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Glisters International
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DOUMENTATION AND DRAFTING / FILING OF INCOME TAX RETURNS , PAN APPLICATION  ETC

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Ask our  tax attorney on how to resolve legal issues that stresses you out the most.
Let our expertise in tax planning ang stategic management do the work! visit us :http://www.allenbarron.com

 

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APPOINT US TO UP DATE YOUR TAX MATTERS ,INCOME TAX RETURNS , SALES TAX REGISTRATION , VAT REGISTRATION, ASSESMENT PROCEEDING ,FILING FOR RETURNS etc........ALL under one roof ........

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OUR SERVICE IN INDIA :

Filing of Income tax Return and application for PAN/ also Assessment Procedure / Documentation

WE DO DRAFTING OF DOCUMENTS  As Under :

DRAFTING OF LEAVE LICENCE AGREEMENT

DRAFTING OF SALE AGREEMENT

AFFIDAVITE

WILL

PARTNERSHIP AGREEMENT

POWER OF ATTORNEY

LEASE DEED

SOCIETY TRANSFER FROMS Etc…

Cont…09833804005 .

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REGISTRATION OF DOCUMENT

SALE DEED

LEAVE LICENCE AGREEMENT

WILL …Etc.

Cont..09833804005

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POINT FOR REALESTATES :

In a Real Estate transaction, the role of the accompanying legal document in effecting a transparent deal can hardly be overstated. A faulty or inconclusive document will fail to safeguard against future litigation.We advise and provide documentation for contracts, agreements or other legal forms/documents you may need, in a simple and easy-to-use formats. You can use the sample forms in our section for Lease Deed, Power of Attorney, Agreement to Sell, Sale Deed/Agreement for Sale, Gift Deed, Leave and Licence Agreement, Conveyance Deed and Transfer Deed.

We can help you draft the perfect legal document. Our services are spread pan India, thanks to our seamless network of legal experts.

 

Lease Deed

A "Deed of Lease" is a written document stating the agreement between the lessor and the lessee in regards to the terms of transfer of property by the lessor to the lessee. This document states the subject matter, consideration and terms of renewal including clauses to cover every possible scenario that might arise during the tenure of the lease. The tenure of the Agreement is usually for a year which can be further extended.

A lease deed is a vital document admissible in court and stands testimony to the deal between the parties entering into a transaction. Not having a lease deed as a proof can go against both the parties in case any one of them backs off from an initial statement. So this should be made binding on both parties.

 

Clauses in a typical Lease Agreement

Parties' Details: Name and addresses of the parties entering into the Deed.

Property Details: Its location and identification details.

Date of Demise and Determination: The effective dates of commencement (demise) and expiry (determination) of Agreement.

Terms of lease: The effective date of commencement of Lease Agreement and the date till which the Agreement shall remain effective.

Obligation of the parties: Promises made for letting the property on lease.

Lease Amount: Amount mutually decided and mode of payment of rent. It also includes: security deposits (if any), refund circumstances, advance rent payable (if any).

Rent Increment Clause: Conditions of rent increment including when and by how much, if applicable.

Modification of Terms: Usually an Agreement is modified if both the parties agree to new terms. It should be revised at least once a year.

Termination: Grounds and conditions of termination of the Agreement and notice period required for the termination of contract.

Facilities: Facilities included in rent like any fixtures or fittings provided by landowner.

Common Areas: Access and usage rights to common areas of the property such as: terrace, stairs, garage.

Payment of Bills/Taxes: The agreement spell out who is liable to pay taxes incurred on property. (E.g. Municipal taxes, property tax, house tax, electricity and water bills.)

Repair: It outlines who is liable for the payment of any repairs and maintenance works.

Subleasing: It would specify whether or not the subject matter is allowed for sub-leasing and circumstances under which it is allowed.

Renewable Clauses: Usually the lease is renewed on expiry of tenure if so desired but clauses already there can support an earlier renewal.

Others: Any additional commercial terms mutually agreed upon by both parties.

Power of Attorney

A "Power of Attorney"

 is a legal instrument whereby one person is set in place of another to act for him as his legal representative, and to make binding legal and financial decisions on his behalf.

The Power of Attorney can grant extensive power to the person appointed to be an Agent. Hence it calls for giving careful consideration to the person to whom you choose to grant those powers and being aware of its scope. If a person wants to present a document for registration at the proper registration office and if, for some reason he cannot be present, he may do so through his representative who is duly authorized by a Power of Attorney.

 

Execution of a Power of Attorney:

A Power of Attorney has to be executed and attested as prescribed by law. The Registrar or the Sub-Registrar or the Magistrate must first satisfy himself that the Principal has voluntarily executed the Power of Attorney before he can attest a Power of Attorney.

As per Section 33(c) of the Registration Act, 1908, if the principal, at the time of executing the Power of Attorney does not reside in India, then it has to be executed before and authenticated by notarized and attested by an authorized official of the Indian Embassy/Indian consulate or Trade Commissioner of India in the country where the principal resides.

The lack of properly drafted and executed Power of Attorney due to ignorance of law, can lead to a lot of complications. We advise you about and prepare for you, the appropriate type of Power of Attorney according to your needs and the circumstances of your particular case.

 

Gift Deed

A gift is a transfer made gratuitously, that is, without any element of monetary consideration. A deed cannot be dispensed with even for a property of small value. A gift of immovable property is invalid without a registered instrument. Hence, attestation by two witnesses is required.

A gift of immovable property, which is not registered, is void and cannot confer any title to the donee under Section 123 of the Transfer of Property Act. A gift which was not based on fraud, undue influence or misrepresentation, the Gift Deed can be cancelled only by resorting to legal remedy in a court of law. While drafting a Gift Deed, these clauses should be specifically noted:

Name of donor

Name of donee

Date of gift becoming effective

Subject matter

Absence of monetary consideration

Act of transfer from donor to donee

A clause in the gift deed totally prohibiting alienation is void.

 

Agreement to Sell

Agreement to Sell is a record of the terms agreed upon by the contracting parties in the sale of a property. It is not a document through which the transfer of title will be effected. Registration of Agreement to Sell is now compulsory by law.

Agreement to Sell is governed by the provisions of the Indian Contract Act, 1872 and the Transfer of Property Act, 1882. It informs about how the seller got the property, settlement of the sale price, mode of payment, seller's obligation to obtain statutory clearances to convey clear title, to indemnify the purchaser against loss or damage due to defect in the title.

The following terms should be part of the Agreement:

Nature of the title held including encumbrances such as lease, mortgage, and charges on the property.

Any material defect in the property, defect in the title disclosed by the seller.

Location and description of the property agreed to be sold.

Consideration amount including any part payment of consideration or earnest money, mode, place and time of payment.

Time frame to complete local laws and statutory obligations.

Section 55 of Transfer of Property Act makes it mandatory for the seller to produce documents for scrutiny by the purchaser and his Advocate.

Forfeiture clauses in case of breach of contract by either party.

Leave and Licence

A leave and licence does not create any interest in the premises in favour of the licensee but gives the licensee the mere right to use and occupy the premises for a temporary period. On the other hand, when premises are given out on lease or tenancy basis the legal possession of the premises/ interest in the premises is also deemed to be transferred to the lessee and tenant respectively.

