Finance bill 2010 kalyan

1. THE JALNA CA CPE STUDY CHAPTER
Presentation on Proposed Finance Bill 2010Direct Taxes
3rd March, 2010
CA. Kalyan Chakravarthy Vennety

2. INCOME TAX ACT, 1961
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3. NEW TAX RATE SLAB for Individuals & HUF
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4. Decrease in Surcharge on Income Tax
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Now
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5. Sec2(15) Charitable Purposew.e.f. 1-04-2009
Restriction of the definition of
Charitable Purpose
Not Apply
if aggregate receipts do not exceed Rs. 10 Lacs
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6. Sec9 Income deemed to accrue or arise in India w.e.f. 01-06-1976
Income from royalties, interest,
fee for technical services
Ishikawajima- Harima Heavy Industries Ltd case (SC)
Include in Total Income of NR
Whether or not Non-Resident rendered service in India
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7. Sec10(21)Incomes not included in Total IncomeDate of effect: 01-04-2011
Approved
Research Association
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8. Sec 12AA (3) Cancellation of trust or institution w.e.f. 01-06-2010
Earlier Cancellation was linked to
Trust/Institution granted regn u/s 12AA(1)
Now
Cancellation provided where any Trust/Institution
has obtained Regn any time u/s 12A
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9. Sec 32 Depreciationw.e.f. 01-04-2011
Company
LLP
Depn as if no succession has taken place
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10. Sec 35 Weighted Deduction on Expenditure on Researchw.e.f. 01-04-2011
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175%
125%
Now
Now
200%
150%
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11. Sec 35ADExpenditure on specified businessw.e.f. 01-04-2010
Cross-country
Gas or Oil
pipeline network
Total Capacity should be as perP&NG
Reg Board
New specifiedBusiness
Hotel
2Star or above
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12. Sec 35DDAAmortisation of Exp under VRSw.e.f. 01-04-2011
Company
LLP
Deduction as if no succession has taken place
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13. Sec 40(a)(ia)Disallowance of Expw.e.f. 01-04-2010
TDS Deducted
But not paid
on or before the due date of filing of return
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14. Yes, you all guessed it right ! He is the Tax Auditor
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15. Sec 44ABTax Audit Provisionw.e.f. 01-04-2011
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16. Sec 44ADTax Audit Provisionw.e.f. 01-04-2011
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17. Sec 44 BB Business of Exploration of Mineral Oils w.e.f. 01-04-2011
Sec 44 DA applicable?
Sec 44 BB
Not Applicable
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18. Sec 44 DARoyalties etc. in case of non residents w.e.f. 01-04-2011
Sec 44 BB applicable?
Sec 44 DA
Not Applicable
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19. Sec 47(xiii b) Transactions not regarded as transferw.e.f. 01-04-2011
Company
Transfer of Capital / Intangible Asset
LLP
Six conditions?
Not a Transfer
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20. Sec 47(xiii b)Transactions not regarded as transferw.e.f. 01-04-2011
Six conditions
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All A&L of co. become A&Lof LLP
All Shareholders become Partners of LLP
Shareholders do not receive any compensation in any form
Aggregate of PSR of shareholders should not be less than 50% for 5years
Turnover of the company any of the 3 years prior to conversion does not exceed Rs. 60 Lacs
No amount is paid to partners out of accumulated balance of the company on the date of conversion for a period of 3 years
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21. Sec 49(4) New sub-sectionCost of acquisitionw.e.f. 01-06-2010
Shares received without consideration or inadequate consideration
Cost of Acquisition
Value which has been taken into account for the
purpose of section 56 (2) (viia)
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22. 56(2)(vii)(b)Income from other sourcesw.e.f. 01-10-2009
Value of Property received
Property
= Capital Asset only.
Does not cover Stock in Trade
Condition of inadequate consideration Removed
Taxed only if
Property is received
without any consideration
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w.e.f. 01-06-2010Bullion included
Property
= Capital Asset only.
Does not cover Stock in Trade
Condition of inadequate consideration Removed
Taxed only if
Property is received
without any consideration
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Where a Firm or Pvt Ltd. Co
receives
From any person(s)
In any PY
Shares of Pvt Ltd.Co
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25. Expln: FMV meaning same as given in Expln to clause (vii)
Proviso: This clause shall not apply to cases covered u/s 47
56(2)(vii)(a)Income from other sourcesw.e.f. 01-06-2010
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Expln of Property
Not applicable here.
Hence, covers
Stock in Trade also.
26. Sec 72A (6A) New clauseC/f & Setoff in amalgamation/demergerw.e.f. 1-04-2011
Proviso: fresh period of 8 years
will be available for set off of loss in the hands of LLP upon conversion
Company
Succeeded by
LLP
Six conditions satisfied?
Can C/f & Setoffaccumulated Loss & Dep'n
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27. Sec 80A(7)Deductions claimed in Total Incomew.e.f. 01-04-2011
Claimed deduction under this sec?
Deduction Sec 35 AD
Not Available
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28. Sec 80CCFDeduction on long term infrastructure bondsw.e.f. 01-04-2011
Limit = Rs.20,000
In addition to
Rs.100,000 under Sec 80CCE
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29. Sec 80DDeduction for Health Insurance Premiaw.e.f. 01-04-2011
Benefit Extended
Contribution made to
Central Government Health Scheme
within Rs.15,000
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30. Sec 80GGA Deduction in respect of certain donationsfor scientific research or rural developmentw.e.f. 01-04-2011
Scope Extended
Research in
Social Science
Statistical Research
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31. Sec 80IB(10)(a)Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakingsw.e.f. 01-04-2010
Period of completion
Extended from
5 Years
4 Years
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32. Sec 80IB(10)(d)Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakingsw.e.f. 01-04-2010
Built up Area of shops & commercial estb.
included in Housing Project
