Share |

KEY FEATURES OF BUDGET-2014-2015

(As per Finance (No. 2) Bill, 2014 and Last Minute Amendment also incorporated) (As passed by Lok Sabha)
 
  • Income-tax rates for individuals remain unchanged, however, exemption limit increased by Rs. 50,000 from Rs. 200,000 to Rs. 250,000.
  • Income-tax exemption limit also increased by Rs. 50,000 for senior citizens from Rs. 250,000 to Rs. 300,000. Surcharge of 10% on personal income-tax applicable on income exceeding Rs. 10 million and education cess of 3% retained.
  • Rates of corporate tax remain unchanged for both domestic and foreign companies.
  • Deduction under section 80C on account of savings and investments increased by Rs. 50,000 from Rs.100,000 to Rs. 150,000.
  • Deduction for interest on housing loan for sell-occupied house property increased by Rs. 50,000 from Rs. 150,000 to Rs. 200,000.
  • DDT to be paid after grossing up net profits distributed by the company or income distributed by mutual fund as the case may be.
  • Applicability of concessional tax of 15% on gross dividend received by an Indian company from specified foreign company has been extended to all future assessment years without any sunset clause.
  • Concessional rate of withholding tax on interest on overseas borrowings extended to all LTBs (including LTIB). Further, the time line for obtaining overseas borrowing has been extended for three years up to 1 July 2017.
  • Securities held by FlIs in accordance with SEBI regulations to be treated capital asset.
  • Unlisted securities and mutual funds (other than equity oriented funds) to be treated as long term capital assets, where the same are held for a period of more than 36 months.
  • Specified payments to a non-resident to be allowed as deduction if tax is deducted during the financial year and deposited on or before the due date of filing the return of income.
  • Disallowance on account of non-deduction/late deduction and deposition of tax at source extended to cover all payments to a resident on which tax is deductible. Amount of disallowance to be restricted to 30% of the amount of expenditure.
  • Expenditure incurred on activities related to Corporate Social Responsibility not to be allowed as deductible expenditure.
  • To provide further impetus to the manufacturing sector, a new investment based deduction scheme introduced for allowing 15% of the investment made for acquisition and installation of new plant and machinery from 1 April 2014 to 31 March 2017.
  • Sunset clause for commencement of business for claiming tax holiday in power sector extended from 31 March 2014 to 31 March 2017.
  • Investment linked tax deduction extended to taxpayers engaged in laying and operating a slurry pipeline for the transportation of iron ore or setting up and operating a notified semiconductor wafer fabrication manufacturing unit. Certain amendments made in the scheme of claiming investment linked deduction.
  • Capital gain exemption on investment in a residential house property available only if the investment is made in one residential house situated in India.
  • Sum of money received as an advance for transfer of a capital asset will be chargeable to tax as income from other sources if such advance is forfeited.
  • Transactions with a resident also deemed as international transaction in certain situations.
  • Roll back provisions introduced for Advance Pricing Agreement (APA).
  • Multiple year data to be permitted for comparability analysis.
  • Range concept for determination of arms length price.
  • Powers given to transfer pricing officer to levy penalty for failure to furnish transfer pricing documentation.
  • The concessional tax rate of 10% on long term capital gains would now not be available to units of MF (ie units of nonequity oriented schemes).
  • MF, ST and VCCNCF shall now be required to file a tax return instead of existing requirement for filing of the prescribed statement.
  • Effective 1 October 2014, specific tax regime introduced for REITs and Invits.
  • Any trust or institution registered under section 1 2AA, can no longer claim exemption under section 10.
  • Registration under section 12AA can be used for claiming tax exemption in earlier years.
  • Computation of tax on anonymous donation rationalized.
  • Power to survey specifically to include verification of tax deducted and collected at source. Further, the period of retention of books of accounts has been increased from 10 to 15 days.
  • Power of Income-tax authorities specifically to include issuance of notice to any person to verify any information in their possession.
  • Government to notify income computation and disclosure standards to be followed for computation of income.
  • Assessment of income of a person other than the person in whose case search has been carried out will be done only if the Assessing Officer is satisfied that the seized material will have a bearing on the determination of the total income of the other person.
  • The mode of acceptance or repayment of loan or deposit (in addition to account payee cheque or bank draft) has been extended to use of electronic clearing system through a bank account (if other conditions are satisfied).
  • Time limit for provisional attachment of property extended.
    • “Annual Information Return” will now be called “Statement of financial transaction or reportable account”. “Prescribed reporting financial institution” included in the list of prescribed persons to enable compliance with FATCA.
 