In deciding whether to give out premises on leave & licence basis the following are serious considerations on the following front:

Possession: In a leave and licence agreement, the owner is deemed to be in legal possession of the premises and the licensee in constructive possession of the premises.

Income Tax: In a leave and licence agreement the owner has to pay tax effectively at the rate of 33% on the license fee earned but gets a standard deduction amounting to 1/4th of the license fee for repairs.

Municipal Tax: In a leave and licence agreement, the Municipal Authorities may charge taxes (at the rate of up to 60%) of the license fee. If there is a security deposit amount the Municipal Authorities may charge tax accordingly.

Maharashtra Rent Control Act, 1999, which has come into effect since March 31, 2000, provides (Sec 24) for a body known as the Competent Authority responsible for bringing summary relief to the owner of residential premises. The Competent Authority on being satisfied that the period of licence has expired shall pass an order for the eviction of the licensee. Also, the section provides that the licensee shall be liable to pay damages at double the rate of the licence fee or charge fixed under the agreement of the license from the day of default till the date of disposition.

Transfer formalities in CHS

DOCUMENTS TO BE EEXCUTED AND SIGNED FOR TRANSFER OF SHARES IN A CO-OPERATIVE HOUSING SOCIETY

On entering into an Agreement for the sale of purchase of Flat/shop etc. before execution of such sale deed the Transferor is required to prove to the Transferee that he is the true member of the society in which the said Flat or shop is situated . As a proof of his true membership the Transferor is required to produce before the Transferee the following documents :

I ) Original and copy of the Purchase Deed with society/with Builders.

II ) Original and a copy of Share Certificate.

Original and a copy of latest society’s bill,

Original and a copy of Best Bill,

Original sinking fund certificate if any,

Pass Book issued by the society,

Only after going through these records and on satisfaction of the true membership of the Transferor. The transferee agrees to sign the form No. 20-B to be filed before the society for its No Objection to admit the Transferee as its member.

On obtaining no objection certificate from the society and if the apparent consideration of sale deed exceeds Rs. 75,00,000/- ( For the property situated in greater Bombay ) both the parties are required to sign and file form 37-I in duplicate before the Appropriate Authority of the Income Tax Department along with a copy of the Agreement for sale signed by both the parties. The Appropriate Authority takes minimum 3 months ( excluding the month in which form No.37-I is filed ) time to pass the relevant order, wherein either it mentions regarding Acquisition of the Flat/shop or grant of No objection. In case of acquisition of the property the Appropriate Authority acts as the Transferee and pays the consideration mentioned in the Agreement after deducting a certain percentage as per the provision of sec. 269 UA (2) to the Transferor and the sale deed comes to an end. If the Appropriate Authority has granted its no objection to the sale of the Flat/Shop then and in such event both the parties proceed further and execute other relevant documents for the effective transfer and vacant and peaceful possession of the said Flat/shop.

The following are the various documents required to be signed by both the parties at the time of vacant possession of flat. The documents such as :

a Agreement of sale ( to be properly stamped ).

B Transfer Form.

Letter to the society requesting them to transfer share certificate in the name of purchaser and incidental to that use and occupation of Flat/shop etc.

The Transferor is required to indemnify the Transferee against any claim made by any third person by signing the Indemnity Bond. It is also advisable to take a special power of Attorney in favour of Transferee and also to send letters to the society for issue of share certificate in the name of Transferee and to the B.E.S.T. for transferor further is required to sign a declaration in support of his possession and also acknowledge the receipt of the consideration amount by signing the receipt. As per the urban land ( Ceiling and Regulation Act ) 1976 the Transferor is required to give declaration in the form 24 that he does not hold any vacant land the area of which together with the area of the proposed flat to be transferred does not exceed 500 sq.mtrs. similar declaration is required to be given by the Transferee too in Form No.25.

 

The Transferee is also required to send letter to the society and undertake to pay stamp duty and execute a document and sign the same. He is also further required to make an application to the society to admit as a member of the society by signing application for membership and filing the same with the society.Further it is to be noted that all the original documents relating to the transfer of title, rights and interest in the society such as

Original No Objection Certificate from society,

Original Share Certificate.

Original No Dues Certificate from society.

Original (Latest) society bill and Receipts.

Original ( Latest ) BEST Bill.

Original Purchase Agreement.

Pass Book issued by the society.

All other original/documents of title to the Flat.

Keys of the said Flat/Shop to be obtained from transferor.

 

Thus one the above mentioned formalities are completed and vacant and peaceful possession of the Flat/shop is handed over to the Transferee the sale deed is said to be finalized and completed.

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PROCEDURE FOR TRANSFER OF SHARES

 

Rules 24 of the M.C.S. Rules, 1961

No Transfer of shares shall be effective unless :

( A ) It is made in accordance with the provisions of the bye-law.

( B ) A clear fifteen day’s notice in writing is given to the society indicating therein the name of the proposed transferee, his consent, his application for membership, where necessary and the value proposed to be paid by the Transferee.

( C ) All liabilities of the Transferor due to the society are discharged ; and

( D ) The transfer is registered in the books of the society.

Any charge in favour of the society on the share so transferred will continue unless discharged otherwise.

Bye-Law No.19 :

’19 (1) Notwithstanding anything contained in any other bye-law, no member shall be permitted to transfer any shares held by him/or his interest in the property of the society unless he had held such shares or interest in the property for a period of not less than one year from the date of his admission to the membership of the society. Application for transfer shall be in the form set out in schedule II appended to the Bye-law.

Registration of Transfer :

Until the transfer of shares is registered, no right shall be acquired against the society by the Transferee, nor shall any claim of the society upon the Transferor be affected.

Bye Law No.20 :

“ 20 ( 1 ) The society shall issue within six months of allotment, a share certificate showing the number of member’s register, the number of the shares and the holder’s anme in full under the signature of officers authorised in this behalf and duly sealed with the society seal.

The Committee shall keep a share register in which there shall be entered the name, occupation and address of the member, the date of admission and the number of shares allotted or transferred from another member’ holding. The Register shall also show the number of shares transferred, repaid, forfeited or cancelled and the date of such repayments, forfeiture or cancellation.Up on each transfer of any shares there shall be paid to the society such fee not exceeding Rs.50/- as the committee may fix”.

 

A part from transfer of share and interest of a member in the capital/property contemplated under section 29 of the M.C.S. Act 1960, Rule 24 of the MCS Rule 1961 and the Bye-Laws No.19 and 20 of the model bye-laws for co-op, housing societies, transfer of shares and interest of a deceased member in the capital/property of a society to his nominee or heir has to be considered by the society. Section 30 of the M.C.S. Act 1960, the Rule 25 of the M.C.S. Rule , 1961 and the bye-laws No.15 and 15 deal with transfer of shares and interest of a deceased member in the capital/property of the society. The said Rule also deals with the procedure to be followed for the transfer of shares and interest of a deceased member in the capital/property of the society if the deceased member had not made any nomination. The said provisions are reproduced hereafter.

