HIGHLIGHTS OF DIRECT TAX PROPOSALS IN FINANCE BILL 2013
1. No revision in the slabs or the rates of Personal Income Tax.
2. However, relief in the form of tax credit of Rs. 2,000 is given to the taxpayers falling under the first slab i.e, upto Rupess five lakhs.
3. Surcharge @10% is levied on persons (other than companies) whose taxable income exceeds Rupees
one crore to raise taxes.
4. Rate of surcharge increased from 5% to 10% on domestic companies having taxable income more than Rupess ten crore.
5. On the similar lines, rate of surcharge raised from 2% to 5% in the case of foreign companies who pay a higher rate of corporate tax, i.e. if the taxable income exceeds Rs. 10 crore.
6. In the case of dividend distribution tax, rate of surcharge increased from 5% to 10%.
7. Rate of education cess kept intact at 3%.
8. In the case of life insurance policies for persons suffering from disability and certain ailments, eligibility conditions are relaxed by increasing the permissible premium rate from 10% to 15% of the sum assured.
9. Scope of deduction under section 80D of Income Tax Act increased for making contributions to schemes of Central and State Governments similar to Central Government Health Scheme.
10. Additional deduction of Rupees one lakh given for new house loan interest where value of loan does not exceed Rs 25 lakhs and value of the house is less than 40 lakh.
11. 100 % deduction allowed for donations made to National Children Fund.
12. Additional investment allowance @15% to manufacturing companies allowed in addition to depreciation for making investments more than Rs. 100 crores in plant and machinery during the period 1.4.2013 to 31.3.2015.
13. `Eligible date' for the purpose of projects operating in the power sector to avail benefit under Section 80-IA extended from 31.3.2013 to 31.3.2014.
14. Dividends received by an Indian company from a specified foreign company will be taxed @ 15% in Financial Year 2013-14 also, subject to the same conditions.
15. Parity in taxation between IDF-Mutual Fund and IDF-NBFC.
16. Rationalisation of tax on distributed income by the Mutual Funds
17. TDS @ 1% on the value of the transfer of immovable properties (other than agriculture land) where consideration exceeds Rs. 50 lakhs.
18. Rate of tax on payments by way of royalty and fees for technical services to non-residents is proposed to increase to 25%.
19. Commodities Transaction Tax (CTT) on non-agricultural commodities futures contracts.
20. In the context of the Transfer Pricing Regulations, Safe Harbour Rules will be issued after examining the reports of the Rangachary Committee for IT Sector and other various sectors.
21. Announcement of Fifth large tax payer unit to Kolkata.
22. Various initiatives in administrative measures such as the extension of refund banker system to refund more than Rs.50,000, technology based processing,
23. Exemption to income of Investor Protection Fund of depositories
24. Exemption of distributed income received from a Securitisation Trust by an investor
25. Withholding tax @ 20% on profits distributed by unlisted companies to shareholders through buyback of shares.
26. GAAR provisions will come into effect from 1.4.2016, after the required modifications.
27. Reductions made in rates of Securities Transaction Tax on certain segments.
1. No revision in the slabs or the rates of Personal Income Tax.
2. However, relief in the form of tax credit of Rs. 2,000 is given to the taxpayers falling under the first slab i.e, upto Rupess five lakhs.
3. Surcharge @10% is levied on persons (other than companies) whose taxable income exceeds Rupees
one crore to raise taxes.
4. Rate of surcharge increased from 5% to 10% on domestic companies having taxable income more than Rupess ten crore.
5. On the similar lines, rate of surcharge raised from 2% to 5% in the case of foreign companies who pay a higher rate of corporate tax, i.e. if the taxable income exceeds Rs. 10 crore.
6. In the case of dividend distribution tax, rate of surcharge increased from 5% to 10%.
7. Rate of education cess kept intact at 3%.
8. In the case of life insurance policies for persons suffering from disability and certain ailments, eligibility conditions are relaxed by increasing the permissible premium rate from 10% to 15% of the sum assured.
9. Scope of deduction under section 80D of Income Tax Act increased for making contributions to schemes of Central and State Governments similar to Central Government Health Scheme.
10. Additional deduction of Rupees one lakh given for new house loan interest where value of loan does not exceed Rs 25 lakhs and value of the house is less than 40 lakh.
11. 100 % deduction allowed for donations made to National Children Fund.
12. Additional investment allowance @15% to manufacturing companies allowed in addition to depreciation for making investments more than Rs. 100 crores in plant and machinery during the period 1.4.2013 to 31.3.2015.
13. `Eligible date' for the purpose of projects operating in the power sector to avail benefit under Section 80-IA extended from 31.3.2013 to 31.3.2014.
14. Dividends received by an Indian company from a specified foreign company will be taxed @ 15% in Financial Year 2013-14 also, subject to the same conditions.
15. Parity in taxation between IDF-Mutual Fund and IDF-NBFC.
16. Rationalisation of tax on distributed income by the Mutual Funds
17. TDS @ 1% on the value of the transfer of immovable properties (other than agriculture land) where consideration exceeds Rs. 50 lakhs.
18. Rate of tax on payments by way of royalty and fees for technical services to non-residents is proposed to increase to 25%.
19. Commodities Transaction Tax (CTT) on non-agricultural commodities futures contracts.
20. In the context of the Transfer Pricing Regulations, Safe Harbour Rules will be issued after examining the reports of the Rangachary Committee for IT Sector and other various sectors.
21. Announcement of Fifth large tax payer unit to Kolkata.
22. Various initiatives in administrative measures such as the extension of refund banker system to refund more than Rs.50,000, technology based processing,
23. Exemption to income of Investor Protection Fund of depositories
24. Exemption of distributed income received from a Securitisation Trust by an investor
25. Withholding tax @ 20% on profits distributed by unlisted companies to shareholders through buyback of shares.
26. GAAR provisions will come into effect from 1.4.2016, after the required modifications.
27. Reductions made in rates of Securities Transaction Tax on certain segments.
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