Changes In Direct Tax Provisions Effective from 01-06-2015 along with PPT

1.       As per Section 269SS if specified sum (any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place) taken or accepted in cash is Rs. 20,000 or more , penalty equal to amount taken shall be imposed under S. 271D.

2.       As per Section 269T, if specified advance (any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not the transfer takes place) is repaid in cash and amount received  together with interest is Rs. 20000 or more (whether in the name of person making repayment singly or jointly with some other person), penalty equal to amount repaid shall be imposed under S.271E. Also Read- Advance in cash for Property to be Covered by Section 269SS & 269T3. Section 263 amended to provide invocation if in the opinion of CIT/Pr CIT order passed -without making inquiries/ verification, and relief allowed without inquiring into the claim, CBDT directions u/s 119 not followed, prejudicial order of Jurisdictional High Court or Supreme Court not followed. The moot point is whether Trinity Charitable Trust (Cochin Trib) still holds good. Also Read- Budget 2015- Provision for Revision of order that is erroneous in so far as it is prejudicial to the interests of revenue

4.  Limit for SMC of ITAT raised from Income of 5 lacs to 15 lacs (as computed by AO)- Read- Budget 2015- Raising the income-limit of the cases that may be decided by single member bench of ITAT

5.  Order of CCIT under 10(23C)(vi)/via now appealable before ITAT- Charitable hospital, university or educational institution can appeal before ITAT against order for refusal to register

6. For invoking section 148 to reopen the assessment, now if four years have not expired from the relevant assessment year, approval of JCIT is required. If four year from the end of relevant assessment year have expired, the approval of CC/PrCC or CIT/Pr CIT is required. Section 151 has been amended for the purpose, where in no approval was required in cases

a)  where four years from the end of relevant assessment years had not expired and  no assessment under 143 or 147 had been made or

b) where assessment under 143/147 had been made and period of 4 years had not expired but notice is being issued by officer not below the rank of AC/DC

Also Read- Budget 2015- Simplification of approval regime for issue of notice for re-assessment under section 148 of the Income Tax Act,1961

7. Overruling Delhi High Court Judgement in Pepsi Co India Holdings, which said that if  title deed is found with person searched who is buyer, no proceedings under section 153C can be taken against vendor, because it relates/referes to vendor and does not belong to vendor. On the other hand, if photocopy of title deed is found with vendor whose premises are searched, it can not be said that it belongs to buyer because it refers to buyer who holds the original title deed. Possession of documents and possession of photocopies of documents are two different things.

8.  Requirement of TAN to be relaxed for Individual/HUF non audit cases required to deduct TDS of non resident under section 195 by separate notification- Read More- Budget 2015-16 Relaxing the requirement of obtaining TAN for certain deductors

9.  Provisions of section 154 for rectification, section 246A applicable to appealable orders, section 156 for notice of demand as they were applicable to intimations/ assessments under 143/200A also made applicable to TCS intimations.

10. As the intimation generated after proposed processing of TCS statement shall be deemed as a notice of demand under section 156 of the Act, the failure to pay the tax specified in the intimation shall attract levy of interest as per the provisions of section 220(2) of the Act. However, section 206C (7) of the Act also contains provisions for levy of interest for non-payment of tax specified in the intimation to be issued @1% p.m. or part from the date tax was collectible till date of payment. To remove the possibility of charging interest on the same amount for the same period of default both under section 206C (7) and section 220(2) of the Act, it is proposed to provide that where interest is charged for any period under section 206C (7) of the Act on the tax amount specified in the intimation issued under proposed provision, then, no interest shall be charged under section 220(2) of the Act on the same amount for the same period.

11.   By inserting 206C(3B) TCS correction return can be filed like TDS correction return u/s 200A(3)Proviso

12.   TCS return processing u/s 206CB introduced

13.   Now the fee of Rs. 200 per day ( max  tax amt) leviable under S. 234E and paid at the time of/ before  delivery of TDS return can levied at the time of processing return under Section 200A/206CB

14.   It is proposed to amend the provisions of sections 200 and 206C of the Act to provide that where the tax deducted [including paid under section 192(1A)] / collected has been paid without the production of a challan, the PAO/ TO/CDDO or any other person by whatever name called who is responsible for crediting such sum to the credit of the Central Government, shall furnish within the prescribed time a prescribed statement for the prescribed period to the prescribed income-tax authority or the person authorised by such authority by verifying the same in the prescribed manner and setting forth prescribed particulars.

Section 200(2A) and 206C(3A) introduced for the purpose.

 To ensure compliance of this proposed obligation of filing statement, it is proposed to amend the provisions of section 272A of the Act so as to provide for a penalty of Rs.100/- for each day of default during which the default continues subject to the limit of the amount deductible or collectible in respect of which the statement is to be furnished.

15.   Section192(2D) introduced to provide that employer shall obtain evidence/proofs or particulars of prescribed claims in prescribed manner only.

Budget 2015-16 -Rationalisation of provisions relating to Tax Deduction at Source (TDS) and Tax Collection at Source (TCS)

16.   Form 15CA/CB required to be furnished also for transactions where no income is chargeable to tax in India.

17.   Penalty for not providing/ incorrect furnishing of  15CA/CB is Rs. 1 lacs subject to pleading reasonable cause under section 273B.

18.   Transporters having 10 or lesser goods carriages at any time during the year shall only be relieved from TDS u/s 194C subject to furnishing of their PAN.

19.   TDS on Interest by Co-operative Banks to members exceeding Rs. 10,000 shall now also be subject to deduction of tax. Decisions of Banglore and Pune Tribunals favoring assessee over ruled.

20.   In respect  of banks/co-op banks/ housing finance institutions under CBS limit of Rs. 10,000 shall be calculated bank wise and not branch wise.

21.   Interest on recurring deposit also made subject to TDS subject to limit of Rs. 10,000 by including recurring deposits in the definitions of time deposits.

22.   TDS on Interest on Compensation in Motor accident claim cases to be made on receipt basis only.

23.   Only CA in practice can represent the cases of clients. CA employees not holding COP can  not represent tax cases.

24.   For protection of independence in  tax audits, certain restrictions imposed on qualifications of tax auditors barring them from auditing the related cases.-Certain accountants not to give reports/certificates 

25.   Withdrawal from recognized provident fund (RPF)  before five years which was earlier taxable on basis of yearly data of earlier years treating the RPF unrecognized shall not be subjected to 10% TDS only subject to furnishing PAN, failing which tax shall be deducted at MMR. No TDS if withdrawl lesser than Rs. 30000/-. Employee can file 15G/15H also. Also Read- TDS on premature withdrawals from Recognized Employee’s Provident Fund (EPF)

26.   TDS on redemption of single premium/keyman insurance policies introduced by FA 2014 now shall be subject to furnishing of Form 15G/15H

27.   Interest Calculation u/s 234B for increase in tax amount u/s 143/153A/245D(4) shall now run from Ist April of assessment year and not date of determination. Interest u/s 234B for additional tax amount under application u/s 245C also introduced and shall also run  from Ist April of asstt year.

28.   Bar to make subsequent application u/s 245K before Settlement Commission by  a person to apply to entities controlled by such person also.

29.   Seized Assets can be used to recover tax in application before settlement commission u/s 245C.- Budget 2015- Amendment related to Settlement Commission

Download PPT on Changes in Taxation effective from 01-06-2015