 

For filing income tax returns , assessments , appeals , registration etc. contact us at and for sales tax registration assessment , appeals, or any other tax matter contact us visit site at www.glisters/taxation.html

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CONSULTANCY :( Legal matters and advice)
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  Our company has limited capacity and can only accept a small portion of the start-ups or other companies who approach  us for representation.But we promise that if you are accepted as a client , we will use all our efforts, contacts and  judgement to make your business a success.
  Our Company offers a wide range of services to our individual and business clients. Because our Company is relatively small, our clients benefit by 
getting personalized, quality service that is beyond comparison. Below we have listed the services that we offer to our clients.
    As the list below is by no means all-inclusive, please feel free to inquire about a service if you do not see it  listed. If it is not a service we provide, we would be more than happy to refer you to a qualified professional. 

  We provide the following services  Audit Management From Start to Finish,Internal Audit,Administrative Appeals  & Hearings,Tax Planning,Reducing Tax Liabilities & Risks, Finilization of Accounts, Filing of returns,  Tax Planning & Preparation  Tax planning and preparation form a winning combination for our successful 
individual and business clients. Whether you are an individual or a multi-tiered partnership, our experienced staff can develop tax strategies  that take advantage of new tax laws and legislation. 

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FINICAL Planning
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 A properly structured financial plan enables you to face any financial challenge that may present itself at each  stage of your life. Through the financial planning process, we can help you 
assess your financial needs and  develop strategies that will 
enable you to achieve your goals and strengthen your financial security.

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Important Topics   (Income Tax)
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Residential status and scope of  income
Capital gains 
Incomes exempt from income tax 
Salaries 
Profits and gains from business or profession
Income from other sources 
Clubbing of income
Set-off and carry forward of losses
Deductions from income and rebate from income tax 
Income from house property 
Return of income and assessment

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INCOME TAX

FILING OF RETURNS

Finailazation of accounts

PAN Application

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 SECTION WISE HIGHLIGHTS OF PROPOSED AMENDMENTS IN THE FINANCE BILL 2012 UNDER INCOME TAX ACT.

 

Section

Proposed Amendment

Applicability

Views

2

Rates of Tax (for Individuals)

Upto Rs. 200000 – Nil

From 200000- Rs   500000 – 10%

From 500000- Rs 1000000 20%

Above 1000000                    - 30%   

 

For Senior Citizens (from 60 years to 80 years)

Upto Rs. 250000 – Nil

From 250000- Rs   500000 – 10%

From 500000- Rs 1000000 20%

Above 1000000                    - 30%

 

For Citizens Above 80 years

Upto Rs. 500000 – Nil

From Rs. 500000-    20%

Above Rs. 1000000                    - 30%                                            

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Tax Relief of Rs. 2060/- for all Male Assesses, Rs. 1030/- for Female Assesses having income less than Rs. 8,00,000/- and additional tax relief of Rs. 20,600/- to all assesses having taxable income over Rs. 8,00,000/-. Difference of Rates for Women removed. Whereas no changes for senior citizens exemption limit of Rs. 250000/- and Rs. 500000/- for

2

As per the proposed amendment Director of income tax appointed U/s 117(1) comes within the definition of Commissioner

Retrospective effect from 1st April 1988

 

9

Definition of asset amended to include sale of asset in India directly or indirectly.

Retrospective effect from 1st April 1962

 

9(i)(vi)

Royalty to include computer software and fees paid for usage, lease or licence of the same

Retrospective effect from 1st June 1976

 

10AA

Introduction of Alternate Minimum Tax @ 18.5% on Proprietorship concerns, partnership concerns, AOP and other assesses having business income (Applicable only if the adjusted total income exceeds Rs. 20 Lakhs)

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Covers specified assesses in the said provision having income from business and profession. Company’s are already covered under Section 115JB

10(23C)

Charitable Trust not to be treated charitable for a particular year if the receipts from commercial activity exceeds Rs. 25 Lacs. No need to cancel registration u/s 11 or 12

Effective date 1st April, 2009

 

10(23FB)

Exemption from applicability of TDS provisions on income credited or paid by VCF/VCC to investors shall be withdrawn

Effective from 1st April 2013 and subsequent years

 

10(48)

Exemption in respect of any income of a foreign company received India in Indian currency on account of sale of crude oil to any person in India subject to three conditions being arrangement or agreement is notified

Retrospective effect from 1st April 2012

 

32(1)(iia)

Inclusion of an assessee engaged in the business of generation or generation and development of power for initial depreciation at the rate of 20% of actual cost of machinery or plant (other than ships and aircrafts) acquired and installed in a previous year

Effective from 1st April 2013 and subsequent years

Encourage new investments

35(2AB)

 

Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an in-house facility for a further period of five years

Effective from 1st April 2013 and subsequent years (ie. Up to 31st March, 2017)

Incentive  to the corporate sector to continue to spend on in-house research

35AD

Deduction in respect of capital expenditure on specified business has included new business for investment-linked deductions which are:

  1. setting up and operating an inland container depot or a container freight station notified or approved under the Customs Act, 1962 (52 of 1962)
  2. bee-keeping and production of honey and beeswax
  3. setting up and operating a warehousing facility for storage of sugar

Effective from 1st April 2013

Date of commencement of the new specified business  shall be on or after 1st April 2012

35AD

Specified businesses commencing operations on or after 1st April 2012 shall be allowed a deduction of 150% of the capital expenditure for following specified businesses:

  1. setting up and operating a cold chain facility
  2. setting up and operating a warehousing facility for storage of agricultural produce
  3. building and operating, anywhere in India, a hospital with at least one hundred beds for patients
  4. developing and building a housing project under a scheme for affordable housing framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed
  5. production of fertilizer in India

Effective from 1st April 2013

 

 

Introduction of weighted deduction of 150% of the expenditure incurred on agricultural extension project

Effective from 1st April 2013 and subsequent years

Incentive  to the business entities to provide better and effective agriculture extensive services

 

Introduction of weighted standard deduction of 150% of the expenditure (other than land or building) incurred on Public Private Partnership (PPP) project for skill development in the ITIs in manufacturing sector in separate in accordance with NSDC

Effective from 1st April 2013 and subsequent years

To encourage the private sector to set up their own institutions

35AD(1A)

Assessee building a hotel of two-star or above category as classified by the Central Government and subsequently, while continuing to own the hotel, transfers the operation thereof to another person, the assessee shall be deemed to be carrying on the specified business of building and operating hotel

With retrospective effect from 1st April 2011

To encourage building hotels and operated through franchisee business system

40A

Transfer Pricing regulations to apply to the domestic transactions exceeding Rs. 5 Crores with related parties.

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

 

40(a)(ia)

Amended that where an assessee makes payment of the nature specified in the said section to a resident payee without deduction of tax and is not deemed to be an assessee in default under section 201(1) on account of payment of the due taxes by the payee, then, for the purpose of allowing deduction of such sum, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee

Effective from 1st April 2013

In such cases, the date of filing of Return of Income by the payee will be treated as date of payment of tax and the payer shall be liable for payment of interest on the tax defaulted for the period from date of deduction till date of payment.

