Budget 2013

T . M . GOSHER & CO.

TAX SLABS FOR VERY SENIOR CITIZENS

INCOME RATE FOR SENIOR CITIZENS

UPTO 5,00,000 5,00,000 - 10,00,000 ABOVE 10,00,000 ABOVE 1 CRORE

NIL 20.6% 30.9% 33.99%

T . M . GOSHER & CO.

TAX SLABS FOR SENIOR CITIZENS

INCOME
UPTO 2,50,000

RATE FOR SENIOR CITIZENS

NIL

2,50,000 - 5,00,000
5,00,000 - 10,00,000 ABOVE 10,00,000 ABOVE 1 CRORE

10.3%
20.6% 30.9% 33.99%

T . M . GOSHER & CO.

TAX SLABS FOR INDIVIDUALS,HUF

INCOME UPTO 2,00,000 2,00,000 - 5,00,000 5,00,000 - 10,00,000 ABOVE 10,00,000 ABOVE 1 CRORE RATE FOR INDIVIDUAL,HUF NIL 10.3% 20.6% 30.9% 33.99%

T . M . GOSHER & CO.

REBATE/SURCHARGE
A REBATE OF RS. 2000 FOR INDIVIDUALS HAVING TOTAL INCOME UP TO RS. 5 LAKH. INDIVIDUALS HAVING TAXABLE NET INCOME EXCEEDING RS 1 CRORE WILL HAVE TO PAY A 10% SURCHARGE. THE FOLLOWING TABLE WILL ILLUSTRATE HOW THE REBATE AND SURCHARGE RESPECTIVELY WILL BE DEALT WITH BY THE TAXPAYERS.
T . M . GOSHER & CO.

T . M . GOSHER & CO.

SLAB FOR DOMESTIC COMPANY & FIRMS

INCOME LEVELS(Rs.) DOMESTIC COMPANY

A.Y.14-15 0-1 CRORE 30.900

SURCHARGE NIL

1CRORE-10CRORES

32.445

5%

ABOVE 10CRORES
T . M . GOSHER & CO.

33.900

10%

SLAB FOR FOREIGN COMPANY

INCOME LEVELS(Rs.) FOREIGN COMPANY

A.Y.14-15

SURCHARGE

0-1 CRORE

41.200

NIL

1CRORE-10CRORES

42.024

2%

ABOVE 10CRORES
T . M . GOSHER & CO.

43.260

5%

COMMODITIES TRANSACTION TAX (SEC. 36)

NEWLY INTRODUCED ON ALL NONAGRICULTURAL COMMODITIES FUTURE CONTRACTS. RATE 0.01% ON THE PRICE OF THE TRADE. ALLOWED AS DEDUCTION IF SUCH INCOME FORMS PART OF BUSINESS INCOME.

T . M . GOSHER & CO.

TAX ON ROYALTIES & FEES FOR TECHNICAL SERVICES (SEC. 115A)

AGREEMENTS ENTERED ON OR BEFORE 31.05.1997 BETWEEN 31.05.1997 & 1.06.2005 ON OR AFTER 01.06.2005
T . M . GOSHER & CO.

EXISTING RATES 30%

PROPOSED W.E.F. 01.04.2013 25%

20% 10%

25% 25%

INVESTMENT ALLOWANCE(SEC.32AC)
ADDITIONAL DEDUCTION OF 15% OVER AND ABOVE THE DEDUCTION OF DEPRECIATION U/S. 32 CONDITIONS: 1. INVESTMENT EXCEEDING RS. 100 CRORE IN PLANT AND MACHINERY REQUIRED. 2. TIME LIMIT FOR INVESTMENT 01.04.2013 TO 31.03.2015. 3. ASSETS CAN NOT BE TRANSFERRED WITHIN 5 YRS. FROM ACQUISITION.
T . M . GOSHER & CO.

BENEFIT TO POWER SECTOR (SEC. 80IA)

SEC. 80IA EXTENDED FOR 1 MORE YEAR PROPOSAL TO EXTEND THE SUNSET DATE FOR SETTING UP POWER SECTOR UNDERTAKING BY ONE YEAR (I.E. 31/03/2014) FOR CLAIMING 100% DEDUCTION OF PROFITS FOR 10 YEARS.

T . M . GOSHER & CO.

INTEREST ON HOUSING LOAN (SEC. 80EE)

ADDITIONAL DEDUCTION OF RS.1 LAKH REGARDING INTEREST ON LOAN FOR 1ST HOME BUYERS. LOAN NOT EXCEEDING RS.25 LAKHS SANCTIONED BY FINANCIAL INSTITUTION . HOUSE PROPERTY VALUE NOT EXCEEDING 40 LAKHS. UNEXHAUSTED LIMIT ELIGIBLE FOR DEDUCTION IN A.Y. 15-16 ONLY.
T . M . GOSHER & CO.

EXEMPTION IN MATURITY AMT. OF LIFE INSURANCE POLICIES SEC. 10(10D)

EXEMPTION LIMIT U/S. 10(10D) IN CASE OF LIP FOR SPECIFIED PERSONS HAS INCREASED FROM 10% TO 15%. SPECIFIED PERSONS INCLUDES: 1. A PERSON WITH DISABILITY/ SEVERE DISABILITY (U/S. 80U) 2. SUFFERING FROM DISEASE OR AILMENT (U/S. 80DDB)
T . M . GOSHER & CO.

CONTRIBUTIONS TO HEALTH SCHEMES (SEC. 80D)

PRESENTLY AVAILABLE TO ONLY CONTRIBUTIONS TOWARDS CENTRAL GOVERNMENT HEALTH SCHEME (CGHS) NOW AVAILABLE TO OTHER HEALTH SCHEMES OF THE CENTRAL AND STATE GOVTS., WHICH ARE SIMILAR TO THE CGHS

T . M . GOSHER & CO.

SCOPE OF DEDUCTION (SEC. 80CCG)

DEDUCTION FOR LISTED UNITS OF ANY EQUITY ORIENTED FUND, EARLIER RESTRICTED TO RAJIV GANDHI EQUITY. PRE-REQUISITE FOR DEDUCTION: 1. ALLOWED FOR 3 A.Y. IN THE YEAR IN WHICH THE LISTED SHARES WERE FIRST ACQUIRED BY NEW RETAIL INVESTOR. 2. GTI FOR RELEVANT A.Y. SHALL NOT EXCEED RS. 12 LAKHS.
T . M . GOSHER & CO.

INCOME OF INVESTOR PROTECTION FUND EXEMPTED SEC. 10(23EA)

CONTRIBUTION FROM DEPOSITORIES TO IPF HAS BEEN EXEMPTED. ANY STANDING AMOUNT IN IPF NOT CHARGED TO INCOME-TAX DURING ANY P.Y. IS SHARED WITH A DEPOSITORY, THEN SUCH AMOUNT IS DEEMED TO BE THE INCOME OF THE DEPOSITORY IN THE YEAR IN WHICH SUCH AMOUNT IS SHARED.
T . M . GOSHER & CO.

DONATIONS/CONTRIBUTIONS AMMENDMENT (SEC. 80G)

100% DEDUCTION IN RESPECT OF DONATIONS TO NATIONAL CHILDRENS FUND(EARLIER 50%).

T . M . GOSHER & CO.

TAX ON DIVIDENDS RECEIVED FROM FOREIGN COMPANIES (SEC. 115BBD)

THIS SECTION PROVIDES FOR TAXATION OF GROSS DIVIDENDS RECEIVED BY AN INDIAN COMPANY FROM A SPECIFIED FOREIGN COMPANY (IN WHICH IT HAS SHAREHOLDING OF 26% OR MORE) @ 15% IF SUCH DIVIDEND IS INCLUDED IN THE TOTAL INCOME FOR THE FINANCIAL YEAR 2013-14 I.E. ASSESSMENT YEAR 2014-15.

T . M . GOSHER & CO.

REMOVAL OF CASCADING EFFECT OF DDT (SEC. 115-O)

DIVIDENDS RECEIVED BY A DOMESTIC COMPANY FROM ITS FOREIGN SUBSIDAIRY WHICH HAS BEEN SUBJECT TO TAX @15% U/S 115BBD SHALL NOT BE SUBJECT TO DDT U/S 115-O, TO THE EXTENT OF SUCH AMOUNT, WHEN THE DOMESTIC COMPANY DISTRIBUTES DIVIDEND.

T . M . GOSHER & CO.

SCOPE OF SECTION 194LC EXTENDED

THE ABOVE SECTION PROVIDES CONCESSIONAL RATE OF TDS @5% FOR INTEREST ON MONEY BORROWED BY INDIAN CO IN FOREIGN CURERENCY. EARLIER DEDUCTION ALLOWED ONLY FOR INTEREST ON BORROWINGS THROUGH A LOAN AGREEMENT OR BY ISSUE OF LONG TERM INFRASTRUCTURE BONDS NOW, IT CAN ALSO BE AVAILED ON BORROWINGS THROUGH - OPENING A DESIGNATED BANK A/C AND DEPOSITING THE FOREIGN CURENCY FOR SUBSCRIBING LONG TERM INFRASTRUCTURE BONDS. EFFECTIVE FROM 1ST JUNE 2013.
T . M . GOSHER & CO.

WEALTH TAX (SEC. 14A)

SECTION 14A: ANNEXURE LESS RETURNS ENABLED BY CERTAIN CLASS OF PERSONS. SECTION 14B: POWER GIVEN TO BOARD TO MAKE RULES PROVIDING FOR CLASS OF PERSONS WHO SHALL BE REQUIRED TO FURNISH THE RETURN IN ELECTRONIC FORM. THESE AMENDMENTS WILL TAKE EFFECT FROM 1/06/2013.
T . M . GOSHER & CO.

KEYMAN INSURANCE POLICY SEC. 10(10D)

KEYMAN INSURANCE POLICY ASSIGNED TO ANY PERSON WITH OR WITHOUT CONSIDERATION TO REMAIN SAME AS KEYMAN BUT NOT LIFE INSURANCE POLICY NO EXEMPTION

T . M . GOSHER & CO.

CONTRIBUTION TO POLITICAL PARTIES (SEC. 80GGB/80GGC)

CONTRIBUTIONS TO POLITICAL PARTIES IN CASH WILL NOT BE ELIGIBLE FOR DEDUCTION (U/S. 80GGB,80GGC)

T . M . GOSHER & CO.

TAX DUE (SEC. 167C/179)

TAX DUE INCLUDES TAX PLUS INTEREST PLUS PENALTY.

T . M . GOSHER & CO.

DEDUCTION FOR ADDITIONAL WAGES (SEC. 80JJAA)

DEDUCTION OF 30% OF ADDITIONAL WAGES PAID TO THE NEW REGULAR WORKER EMPLOYED IN A FACTORY

T . M . GOSHER & CO.

APPLICATION OF SEIZED OR REQUISITIONED ASSETS (SEC. 132B)

THE EXISTING PROVISIONS CONTAINED IN S132B OF I.T. ACT PROVIDE THAT SEIZED ASSETS MAY BE ADJUSTED AGAINST ANY EXISTING LIABILITY UNDER I.T. ACT, etc. COURTS HAVE SETTLED THAT THE TERM EXISTING LIABILITY SHALL NOT INCLUDE ADVANCE TAX LIABILITY OF THE ASSESSEE.

T . M . GOSHER & CO.

DEFECTIVE RETURN [SEC. 139(9)]

RETURN OF INCOME WOULD BE TREATED AS DEFECTIVE IN CASE ASSESSEE DOES NOT PAY SA TAX ALONG WITH INTEREST ON OR BEFORE DUE DATE OF FURNISHING THE ROI. W.E.F. 01.06.2013

T . M . GOSHER & CO.

SPECIAL AUDITS [SEC. 142(2A)]

IT IS NOW PROPOSED THAT BESIDES COMPLEXITY OF THE ACCOUNTS AND INTEREST OF REVENUES, SPECIAL AUDIT CAN BE INITIATED HAVING REGARD TO FOLLOWING: 1. VOLUME OF ACCOUNTS 2. DOUBTS ABOUT THE CORRECTNESS OF THE ACCOUNTS. 3. MULTIPLICITY OF TRANSACTIONS IN ACCOUNTS. 4. SPECIALIZED NATURE OF BUSINESSS.
T . M . GOSHER & CO.

LIMITED PERIOD FOR COMPLETION OF ASSESSMENT & REASSESSMENT (SEC. 153)

CLAUSE (III) OF EXPLANATION 1 TO SEC.153 AMENDED. IN CASE THE DIRECTION BY AO IS CHALLENGED BEFORE A COURT, THE ENDING DATE OF TIME PERIOD TO BE EXCLUDED WILL BE THE ONE ON WHICH THE ORDER SETTING ASIDE SUCH DIRECTION IS RECEIVED BY THE COMMISSIONER.
T . M . GOSHER & CO.

PENALTY FOR NON FILING OF AIR (SEC. 271FA)

ANNUAL INFORMATION RETURN
NOT FILED BY DUE DATE

PENALTY
100 PER DAY

PERIOD
FOR THE PERIOD OF DEFAULTS FROM THE DAY IMMEDIATELY FOLLOWING THE DAY ON WHICH THE TIME SPECIFIED IN SUCH NOTICE FOR FURNISHING THE RETURN EXPIRES TILL FILING OF RETURN

NOT FILED AS REQUIRED UNDER NOTICE U/S 285BA(5)

500 PER DAY

T . M . GOSHER & CO.

Disclaimer
The views expressed herein are those of the contributor. The contents should not be constructed as legal or professional advice. We are not responsible for any decision taken by users on the basis of the said contents.

T . M . GOSHER & CO.

T . M . GOSHER & CO.