CA Vinamar Gupta
1. Electronic Hearing under Income Tax law enabled
2. Document required to be issued by an Income Tax Authority can be issued in paper form or communicated in electronic form
3. Equalization Levy @ 6% on online digital advertisement and incidental services or provision of digital advertising space
4. TCS @ 1% on luxury vehicles and cash sale of goods or provision of services
5. Exit Tax for Charitable Institutions
6. Non resident not having PAN shall not be subjected to 20% TDS
7. Jurisdiction of Assessing Officer not to questioned in serach cases after one month from notice u/s 153A
8. Non Corporate assessee also to pay advance tax , 15% by 15th June . 45% by 15th Sep, 75% by 15th Dec and 100% by 15th March
9. In case of presumptive Income 100% advance tax to be paid by 15th March
10. Application for Waiver of Interest u/s 220(2A) to be disposed off with in one year
11. Interest under section 234C shall not be chargeable in case of an assessee having income under the head “Profits and gains of business or profession” for the first time,
12. Interest on Refund for timely filed return to be allowed from 1st April but interest on refund for belated return to be allowed from date of furnishing of return
13. Interest on refund of self assessment tax to be allowed from date of filing of return or payment of tax, whichever is later.
14. No Interest to be allowed if refund is lesser than 10% of determined tax
15. Additional 3% Interest for Appeal Effect delayed beyond 3 months
16. In ITAT post of Sr Vice President abolished
17. Rectification period of ITAT orders limited from 4 years to 6 months
18. Monetary limit for Hearing of appeal by SMC in ITAT raised from 15 lacs to 50 lacs u/s 255(3)
19. Time Limit for completion of assessments reduced from 24 months to 21 months . Assessments to be complted by 31st December.
20. Order for appeal effect to be passed with in 3 months from the end of month in which appeal order is received
21. Limit of Rs. 5000/- for Winnings from Horse Races enhanced to Rs. 10,000/-
22. For TDS on payment to Contractors Aggregate Annual Limit of Rs. 75000/- increased to Rs 100000/-
23. Monetary Limit of Rs. 20,000/- for TDS on Insurance Commission u/s 194D reduced to Rs. 15000
24. Monetary Limit for TDS on Commission u/s 194H enhanced from Rs. 5000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance Commission.
25. Monetary Limit for TDS on Commission on Lottery Tickets u/s 194G enhanced from Rs. 1000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance and other Commission
26. TDS rate on withdrawl of NSS Deposits reduced from 20% to 10% u/s 194EE
27. TDS on LIC Maturities exceeding Rs. 1,00,000/- not exempt u/s 10(10D) was charged @2% by Finance Act 2014 wef 01-10-2014 . TDS rate lowered to 1%.
28. TDS @10% for compulsory acquisition of immovable property other than agriculture land where aggregate payments during financial year exceed Rs. 2 lacs now enhanced to Rs 2.50 lacs.
29. Form 15G/15H enabled for rental payments also
30. The Direct Tax Dispute Resolution Scheme for immunity from post assessment interest, penalty and prosecution for cases pending before CITA on 29-02-2016 [Scheme Available up to 31st December]
31. The Income Declaration Scheme 2016. Tax, Surcharge and Penalty @ 45% of Undisclosed Income. Declaration to be filed till 30th September. Tax etc to be paid till 30th November.
Changes Effective From AY 2017-18 i.e. Financial Year 2016-17
1. In case of domestic companies where its total turnover or the gross receipt in the previous year 2014-15 does not exceed five crore rupees tax shall be charged @ 29%.
