Sk consultancy

08/05/2020

*S k consultancy *
*Commercial tax practitioner*

New gst registration for proprietorship firm 2000/-
(send all documents only through whatsup app or mail)

*offer for limited period*

Mobile number : *9723621999*
Email id: *[email protected]*

10/06/2017

*Certain important points to be noted in respect of GST:

*1. # GST will 100% be implemented on 01-07-2017*

*2. # Types of taxation in GST*

*3. IGST : Integrated GST*

*4. CGST : Central GST which with replacement CST*

*5. SGST : State GST which will replace VAT*

*6. # WEF from 1.6.17 : Migration towards enrolment of GST will start till 15.6.17*

*7. # Registration certificates will be issued online.*

*8. # There will be no check post for 1 year. Only mobile check posts will be in full force. All intelligence officers will be dormant for sometime.*

*9. # 5 forms on different dates have to be submitted every month.*
*R1 form on 10th*
*R2 form on 13th*
*R3 form on 15th*
*R4 form on 17th* *&*
*R5 form or final returns on 20th*
*You cannot file revised returns at all. Once filed on 20th is final.*

*10. # Tax payments will be accepted only by e payments. Tax Payments via credit & debit card also added.*

*11. # In the present Vat system you upload sales & purchases every month. In GST you have to upload every sale & purchase bill.*

*12. # Be careful , every thing in GST is system driven. Once uploaded you cannot revise anything. No officer can help you in this. They can only pity the mistake.*

*13. # Your firm rating will be done by the system. Based on the rating audit trials will be conducted.*

*14. # Proposed e sugam for ₹50000 & above value only.*

*15. # Proposed rates of GST in percentage are 0, 5, 8 , 12, 18 , 28 & 40.*

*16. # 1st time in the history of independent India 4 major category of businesses will be covered : Education, Textiles, Medical & Professional services.*

*17. # You need to submit 17 documents for migration to GST.*

*18. # Most products MRP to come down.*

*19. # Distribution + C & F channel under threat.*

*20. # All these categories which were not taxed will now be taxable : Replacements/ return goods, Barters , Free Samples, disposables, scrap material. For example : if you buy a 40 inch led TV from Girias for ₹30000 & return back your old TV in exchange for ₹4000, you have to pay tax on ₹34000.*

*21. # All movements of material will be taxable like : Head office to branch office (stock transfer), factory to C & F agent, godown to shop.*

*22. # The GST officer has all rights to value your goods & fix the price. The law will decide Valuation of the product at Various levels like : Manufacturing, Wholesalers, Distribution & retailers. For example if Kissan is selling Jam for ₹150 & Patanjali is selling the same Jam for ₹120. (Same quantity, flavour, ingredients etc) Then Patanjali has to pay tax on ₹150.*

*23. # All books & records to be maintained on daily basis.*

*24. # You will need a full time accountant in your shop/office to maintain books under GST.*

*25. # All travel & tour expenses related to business have to be claimed under firm name.*

*26. # If your vendor does not upload his bills within 180 days , you will not get tax credit.*

*27. # You cannot claim credit for material in stock beyond one year.*

*28. # They propose that You have to dispose all your old stocks purchased under VAT/CST within September 2017.*

*29. # All VAT related documents like C forms, F forms etc have to be cleared within Sept 2017.*

*30. # Your Vat credit will not be carry forwarded to GST.*

24/05/2016

IMPORTANT AMENDMENT
U/S 206C (TCS) of Income-tax Act, 1961:
W.e.f 01.06.2016, if the consideration ( or any part of it) is received in cash of sale of ANY goods/ provision of any service (exceeding Rs. 2. lac), TCS @ 1% should be deducted: MR X purchases goods from distributor for Rs. 5.00 lac on 02.06.2016, payment of Rs. 4,80,000/- has been made by cheque/RTGS on 04.06.2016, balance 20000/- has been paid in Cash on 05.06.2016. Please note that Seller has to collect TCS @ 1% on Rs. 500000/- ( i.e Rs. 5000/-). This TCS is applicable regardless of the fact whether X is dealer in goods or X purchased for his personal consumption.
☝
Let Clients Beware of
such draconian Provision..
✅

