S
S.Ramanathan
Guest
Source: CA SUBASH CHANDRA SARAF, CALCUTTA
[TABLE="class: MsoNormalTable, width: 5"]
[TR]
[TD="width: 529, bgcolor: transparent"]Budget Proposal
[/TD]
[TD="width: 95, bgcolor: transparent"]Impact
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Exemption limit for the general category of individual taxpayers is enhanced from Rs. 1,80,000/- to Rs. 2,00,000/-, New Slab is as under:
[TABLE="class: MsoNormalTable"]
[TR]
[TD="width: 257, bgcolor: transparent"]Upto Rs. 2 Lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]Exempt
[/TD]
[/TR]
[TR]
[TD="width: 257, bgcolor: transparent"]From Rs 2 lakh to Rs 5 lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]10%
[/TD]
[/TR]
[TR]
[TD="width: 257, bgcolor: transparent"]Rs 5 lakh to Rs 10 lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]20%
[/TD]
[/TR]
[TR]
[TD="width: 257, bgcolor: transparent"]Beyond Rs 10 lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]30%
[/TD]
[/TR]
[/TABLE]
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Savings Bank Interest upto Rs. 10,000/- is allowed to be deducted from the taxable income.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü A new deduction of Rs. 5,000/- for preventive health check up is introduced.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Senior citizens who are not having any business income will not be required to pay any advance tax.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü New Tax deduction of 50% on investments upto Rs. 50,000/- for retail investors in Rajiv Gandhi Equity Scheme having income upto Rs. 10 lakh. Lock in period will be 3 years.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Sale of residential property exempted from capital gains if invested in equity or equipment of an SME.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Tax deduction at source on transfer of immovable property (other than agricultural land) above a specified threshold.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Tax collection at source on purchase in cash of bullion or jewellery in excess of Rs. 2 lakh.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Turnover limit for tax audit of accounts and presumptive taxation of SMEs is raised from Rs. 60 Lakhs to Rs. 1 Crore
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Capital Gain on sale of Residential Property is exempted from taxation if the sale Consideration is used for subscription in equity of a manufacturing SME for purchase of New Plant & Machinery
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Securities Transaction Tax (STT) reduced from 0.125 per cent to 0.1 per cent on Delivery Transactions.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Minimum Alternate Tax (MAT) extended to all persons, other than Companies, claiming profit linked deductions.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rate of TDS on interest payment of ECB by stressed infrastructure sectors is reduced from 20 % to 5 % for 3 years.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Inclusion of New sectors for the purposes of investment linked deductions
ü Introduction of weighted deduction of 150 % on expenditure incurred for agri-extension services.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Introduction of weighted deduction at 150 % of expenditure incurred on skill dev elopement in manufacturing sector.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Sunset date for setting power sector undertakings extended by one year for claiming 100 % deduction for 10 years.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Increase of Weighted Deduction for certain capital expenditure and in-house R & D expenditure.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Increasing the onus of proof on closely held companies for funds received from shareholders as well as taxing share premium in excess of fair market value.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[/TABLE]
[TR]
[TD="width: 529, bgcolor: transparent"]Budget Proposal
[/TD]
[TD="width: 95, bgcolor: transparent"]Impact
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rate of Service tax increased to 12 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rate of Standard Excise Duty increased to 12 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Service Tax net widened to cover all services except 17 specified services as per negative list
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Return filing process for Excise and Service Tax simplified by introducing a Common 1 page return (EST-1)
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Common Tax code for Service tax and Excise to be introduced
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Abatement to branded readymade garment sector increased from 55 % to 70 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from basic customs duty and a concessional CVD of 1 per cent to Steam coal for a period of two years till March 31, 2014
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from basic duty is also being provided to the following fuels for power generation:
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Exemption of Customs Duty of 5 % on equipments for fertilizer plants
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Customs duty on imports of parts aircraft, tyres and testing equipment, equipment for road and highway construction - fully exempted
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Reduction in custom duty from 7.5% to 2.5% on import of plant and machinery for setting up or substantial expansion of iron ore pellet plants
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from custom duty on automatic shuttle-less looms
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from basic customs duty on waste paper, LCD and LED TV panels, and parts of memory card for mobile phones
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Basic customs duty on bicycles from 10 per cent to 30 per cent and on bicycle parts from 10 per cent to 20 per cent
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Excise duty on large cars raised from 22 % to 24 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Customs duty on Standard gold raised from 2 % to 4 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Revision Application Authority and Settlement Commission being introduced in Service Tax for dispute resolution
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü New scheme announced for simplification of refunds
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rules pertaining point of taxation being rationalized
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[/TABLE]
--
[TABLE="class: MsoNormalTable, width: 5"]
[TR]
[TD="width: 529, bgcolor: transparent"]Budget Proposal
