Dear Friends,
The Budget 2013 is a fraud to the common and innocent people
of India. I had already provided you the
major highlights of Budget 2013 on the same date of the budget within 2 hours.
The link of the same is given below:
For me the budget first looks more than a neutral as
it had contains few incentives . but now as we are getting deeper and deeper and
found that the incentives provided are nothing but just a mirage in the desert
and you could not gain more from this,
but definitely loose.
I had listed down the few proposed amendments which
are not in the favour of the society.
|
SN
|
Proposed Amendment
|
Author Remarks
|
|
|
|
|
|
1
|
Withholding
tax on Royalty payments to non –residents increased to 25%.
|
The countries having DTAA will still enjoy the treaty benefit subject
to the condition that you must obtain their PAN and TRC. In case you fail to obtain TRC, the rate is now 25%
still DTAA is there and in case no PAN, then rate is 20
%. Further countries like Hongkong & Argentina, where India don’t have any DTAA , there 25% WHT is applicable. |
|
|
|
|
|
2
|
Additional
investment allowance @ 15% for acquisition of new plant & Machinery purchased
of Rs. 100 Cr. or more after 1.4.2013 and before 31.3.2015
|
In the recession time, how many industry able to buy P&M more than
Rs. 100 Cr. The section is only benefitting Super rich companies and not to others.
|
|
|
|
|
|
3
|
No Change in Income
tax slabs except Rs. 2000/- tax credit in case taxable income below Rs. 5
Lakhs
|
There was no need to provide additional tax exemption of Rs. 167/-
p.m.
|
|
|
|
|
|
4
|
Additional
deduction of Rs. 1 Lakh is allowed in case of acquisition of first house
property whose value is less than Rs. 40 Lakhs and loan amount is less than
Rs. 25 Lakhs. Further, unabsorbed
deduction can be carried forward to next year
|
If deduction u/s 80EE claimed, then assessee cannot take deduction under other sections i.e Rs.
1.5 Lakhs u/s 24. Thus, assessee will
take deduction u/s 24 and hence section 80EE is a vague incentive.
|
|
|
|
|
|
5
|
TDS @
1% on purchase of property of more than Rs. 50 Lakhs except agricultural
land.
|
Putting common man
under the preview of compliances of TDS.
|
|
|
|
|
|
6
|
Section
43CA inserted which is similar to section 50C
|
This will effect
real estate companies business
|
|
|
|
|
|
7
|
Section
56(2) amended to include inadequate consideration along with no
consideration.
|
This have a impact
on common man who booked the home under constructions and wait for 2-3 years
for their completion
|
|
|
|
|
|
8
|
Reduction
in abatement rate to 70% from 75% for
under construction apartments having carpet area of 2000 sq feet or more or
value exceeds Rs. 1 crore
|
This will increase
the cost of residential house although there is no element of extra services.
|
|
|
|
|
|
9
|
Levy
of service tax on all air conditioned restaurants
|
This will increase
the cost of outside eating.
|
|
|
|
|
|
10
|
Introduction of
one-time scheme called ‘Voluntary Compliance Encouragement Scheme” compliance
of service tax.
|
Of no use, in case
you had already served with show cause notice. Further, exemptions from other
law is not granted.
|
|
|
|
|
|
11
|
Public vehicle
parking covered under service tax
|
This will increase
the parking cost of common man.
|
|
|
|
|
|
12
|
Amendment made
under section 40A(2b)
|
Companies run by
state government now face the difficult time due to this.
|
I hope that you
will able to understand the harm caused by the above tax amendments. However,
in case you need more detail for any specific provision, please mail me at taxbymanish@yahoo.com and also visit my blog at http://taxbymanish.blogspot.in///
for latest updates on taxes.
Thank you.
No comments:
Post a Comment