44AB

Increase in threshold limit of total sales, turnover or gross receipts from Rs. 60 Lakhs to Rs. 1 Crore in case of business and from Rs. 15 Lakhs to Rs. 25 Lakhs in case of persons carrying on profession

Effective from 1st April 2013 and subsequent years

To reduce burden on small businesses and professionals

44AD

Presumptive Taxation threshold limit proposed to be increased to Rs. 1 Crore for business men and not to profession.

Effective from 1st April 2013 and subsequent years

 

44AD

Presumptive scheme is not applicable to (i) a person carrying on profession as referred to in sub-section (1) of section 44AA; (ii) persons earning income in the nature of commission or brokerage income; or (iii) a person carrying on any agency business

Retrospective effect from 1st April 2011

To reduce burden on small businesses and professionals.  Clarified to exclude professionals.

47(vii) / 2(19AA)

Issue of shares on account of merger/de-merger to the existing share holders will not be regarded as transfer

Effective from 1st April 2013

 

49

When the transfer of assets by sole proprietorship or a firm to a company on conversion is made is not regarded as transfer and when subsequent sale is made by company there is no reference regarding the cost to be taken by the successor, now as per the proposed amendment when such conversion takes place which is not regarded as transfer, the cost of acquisition in the hands of company would be the same as in the hands of sole proprietary concern or firm

Retrospective effect from 1st April 1999

Welcome move to enable SME’s to take step in corporate sector.

50D

Introduction of new section to provide that fair market value of the asset shall be deemed to be the full value of consideration if actual consideration is not attributable or determinable

Effective from 1st April 2013

 

54B

Transfer of Land in the two year preceding the year in which it has been sold  which has been used by assessee or his parents for agriculture, the whole capital gains has been reinvested in the purchase of agricultural land will be exempted from now to an Individual or his Parents, or to  HUF

Effective from 1st April 2013

 

54GB

Re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector which is utilized by the company for the purchase of new plant and machinery  subject to the 5 conditions given

Effective from 1st April 2013 (for a period of 5 years)

Roll over relief from long term capital gain tax to an individual and HUF on sale of a residential property

55A

As the provision of the section where AO is of the opinion that value of asset as claimed by assessee is less than its market value he may refer to the valuation officer and under section 55 where capital asset became the property of the assessee before 1st April, 1981 assessee has the option of substituting the FMV of asset on 1st April, 1981 as the cost of asset. Hence where AO is of the opinion that value taken by the assessee as on 01st April, 1981 is higher than its FMV of the asset  on that date the Assessing Officer would be enabled to make a reference to the Valuation Officer for determining the fair market value of the property.

Effective from 1st July 2012

 

56(2)(vii)

Any sum or property received without consideration or inadequate consideration by HUF from its members would be excluded from taxation

Retrospective effect from 1st October 2009

 

56(2)

Share premium in excess of fair market value to be treated as income from other sources in case of closely held companies,  ( venture capital companies excluded)

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.

68

Issue of Shares at a premium in case of Closely held Company wherein there are no specific permissions required under the Act for issue of Capital. Income will be taxed provided such credits are not properly explained or justified. The onus of such introduction of the capital by the shareholder will also have to be proved by the Company. It is not applicable to listed company and to the share capital introduced through venture capital funds registered with SEBI.

 Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.

69,69A and 69B

Unexplained Credit to be taxed directly @ 30% plus EC and SHEC even if the assessee has income below taxable limit. No deduction or allowance available in any Section of the Act.

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.

80C(3) / 10(10D)

Deduction for life insurance premium as regards insurance policies issued on or after 1st April 2012 shall be allowed for only so much of the premium payable as does not exceed 10% of the actual capital sum assured.Definition of “capital sum assured” is amended to include the actual capital sum assured in relation to a policy shall be the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy excluding (i) the value of any premiums agreed to be returned, or (ii) any benefit by way of bonus or otherwise in excess of the sum actually assured, which is to be or may be received under the policy

Effective from 1st April 2013

 

80D

Introduction of Payment made by an assessee on account of preventive health check-up of self, spouse, dependent children or parent(s) will be eligible for deduction within the overall limits prescribed in the section which shall not exceed in the aggregate of Rs. 5000 by any mode (i.e. cash or other than cash)

Effective from 1st April 2013

 

80-IA(4)(iv)

Extension of sunset date for tax holiday for power sector for further period of one year (ie. upto 31st March 2013)

Effective from 1st April 2013

 

80D/ 80DDB/ 197A(1C)

Reduction of the eligible age for senior citizens for tax reliefs under these sections will be 60 years

For 80D/80DDB effective from 1st April 2013 and for 197A(1C) effective from 1st july 2012

Forgot to amend eligible age of senior citizens for tax reliefs in Finance Bill 2011, now given effect

80G / 80GGA

Amended that any payment exceeding sum of Rs.10,000 shall only be allowed as a deduction if such sum is paid by any mode other than cash

Effective from 1st April 2013

 

80TTA

New deduction up to an extent of Rs.10000 in aggregate shall be allowed to an assessee, being an individual or a HUF, in respect of any income by way of interest on deposit (not being time deposit) in a savings account

Effective from 1st April 2013

Previously was allowed U/s. 80L

92

Tolerance limit of 5% notified for Arm Length Price for International Transaction

Effective from 1st October, 2009

 

111A

Tax rate to be 15% in case of Short Term Capital gains even if the total income of the assessee is in the 10% tax slab

Effective from 1st April 2009 (Ass. Year 2009-10) onwards.

 

115A

Tax Incentive for funding of certain Infrastructure Sectors Specified Companies (Taxable @ 5% of the Interest Income by introduction of section 194LC)

Effective from 1st April 2013 (amendment will take effect from 1st July 2012)

 

115BBA

Income of a non resident sportsman or association shall be taxed @ 20% of the gross receipts.

Effective from 1st July, 2012

 

115BBD

Lower Rate of Tax on dividend received from foreign companies by Indian Companies

Extended to one more year

To bring foreign exchange at the earliest back to India

115JB

As per the Provision of Companies Act, certain co’s like Insurance, Banking, Electricity are allowed to prepare their P&L accounts according to the provision specified in their regulatory acts, such prepared P& L shall be taken as basis for computing the book profit under section 115JB.

Book Profit for the purpose of section 115JB shall be increased by the amount standing in the revaluation reserve relating to the revaluation asset which have been retired or disposed, it the same is not credited to the profit and loss account.

Effective from 1st April 2013

 

115O

Company receiving , during the year, any dividend from any subsidiary and such subsidiary has paid DDT as payable on such dividend, then, dividend distributed by the holding company in the same year, to that extent, shall not be subject to DDT

Effective 1st July, 2012

To remove cascading effect of DDT

139

Compulsory filing of Income Tax Return in relation to the assets located outside India by an Indian.

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.

139

Time limit for filing Tax Audit Report u/s 44AB in case the assesee is required to file Report for International Transaction, the due date shall be 30th November of each year.

Applicable for Financial Year 2011-12 (Assessment Year 2012-13)

 

143(1)

Amended that processing of return will not be necessary in a case where notice under sub-section (2) of section 143 has already been issued for scrutiny of the return

Effective from 1st July 2012

 

143(3)

Time limit to be 24 months from the end of Assessment Year to complete the assessments

Effective from 1st July 2012

Returns for AY 2011-12 to be completed by 31st March, 2014.

