Tuesday, 15 July 2014

More Points on India Budget 2014. - Income Tax


Ø  Introduction of Investment & Real estate trust with single point of taxation

Ø  Section 80-IA benefit extended to Slurry pipeline for transportation of Iron ore & Semiconductor water fabricator manufacturing unit.


Ø  No clarity on carried forward of unabsorbed newly introduced investment allowance.

Ø  CSR expenses allowable under MAT but not allowable under normal tax computation

Ø  Disallowance under section 40(a)(i) extended to Salary & non-resident payments.

Ø  More clarity required on applicability of tax accounting standard.

Ø  Unlisted shares & debt oriented Mutual fund now Long term only after 36 Months and again LTCG taxable @ 20%.

Ø  APA with 4 year roll back provision

Ø  Now multiple years data use allowed for transfer pricing benchmarking .

Ø  Resident can now also apply for advance ruling.

Ø  DDT new effective rate comes to 19.994% (approx. 20%)  effective from October 1, 2014.

Ø   For Section 54 & 54F, now investment is only for one house and not multiple house.

Ø  Income from transfer of securities by FIIs is to be treated as capital gain in nature.

Ø  Advance received & forfeited for transfer of capital asset is taxable as income from other source.

Ø  Assessee with principal business of trading in shares now cannot do speculation.

Ø  Credit of Alternative Minimum Tax available in similar basis as for MAT


Ø  Nom government employees can also avail the benefit of section 80CCD under new pension scheme (NPS). 

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