 
 
More Topics ...on TAX Amendment !
Insert a new Chapter XII-FA (Budget:2014-2015) in 'Special Provisions Relating to Business Trusts'
KEY FEATURES OF BUDGET-2014-2015 [ (As per Finance (No. 2) Bill, 2014 and Last Minute Amendment also incorporated) (As passed by Lok Sabha)
Amendment of Section-10 (Budget 2014-2015) relating to Income not Included in Total Income
Amendment of Section-10AA (Budget 2014-2015) relating to "SPECIAL PROVISION IN RESPECT OF NEWLY ESTABLISHED UNITS IN SPECIAL ECONOMIC ZONES"
Amendment of Section-11 (Budget 2014-2015) relating to " SPECIAL PROVISION IN RESPECT OF NEWLY ESTABLISHED UNITS IN SPECIAL ECONOMIC ZONES "
Amendment of Section-111A (Budget 2014-2015) relating to "TAX ON SHORT-TERM CAPITAL GAINS IN CERTAIN CASES"
Amendment of Section-112 (Budget 2014-2015) relating to "TAX ON LONG-TERM CAPITAL GAINS"
Amendment of Section-115-O (Budget 2014-2015) relating to "TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES"
Amendment of Section-115-R (Budget 2014-2015) relating to "TAX ON DISTRIBUTED INCOME TO UNIT HOLDERS"
Amendment of Section-115-TA (Budget 2014-2015) relating to "TAX ON DISTRIBUTED INCOME TO INVESTORS "
Amendment of Section-115A (Budget 2014-2015) relating to "TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICE FEES IN THE CASE OF FOREIGN Amendment of Section-115A (Budget 2014-2015) relating to "TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICE FEES IN THE CASE OF FOREIGN Amendment of Section-115A (Budget 2014-2015) relating to "TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICE FEES IN THE CASE OF FOREIGN COMPANIES"
Amendment of Section-115BBC (Budget 2014-2015) relating to "ANONYMOUS DONATIONS TO BE TAXED IN CERTAIN CASES"
Amendment of Section-115BBD (Budget 2014-2015) relating to "TAX ON CERTAIN DIVIDENDS RECEIVED FROM FOREIGN COMPANIES"
Amendment of Section-115JC (Budget 2014-2015) relating to "THE PROVISIONS FOR PAYMENT OF TAX BY CERTAIN PERSONS OTHER THAN A COMPANY"
Amendment of Section-115JEE (Budget 2014-2015) relating to "APPLICATION OF THE CHAPTER XII-8A TO CERTAIN PERSONS"
Amendment of Section-116 (Budget 2014-2015) relating to "SUBSTITUTION OF NEW INCOME-TAX AUTHORITIES "
Amendment of Section-12A (Budget 2014-2015) relating to " CONDITIONS FOR APPLICABILITY OF SECTIONS-11 AND 12 "
Amendment of Section-12AA (Budget 2014-2015) relating to " PROCEDURE FOR REGISTRATION "
Amendment of Section-133A (Budget 2014-2015) relating to "POWER OF SURVEY"
Amendment of Section-133C (Budget 2014-2015) relating to "POWER TO CALL FOR INFORMATION BY PRESCRIBED INCOME-TAX AUTHORITY"
Amendment of Section-139 (Budget 2014-2015) relating to " RETURN OF INCOME"
Amendment of Section-140 (Budget 2014-2015) relating to " RETURN BY WHOM TO BE SIGNED"
Amendment of Section-142K (Budget 2014-2015) relating to " Estimate By Valuation Officer In Certain Cases"
Amendment of Section-145 (Budget 2014-2015) relating to " METHOD OF ACCOUNTING"
Amendment of Section-153 (Budget 2014-2015) relating to " TIME LIMIT FOR COMPLETION OF ASSESSMENTS AND REASSESSMENTS"
Amendment of Section-153-B (Budget 2014-2015) relating to " TIME LIMIT FOR COMPLETION OF ASSESSMENT UNDER SECTION -153A"
Amendment of Section-153-C (Budget 2014-2015) relating to " ASSESSMENT OF INCOME OF ANY OTHER PERSON"
Amendment of Section-194-DA (Budget 2014-2015) relating to " PAYMENT IN RESPECT OF LIFE INSURANCE POLICY"
Amendment of Section-194-LBA (Budget 2014-2015) relating to "CERTAIN INCOME FROM BUSINESS TRUST"
Amendment of Section-194-LC (Budget 2014-2015) relating to "INCOME BY WAY OF INTEREST FROM INDIAN COMPANY"
Amendment of Section-2(14) (Budget 2014-2015) relating to "CAPITAL ASSET "
Amendment of Section 2 relating to Definitions. [ (As per Finance (No. 2) Bill, 2014 and Last Minute Amendment also incorporated) (As passed by Lok Sabha)
Amendment of Section-200-A (Budget 2014-2015) relating to "PROCESSING OF STATEMENTS OF TAX DEDUCTED AT SOURCE"
Amendment of Section-200 (Budget 2014-2015) relating to "DUTY OF PERSON DEDUCTING TAX"
Amendment of Section-201 (Budget 2014-2015) relating to "CONSEQUENCES OF FAILURE TO DEDUCT OR PAY"
Amendment of Section-206-AA (Budget 2014-2015) relating to "REQUIREMENT TO FURNISH PERMANENT ACCOUNT NUMBER"
