty on Set Top Boxes for TV is being increased from 5% to 10%. X. MISCELLANEOUS:X. MISCELLANEOUS:X. MISCELLANEOUS:X. MISCELLANEOUS:

1) Full exemption from basic customs duty and additional customs duty is being provided to trophy imported by National Sports Federation recognized by the Department of Sports and Youth Affairs or any Sports Body registered under Societies Registration Act, in connection with any international tournament held in India.

2) Withdrawal of exemption from education cess and secondary & higher education cess on aircraft and aircraft parts, soyabean oil, olive oil etc.


SKS Associates - Law Firm

SNAPSHOT - BUDGET 2013 - INDIRECT TAX

Excise – Tariff Related Changes

I. I. I. I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:

1) Full exemption from excise duty is being provided on tapioca sago (sabudana) and tapioca starch manufactured and consumed captively in the manufacture of tapioca sago.

2) Full exemption from excise duty is being provided on henna powder or paste, not mixed with any other ingredient.

II. AUTOMOBILES:II. AUTOMOBILES:II. AUTOMOBILES:II. AUTOMOBILES:

1) Excise duty on SUVs is being increased from 27% to 30%. 2) Excise duty on truck chassis (8706 00 42) is being reduced from 14% to 13%. 3) Sports Utility Vehicles registered solely for use as taxis will not suffer additional excise

duty consequent to the increase in excise duty on SUVs from 27% to 30%. Taxi refund in respect of SUVs is being adjusted accordingly.

III. METAIII. METAIII. METAIII. METALS:LS:LS:LS:

1) Excise duty of 4% is being levied on silver manufactured from zinc/lead smelting. 2) Compounded levy on stainless steel "Patta Patti" is being increased from Rs 30,000 per

machine per month to Rs 40,000 per machine per month. 3) It is being clarified that the item "trimmed or untrimmed sheets or circles of copper

intended for use in the manufacture of handicrafts or utensils" presently leviable to excise duty at Rs. 3500 per MT includes copper and copper alloys including brass.

IV. AIRCRAFTS & SHIPSIV. AIRCRAFTS & SHIPSIV. AIRCRAFTS & SHIPSIV. AIRCRAFTS & SHIPS::::

1) Full exemption from excise duty is being provided on ships and other vessels. Consequently, there will be no CVD on these ships and vessels when imported.


V. TEXTILES:V. TEXTILES:V. TEXTILES:V. TEXTILES:

1) Full exemption from excise duty is being provided on hand made carpets and carpets and other textile floor coverings of coir or jute, whether or not handmade.

2) 'Zero excise duty route', as existed prior to Budget 2011-12, is being restored in respect of branded readymade garments and made ups. In the case of cotton there will be zero duty at the fibre stage and, in the case of spun yarn of man made fibres, there will be a duty of 12% at the fibre stage. The 'Zero excise duty route' will be in addition to the CENVAT route now available.

VI. HEALTH:VI. HEALTH:VI. HEALTH:VI. HEALTH:

1) Branded Ayurvedic medicaments and medicaments of Unani, Siddha, Homeopathic or bio-chemic system are being brought under MRP based assessment with abatement of 35% from MRP.

VII. ELECTRONICS/HARDWARE:VII. ELECTRONICS/HARDWARE:VII. ELECTRONICS/HARDWARE:VII. ELECTRONICS/HARDWARE:

1) Excise duty on mobile phones of retail sale price exceeding Rs 2000/- is being increased from 1% to 6%.

VIII. MISCELLANEOUS:VIII. MISCELLANEOUS:VIII. MISCELLANEOUS:VIII. MISCELLANEOUS:

1) Excise duty on cigarettes is being increased by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm. Cigars and cigarillos duty is also being similarly raised.

2) Excise duty on marble tiles and slabs is being increased from Rs 30 per sq. mtr to Rs 60 per sq. mtr.

2) Full exemption from excise duty is being provided to intermediate goods manufactured and consumed captively by exempted units under Area Based Exemption Scheme in Himachal Pradesh and Uttarakhand.

Ppt on budet 2013

Documents

regular workman

law firm snapshot

agricultureagro

procedural

cantonment

basic customs

industrial

tax residency