09/11/2015

Taxability of medical reimbursement received & medical
expenses paid

All about taxability of medical reimbursement received and medical expenses paid from income Tax
perspective
All of us in our day to day life are incurring medical expenses either for ourself or for the dependent family
members like spouse, children, parents, brothers and sisters.
In this article we are going to talk about the funding of these medical expenses and income tax treatment of
these expenses and reimbursements thereof (if any).
There are primarily three ways of funding your medical expenses:
1) To pay medical expenses out of your own source (It happens in case of non-insured self employed persons or
for non-insured salaried people where employer does not provide any medical benefit)
2) Medical reimbursement provided by employer (in case of salaried people only)
3) Medical reimbursement provided by medical insurance company against the mediclaim policies taken
(applicable for both salaried as well as non-salaried people).
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
1) Income Tax treatment in case of self financed medical expenses:
In case of self financed medical expenses (i.e from own source) there is no income to the person who has
incurred expenses. Hence the question of chargeability of tax does not arise.
Now the question arises, “Whether such expenses can be treated as allowable expenditure under Income Tax”?
In case of salaried person who is not provided with any medical benefit by his employer and who does not have
any medical insurance policy, no income tax benefit of medical expenses will be available to them.
In case of self employed persons, medical expenses incurred on him or his dependent family members would be
treated as personal expenses and would not be allowed as business expenditure (as held by Delhi High Court in
the case of Shanti Bhushan vs Commissioner Of Income Tax ).
So in case of sole proprietorship and partnership business the medical expenses incurred by the proprietor or
partner would be a disallowable expenses. However if they provide medical facilities to their employees then
such medical expenses for employees only will be allowable expenditure for Income Tax calculation.
However in the case of a company even the directors are treated as employees of the company since the
company has a separate legal entity, so medical expenses incurred by directors and reimbursed by the company
would be an allowable expenditure for the company.
2) Income Tax treatment in case of salaried person who are provided with medical benefit:
This is dealt in section 17(2) of the Income Tax Act as perquisite.
Taxability of medical reimbursement received & medical expenses paid http://taxguru.in/income-tax/taxability-medical-reimbursement-receive...
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The whole amount of expenses incurred by the employer will be allowable expenditure to such employer under
Income Tax Act.
In case of salaried person who is provided with medical allowance the whole amount will be taxable.
The medical facility in India provided to the employee or his dependent relative (i,e children, spouse, brothers,
sister and parents) by his employer will not be chargeable to tax to the extent of the following:
a) Medical facility provided in a Hospital owned/maintained by the employer.
b) Medical facility provided in a Hospital of Central Government/ State Government/ local authority.
c) Medical facility provided in a Private hospital if it is also recommended by the Government for the treatment of
Government employees,
d) Medical facility provided for Specified medical facility (given in rule 3A) in a hospital approved by the Chief
Commissioner of Income Tax.
e) Health insurance premium – Medical insurance premium paid on behalf of the employee or reimbursed to the
employee by the employer is not chargeable to tax in the hands of the employee.
f) Any other facility in India – Any other expenditure incurred or reimbursed by the employer for providing medical
facility in India is not chargeable to tax up to Rs. 15,000 in aggregate per assessment year (fixed medical
allowance is fully chargeable to tax).
For medical facility provided outside India the following perquisite will not be chargeable to tax subject to the
condition mentioned therein:
Perquisite not chargeable to tax Conditions to be satisfied
Medical treatment of employee or any member of
family of such employee outside India
Expenditure shall be excluded from the perquisite only
to the extent permitted by the Reserve Bank of India
Cost of stay abroad of the employee or any member
of the family for medical treatment and cost of stay
of one attendant who accompanies the patient in
connection with such treatment
Expenditure shall be excluded from the perquisite only
to the extent permitted by the Reserve Bank of India
Cost on travel of the employee / any member of his
family and one attendant who accompanies the
patient in connection with treatment outside India
Expenditure shall be excluded from perquisite only in
the case of an employee whose gross total income, as
computed before including therein the expenditure on
travelling, does not exceed Rs. 2,00,000
3) Income Tax treatment in case of medical insurance reimbursement under mediclaim policy (for both
salaried as well as non-salaried people):
Money received through a claim under a medical policy is only a reimbursement of expenditure already incurred
by the policyholder. As this does not amount to profit or income for the insured person, this money is not taxable.
Apart from that any amount paid as medical insurance premium will be allowed as deduction u/s 80D to the
maximum of Rs 60,000 (detail below) provided payment is made by cheque;
Type of deduction For Senior Citizen Others
Basic deduction Self, Spouse or dependant children 30,000 20,000
Additional deduction Parents 30,000 20,000
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Hence we can summarise the above provisions as below:
1) In case of self employed person he can not claim any tax benefit of medical expenses incurred on him or his
family as it would be treated as his personal expenditure.
2) Any amount received from the Insurance company under a medical policy will not be treated as income of the
insured person as it is not a profit or income to the insured person but only a reimbursement.
3) For salaried employees any amount received as medical allowance will be fully taxable but medical
reimbursement to the extent of Rs 15,000 per assessment year will not be taxable.
4) For salaried employees if the employer pays medical insurance premium on behalf of the employee or give
reimbursement of medical insurance premium to employee then this amount will not be chargeable to tax in the
hands of employee.
5) Medical facility provided in Govt hospital / hospital maintained by employer / Govt recommended hospital will
not be taxable in hands of employee.
6) Medical facility provided for specified diseases in a Hospital approved by the Chief Commissioner of Income
Tax will not be taxable in hands of employee.
7) For medical insurance premium paid the maximum deduction of Rs 60,000 can be