Amendment of Section-220 (Budget 2014-2015) relating to "WHEN TAX PAYABLE AND WHEN ASSESEE DEEMED IN DEFAULT"
Amendment of Section-24 (Budget 2014-2015) relating to " DEDUCTIONS FROM INCOME FROM HOUSE PROPERTY"
Amendment of Section-245-A (Budget 2014-2015) relating to " SETTLEMENT OF CASES-DEFINITION"
Amendment of Section-245-N (Budget 2014-2015) relating to " ADVANCE RULING-DEFINITIONS"
Amendment of Section-245-O (Budget 2014-2015) relating to " AUTHORITY FOR ADVANCE RULINGS "
Amendment of Section-269-T (Budget 2014-2015) relating to " MODE OF REPAYMENT OF CERTAIN LOANS AND DEPOSITS "
Amendment of Section-269-SS (Budget 2014-2015) relating to "MODE OF TAKING OR ACCEPTING CERTAIN LOANS AND DEPOSITS"
Amendment of Section-271-FA (Budget 2014-2015) relating to " PENALTY FOR FAILURE TO FURNISH ANNUAL INFORMATION RETURN "
Amendment of Section-271-FAA (Budget 2014-2015) relating to " PENALTY FOR FURNISHING INACCURATE STATEMENT OF FINANCIAL TRANSACTION OR REPORTABLE ACCOUNT"
Amendment of Section-271-G (Budget 2014-2015) relating to " LEVY OF PENALTY FOR FAILURE TO FURNISH INFORMATION OR DOCUMENT UNDER SECTION-92D OF THE ACT"
Amendment of Section-271-H (Budget 2014-2015) relating to " PENALTY FOR FAILURE TO FURNISH STATEMENTS, etc."
Amendment of Section-276-D (Budget 2014-2015) relating to " FAILURE TO PRODUCE ACCOUNTS AND DOCUMENTS"
Amendment of Section-281-B (Budget 2014-2015) relating to "PROVISIONAL ATTACHMENT TO PROTECT REVENUE IN CERTAIN CASES"
Amendment of Section-285-BA (Budget 2014-2015) relating to "OBLIGATION TO FURNISH ANNUAL INFORMATION RETURN WITH A NEW SECTION"
Amendment of Section-32AC (Budget 2014-2015) relating to " INVESTMENT IN NEW PLANT OR MACHINERY"
Amendment of Section-35AD (Budget 2014-2015) relating to " DEDUCTION IN RESPECT OF EXPENDITURE ON SPECIFIED BUSINESS"
Amendment of Section-37 (Budget 2014-2015) relating to " GENERAL EXPENDITURE"
Amendment of Section-40 (Budget 2014-2015) relating to "AMOUNTS NOT DEDUCTIBLE"
Amendment of Section-43 (Budget 2014-2015) relating to "DEFINITIONS OF CERTAIN TERMS RELEVANT TO INCOME FROM PROFITS AND GAINS OF BUSINESS OR PROFESSION"
Amendment of Section-44AE (Budget 2014-2015) relating to "SPECIAL PROVISION FOR COMPUTING PROFITS AND GAINS OF BUSINESS OF PLYING, HIRING OR LEASING GOODS CARRIAGES"
Amendment of Section-45 (Budget 2014-2015) relating to " CAPITAL GAINS"
Amendment of Section-47 (Budget 2014-2015) relating to "TRANSACTIONS NOT REGARDED AS TRANSFER"
Amendment of Section-48 (Budget 2014-2015) relating to "MODE OF COMPUTATION"
Amendment of Section-49 (Budget 2014-2015) relating to "COST WITH REFERENCE TO CERTAIN MODES OF ACQUISITION"
Amendment of Section-51 (Budget 2014-2015) relating to "ADVANCE MONEY RECEIVED"
Amendment of Section-54 (Budget 2014-2015) relating to "PROFIT ON SALE OF PROPERTY USED FOR RESIDENCE"
Amendment of Section-54EC (Budget 2014-2015) relating to " CAPITAL GAIN NOT TO BE CHARGED ON INVESTMENT IN CERTAIN BONDS"
Amendment of Section-54F (Budget 2014-2015) relating to " CAPITAL GAIN ON TRANSFER OF CERTAIN CAPITAL ASSETS NOT TO BE CHARGED IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE"
Amendment of Section-56 (Budget 2014-2015) relating to " INCOME FROM OTHER SOURCES"
Amendment of Section-73 (Budget 2014-2015) relating to " LOSSES IN SPECULATION BUSINESS"
Amendment of Section-80-IA (Budget 2014-2015) relating to " DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, etc."
Amendment of Section-80C (Budget 2014-2015) relating to " DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, DEFERRED ANNUITY, CONTRIBUTIONS TO PROVIDENT FUND, SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES, etc."
Amendment of Section-80CCD (Budget 2014-2015) relating to " DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION SCHEME OF CENTRAL GOVERNMENT ."
Amendment of Section-80CCE (Budget 2014-2015) relating to " LIMIT ON DEDUCTIONS UNDER SECTIONS BOC, 8OCCC AND BOCCD"
Amendment of Section-92-C (Budget 2014-2015) relating to "COMPUTATION OF ARM’S LENGTH PRICE "
Amendment of Section-92B (Budget 2014-2015) relating to " MEANING OF INTERNATIONAL TRANSACTION"
Amendment of Section-92CC (Budget 2014-2015) relating to "ADVANCE PRICING AGREEMENT"
 