153A / 153C

Amended to empower Central Government to notify cases or class of cases in which the Assessing Officer shall not issue notice for initiation of proceedings for preceding 6 assessment years. However, action for completion of assessment proceedings for the assessment year relevant to the previous year in such class of cases in which search or requisition has been made would be taken.

Effective from 1st July 2012

This would result in initiating assessment proceedings only for the assessment year relevant to the previous year in which search or requisition has been made.

149

Reassessment of Income in relation to the asset located out of India by an Indian (period for reopening extended from 6 years to 16 years)

Effective 1st July, 2012

Provision to curb black money transactions.

153 / 153B

Extension of the Time limit for completion of pending proceedings and subsequent proceedings U/s 143/148/250/254/263 and 92CA by 3 more  months consequential amendment made to provision of Section 17A  Wealth Tax Act

Effective from 1st July 2012

Work of CA is increased by 3 months

193

Limit of TDS deduction on Interest on Debentures increased from Rs. 2500/- to Rs. 5000/- (now all debentures covered)

Effective from 1st July 2012

 

194

TDS on Immovable Properties (other than agricultural land) Sale by a resident to other shall deduct tax @1% of the consideration provided such

Sale consideration exceeds Rs. 50 lacs in urban agglomeration;

Sale consideration exceeds Rs. 20 lacs in other areas;

In such cases, the tax payment will be made on PAN No. of both the seller and buyer. No requirement of obtaining TAN Number for this transaction. Simple one page Challan for payment of this TDS will be introduced.

Registrar given powers for non registration of the property if the provisions are not complied. TDS has to be deducted on the Market Value ascertained by the Registrar or Agreement value whichever is higher.

Effective from October 1,2012

Provision to curb black money and tax evasion resulting into non reporting of transaction by the seller to the IT Department.

194E

TDS @ 20% to be deducted from payments made to non resident sportsman or sports association

Effective from 1st July, 2012

 

194J

TDS On Remuneration to Directors other than that as an employee

 

Effective 1st July, 2012

Sitting Fees and other retainership fees shall get covered in such payments

194LA

TDS will be deducted @10% on Rs.200,000, previously it was on Rs.100,000, on compensation or consideration for compulsory acquisition of immovable property (other than agricultural land)

Effective from 1st July 2012

 

 

TCS on Cash Sale of Bullion and Jwellery. Seller to deduct tax @ 1% of sale consideration exceeds Rs. 200000/- in cash, irrespective who is the buyer. Seller to collect tax and deposit the same.

Effective 1st July, 2012

 

 

TCS on Sale of Minerals extended to Coal Mines, Lignites and Iron Ore @ 1% , provided the purchaser has purchased the same for personal consumption

Effective 1st July, 2012

 

195

Tax Residency Certificate made mandatory for application for lower or non deduction of tax by the non residents

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

 

200A

Orders passed by the TDS Officer shall be subject to rectification and Appeals in accordance with the existing provisions

Effective from 1st July 2012

Clarified..

201(1A)(i)/ 206C

Proposed to provide that the payer who fails to deduct the whole or any part of tax on the payment made to a resident payee shall not be deemed to be an assessee in default of such tax if such resident payee

(i)   has furnished his return of income under section 139

(ii)has taken into account such sum for computing income in such return of income

(iii)                has paid the tax due on the income declared by him in such return of income

and the payer furnishes a certificate to this effect from an accountant in such form as may be prescribed

 

Proposed to provide that where the payer fails to deduct the whole or any part of the tax on the payment made to a resident and is not deemed to be an assessee in default under section 201(1) on account of payment of taxes by such resident, the interest under section 201(1A)(i) shall be payable from the date of furnishing of return of income by such resident payee

Effective from 1st July 2012

 

245Q

Increase of fees payable to Authority for Advance Ruling from Rs. 2500 to Rs. 10000

Effective from 1st July 2012

 

272A / 272B

(i)   Penalty of Rs.200 per day, previously Rs.100 per day, for late furnishing of TDS statement from the due date of furnishing of TDS statement to the date of furnishing of TDS statement. However, the total amount of fees shall not exceed the total amount of tax deductible during the period for which TDS statement is delayed, and

(ii)In addition to said fees, a penalty ranging from Rs.10,000 to Rs. 100,000 shall also be levied for not furnishing TDS statement within prescribed time

Provided that no penalty shall be levied for delay in furnishing of TDS statement if the TDS statement is furnished within one year of the prescribed due date after payment of tax deducted along with applicable interest and fee.

 

Proposed to provide that a penalty ranging from Rs.10,000 to Rs.100,000 shall also be levied for furnishing incorrect information in the TDS statement.

Effective from 1st July 2012

 

208

Exemption for Senior Citizen from payment of Advance Tax not having any income chargeable under the head “Profits and gains of business or profession”

Effective from 1st April 2012

To reduce compliance burden on senior citizens

209

As per the existing provision advance tax is computed by reducing the amount of tax collectible or deductible from income tax for the financial year on estimated income such deduction allowed even if no tax at source deducted. But now where assessee receives any income without deduction or collection of tax at source, he shall be liable to pay advance tax in respect of such income.

Effective from 1st April 2012

 

234D

Provision of this section would be applicable to any proceeding which is completed on or after 1st June 2003, irrespective of the assessment year to which it pertains.

Retrospective effect from 1st June 2003

 

245C

Provision of this section is amended so as to provide that a person shall be deemed to have a substantial interest in a business or profession if such person is a beneficial owner of not less than 20% of shares or 20% share in profits on the date of the search (“at any time during the precious year” is replaced  by “date of search”)

Effective from 1st July 2012

 

271AAA

Penalty on undisclosed income found during the search.

In case of admission at the time of search @ 10% of undisclosed income

In case of non-admission at the time of search but declaration subsequent to filing of Return @ 20% of undisclosed income;

In other cases @ 30% to 90% of undisclosed income

Effective from Search taken after 1st July, 2012

Provision to curb black money transactions.

280A to 280D

Expedition of prosecution proceedings under the Act (Limit for prosecution for tax evasion to be Rs. 250000 from Rs. 100000)

Effective from Search taken after 1st July, 2012

To expedite the assessments in case of assessee not co-operating.

292CC

Inserted new section which provide that

(i)   it shall not be necessary to issue an authorization under section 132 or make a requisition under section 132A separately in the name of each person;

(ii)where an authorization under section 132 has been issued or a requisition under section 132A has been made mentioning therein the name of more than   one person, the mention of such names of more than one person on such authorization or requisition shall not be deemed to construe that it was issued in the name of an association of persons or body of individuals consisting of such persons;

(iii)                notwithstanding that an authorization under section 132 has been issued or requisition under section 132A has been made mentioning therein the name of more than one person, the assessment or reassessment shall be made separately in the name of each of the persons mentioned in such aurthoisation or requisition.

Retrospective effect from 1st April 1976

 

Section

Proposed Amendment

Applicability

Views

 

STT on Cash Delivery segment is reduced from 0.125% to 0.1%

Effective from 1st July 2012

 

 Wealth Tax 

Section

Proposed Amendment

Applicability

Views

2

Exemption  of residential  house allotted  to employee etc. of a company, increase in threshold of gross salary from Rs.5 Lakhs to Rs. 10 Lakhs for the purpose of wealth tax

Effective from 1st April 2013

General increase in salary due to inflation

 

The aforesaid details are compiled from the Finance Bill presented by the Finance Minister in the Parliament on 16.03.2012 and is for the purpose of understanding and studying the requisite provisions by the Compiler and is as understood by the Compiler.