07/11/2015

TDS ON TRANSPORT CONTRACT

04/11/2015

17/10/2015

VAT Rate increase in DNH 4% to 5%

17/06/2015

The Hon’ble Amritsar bench has given a landmark judgement on the issue of 234E Fee levied prior to June,2015 in the case of Sibia Healthcare Private Limited v./s Dy. Commissioner of Income-tax (TDS), in I.T.A. No.90/Asr/2015 and has deleted the addition-
The Hon’ble Tribunal held as under:-
” in our considered view, the adjustment in respect of levy of fees under section 234E was indeed beyond the scope of permissible adjustments contemplated under section 200A. This intimation is an appealable order under section 246A(a), and, therefore, the CIT(A) ought to have examined legality of the adjustment made under this intimation in the light of the scope of the section 200A. Learned CIT(A) has not done so. He has justified the levy of fees on the basis of the provisions of Section 234E. That is not the issue here. The issue is whether such a levy could be effected in the course of intimation under section 200A. The answer is clearly in negative. No other provision enabling a demand in respect of this levy has been pointed outto us and it is thus an admitted position that in the absence of the enabling provision under section 200A, no such levy could be effected. As intimation under section 200A, raising a demand or directing a refund to the tax deductor, can only bepassed within one year from the end of the financial year within which the related TDS statement is filed, and as the related TDS statement was filed on 19th February 2014, such a levy could only have been made at best within 31st March 2015. That time has already elapsed and the defect is thus not curable even at this stage. In view of these discussions, as also bearing in mind entirety of the case, the impugned levy of fees under section 234E is unsustainable in law. We, therefore, uphold the grievance of the assessee and delete the impugned levy of fee under section 234E of the Act. The assessee gets the relief accordingly.”

17/06/2015

No more sending ITR-V by post after income tax filing – Verification with Aadhar card introduced
CBDT vide its circular no 41/2015 dated 15.04.2015 recently announced that taxpayers who filed their income tax returns online will no longer have to send the paper acknowledgement by post to CPC Bangalore, if they have aadhar card which can be used for verification purpose.
Instead of manual verification, a new Electronic Verification Code has been introduced to verify the e-returns. For that one will have to mention their aadhar card number in ITR form, and tax-payer will get an OTP number on their mobile for verification, which needs to be completed on the website of tax filing. Below is a snapshot of the new ITR form where aadhar card number is asked in case you have it.
ITRV1

Issues with the legacy system
Earlier the process was like this. Once you e-filed your tax returns, you then had to send the acknowledgement copy within 120 days to CPC Bangalore. Only those who had signatures could do verification online, but it was very rare, hence millions of tax-payers had to take the pain of manually sending the form. However, the old system was not robust and a big number of people used to get messages that their acknowledgement has not reached tax department and other manual errors used to happen.

New system
With the introduction of this new system, things will be simplified and even faster. Now the process will be as simple as filing the tax returns online and they will get a one time password for verification purpose on the registered mobile number, which has to be used for verification on the website of tax department. That would complete the process of verification.
FLOW

If assessee don’t have Aadhar Card?
Assessee can always send the physical documents to CPC, Bangalore like you did earlier. Assessee can do that even if he/she have aadhar card. This new system of verification is just an alternative way for those who have aadhar card.

14/06/2015

Union Budget 2015-16 Key Highlights Service Tax |28-02-2015|
Service Tax Highlights/Key Changes

I. Change in Service Tax rates:

1) The service tax rate is being increased from 12% plus Education Cesses to 14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall be subsumed in the new service tax rate. The revised rate shall come into effect from a date to be notified. CBEC Clarification on increased rate of 14% and Cess Click Here >>

II. Review of the Negative List

1) Service tax to be levied on the service provided by way of access to amusement facility such as rides, bowling alleys, amusement arcades, water parks, theme parks, etc.

