Transcript BUDGET 2015 - Sutaria Associates

SUTARIA ASSOCIATES
 DIRECT TAX GUIDELINES
F.Y -15-16
A.Y -16-17
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
INCOME TAX SLAB RATES FOR INDIVIDUALS BELOW 6O
YRS &HUF
INCOME SLABS
TAX RATES
Where the taxable income does not
exceed Rs. 2,50,000/-.
NIL
Where the taxable income exceeds Rs.
2,50,000/- but does not exceed Rs.
5,00,000/-.
10% of amount by which the taxable
income exceeds Rs. 2,50,000/-.
Where the taxable income exceeds Rs.
5,00,000/- but does not exceed Rs.
10,00,000/-.
20% of the amount by which the taxable
income exceeds Rs. 5,00,000/-.
Where the taxable income exceeds Rs.
10,00,000/-.
30% of the amount by which the taxable
income exceeds Rs. 10,00,000/-.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
INCOME TAX SLAB RATES FOR SENIOR CITIZENS ABOVE
6O YRS
INCOME SLABS
TAX RATES
Where the taxable income does not
exceed Rs. 3,00,000/-.
NIL
Where the taxable income exceeds Rs.
3,00,000/- but does not exceed Rs.
5,00,000/-.
10% of amount by which the taxable
income exceeds Rs. 3,00,000/-.
Where the taxable income exceeds Rs.
5,00,000/- but does not exceed Rs.
10,00,000/-.
20% of the amount by which the taxable
income exceeds Rs.5,00,000/-.
Where the taxable income exceeds Rs.
10,00,000/-.
30% of the amount by which the taxable
income exceeds Rs. 10,00,000/-.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
INCOME TAX SLAB RATES FOR SENIOR CITIZENS ABOVE
8O YRS
INCOME SLABS
TAX RATES
Where the taxable income does not
exceed Rs. 5,00,000/-.
NIL
Where the taxable income exceeds Rs.
5,00,000/- but does not exceed Rs.
10,00,000/-.
20% of the amount by which the taxable
income exceeds Rs.5,00,000/-.
Where the taxable income exceeds Rs.
10,00,000/-.
30% of the amount by which the taxable
income exceeds Rs. 10,00,000/-.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
For Registered Firm and LLP
 Flat rate of 30 % + Edu. Cess @ 3 % of tax
For Indian/Domestic Companies (including on MAT & Dividend
Distribution Tax etc.)
 Flat rate of 30 % + Surcharge @ 5 % + Edu. Cess @ 3 % of tax
For Foreign Company (other than Royalty and Technical Fees
Income)
 Flat rate of 40 % + Surcharge @ 2 % + Edu. Cess @ 3 % of tax
In all the cases marginal relief will be provided for application of
surcharge.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
SURCHARGE
It is further proposed to levy a surcharge @12% on individuals, HUFs,
AOPs, BOIs, artificial juridical persons, firms, cooperative societies and
local authorities having income exceeding Rs 1 crore. Surcharge in the
case of domestic companies having income exceeding Rs 1 crore and up
to Rs 10 crore is proposed to be levied @ 7% and surcharge @ 12% is
proposed to be levied on domestic companies having income
exceeding Rs 10 crore.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
AMENDMENTS FOR INDIVIDUAL TAX PAYERS
1.
Individual tax payers can get income tax benefit of Rs 4,44,200 in a
year
DEDUCTION
LAST YEAR
CURRENT YEAR
Deduction u/s 8OC
150000
150000
Deduction u/s
8OCCD
NIL
50000
Deduction on
150000
account of interest on
house property
loan(SOP)
200000
Deduction u/s 8OD
15000
25000
Transport allowance
9600
19200
TOTAL
324600
444200
2.
Transport allowance exemption increased from Rs 800 to
Rs 1,600.
3.
Increase in health insurance premium tax from Rs 15,000
to Rs 25,000 and for Sr citizens Rs 30,000.
4. Abolish wealth tax and replace it an additional 2%
surcharge on the super rich with above Rs 1 cr annual
income.
