Saturday 28 February 2015

India Budget 2015. Summary on Tax proposal


.

SN
Sec
Changes
 
 
1
 
No change in tax rates.
Surcharge increased to 12%
2
80D
Health Insurance– to Rs. 25K from 15K.  Senior citizen – 30K from 20K- Senior citizen – Rs. 30 K for Medical Treatment 
3
80DDB
Ease the norms – now any doctor will work – dediction 40K/ 60K/ 80K.
4
80DD/ 80U
Increase the limit in section 80DD/ 80U – Rs. 75K from 50K.
5
 
Addl Deduction – 50K  - 80CCD -  National Pension Scheme
6
 
Transport Allowance – Rs. 1600 from Rs. 800
7
 
Abolished Wealth Tax and 2% additional surcharge on super rich.    Details of assets will be captured in Income tax return
8
6
Amendment in section 6- residence stay of ship crew.
9
269SS
Include im-movable property
10
11A
Interest income exempt on Sukanya Samriddhi Account Scheme
 
 
 
 
Direct Tax
1
 
Reduce tax rate to 25%
Increase in surcharge from 7% / 12% from 5/10%.
2
92BA
Domestic Transfer pricing increased to 20 Cr.
3
47
Demerger -
4
80G
100% deduction to Swach Bharat & Clean Ganga other than CSR./ Drug abuse/
5
9A
Section 9A - Presence of fund manager not create a PE In India.
6
 
GAAR – defer by 2 years.- prospectively 1.4. 2017.
7
115A
FTS – 10% from 25%.
8
80JJA.
New employment deduction   - reduced to 50.
9
9
Amendment in section 9 – Assets located outside India -
10
9A(5)
Section 9A – furnishing of statement.
11
11
Procedural changes for charitable institution.
12
35
Procedural changes
13
80DDB
Procedural changes
14
115UB
New section. -  new forms.
15
192
Collect documents from Employee.
16
195
New form – in case no TDS.
17
285A
Reporting of benefit provided to foreign
18
32D
Additional Investment Allowance for Capital investment in Telengana./ AP.
19
32(i)(iia)
Additional Depreciation at the rate of 35%  only in  Tel/ AP.
20
194LD
WHT @ 5% on foreign interest – June 30, 2017.
21
32(1)
20% additional depreciation allowable fully even when used for less than 180 days.
22
2(15)
Definition of charity includes Yoga.
23
255
Raising the income-limit of the cases that may be decided by single member bench of ITAT -  Rs. 15 Lakhs.
24
158AA
Appeal pending in SC, Assessee win in HC – no further adjustment.
25
295
Enabling the Board to notify rules for giving foreign tax credit
26
195
Deduction of TDS on payment from HO to Branch / vice versa.
27
115JB
Include AOP & FII.
28
147
Simplification of obtaining approval for re-assessment.
29
194C
Exemption to Transporter from TDS- only 44AE with PAN.
20
194A
TDS on all kind of interest
21
200A
Penalty u/s 234E
22
6
Companies having place of management in India.
23
271
Tax payable u/s 234E.
24
 
Surcharge @ 12% on DDT
 
 
 
 
 
Indirect Tax
1
 
Service tax flat rate of 14%
2
 
Swach Bharat cess 2% ( 14.28%)
3
 
Include amusement facility.
4
 
Entertainment events with cost Rs. 500/- above. – included.
5
 
Contract job on production on  liquor – included.
6
 
Number of exemption withdrawn.
7
 
New exemption added.
8
 
Valuation include reimbursement
9
 
Rationalization of penalty.
10
 
Uniform abatement of 30% on goods carriage by all means.
11
 
Air transport -  higher class – 60% from 40%  abatement.
12
 
Digital signed invoices.
13
 
Reverse charge – Manpower supply/ security services – full 100%.
14
 
Cenvat Credit is being extended from six months from the date of invoice to one year from the date of invoice

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