2) Service tax to be levied on service by way of admission to entertainment event of concerts, non-recognized sporting events, pageants, music concerts and award functions, if the amount charged for admission is more than Rs 500. Service by way of admission to exhibition of the cinematographic film, circus, dance, or theatrical performances including drama, ballets or recognized sporting events shall continue to be exempt.

3) Service tax to be levied on service by way of carrying out any processes as job work for production or manufacture of alcoholic liquor for human consumption.

4) An enabling provision is being made to exclude all services provided by the Government or local authority to a business entity from the Negative List. Once this amendment is given effect to, all service provided by the Government to business entities, unless specifically exempt, shall become taxable.

III. Review of General Exemptions

1) Exemption presently available on specified services of construction, repair of civil structures, etc. when provided to Government shall be restricted only to,-

a) a historical monument, archaeological site

b) canal, dam or other irrigation work;

c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal.

2) Exemption to construction, er****on, commissioning or installation of original works pertaining to an airport or port is being withdrawn.

3) Exemption to services provided by a performing artist in folk or classical art form of (i) music, or (ii) dance, or (iii) theater, will be limited only to such cases where amount charged is upto Rs 1,00,000 per performance (except brand ambassador).

4) Exemption to transportation of ‘food stuff’ by rail, or vessels or road will be limited to transportation of food grains including rice and pulses, flours, milk and salt only. Transportation of agricultural produce is separately exempt which would continue.

5) Exemptions are being withdrawn on the following services:

(a) services provided by a mutual fund agent to a mutual fund or assets management company;

(b) distributor to a mutual fund or AMC; and

(c) selling or marketing agent of lottery ticket to a distributor of lottery.

6) Exemption is being withdrawn on the following services,-

(a) Departmentally run public telephone

(b) Guaranteed public telephone operating only local calls

(c) Service by way of making telephone calls from free telephone at airport and hospital where no bill is issued

7) Existing exemption notification for service provided by a commission agent located outside India to an exporter located in India is being rescinded, as this notification has become redundant in view of the amendments made in law in the previous budget, whereby services provided by such agents have been excluded from the tax net.

IV Relief Measures:

1) Services of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labeling of fruits and vegetables are being exempted.

2) Life insurance service provided by way of Varishtha Pension Bima Yojna is being exempted.

3) Service provided by way of exhibition of movie by the exhibitor/theatre owner to the distributor or association of persons consisting of exhibitor as one of it’s member is being exempted.

4) All ambulance services provided to patients are being exempted.

5) Service provided by way of admission to a museum, zoo, national park, wild life sanctuary and a tiger reserve is being exempted.

6) Transport of goods for export by road from the factory to a land customs station (LCS) is being exempted.

V Other measures relating to Service Tax

1. Changes in the Finance Act, 1994

1. A definition of the term “government” is being incorporated in the Act to resolve interpretational issues as regards the scope of this term in the context of the Negative List and service tax exemptions.

2. To amend the definition of term “service” to specifically state the intention of legislature to levy service tax on:

i. chit fund foremen by way of conducting a chit; and

ii. distributor or selling agent of lottery, as appointed or authorized by the organizing state for promoting, marketing, distributing, selling, or assisting the state in any other way for organizing and conducting a lottery.

3. It is being specifically prescribed in the Act that value of a taxable service shall include any reimbursable cost or expenditure incurred and charged by the service provider to make legal position clear and avoid disputes.

4. Section 66F of the Act prescribes that unless otherwise specified, reference to a service shall not include reference to any input service used for providing such service. An illustration is being incorporated in this section to exemplify the scope of this provision.

2. Rationalization of abatement

1. A uniform abatement is being prescribed for transport by rail, road and vessel to bring parity in these sectors. Service Tax shall be payable on 30% of the value of such service subject to a uniform condition of non-availment of Cenvat Credit on inputs, capital goods and input services. Presently, tax is payable on 30% of the value in case of rail transport, 25% in case of road transport and 40% in case of transport by vessels.

2. The abatement for executive (business/first class) air travel, wherein the service element is higher, is being reduced from 60% to 40%. Consequently, service tax would be payable on 60% of the value of fare for business class.