 
Get Updated ....
Tax Tutorials
E-Payment Of Direct Taxes
Filing Of Return Of Income
Interest for Delay in Filing the Return of Income [Section 234 A]
Interest for default in Payment of Advance Tax [Section 234B]
Provisions Of 'Income-Tax Law' Useful For Non-Residents
MAT (Minimum Alternate Tax)
AMT ( Alternative Minimum Tax)
Tax On Long-Term Capital Gains (LTCG)
Tax On Short-Term Capital Gains (STCG)
Exemption[ Section-54] For Capital Gains Arising On Transfer Of Residential House Property
Tax Treatment Of Gifts Received By An Individual Or HUF
Set Off And Carry Forward Of Loss Under The Income-Tax Act
Interest For Delay In Payment of TDS/TCS And For Non-Payment Of Tax Demanded
Tax Deduction/Collection Account Number (TAN)
How to apply for PAN ?
Refund Of Excess Tax Paid By The Taxpayer (Sections - 237 to 245 )
Presumptive Taxation Scheme of Section 44AD
Presumptive Taxation Scheme of Section 44ADA
Presumptive Taxation Scheme of Section 44AE
Deduction in respect of Life Insurance Premium, PPF, NSC, etc. [Section 80C]
Deduction in respect of Medical Insurance Premium [Section 80D]
Tax Deducted at Source (TDS) from Interest, other than Interest on Securities (Section-194A)
Tax Deducted at Source (TDS) from Interest on Securities (Section 193)
Late Filing Fees And Penalty For Failure To Furnish/Delay In Furnishing The TDS/TCS Statements
LIBRARY @ Tax Management
TAX & INVESTMENT GUIDE FOR "NRI"- Non-Resident Indians !
GUIDE & FAQ @ TAX
GRAPHICAL PRESENTATION @ TAX
TIPS & TRICKS @ TAX
MANAGERIAL & FINANCIAL DECISIONS @ TAX
5 GOLDEN RULES OF TAX PLANNING
FAMILY TAX PLANNING
DEDUCTIONS FROM YOUR INCOME
EXEMPTED INCOMES
HUF - FORMATION, MANAGEMENT & TAX PLANNING
COMPUTATION OF GROSS TOAL INCOME
INCOME TAX @ GLANCE
MULTIPLE KNOWLEDGEBASE ON TAX
51 TIPS ON TAX PLANNING
APPEALS UNDER INCOME TAX
ASSESSMENTS
PENALTIES UNDER IT DEPATMENTS
TAX SAVING SCHEMES
TAX READY RECKONER
TAX RATES
PROSECUTIONS UNDER INCOME TAX DEPARTMENT
TAXATION SYSTEM IN INDIA
CHARITABLE & RELIGIOUS TRUST - TAXATION
PRESCRIBED FORMS WITH with Section / Rules
KNOWLEDGE BASE !
New Topics @ Tax KnowledgeBase...
 
