*---------- Forwarded message ----------From: Subramaniam S – General
Manager-Taxation-MFO-Ambadi Enterprises
<[email protected]
<[email protected]>>Date: Thu, Jul 10, 2014 at 4:13
PMSubject: High Lights of Budget 2014-15To: unknown *
*HIGHLIGHTS OF FINANCE BILL 2014-15 – INCOME-TAX *
*1. No change in the Income-tax rates.*
*2. Personal income-tax limit raised from Rs. 2 lakhs to Rs. 2.5 lakhs.
(Benefit Rs. 5,000/- in tax)*
*3. Senior citizens taxable limit increased to Rs. 3 lakhs from Rs. 2.5
lakhs.(Benefit Rs. 5,000/- in tax)*
*4. Education cess and surcharge continues.*
*5. Housing loan interest for self-occupied property – Limit increased
to Rs. 2 lakhs from Rs. 1.5 lakhs.*
*6. Deduction u/s 80C for savings increased from Rs. 1 lakh to Rs. 1.5
lakh.*
*7. Limit for subscription to PPF increased to Rs. 1.5 lakh from Rs. 1
lakh*
*.*
*8. Tax on Long term capital gains on redemption of mutual funds (other
than equity oriented funds) increased to 20% from the existing rate of
10%.*
*9. Period of holding to treat the capital gains as long term for such
mutual funds increased to 36 months against 12 months existing.*
*10. Income from investments by FIIs is to be treated as capital gains and
not business income. *
*11. Investment allowance at 15% is allowed for 3 years for manufacturing
companies if they invest more than Rs. 25 crore in plant and machinery. The
investments can be made upto 31st March, 2017. Not available from the
assessment year 2018-19 (Sec.35AC(1A).*
*12. Dividends from foreign companies would continue to be liable to tax
at 15%. *
*for all the years to come.*
*13. To introduce a single de-mat account for all financial transactions.*
*14. Not to amend income-tax provisions retrospectively which will attract
tax liability. Past cases would be reviewed by a High Level Committee of
CBDT.*
*15. E-Visas to be allowed in 9 Airports.*
*16. Introduced range concept in transfer pricing. Instead of one year
data, multiple years data can also be compared. *
*17. Disallowance of expenditure for non-deduction of tax at source would
be at 30% against 100% disallowed now u/s 40(a)(ia) of the Act.*
*18. DTC will be reviewed by the present Government and a fresh view will
be taken on the whole matter.*
*19. The Charitable Trusts cannot claim deduction towards depreciation of
capital assets, the cost of which was earlier claimed as an application of
income and deducted while computing the income in the earlier years.
(Sec.11(6))*
*20. The registration granted u/s 12AA to Charitable/Religious trusts
which violate the provisions of section 13(1) can be cancelled (for
deposits other than mode prescribed/advances to related parties) by the
Chief Commissioner/Commissioner if they feel so after giving an opportunity
to the trust. (sec. 11(7)*
*21. While computing the income of the Trust, exemptions allowed u/s 10
cannot be taken. Viz. dividends, long term capital gains etc. *
*22. Expenditure incurred on activities relating to Corporate social
responsibility shall not be considered as an expenditure incurred for the
purpose of business/profession (Expln.2 to section 37). *
*23. The disallowance of expenditure for non-deduction of tax at source on
such expenditure would be 30% only against the prevailing 100%
(sec.40(a)(ia)*
*24. Income from plying of goods carried to be estimated at Rs. 7,500/-
p.m. u/s 44AE (Present Rs. 5,000/-)*
*25. Enhancement of compensation on compulsory acquisition of capital asset
is assessable to tax in the year in which final order of the Court is made.
*
*26. Exemption under section 54/54F (reinvestment of capital gains in a
residential house property) would be available only for one residential
house property. The dispute whether two or more units in a same building
would amount to a residential house or not is resolved.*
*27. Investment of long term capital gains in specified bonds under section
54EC is restricted to Rs. 50 lakhs only whether made in the financial year
or in the next financial year. Previously, Rs. 50 lakhs can be deposited
in one financial year. The time limit is 6 months. Where the time falls
in a different financial years, the assesses used to deposit Rs. 50 lakhs
in each of the two financial years and claiming Rs. 1 crore as deduction.
This is now curbed and the total limit is restricted to Rs. 50 lakhs only.*
*28. **Any advance received in the course of negotiation for transfer of
capital asset if forfeited and negation do not result in transfer of such
capital asset, such forfeited amount shall be treated as income from Other
sources. *
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