[/TD]
[TD="width: 95, bgcolor: transparent"]Impact
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Exemption limit for the general category of individual taxpayers is enhanced from Rs. 1,80,000/- to Rs. 2,00,000/-, New Slab is as under:
[TABLE="class: MsoNormalTable"]
[TR]
[TD="width: 257, bgcolor: transparent"]Upto Rs. 2 Lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]Exempt
[/TD]
[/TR]
[TR]
[TD="width: 257, bgcolor: transparent"]From Rs 2 lakh to Rs 5 lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]10%
[/TD]
[/TR]
[TR]
[TD="width: 257, bgcolor: transparent"]Rs 5 lakh to Rs 10 lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]20%
[/TD]
[/TR]
[TR]
[TD="width: 257, bgcolor: transparent"]Beyond Rs 10 lakh
[/TD]
[TD="width: 108, bgcolor: transparent"]30%
[/TD]
[/TR]
[/TABLE]
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Savings Bank Interest upto Rs. 10,000/- is allowed to be deducted from the taxable income.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü A new deduction of Rs. 5,000/- for preventive health check up is introduced.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Senior citizens who are not having any business income will not be required to pay any advance tax.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü New Tax deduction of 50% on investments upto Rs. 50,000/- for retail investors in Rajiv Gandhi Equity Scheme having income upto Rs. 10 lakh. Lock in period will be 3 years.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Sale of residential property exempted from capital gains if invested in equity or equipment of an SME.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Tax deduction at source on transfer of immovable property (other than agricultural land) above a specified threshold.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Tax collection at source on purchase in cash of bullion or jewellery in excess of Rs. 2 lakh.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Turnover limit for tax audit of accounts and presumptive taxation of SMEs is raised from Rs. 60 Lakhs to Rs. 1 Crore
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Capital Gain on sale of Residential Property is exempted from taxation if the sale Consideration is used for subscription in equity of a manufacturing SME for purchase of New Plant & Machinery
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Securities Transaction Tax (STT) reduced from 0.125 per cent to 0.1 per cent on Delivery Transactions.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Minimum Alternate Tax (MAT) extended to all persons, other than Companies, claiming profit linked deductions.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rate of TDS on interest payment of ECB by stressed infrastructure sectors is reduced from 20 % to 5 % for 3 years.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Inclusion of New sectors for the purposes of investment linked deductions
ü Introduction of weighted deduction of 150 % on expenditure incurred for agri-extension services.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Introduction of weighted deduction at 150 % of expenditure incurred on skill dev elopement in manufacturing sector.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Sunset date for setting power sector undertakings extended by one year for claiming 100 % deduction for 10 years.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Increase of Weighted Deduction for certain capital expenditure and in-house R & D expenditure.
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Increasing the onus of proof on closely held companies for funds received from shareholders as well as taxing share premium in excess of fair market value.
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[/TABLE]
- Indirect Tax
[TR]
[TD="width: 529, bgcolor: transparent"]Budget Proposal
[/TD]
[TD="width: 95, bgcolor: transparent"]Impact
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rate of Service tax increased to 12 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rate of Standard Excise Duty increased to 12 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Service Tax net widened to cover all services except 17 specified services as per negative list
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Return filing process for Excise and Service Tax simplified by introducing a Common 1 page return (EST-1)
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Common Tax code for Service tax and Excise to be introduced
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Abatement to branded readymade garment sector increased from 55 % to 70 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from basic customs duty and a concessional CVD of 1 per cent to Steam coal for a period of two years till March 31, 2014
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from basic duty is also being provided to the following fuels for power generation:
- Natural Gas and Liquified Natural Gas; and
- Uranium concentrate, Sintered Uranium Dioxide in natural and pellet form.
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Exemption of Customs Duty of 5 % on equipments for fertilizer plants
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Customs duty on imports of parts aircraft, tyres and testing equipment, equipment for road and highway construction - fully exempted
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Reduction in custom duty from 7.5% to 2.5% on import of plant and machinery for setting up or substantial expansion of iron ore pellet plants
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from custom duty on automatic shuttle-less looms
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Full exemption from basic customs duty on waste paper, LCD and LED TV panels, and parts of memory card for mobile phones
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Basic customs duty on bicycles from 10 per cent to 30 per cent and on bicycle parts from 10 per cent to 20 per cent
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Excise duty on large cars raised from 22 % to 24 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Customs duty on Standard gold raised from 2 % to 4 %
[/TD]
[TD="width: 95, bgcolor: transparent"]Unfavorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Revision Application Authority and Settlement Commission being introduced in Service Tax for dispute resolution
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü New scheme announced for simplification of refunds
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[TR]
[TD="width: 529, bgcolor: transparent"]ü Rules pertaining point of taxation being rationalized
[/TD]
[TD="width: 95, bgcolor: transparent"]Favorable
[/TD]
[/TR]
[/TABLE]
--