3. Abatement is being withdrawn on chit fund service.

3. Service Tax Rules

1. In respect of any service provided under aggregator model, the aggregator is being made liable to pay service tax if the service is provided using the brand name of aggregator in any manner.

2. Consequent to the upward revision in Service Tax rate, the composition rate on specified services, namely, life insurance service, services of air travel agent, money changing service provided by banks or authorized dealers, and service provided by lottery distributor and selling agent, is proposed to be revised proportionately.

4. Reverse charge mechanism

1. Manpower supply and security services when provided by individual, HUF, partnership firm to a body corporate are being brought to full reverse charge as a simplification measure. Presently, these are taxed under partial reverse charge mechanism.

2. Services provided by mutual fund agents, mutual fund distributors and lottery agents are being brought to under reverse charge consequent to withdrawal of exemption on such services.

5. The Cenvat Credit Rules, 2004

Cenvat Credit Rules are being amended to allow credit of service tax paid under partial reverse charge by the service receiver without linking it to the payments of value of service to service provider as a trade facilitation measure.

14/06/2015

Union Budget 2015-16 Key Highlights and Changes in Income
Tax

Income Tax Key Highlights

1. GST will put in place a state-of-the-art indirect tax system by 1st April, 2016.
2. Pradhan Mantri Suraksha Bima Yojna to be launched to cover accidental death risk of 2 lakh for a premium
of just 12 per year
3. Atal Pension Yojana, to provide a defined pension, depending on the contribution, and its period. To
encourage people to join this scheme, the Government will contribute 50% of the beneficiaries’ premium limited
to `1,000 each year, for five years, in the new accounts opened before 31st December, 2015
4. Pradhan Mantri Jeevan Jyoti Bima Yojanato covers both natural and accidental death risk of `2 lakhs. The
premium will be `330 per year, or less than one rupee per day, for the age group 18-50
5. New scheme for providing Physical Aids and Assisted Living Devices for senior citizens, living below the
poverty line
6. Scheme 'Nai Manzil’ to be launched this year to enable Minority Youth who do not have a formal schoolleaving
certificate to obtain one and find better employment.
7. Employee may opt for EPF or the New Pension Scheme (NPS). Secondly, for employees below a certain
threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the
employer’s contribution
8. With respect to ESI, the employee should have the option of choosing either ESI or a Health Insurance
product, recognized by the Insurance Regulatory Development Authority (IRDA)
9. Gold Monetisation Scheme to be launched which will replace both the present Gold Deposit and Gold metal
Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and
the jewelers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this
gold
10. Measures to be introduced to incentivize credit or debit card transactions, and disincentivise cash
transactions.
11. Distinction between different types of foreign investments to be done away, especially between foreign
portfolio investments and foreign direct investments
12. Fight against the scourge of black money to be continued.
13. GST to be imlemented from next year
Tax Proposals
14. No change in the rate of personal income-tax and the rate of tax for companies in respect of income earned
in the financial year 2015-16, assessable in the assessment year 2016-17.
15. Surcharge @12% on individuals, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies
and local authorities having income exceeding 1 crore.
16. Surcharge for domestic companies having income exceeding 1 crore and upto 10 crore @ 7% and
surcharge @ 12% is proposed to be levied on domestic companies having income exceeding 10 crore.
17. For Foreign companies the surcharge will continue to be levied @2% if the income exceeds 1 crore and is
upto 10 crore, and @5% if the income exceeds 10 crore
18. surcharge @12% as against current 10% on additional income-tax payable by companies on distribution of
dividends and buyback of shares, or by mutual funds and securitisation trusts on distribution of income
19. Education cess @ 2% and Secondary and Higher Education Cess @ 1% to continue.
20. Provisions of section 269SS and 269T to be amended to prohibit acceptance or re-payment of advance in
cash of 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
21. GAAR Provisions to be applicable from FY 2017-18, investments made upto 31.03.2017 shall not be
subjected to GAAR
22. 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 amendedas per section 194LD
23. Rate of income tax on royalty and fees for technical services reduced from 25% to 10% u/s 115A
24. The eligibility threshold of minimum 100 regular workmen for deduction for employment of new regular
workmen reduced to fifty u/ s80JJAA
25. 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
26. Section 9 amended to provide that the share or interest shall be deemed to derive its value substantially
