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to construction withdrawn for – government/ port/ airport.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withdrawn on foreign commission paid – now require to pay under reverse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.
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