Finance Bill 2012-13.ppt

7/27/2019 Finance Bill 2012-13.ppt

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13 January 2014 M.M.Savla & Co. 1

By

CA Mulesh M. Savla (Partner M M Savla & Co)Email Id:- [email protected]

Cell : +91 9833154823

Saturday, 24thMarch, 2012.

Shree Ghatkopar Kutchhi Jain Shwetambar Murtipujak Sangh,

Jointly with CVO Chartered & Cost Accountants Association.

Finance Bill - 2012
mailto:[email protected]:[email protected]


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Union Budget- 2012


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Union Budget - 2012

Projected fiscal deficit at 5.1% of GDP.

GDP Growth in 2012-13 is likely to be 7.6%.

Rs. 30,000 crs. To come from disinvestments. Tax Free Infra BondsRs. 60,000/- crs.

Intend to introduce GST bill by August 2012.

Introduction of Direct Tax Code to be delayed. Govt. borrowings to be at about Rs.5.8 lacs crore.

Govt. debt to be at about 70% of GDP.


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Union Budget - 2012

Efforts to arrive at consensus with State Government

on multi brand FDI up to 51%

Higher allocations for Defense, Road Transport,

Highways, National Health Mission, Integrated Child

Development Scheme, Rural Drinking Water &

Sanitation etc

Rs. 15,888 crs provided for PS Banks/Rural Regional

Banks & NABARD

Interest subvention to farmers for timely repayment


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Finance Bill - 2012

No stabilityviolation of past promises.

Mean mentality

Lack of confidenceWithin

On Citizens.

Biased approachescaping from responsibility. Unrestricted discretionary powers to the

bureaucrats


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Finance Bill - 2012

No changes in rates of taxes, surcharge,cess etc.

Changes in threshold limits and tax slabs.

Firms, Domestic Cos to pay tax at the samerates.

Some changes in TDS provisions


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Tax Slabs

For Individual, HUF, AOP, BOI

Tax Rate Very Senior Citizen Senior Citizen Other Assessee

0 % Up to Rs. 5.00 Lacs Upto Rs. 2.50 Lacs Upto Rs. 2.00 Lacs

10 %

--

Above 2.50 Lacs to

5.00 Lacs

Above 2.00 Lacs to

5.00 Lacs

20 % Above 5.00 Lacs to

10.00 Lacs

Above 5.00Lacs to

10.00 Lacs

Above 5.00Lacs to

10.00 Lacs

30 % Above 10.00 Lacs Above 10.00 Lacs Above 10.00 Lacs

Savings Rs. 20,600/- Rs. 20,600/- Rs. 21,630/-(Female)

Rs. 22,600/-(Others)


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Deduction u/s 35AD (01-04-2012)

Three more industries to get deduction u/s 35AD

Container depot/Container Freight station

Bee-keeping, Honey/ Beeswax manufacturing

Warehousing for sugar

Five industries to get 150% deduction

Cold Storage Chain

Warehousing for agricultural produce Building & Operating Hospital with 100 beds or more

Developing & Building affordable housing projects

Production of fertilizer in India


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Limit for Tax Audit & presumptive Taxation

T. O. limit for tax audit and presumptive taxation raisedfrom Rs 60 lakhs to Rs 1 Crore for businesses & for

professional from Rs 15 lakhs to Rs 25 lakhs.

Section 44AD retrospectively amended from 1.4.2011to clarify that it will not to apply to a person :

(i) carrying on profession or

(ii) earning income in the nature of commission or brokerage; or

(iii) carrying on any agency business.


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13 January 2014M.M.Savla & Co.

10

Transfer of Residential Property by Individual

or HUF

LTCG from transfer of a House or a Plot of Land ???????

Net consideration - subscription in the equity shares of aneligible co before the due date of furnishing of return;

Incorporated from 1stApril of the previous year to due date for

filing returnManufactures article or things

Assessee holds more than 50% equity or voting rights

MSMEA, 2006

Company utilises within 1 year the amount for purchase of

new P & M. Or to be deposited in a special A/c

Such P & M sold before 5 yrs or

Such equity/voting rights is diluted before 5 yrs


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Measures to Prevent Generation & Circulation

of Unaccounted Money.

Issue of Shares by closely held company at premium - at a pricemore than F M V.

Does not apply to non-residents, VC Funds or VCC.

