Important points in Budget 2015. - Direct Tax. – Corporate

 

01. Surcharge on tax increased by 2%.    

New tax rates

Corporate Tax	34.608/ 33.063/ 30.9
MAT	21.342/ 20.289/  19.055
DDT	20.358
Buy bay tax	23.072
Foreign Company	43.26 /  42.024/ 41.2

 

02. Disclosure of foreign assets in Income tax return -  non reporting leads to penalty.

03. POEM introduced – place of effective management -  planning required for Indian holding companies having foreign subsidiaries.

04. TDS on FTS & royalty decreased to 10%/

05. Indirect Transfer defined – 50% of the total assets lying in India of global assets transferred. – Proportionate capital gain tax – DTAA benefits available.

06. Indirect transfer on account of foreign amalgamation & demerger specifically excluded.

07. No MAT on FII but applicable on AOP.

08. Additional incentives in Andra Pradesh & Telengana.

(a)  Investment allowance – 15

(b)   Adfditional depreciation – 35%.

 

09. Carry forward of additional depreciation .

10. Penalty on concealment of income where MAT is applicable. Directions provided.

11. Amendment in section 285A -  

12.  Tax holiday u/s 80-IA on power cos. Extended upto  March 31, 2017.