♦ Residential status – Stay period decreased to 120 days from existing 182 days.
♦ An Indian citizen who is not liable to tax in any other country or territory shall be deemed to be resident in India, and accordingly will be taxed on his global income, in India.
♦ Filing of statement of donation by donee to cross-check claim of donation by donor and the claim for deduction to the donor/payer may be allowed on that basis only.
♦ Registration under section 12AA would become inoperative and entity have to file an application to make it operative and the proposal requiring renewal of registration every 5 years.
♦ Section 43CA – Variation gap increased to 10% from 5%.
♦ Sec 44AB – The turnover threshold limit for the Tax Audits u/s 44AB, for the persons carrying on business, increase to Rs. 5 crores from the existing Rs.1 crore, in all those cases where, the aggregate annual cash receipts and cash payments, do not exceed 5% of their total receipts and payments respectively. In other words, if a business entity has turnover below Rs. 5 Crores it need not get the books of account audited under section 44AB if the aggregate amount of cash outflows and inflows are less than 5% of the aggregate outflows and inflows. Also, the taxpayer is not compelled to pay tax on presumptive basis under section 44AD since there is no corresponding amendment in that section.
♦ Sec 50C – Variation gap increased to 10% from 5%.
♦ For calculating CG, FMV on the 1st day of April, 2001, shall not exceed the stamp duty value, wherever available.
♦ Similar to section 80G of the Act, deduction of cash donation u/s 80GGA shall be restricted to Rs 2,000/- only.
♦ New Sec 80M – Deduction in respect of certain inter-corporate dividends.
♦ New Sec 115BAC – Optional rate of Tax on income of individuals and Hindu undivided family. (5%, 10%, 15%, 20%, 25%, 30%).
♦ New Sec 115BAD – Optional rate of Tax on income of certain resident co-operative societies. (22%).
♦ Sec 115O – abolish the existing DDT @ 15% in the hands of companies and to shift to classical system of taxing dividend in the hands of recipient shareholders.
♦ Due date of filing return for the company; or a person whose accounts are required to be audited; or a working partner of a firm whose accounts are required to be audited is changed from 30/09 to 31/10.
♦ Sec 194 – TDS @ 10% on payment of dividend above 5000/-.
♦ Sec 194A – Interest credited or paid by a co-operative society to a member or to any other co-operative society are now cover under this sec, subject to its total sales, gross receipts or turnover exceeds Rs.50 crores during the financial year immediately preceding the financial year.
♦ Sec 194J – Presently, there was no distinction between fees for professional service or technical service. Now, TDS rate amended at 2% for fee for technical services (not being a professional service).
♦ Insertion of new section 194K – Proposes to withdraw the exemption in respect of income from units of mutual fund by omitting section 10(35). TDS @ 10% where the payment exceeds Rs.5,000.
♦ Insertion of new section 194-O – TDS @ 1% on payment of certain sums by e-commerce operator to e-commerce participant.
♦ Sec 206C – Sub sec (1G) – an authorised dealer, who receives an amount, or an aggregate of amounts, of 7 lakh rupees or more in a financial year for remittance out of India from a buyer and a seller of an overseas tour program package, who receives any amount from a buyer, shall collect TSC @ 5%. Sub Sec (1H) Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding 50 lakh rupees in any previous year, shall collect TCS @ 0.1% from the buyer.
♦ Insertion of new section 234G – Rs. 200 / day Fee for default relating to statement or certificate. (relates to exemption and deduction u/s 35 and 80G).
♦ Insertion of new section 271AAD – Penalty for false entry, etc. in books of account – a sum equal to the aggregate amount of such false or omitted entry.
♦ Insertion of new section 271K – Penalty for failure to furnish statements, etc for a sum not less than 10,000 but which may extend to 1 lakh rupees (relates to exemption and deduction u/s 35 and 80G).