Share application money, share capital, share premium - Sourceof source is required to be proved. (New Proviso)

Cash credits, unexplained investment, unexplained money,

unexplained expenditure and amount borrowed or repaid on

hundi will be taxed at flat Rate of 30%

No deduction of expenditure related to the said amounts.

Specified Domestic Transactions in aggregate of more than five

crs to attract Transfer Pricing Rules (1-4-2012).


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General Amendments

Additional dep. of 20% of new P&M extended to assesseesin the business of generation & distribution of power.

Definition of relative amended to partially include HUF

DDT deductions to any level of subsidiary/holding status.

200% deduction for expenditure incurred on scientificresearch and development by a Company engaged in thebusiness of biotechnology is extended for 5 years till 31st

March 2017.

150% deduction for expenditure on Agricultural ExtensionProject and Expenditure on Skill Development Project.


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Alternative Minimum Tax-AMT

Applicable to persons:

Other than Co.(Sole proprietor, AOP, Firms etc.)

Claiming deduction under any section included in Chapter

VI-A C or section 10AA

To apply if the adjusted total income does not exceed Rs.20 lacs of specified persons .

Tax on adjusted total income @18.5% or Normal Tax onTaxable Income whichever is higher

Excess of amount over regular tax to be C/f & adjustedagainst the regular tax for 10 subsequent years.


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EXEMPTION & DEDUCTIONS

Life Insurance Premiummore than 10% of the capital sumassured.

Senior citizen with no business income - not to pay advance tax.

For HUF, capital gain from sale of L. T. agricultural Land is

exempt if a new agricultural land is purchased within 2 years. SB a/c Interest & PO Interest shall be allowed up to Rs 10,000/-.

Deduction up to Rs 5,000/- for preventive health check up within

the total limit of Rs. 15,000.

Cash Donation u/s 80G or for Scientific research or ruraldevelopment u/s 80GGA exceeding Rs.10,000 not to be allowed.

Investment by New Retail InvestorsRs. 50,000.


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TAX DEDUCTED AT SOURCE (TDS)

TAX COLLECTED AT SOURCE (TCS)

Scope of Sec 194J is widened w.e.f. 1.07.2012 to includeremuneration, fees, or commission to director of a company.

Purchasers of immovable property to deduct tax @ 1% of the

consideration on transfer of immoveable property (194LAA). To be deducted at the time of giving credit or making payment

which ever is earlier.

No TDS if the consideration paid or payable is Rs. 50 lakhs orless in urban areas and Rs. 20 lakhs or less in rural areas.

Provision is proposed to be inserted w.e.f. 1.10.2012

Sellers of bullion or jewellery to collect TCS @ 1% if receivesthe consideration above 2 Lacs in cash, w.e.f.1.07.2012(206C).


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Penalty to be now Late filing Fees

Sec 234E

A fee of Rs.200 per day of delay is to be paid on failure to file theTDS/TCS return within the stipulated time.

Amount of fee is restricted to amount of TDS/TCS.

Fee should be paid before the filing of the return of said TDS/TCS.

Provision is made applicable for all TDS/TCS returns which arerequired to be filed on or after 01.07.2012

Advance Tax / Tax paid by the payeePayer not in default of TDSprovisions.


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General Anti Avoidance Rules (GAAR)

Any arrangement that result in a tax benefit may be presumed to

be an arrangement, the main purpose of which is to obtain tax

benefit and the onus is on the person obtaining tax benefit to

prove otherwise

One of the following condition is required to be satisfied:

The arrangement creates obligations that are not normally

between arms length parties;

It results directly or indirectly in any misuse of provision

of act; It lacks commercial substance;

The manner is not ordinary for bona fide purpose.


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General Anti Avoidance Rules (GAAR)

A O will refer the case to CIT.

CIT will refer the same to Approved Panel.

Which consist of 3 members of CIT of above rank.

Time involved in the process to be excluded from all time

limit.

Appeal before ITAT

Income in relation to asset located outside India.


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Other Amendments:

Sec 271AAA:

A slab-wise penal provision on undisclosed income has been proposed tobe introduced from 1st July 2012.

10% - where assessee admits undisclosed income during searchproceeding.

20% - where assessee does not admits undisclosed income during

search proceeding, but discloses it in the return of income.

Between 30% - 90% other than any of the above scenario.


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Any

QUESTIONS???????


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hank You

Finance Bill 2012-13.ppt

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