____________________________________________________________________________________________________________________________ 

SECTION WISE HIGHLIGHTS OF PROPOSED AMENDMENTS IN THE FINANCE BILL 2012 UNDER INCOME TAX ACT.

Section

Proposed Amendment

Applicability

Views

2

Rates of Tax (for Individuals)

Upto Rs. 200000 – Nil

From 200000- Rs   500000 – 10%

From 500000- Rs 1000000 – 20%

Above 1000000                    - 30%   

 

For Senior Citizens (from 60 years to 80 years)

Upto Rs. 250000 – Nil

From 250000- Rs   500000 – 10%

From 500000- Rs 1000000 – 20%

Above 1000000                    - 30%

 

For Citizens Above 80 years

Upto Rs. 500000 – Nil

From Rs. 500000-   – 20%

Above Rs. 1000000                    - 30%                                            

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Tax Relief of Rs. 2060/- for all Male Assesses, Rs. 1030/- for Female Assesses having income less than Rs. 8,00,000/- and additional tax relief of Rs. 20,600/- to all assesses having taxable income over Rs. 8,00,000/-. Difference of Rates for Women removed. Whereas no changes for senior citizens exemption limit of Rs. 250000/- and Rs. 500000/- for

2

As per the proposed amendment Director of income tax appointed U/s 117(1) comes within the definition of Commissioner

Retrospective effect from 1st April 1988

9

Definition of asset amended to include sale of asset in India directly or indirectly.

Retrospective effect from 1st April 1962

 

9(i)(vi)

Royalty to include computer software and fees paid for usage, lease or licence of the same

Retrospective effect from 1st June 1976

 


 

Section

Proposed Amendment

Applicability

Views

10AA

Introduction of Alternate Minimum Tax @ 18.5% on Proprietorship concerns, partnership concerns, AOP and other assesses having business income (Applicable only if the adjusted total income exceeds Rs. 20 Lakhs)

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Covers specified assesses in the said provision having income from business and profession. Company’s are already covered under Section 115JB

10(23C)

Charitable Trust not to be treated charitable for a particular year if the receipts from commercial activity exceeds Rs. 25 Lacs. No need to cancel registration u/s 11 or 12

Effective date 1st April, 2009

 

10(23FB)

Exemption from applicability of TDS provisions on income credited or paid by VCF/VCC to investors shall be withdrawn

Effective from 1st April 2013 and subsequent years

 

10(48)

Exemption in respect of any income of a foreign company received India in Indian currency on account of sale of crude oil to any person in India subject to three conditions being arrangement or agreement is notified

Retrospective effect from 1st April 2012

 

32(1)(iia)

Inclusion of an assessee engaged in the business of generation or generation and development of power for initial depreciation at the rate of 20% of actual cost of machinery or plant (other than ships and aircrafts) acquired and installed in a previous year

Effective from 1st April 2013 and subsequent years

Encourage new investments


 

Section

Proposed Amendment

Applicability

Views

35(2AB)

 

Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an in-house facility for a further period of five years

Effective from 1st April 2013 and subsequent years (ie. Up to 31st March, 2017)

Incentive  to the corporate sector to continue to spend on in-house research

35AD

Deduction in respect of capital expenditure on specified business has included new business for investment-linked deductions which are:

  1. setting up and operating an inland container depot or a container freight station notified or approved under the Customs Act, 1962 (52 of 1962)
  2. bee-keeping and production of honey and beeswax
  3. setting up and operating a warehousing facility for storage of sugar

Effective from 1st April 2013

Date of commencement of the new specified business  shall be on or after 1st April 2012

35AD

Specified businesses commencing operations on or after 1st April 2012 shall be allowed a deduction of 150% of the capital expenditure for following specified businesses:

  1. setting up and operating a cold chain facility
  2. setting up and operating a warehousing facility for storage of agricultural produce
  3. building and operating, anywhere in India, a hospital with at least one hundred beds for patients
  4. developing and building a housing project under a scheme for affordable housing framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed
  5. production of fertilizer in India

Effective from 1st April 2013

 

Section

Proposed Amendment

Applicability

Views

 

Introduction of weighted deduction of 150% of the expenditure incurred on agricultural extension project

Effective from 1st April 2013 and subsequent years

Incentive  to the business entities to provide better and effective agriculture extensive services

 

Introduction of weighted standard deduction of 150% of the expenditure (other than land or building) incurred on Public Private Partnership (PPP) project for skill development in the ITIs in manufacturing sector in separate in accordance with NSDC

Effective from 1st April 2013 and subsequent years

To encourage the private sector to set up their own institutions

35AD(1A)

Assessee building a hotel of two-star or above category as classified by the Central Government and subsequently, while continuing to own the hotel, transfers the operation thereof to another person, the assessee shall be deemed to be carrying on the specified business of building and operating hotel

With retrospective effect from 1st April 2011

To encourage building hotels and operated through franchisee business system

40A

Transfer Pricing regulations to apply to the domestic transactions exceeding Rs. 5 Crores with related parties.

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

 


 

Section

Proposed Amendment

Applicability

Views

40(a)(ia)

Amended that where an assessee makes payment of the nature specified in the said section to a resident payee without deduction of tax and is not deemed to be an assessee in default under section 201(1) on account of payment of the due taxes by the payee, then, for the purpose of allowing deduction of such sum, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee

Effective from 1st April 2013

In such cases, the date of filing of Return of Income by the payee will be treated as date of payment of tax and the payer shall be liable for payment of interest on the tax defaulted for the period from date of deduction till date of payment.

44AB

Increase in threshold limit of total sales, turnover or gross receipts from Rs. 60 Lakhs to Rs. 1 Crore in case of business and from Rs. 15 Lakhs to Rs. 25 Lakhs in case of persons carrying on profession

Effective from 1st April 2013 and subsequent years

To reduce burden on small businesses and professionals

44AD

Presumptive Taxation threshold limit proposed to be increased to Rs. 1 Crore for business men and not to profession.

Effective from 1st April 2013 and subsequent years

 

44AD

Presumptive scheme is not applicable to (i) a person carrying on profession as referred to in sub-section (1) of section 44AA; (ii) persons earning income in the nature of commission or brokerage income; or (iii) a person carrying on any agency business

Retrospective effect from 1st April 2011

To reduce burden on small businesses and professionals.  Clarified to exclude professionals.

47(vii) / 2(19AA)

Issue of shares on account of merger/de-merger to the existing share holders will not be regarded as transfer

Effective from 1st April 2013


 

Section

Proposed Amendment

Applicability

Views

49

When the transfer of assets by sole proprietorship or a firm to a company on conversion is made is not regarded as transfer and when subsequent sale is made by company there is no reference regarding the cost to be taken by the successor, now as per the proposed amendment when such conversion takes place which is not regarded as transfer, the cost of acquisition in the hands of company would be the same as in the hands of sole proprietary concern or firm

Retrospective effect from 1st April 1999

Welcome move to enable SME’s to take step in corporate sector.

