Some Good Things about Budget 2012.

The budget 2012 presented by FM brings number of retrospective amendments which are not good for the business community. However, there are few new amendments which are useful for us. Lets have a look on this.

·         Section 35CCD  - Weighted deduction for expenditure for skill development – Here the weighted deduction is allowed upto 150% in case expenses were incurred for any notified skill development project. Please check whenever this trainings were notified and in case suitable for your business, then claim the 150% of the same in case expenses were incurred.   

·         Section 56(2)(vii) – Exemption of any sum or property received by an HUF from its members.   – Now, any fund received by HUF from its any of the members is not taxable as Gift.

·         Section 80CCG – Deduction in respect of investment made under any equity saving scheme –   In the budget, section 80CCF had been abolished and in place of that new section 80 CCG has been introduced where an assessee can save upto Rs. 25,000/- by making investment in notified equity shares.

·          Section 80D – Now health check-up upto Rs. 5000/- can be claim under this section.

·         Section 80 TTA – Deduction in respect of interest on deposits in savings accounts – Now interest earned on SAVING account upto Rs. 10,000/- p.a. is not taxable under this act.

·         Section 90 – Introduction of   Tax Residency certificate – Now, in case any payment where the  benefit of DTAA is available, then we have to provide the TRC of that country. Same will be applicable after notification only.

·         Section 92CC and 92 CD – Advance Pricing agreement -  with the introduction of APA,  it is possible for taxpayer to know about the transfer pricing impact in advance.  The board will notified the procedure.

·         Section 95 to 102 – General anti avoidance rule – The GAAR is postponed for more one year.

·         Section 115-O – Removal of cascading effects of DDT