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%. However no PAN then rate is 20%.

05. Indirect Transfer defined – 50% of the total assets lying in India of global assets transferred. – Proportionate capital gain tax – DTAA benefits available. –value of assets exceeds Rs. 10 Cr.  –Indian entity require to furnish information in respect of change in ownership structure.  – Subject to penalty. (section 285A/ 271GA).

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

07. CBDT will issue guidelines in respect of dividends paid by foreign company on the ultimate holding of Indian company.

08. No MAT on FII and on AOP.

09. Additional incentives in Andra Pradesh & Telengana.

(a)  Investment allowance – 15

(b)   Additional depreciation – 35%.

 

10. Carry forward of additional depreciation.

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

12. Amendment in section 285A -  

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

14. Interest paid by branch to HO is taxable in India.

15. CBDT will make rules in respect of Foreign tax credit.

16. Furnish information in respect of all foreign tax payment. Failure to this attracts penalty u/s 271-I.

17. Deduction u/s 80G for Swach Bharat/ Clean ganga/ drug abuse over and above CSR.

18. Limit of new employment decreased to 50 in section 80JJA.

19. Offshore fund manager not create PE in India.

20. Concessional rate of 5% continued for interest income of FPI.

21. GDR includes D/ DCs etc.

22. 271C penalty required to be paid in the case of MAT also.

 

 

Personal 

 

23. Sun set clause for section 80EE deduction on additional interest deduction on housing loan.

24. Further no extension of schemes like Infrastructure bonds and Rajiv Gandhi equity scheme.

25. Rebate of section 87A of Rs. 2000/- still continue.

   

 

   Service  Tax. – Corporate

 

26. Reimbursement now included in taxable consideration.

27. Exemption to construction withdrawn for – government/ port/ airport.

28. Exemption withdrawn on foreign commission paid – now require to pay under reverse mechanism.

29. Taxation of e commerce companies by introduction of concept of aggregator.

30. Advance ruling available to private companies.