50D

Introduction of new section to provide that fair market value of the asset shall be deemed to be the full value of consideration if actual consideration is not attributable or determinable

Effective from 1st April 2013

54B

Transfer of Land in the two year preceding the year in which it has been sold  which has been used by assessee or his parents for agriculture, the whole capital gains has been reinvested in the purchase of agricultural land will be exempted from now to an Individual or his Parents, or to  HUF

Effective from 1st April 2013


 

Section

Proposed Amendment

Applicability

Views

54GB

Re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector which is utilized by the company for the purchase of new plant and machinery  subject to the 5 conditions given

Effective from 1st April 2013 (for a period of 5 years)

Roll over relief from long term capital gain tax to an individual and HUF on sale of a residential property

55A

As the provision of the section where AO is of the opinion that value of asset as claimed by assessee is less than its market value he may refer to the valuation officer and under section 55 where capital asset became the property of the assessee before 1st April, 1981 assessee has the option of substituting the FMV of asset on 1st April, 1981 as the cost of asset. Hence where AO is of the opinion that value taken by the assessee as on 01st April, 1981 is higher than its FMV of the asset  on that date the Assessing Officer would be enabled to make a reference to the Valuation Officer for determining the fair market value of the property.

Effective from 1st July 2012

56(2)(vii)

Any sum or property received without consideration or inadequate consideration by HUF from its members would be excluded from taxation

Retrospective effect from 1st October 2009

56(2)

Share premium in excess of fair market value to be treated as income from other sources in case of closely held companies,  ( venture capital companies excluded)

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.


 

Section

Proposed Amendment

Applicability

Views

68

Issue of Shares at a premium in case of Closely held Company wherein there are no specific permissions required under the Act for issue of Capital. Income will be taxed provided such credits are not properly explained or justified. The onus of such introduction of the capital by the shareholder will also have to be proved by the Company. It is not applicable to listed company and to the share capital introduced through venture capital funds registered with SEBI.

 Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.

69,69A and 69B

Unexplained Credit to be taxed directly @ 30% plus EC and SHEC even if the assessee has income below taxable limit. No deduction or allowance available in any Section of the Act.

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.

80C(3) / 10(10D)

Deduction for life insurance premium as regards insurance policies issued on or after 1st April 2012 shall be allowed for only so much of the premium payable as does not exceed 10% of the actual capital sum assured.Definition of “capital sum assured” is amended to include the actual capital sum assured in relation to a policy shall be the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy excluding (i) the value of any premiums agreed to be returned, or (ii) any benefit by way of bonus or otherwise in excess of the sum actually assured, which is to be or may be received under the policy

Effective from 1st April 2013


 

Section

Proposed Amendment

Applicability

Views

80D

Introduction of Payment made by an assessee on account of preventive health check-up of self, spouse, dependent children or parent(s) will be eligible for deduction within the overall limits prescribed in the section which shall not exceed in the aggregate of Rs. 5000 by any mode (i.e. cash or other than cash)

Effective from 1st April 2013

 

80-IA(4)(iv)

Extension of sunset date for tax holiday for power sector for further period of one year (ie. upto 31st March 2013)

Effective from 1st April 2013

 

80D/ 80DDB/ 197A(1C)

Reduction of the eligible age for senior citizens for tax reliefs under these sections will be 60 years

For 80D/80DDB effective from 1st April 2013 and for 197A(1C) effective from 1st july 2012

Forgot to amend eligible age of senior citizens for tax reliefs in Finance Bill 2011, now given effect

80G / 80GGA

Amended that any payment exceeding sum of Rs.10,000 shall only be allowed as a deduction if such sum is paid by any mode other than cash

Effective from 1st April 2013

80TTA

New deduction up to an extent of Rs.10000 in aggregate shall be allowed to an assessee, being an individual or a HUF, in respect of any income by way of interest on deposit (not being time deposit) in a savings account

Effective from 1st April 2013

Previously was allowed U/s. 80L

92

Tolerance limit of 5% notified for Arm Length Price for International Transaction

Effective from 1st October, 2009

 

111A

Tax rate to be 15% in case of Short Term Capital gains even if the total income of the assessee is in the 10% tax slab

Effective from 1st April 2009 (Ass. Year 2009-10) onwards.

 


 

Section

Proposed Amendment

Applicability

Views

115A

Tax Incentive for funding of certain Infrastructure Sectors Specified Companies (Taxable @ 5% of the Interest Income by introduction of section 194LC)

Effective from 1st April 2013 (amendment will take effect from 1st July 2012)

 

115BBA

Income of a non resident sportsman or association shall be taxed @ 20% of the gross receipts.

Effective from 1st July, 2012

 

115BBD

Lower Rate of Tax on dividend received from foreign companies by Indian Companies

Extended to one more year

To bring foreign exchange at the earliest back to India

115JB

As per the Provision of Companies Act, certain co’s like Insurance, Banking, Electricity are allowed to prepare their P&L accounts according to the provision specified in their regulatory acts, such prepared P& L shall be taken as basis for computing the book profit under section 115JB.

Book Profit for the purpose of section 115JB shall be increased by the amount standing in the revaluation reserve relating to the revaluation asset which have been retired or disposed, it the same is not credited to the profit and loss account.

Effective from 1st April 2013

 

115O

Company receiving , during the year, any dividend from any subsidiary and such subsidiary has paid DDT as payable on such dividend, then, dividend distributed by the holding company in the same year, to that extent, shall not be subject to DDT

Effective 1st July, 2012

To remove cascading effect of DDT

139

Compulsory filing of Income Tax Return in relation to the assets located outside India by an Indian.

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

Provision to curb black money transactions.


 

Section

Proposed Amendment

Applicability

Views

139

Time limit for filing Tax Audit Report u/s 44AB in case the assesee is required to file Report for International Transaction, the due date shall be 30th November of each year.

Applicable for Financial Year 2011-12 (Assessment Year 2012-13)

143(1)

Amended that processing of return will not be necessary in a case where notice under sub-section (2) of section 143 has already been issued for scrutiny of the return

Effective from 1st July 2012

143(3)

Time limit to be 24 months from the end of Assessment Year to complete the assessments

Effective from 1st July 2012

Returns for AY 2011-12 to be completed by 31st March, 2014.

153A / 153C

Amended to empower Central Government to notify cases or class of cases in which the Assessing Officer shall not issue notice for initiation of proceedings for preceding 6 assessment years. However, action for completion of assessment proceedings for the assessment year relevant to the previous year in such class of cases in which search or requisition has been made would be taken.

Effective from 1st July 2012

This would result in initiating assessment proceedings only for the assessment year relevant to the previous year in which search or requisition has been made.

149

Reassessment of Income in relation to the asset located out of India by an Indian (period for reopening extended from 6 years to 16 years)

Effective 1st July, 2012

Provision to curb black money transactions.