from the assets located in India, if on the specified date, the value of such assets represents at least fifty per
cent of the fair market value of all the assets owned by the company or entity
27. 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 5 crore to 20 crore
28. "Yoga" now covered in the definition of ‘charitable purpose’ u/s 2(15
29. Genuine charitable organizations can carry out activities in the nature of business undertaken subject to the
condition that aggregate receipts from such activity is less than 20% of the total receipts
30. section 255 of the Income-tax Act amended to increase the monetary limit from 5 lakh to 15 lakh, for a case
to be heard by a Single Member Bench of the ITAT
31. Wealth tax abolished and replaced with an additional surcharge of 2% on the super-rich with a taxable
income of over 1 crore. The information regarding the assets which are currently required to be furnished in
wealth-tax return will be captured in the income tax returns.
32.Corporate tax to be reduced from existing 30% to 25% over the next 4 years.
33. Rationalisation and removal of various kinds of tax exemptions and incentives for corporate taxpayers
34. 100% deduction for contributions, other than CSR contributions, to the Swachh Bharat Kosh or Clean
Ganga Fund.
Benefits to Middle Class Taxpayers
35. Investments in Sukanya Samriddhi Scheme which is already eligible for deduction under Section 80C. All
payments to the beneficiaries including interest payment on deposit will also be fully exempt
36. Increase in the limit of deduction u/s 80D in respect of health insurance premium from 15,000 to 25,000. For
senior citizens the limit will stand increased to 30,000 from the existing 20,000. Super Senior Ciitizens who are
not covered by health insurance, deduction of Rs. 30,000 towards expenditure incurred on their treatment will
be allowed
37. The deduction limit of 60,000 u/s 80DDB towards expenditure on account of specified diseases of serious
nature is proposed to be enhanced to 80,000 in case of very senior citizens
38. Additional deduction of 25,000 will be allowed for differently abled persons under Section 80DD and Section
80U of the Income-tax Act.It is also proposed to increase the limit of deduction from 1 lakh to 1.25 lakh in case
of severe disability
39. It is proposed to increase the limit of deduction u/s 80CCD of the Income-tax Act on account of contribution
by the employee to National Pension Scheme (NPS) from 1 lakh to 1.50 lakh. It is also proposed to provide a
deduction of upto ` 50,000 over and above the limit of ` 1.50 lakh in respect of contributions made to NPS.
40. 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 1 lakh to 1.5 lakh.
41. Section 197A amended to provide the facility of filing self-declaration of non-deduction of tax by the
recipients of taxable maturity proceeds of life insurance policy
42. it is proposed to relax the requirement of obtaining TAN by the individual or HUF who is required to deduct
tax on acquisition of immovable property from a non-resident.
43. Transport allowance exemption is being increased from Rs. 800 to Rs. 1,600 per month.
45. For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana
Total Deductions avaialble after budget proposals:
Deduction u/s 80C 1,50,000
Deduction u/s 80CCD 50,000
interest on house property loan (Self occupied property) 2,00,000
Deduction u/s 80D on health insurance premium 25,000
Exemption of transport allowance 19,200
Total 4,44,200
46. Direct Tax Code deferred
47. New Law on Black Money
(a) Concealment of income and assets and evasion of tax in relation to foreign assets will be prosecutable with
punishment of rigorous imprisonment upto 10 years. the offenders will not be permitted to approach the
Settlement Commission, penalty for such concealment of income and assets at the rate of 300% of tax shall be
levied
(b) Non filing of return or filing of return with inadequate disclosure of foreign assets will be liable for
prosecution with punishment of rigorous imprisonment up to 7 years
(c) Income in relation to any undisclosed foreign asset or undisclosed income from any foreign asset will be
taxable at the maximum marginal rate. Exemptions or deductions which may otherwise be applicable in such
cases, shall not be allowed.
(d) Beneficial owner or beneficiary of foreign assets will be mandatorily required to file return, even if there is no
taxable income.
(e) The offence of concealment of income or evasion of tax in relation to a foreign asset will be made a
predicate offence under the Prevention of Money-laundering Act, 2002 (PMLA).
48. New and more comprehensive Benami Transactions (Prohibition) Bill
49. CBDT to issue clarification on regarding applicability of indirect transfer provisions to dividends paid by
foreign companies to their shareholders.
50. for FIIs, profits corresponding to their income from capital gains on transactions in securities which are
liable to tax at a lower rate, shall not be subject to MAT
51. Education Cess and the SHE Cess in Central Excise duty subsumed and the general rate of Central Excise
Duty of 12.36% including the cesses is being rounded off to 12.5%.
52. Transporters owning not more than 10 Gods Carriage to furnish declaration Format of declaration for non deduction of TDS u/s 194C(6)