 

Most Popular Topics :

Corporate Tax ( Taxation in Companies)
FAQ on TDS on Salaries
FAQ on Taxable Income
FAQ on Filing of Income Tax Return
Graphical Chat Presentation of Provision of Motor Car / Other Vehicles [Rule 3(2)(A)&(B)]
'Appeals' Under Income Tax Act. 1961.
'Assessments' Under Income Tax Act. 1961.
List of Exempted Incomes (Tax-Free) Under Section-10
Income Under the Head ' Business and Professions' [Section 28 to 44]
Income Under the Head ' Capital Gain'
Income Under the Head ' House Property '[Section- 22 - 25 ]
Income Under the Head "Salary"
[Section 15-17]
Income Tax on 'Partnership Firms'
PENALTIES Under Income Tax Act. 1961.
Tax Saving Schemes for Individual -Instant Guide
New Tax Rates For FY 2017-18 & AY 2018-19
"Exempted Incomes" under Income Tax Act.
Charitable & Religious Trust :Formation, Registration, & Taxation
Hindu Undivided Family [HUF] - Formation, Management and Taxation
 

Most Popular Links :

Clubing of Income Deduction U/s 80C
Allowances Us-17(3) Exemption-Salary
Tax Amendment-2015 Taxable Income
Clubing of Income Tax Deductions
HUF Deduction HUF Investment
Gift by HUF HUF Tax Planning Tips
Tax Saving Schemes Tax Planning Tips
Refund of Tax Fringe Benefit Tax-FBT
Return Filing Assessment / Scrutiny
Notice from I.T. Dept. Incomes Types @ TDS
Exemptions-Tax Returns “Summon” U/s 131
'Black Money' @ I.Tax Big Gifts To Be Taxed
'Appeals' under I.Tax Assessment @ I.Tax
Exempted Incomes Capital Gain
Business & Professions House Property
Salaries @ I.Tax Partnership Firm
'Penalty' under I.Tax Act. Tax Ready Reckoner
Charitable Trust Useful Links @ I.Tax
 
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)
FAQs - Income Tax India Tax Tutorials    

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications