AMENDMENT APPLICABLE

FOR
NOV 2017 EXAMINATION
CA - INTERMEDIATE (IPC)

There is no Significant Amendment for Nov

2017 Exam except as given below:
Income Tax
1. In case Gross Total income is exceeding exemption limit, Return of Income is required to be
submitted but for this purpose Gross Total Income shall include Income Exempt u/s 10(38).

2. If Date of birth of an Individual is 01-04-1957, he will be considered to be Senior Citizen for P.Y.
2016 –17 because 60 years shall be completed as on 31.03.2017 and not on 01.04.2017.

3. Under section 44AD, It will be taken as 6% instead of 8% with regard to the turnover or gross receipts
received through banking channel/digital means i.e., by an A/c payee cheque/bank draft or use of ECS
through a bank A/c during the previous year or before the due date specified in section 139(1) in respect of
that previous year. However, the existing rate of deemed profit of 8% referred to in section 44AD, shall
continue to apply in respect of total turnover or gross receipts received in cash.

4. Amendment in Section 47 & 72A

If any capital asset has been transferred in connection with conversion of a private company or unlisted

public company to a limited liability partnership, it will be exempt from income tax provided the

shareholders of the company have at least 50% shares in the profits of the LLP and also it continues to be so

for a period of at least 5 years from the date of conversion and also value of the assets as appearing in the

books of accounts of the company has not exceeded `5 crores in any of the 3 years preceding the year of

conversion.

Similarly it will be changed in section 72A in case of set off and carry forward of losses in case of
conversion of Private Company or Unlisted Public Company into Limited Liability Partnership Firm.
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05. Amendment in 54GB from previous year 16-17

The assessee can setup SME or it can be an eligible startup

Eligible startup means a Company or LLP engaged in eligible business and total turnover donot exceed `25
crore during any previous year.

Eligible business means a business which involves innovation, development, deployment or

commercialisation of new products, processes or services driven by technology or intellectual property.

Now Section 54GB shall be as given below:

Exemption in case of subscription to the shares of a new company Section 54GB
1. Exemption is allowed only to individual or HUF provided assessee has long term capital gains on the
transfer of residential house property or residential plot.
2. Assessee should invest the amount in the equity shares of a new company which should be
incorporated upto the last date of filing of return of income of the year in which the property has been
transferred and also the assessee should hold more than 50% of the voting rights of the company.
3. The company should be Small or Medium Enterprise i.e. investment in plant and machinery should be
more than 25 lakh but not more than 1000 lakh
4. The company should invest the amount in plant and machinery for the purpose of manufacturing
within one year from the date of subscription to the shares and if investment is after the last date of filing
of ROI, assessee should deposit the amount in the specified bank account and subsequently amount can be
withdrawn within the time of one year from the date of subscription. Exemption relating to unutilized
amount shall be withdrawn in the year in which one year has expired.
5. Exemption allowed shall be equal to
Capital gain x Amount invested in plant and machinery + amount deposited in bank a/c
Net Consideration
6. No exemption is allowed for the plant and machinery which is second hand or the plant and
machinery which has been used in office premises or residential premises or for any vehicle i.e.
exemption is only for the plant and machinery which is being used in manufacturing.
7. The assessee is not allowed to sell the shares for a period of atleast 5 years and also company is not
allowed to sell the plant and machinery for a period of atleast 5 years.
8.Amendment from previous year 16-17
The assessee can setup SME or it can be an eligible startup
Eligible startup means a Company or LLP engaged in eligible business and total turnover donot exceed `25
crore during any previous year.
Eligible business means a business which involves innovation, development, deployment or
commercialisation of new products, processes or services driven by technology or intellectual property.

06. As per Section 2(14), Deposits Certificate issued under Gold Monetization Scheme,
2015 shall not be considered to be Capital Asset and no capital gain shall be computed.

GOLD MONETIZATION SCHEME, 2015

This scheme will replace the existing Gold Deposit Scheme, 1999. However, the deposits outstanding under
the Gold Deposit Scheme will be allowed to run till maturity unless these are withdrawn by the depositors
prematurely as per existing instructions.

All designated banks will be eligible to implement the scheme.

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The designated banks will accept gold deposits under the Short Term (1-3 years) Bank Deposit as well as
Medium (5-7 years) and Long (12-15 years) Term Government Deposit Schemes.

The designated banks may sell or lend the gold accepted under the short-term bank deposit to MMTC for
minting India Gold Coins and to jewellers, or sell it to other designated banks participating in the scheme.

Gold lying in the locker appreciates in value if gold price goes up but it doesn't pay you a regular interest or
dividend. On the contrary, you incur carrying costs on it (i.e. bank locker charges).

The scheme will allow you to earn some regular interest on your gold and save your carrying costs as well.
It is a gold savings account which will earn interest for the gold that you deposit in it. Your gold can be
deposited in any physical form – jewellery, coins or bars. This gold will then earn interest based on gold
weight and also the appreciation of the metal value. You get back your gold or Indian rupees as you desire
(the option to be exercised at the time of deposit)

Earnings are exempt from income tax. There will be no capital gains tax on the appreciation in the value of
gold deposited. Interest on Gold deposited under this scheme has been exempted from income tax u/s
10(15).
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Indirect Tax
Meaning of Educational Institution has been amended and now
exemption with regard to educational services shall be as given
below:
Services provided by the education institution to its students, faculty and staff is exempt and for this purpose
educational Institution means
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being
in force;
(iii) education as a part of an approved vocational education course.
Some of the services provided to educational institution shall be exempt and such services are listed below
and for this purpose educational institution means pre-school education and education up to higher
secondary school or equivalent.
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the Government.
(iii) services of security / cleaning / house-keeping.
(iv) services relating to admission / conduct of examination.

Original Text
Services provided,—
(a) by an educational institution to its students, faculty and staff;
(b) to an educational institution, by way of,-
(i) transportation of students, faculty and staff;
(ii) catering, including any mid-day meals scheme sponsored by the
Government;
(iii) security or cleaning or house-keeping services performed in such
educational institution;
(iv) services relating to admission to, or conduct of examination by, such
institution;
Shall be exempt from Service Tax.
“Educational institution" means an institution providing services by way of:
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time
being in force;
(iii) education as a part of an approved vocational course;
Amendment
Provided that nothing contained in clause (b) of this entry shall apply to an educational institution other
than an institution providing services by way of pre-school education and education up to higher
secondary school or equivalent.

If there is any other amendment relevant for Nov

2017 Examination it will be uploaded on our website.
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It is further clarified that GST is not applicable for

Nov 2017 Examination.