153 / 153B

Extension of the Time limit for completion of pending proceedings and subsequent proceedings U/s 143/148/250/254/263 and 92CA by 3 more  months consequential amendment made to provision of Section 17A  Wealth Tax Act

Effective from 1st July 2012

Work of CA is increased by 3 months


 

Section

Proposed Amendment

Applicability

Views

193

Limit of TDS deduction on Interest on Debentures increased from Rs. 2500/- to Rs. 5000/- (now all debentures covered)

Effective from 1st July 2012

 

194

TDS on Immovable Properties (other than agricultural land) Sale by a resident to other shall deduct tax @1% of the consideration provided such –

Sale consideration exceeds Rs. 50 lacs in urban agglomeration;

Sale consideration exceeds Rs. 20 lacs in other areas;

In such cases, the tax payment will be made on PAN No. of both the seller and buyer. No requirement of obtaining TAN Number for this transaction. Simple one page Challan for payment of this TDS will be introduced.

Registrar given powers for non registration of the property if the provisions are not complied. TDS has to be deducted on the Market Value ascertained by the Registrar or Agreement value whichever is higher.

Effective from October 1,2012

Provision to curb black money and tax evasion resulting into non reporting of transaction by the seller to the IT Department.

194E

TDS @ 20% to be deducted from payments made to non resident sportsman or sports association

Effective from 1st July, 2012

 

194J

TDS On Remuneration to Directors other than that as an employee

 

Effective 1st July, 2012

Sitting Fees and other retainership fees shall get covered in such payments


 

Section

Proposed Amendment

Applicability

Views

194LA

TDS will be deducted @10% on Rs.200,000, previously it was on Rs.100,000, on compensation or consideration for compulsory acquisition of immovable property (other than agricultural land)

Effective from 1st July 2012

 

 

TCS on Cash Sale of Bullion and Jwellery. Seller to deduct tax @ 1% of sale consideration exceeds Rs. 200000/- in cash, irrespective who is the buyer. Seller to collect tax and deposit the same.

Effective 1st July, 2012

 

 

TCS on Sale of Minerals extended to Coal Mines, Lignites and Iron Ore @ 1% , provided the purchaser has purchased the same for personal consumption

Effective 1st July, 2012

 

195

Tax Residency Certificate made mandatory for application for lower or non deduction of tax by the non residents

Applicable for Financial Year 2012-13 (Assessment Year 2013-14)

 

200A

Orders passed by the TDS Officer shall be subject to rectification and Appeals in accordance with the existing provisions

Effective from 1st July 2012

Clarified..


 

Section

Proposed Amendment

Applicability

Views

201(1A)(i)/ 206C

Proposed to provide that the payer who fails to deduct the whole or any part of tax on the payment made to a resident payee shall not be deemed to be an assessee in default of such tax if such resident payee –

(i)     has furnished his return of income under section 139

(ii)   has taken into account such sum for computing income in such return of income

(iii)has paid the tax due on the income declared by him in such return of income

and the payer furnishes a certificate to this effect from an accountant in such form as may be prescribed

 

Proposed to provide that where the payer fails to deduct the whole or any part of the tax on the payment made to a resident and is not deemed to be an assessee in default under section 201(1) on account of payment of taxes by such resident, the interest under section 201(1A)(i) shall be payable from the date of furnishing of return of income by such resident payee

Effective from 1st July 2012

 

245Q

Increase of fees payable to Authority for Advance Ruling from Rs. 2500 to Rs. 10000

Effective from 1st July 2012

 


 

Section

Proposed Amendment

Applicability

Views

272A / 272B

(i)     Penalty of Rs.200 per day, previously Rs.100 per day, for late furnishing of TDS statement from the due date of furnishing of TDS statement to the date of furnishing of TDS statement. However, the total amount of fees shall not exceed the total amount of tax deductible during the period for which TDS statement is delayed, and

(ii)   In addition to said fees, a penalty ranging from Rs.10,000 to Rs. 100,000 shall also be levied for not furnishing TDS statement within prescribed time

Provided that no penalty shall be levied for delay in furnishing of TDS statement if the TDS statement is furnished within one year of the prescribed due date after payment of tax deducted along with applicable interest and fee.

 

Proposed to provide that a penalty ranging from Rs.10,000 to Rs.100,000 shall also be levied for furnishing incorrect information in the TDS statement.

Effective from 1st July 2012

 

208

Exemption for Senior Citizen from payment of Advance Tax not having any income chargeable under the head “Profits and gains of business or profession”

Effective from 1st April 2012

To reduce compliance burden on senior citizens


 

Section

Proposed Amendment

Applicability

Views

209

As per the existing provision advance tax is computed by reducing the amount of tax collectible or deductible from income tax for the financial year on estimated income such deduction allowed even if no tax at source deducted. But now where assessee receives any income without deduction or collection of tax at source, he shall be liable to pay advance tax in respect of such income.

Effective from 1st April 2012

 

234D

Provision of this section would be applicable to any proceeding which is completed on or after 1st June 2003, irrespective of the assessment year to which it pertains.

Retrospective effect from 1st June 2003

245C

Provision of this section is amended so as to provide that a person shall be deemed to have a substantial interest in a business or profession if such person is a beneficial owner of not less than 20% of shares or 20% share in profits on the date of the search (“at any time during the precious year” is replaced  by “date of search”)

Effective from 1st July 2012

271AAA

Penalty on undisclosed income found during the search.

In case of admission at the time of search @ 10% of undisclosed income

In case of non-admission at the time of search but declaration subsequent to filing of Return @ 20% of undisclosed income;

In other cases @ 30% to 90% of undisclosed income

Effective from Search taken after 1st July, 2012

Provision to curb black money transactions.


 

Section

Proposed Amendment

Applicability

Views

280A to 280D

Expedition of prosecution proceedings under the Act (Limit for prosecution for tax evasion to be Rs. 250000 from Rs. 100000)

Effective from Search taken after 1st July, 2012

To expedite the assessments in case of assessee not co-operating.

292CC

Inserted new section which provide that

(i)     it shall not be necessary to issue an authorization under section 132 or make a requisition under section 132A separately in the name of each person;

(ii)    where an authorization under section 132 has been issued or a requisition under section 132A has been made mentioning therein the name of more than   one person, the mention of such names of more than one person on such authorization or requisition shall not be deemed to construe that it was issued in the name of an association of persons or body of individuals consisting of such persons;

(iii)  notwithstanding that an authorization under section 132 has been issued or requisition under section 132A has been made mentioning therein the name of more than one person, the assessment or reassessment shall be made separately in the name of each of the persons mentioned in such aurthoisation or requisition.

Retrospective effect from 1st April 1976

Section

Proposed Amendment

Applicability

Views

 

STT on Cash Delivery segment is reduced from 0.125% to 0.1%

Effective from 1st July 2012

 

Wealth Tax

Section

Proposed Amendment

Applicability

Views

2

Exemption  of residential  house allotted  to employee etc. of a company, increase in threshold of gross salary from Rs.5 Lakhs to Rs. 10 Lakhs for the purpose of wealth tax

Effective from 1st April 2013

General increase in salary due to inflation

The aforesaid details are compiled from the Finance Bill presented by the Finance Minister in the Parliament on 16.03.2012 and is for the purpose of understanding and studying the requisite provisions by the Compiler and is as understood by the Compiler. Please refere original amendements in government publication and do not rely on above .

 

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