5.
Clean Ganga Fund (by resident) shall be eligible for 100%
deduction under section 80G of the Income-tax Act.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
6. It is proposed to provide that investment in Sukanya Samriddhi
Scheme will be eligible for deduction u/s 80C and any Interest
on sukanya samriddhi account from the scheme shall not be
liable to tax.
7.
It is proposed to increase the limit of deduction in case of very
senior citizens u/s 80DDB of the Income-tax Act on
expenditure on account of specified diseases from Rs 60,000 to
Rs 80,000.
8.
It is proposed to increase the limit of deduction u/s 80DD and
u/s 80U of the Income-tax Act in respect of maintenance,
including medical treatment of a dependant who is a person
with disability, from Rs 50,000 to Rs 75,000. It is also proposed
to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh
in case of severe disability.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
9. It is proposed to increase the limit of deduction u/s
80CCC of the Income-tax Act on account of contribution
to a pension fund of LIC or IRDA approved insurer from
Rs 1 lakh to Rs 1.5 lakh.
10. Additional deduction of Rs 50,000 for contribution in
National pension scheme.
11. Tax free Infrastructure bonds for projects in railways and
roads.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
AMENDMENTS FOR CORPORATE TAX PAYERS
1.
Income Tax reduction from 25 per cent to 10 per cent on royalty
for providing technical services.
2.
Corp tax rate to be reduced from 30% to 25% in next 4 years.
3.
PAN quoting to be mandatory for sale over Rs 1 lakh.
4.
100% tax exemption in CSR activities for Clean Ganga Fund
and Swachh Bharat Kosh.
5.
It is also proposed to levy a surcharge @12% as against current
rate of 10% on additional income-tax payable by companies on
distribution of dividends and buyback of shares, or by mutual
funds and securitization trusts on distribution of income.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
6. It is proposed to amend the provisions of section 194LD
(Income by way of interest on certain bonds and
Government securities.)of the Income-tax Act so as to
extend the period of applicability of reduced rate of tax at
5% in respect of income of foreign investors (FIIs and
QFIs) from corporate bonds and government securities,
from 31.5.2015 to 30.06.2017.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
7.
Additional depreciation @ 20% is allowed on new plant
and machinery installed by a manufacturing unit or a
unit engaged in generation and distribution of
power. However, if the asset is installed after
30th September of the previous year only 10% of the
additional depreciation is allowed. It is proposed to allow
the remaining 10% of the additional depreciation in the
subsequent previous year . For investment in the state of
Andhra Pradesh and Telangana additional 15% is
allowed .
8. It is proposed to amend the provisions of section 92BA of
the Income-tax Act so as to increase the threshold limit
for applicability of transfer pricing regulations to
specified domestic transactions from Rs 5 crore to Rs 20
crore.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
9. Form 10 for accumulation of income by charity trust
should be filed before the due date of return, which was
earlier allowed to be filed on or before completion of
assessment.
10. Income of Investment fund other than profit from
business exempt from tax.
11. The government will issue sovereign gold bonds as an
alternative to purchasing physical gold. The bond will
carry a fixed rate of interest, and also be redeemable in
terms of the face value of the gold at the time of
redemption by the holder of the bond.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
BLACK MONEY
 Concealment of income will be prosecutable with rigorous
imprisonment up to 10 years.
 In search cases, it is proposed to allow seized cash to be adjusted
towards the assessee’s tax liability under his settlement
application.
 With a view to curbing the generation of black money in real
estate, it is proposed to amend the provisions of section 269SS
and 269T of the Income-tax Act so as to prohibit acceptance or
re-payment of advance in cash of Rs 20,000 or more for any
transaction in immovable property. It is also proposed to
provide a penalty of an equal amount in case of contravention of
such provisions.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
 Non-filing or wrong filing of tax returns related to foreign
assets will lead to prosecution.
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
WEALTH TAX
 Wealth Tax has been abolished .
 Instead of that additional 2% surcharge has been levied on
super rich person (i.e person having income above 1 crore)
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77
Thank-You
© SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS
C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77