5% of the aggregate built-up area of the housing project or
2,000 square feet, whichever is less
3% of the aggregate built-up area of the housing project or
5,000 square feet, whichever is higher
Revised
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33. Sec 80ID(2)(i)Deduction in respect of profits and gains from business of hotels and convention centres in specified areaw.e.f. 01-04-2011
Deadline for construction of the centre
extended to 31st July, 2010
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For special impetus to ensuing
Common Wealth Games
34. Sec 115JJA(7)Tax credit in respect of tax paid on deemedincome relating to certain companiesw.e.f. 01-04-2011
Company
Succeeded by
LLP
Credit of MAT paid available?
NO
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35. Sec 115JB(1)MATw.e.f. 01-04-2011
Minimum Alternative Tax
Increased
18%
15%
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36. Sec 115WE(1B)FBT Assessmentw.e.f. 01-04-2010
Time limit for issuance of direction
by Central Govt increased
to 31.03.2011
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37. Sec 139(4C)Return of Incomew.e.f. 01-04-2011
Scope Extended
Research Association
Social Science
Statistical Research
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38. 142A(1)Estimate by Valuation Officer in certaincasesw.e.f. 01-07-2010
AO is now empowered
to make reference to the
Valuation Officer for making an estimate of
FMV
of any property referred to in
sub-section (2) of section 56 of the Act.
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39. Sec 143(1B)Assessmentw.e.f. 01-04-2010
Time limit for issuance of direction relating to processing of returns By Central Govt increased to 31.03.2011
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40. Sec 143(1B)Assessmentw.e.f. 01-04-2011
Time limit for issuance of direction relating to processing of returns By Central Govt increased to 31.03.2011
Proviso: AO shall not withdraw exemption u/s10(21) unless intimation has been given by him to the prescribed authority and the approval granted to the association has been withdrawn
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41. Sec 143(3)Assessmentw.e.f. 01-04-2011
References to
scientific research association
are proposed to be substituted by references to
research association
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42. Changes in TDS Threshold Limitsw.e.f. 1-07-2010
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43. Sec 201(1A)Consequences of failure to deduct or pay taxw.e.f. 01-07-2010
Interest on delayed Deposit
Rate increased
18% p.a.
12% p.a.
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44. Sec 203(3) & 206(C)Certificate of TDSw.e.f. 01-04-2010
It is proposed to omit the
sub-section (3)
which provides that
on or after 1st April, 2010
there is no need to issue
a TDS Certificate
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45. Sec 245Aexpression casew.e.f. 01-06-2010
The expression case amended so as to include Assessment
in case of search or requisition
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It also
removes the prohibition in cases where the AO has to proceed u/s. 153C of the
Act.
46. Sec 245CSettlement of casesw.e.f 01-06-2010
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47. Sec 245D(4A)Procedure on receipt of an application forsettlement of casesw.e.f 01-06-2010
The SC shall make an Order
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48. Sec 256(2A)Statement of case to the High Courtw.e.f. 01-06-1981
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49. Sec 260A(2A)Statement of case to the High Courtw.e.f. 01-10-1998
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50. 271BPenalty for failure toget accounts auditedw.e.f. 01-04-2011
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51. Sec 282B Document Identification No.w.e.f 01-10-2010
Effective Date for use of
computer generated
Document Identification Number extended to 01-10-2011
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52. Rule 5(b) First ScheduleComputation of Profits & Gains of other insurance Business
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53. WEALTH TAX ACT, 1957
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54. Sec 22A(b)expression casew.e.f 01-06-2010
Definition of case altered to include the proceedings of
assessment or reassessment
which may be initiated on the basis of
a search or requisition
Expln amended to specify the date on which the proceedings for assessment or reassessment shall be deemed to have been initiated and concluded pursuant to a search or requisition
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55. Sec 22DProcedure on receipt of an application forsettlement of casesw.e.f 01-06-2010
The SC shall make an Order
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56. Sec 27(3B)Reference to the High Court.w.e.f. 01-06-1981
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57. Sec 27AStatement of case to the High Court.w.e.f. 01-10-1998
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58. CENTRAL SALES TAX ACT, 1956
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59. Major Amendments
Amendment -sub-section 2 of Section 6 A
The assessing authority should satisfy himself that the declaration filed by a dealer is true and there is no inter-state sale
Insertion sub-section 3 of Section 6 A
Assessing authority is empowered to do re-assessment
on discovery of new facts or revision by higher authority
Insertion of new Chapter V A to the CST Act, -
Appeals to the Highest Appellate Authority of the State
The Central Sales Tax Appellate Authority has been empowered to direct refund of tax collected
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60. SERVICE TAX ACT
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61. New services introduced in the tax net effective from a date to be notified
Commercial use or exploitation of any event
Copyrights on recording of cinematographic films/sound recording
Health Services for employees of business entities/services
Services of maintenance of medical records
Electricity Exchange Services
Additional services provided by a builder to the prospective buyers
Brand Endorsement Services
Promotion, marketing or organizing of games of chance including lottery
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62. End of Presentation.
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63. THANK YOU !
BCOM, ACA, DISA(ICAI), CISA
V R Jogeswara Rao & Co., Chartered Accountants
Phone: 99700-88669
Email: [email protected]
3.3.2010
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Finance bill 2010 kalyan

Economy & Finance

Transcript of Finance bill 2010 kalyan