2. Redemption of Gold Bonds exempted from capital gains
3. Benefit of Indexation on transfer of Gold Bonds
4. Assistance or Grant for Budgetary Support to Trust established by Central or State Government towards corpus for operationalizing Central Government Schmes exempted
5. Foreign Company shall be resident in India if place of effective management is in India, but first time relaxation from procedural provisions
6. Taxation of Dividend for High End assesses @ 10% where aggregate dividend exceeds Rs. 10 lacs
7. Royalty income for Patent of person resident in India who is true and first patentee taxable @ 10%
8. Profit linked Deduction for Technology driven and Innovative products start up Companies and LLPs having turnover up to 25 crores
9. Capital Gain Exemption for Investment in funds to finance Start ups to Rs. 50 lacs
10. Capital Gain exemption for investment of 50% or more in share capital of MSME extended to compter or software based startup companies
11. 100% Profit Linked Deduction for Affordable Housing Projects
12. Additional Deduction of Rs. 50000/- p.a.on Housing Loan Interest u/s 80EE:
13. Period of Acquisition/Construction extended to 5 years for enhanced deduction of Rs. 2 lacs towards Housing Loan Interest
14. Incentive provisions for employment generation revampted providing additional 30% deduction on additional employee cost for 3 years.
15. House Rent deduction for person not availing HRA extended from Rs. 2000 pm to Rs. 5000/- pm
16. Shares received by Individual/HUF under amalgamation or demerger not to be taxed u/s 56 (2)(vii)
17. Rebate u/s 87A available up to Rs. 2000 increased to Rs. 5000 in respect of individual resident in India whose total income does not exceed Rs. 5 lacs,
18. 30% Deduction allowed on receipt of unrealized rent also like rent in arrears
19. Deduction of Salary and Interest of partner from 8% presumptive Income withdrawn.
20. An assessee who does not declare 8% presumptive income for 6 consecutive years barred from benefits of presumptive taxation for subsequent 5 years also from the year he opts out of presumptive income.
21. Presumptive Income Scheme for professional introduced. Required to reflect 50% Income
22. Deduction of NPA provisions also being allowed to NBFCs
23. Set Off of Loss not to be allowed against Unexplained Credits, Expenditure, Investments etc.
24. Consideration for Restrictive Covenants of Profession made taxable
25. Sale of Goodwill of Profession also made taxable
26. Sum payable to Railways to be allowed as deduction of payment is made before due date of filing of return
27. For calculation of capital gains, Stamp duty value of date of agreement for sale (and not date of registration of sale deed) to be adopted where consideration for agreement for sale is received by A/c payee cheque etc.
28. For Unlisted shares, thresh hold period of holding for long term capital gain reduced from 36 months to 24 months.
29. Return to mandatorily filed if Gross Total Income without considering exemption for Long term capital gain on shares exceeds exemption limit
30. Return shall not be defective merely because self assessment tax and interest not paid with return
31. Belated filing of Return restricted to end of assessment year and also belated filing in response to Notice u/s 142 prohibited
32. Belated Return can also be revised.
33. Prima Facie adjustement in processing of return extended for wrong carry forward of loss or claim of profit linked deduction for belated return, disallowance arising from audit qualifications, Differences with 26AS
34. Return to be processed before assessment order is issued
35. Tax Incentive of 5% to new domestic manufacturing companies and Research Companies
36. Employer’s Contribution to approved superannuation fund has been enhanced from 1 lakh to Rs. 150000 u/s 17(2) to bring it in parity with deduction of Rs. 1.50 lacs for employees contribution u/s 80C(2)(vii)
37. The conversion from recognized provident fund and approved superannuation fund to new pension scheme has been exempted
38. 40% of amount receivable under new pension scheme and commuted annuity at the time of closure or opting out also exempted from tax.
39. Amount received by nominee under new pension scheme on death of the contributor has been provided albeit exemption
40. New Penalty provision for underreporting @ 50% and Misreporting 200% of tax payable Introduced
41. Immunity from Penalty on payment of tax and Interest and not filing appeal before CIT(A).
Changes Effective from AY 2016-17 i.e. FY 2015-16
1. Deposit certificates issued under the Gold Monetisation Scheme, 2015 exempted from capital gains
2. Income on deposit certificates issued under the Gold Monetisation Scheme, 2015 has been exempted u/s 10(15)
3. Exemption to Foreign Mining Companies from business of uncut and unasserted diamond in Special Zone notified by Central Government
4. Loss of Specified Business u/s 35AD where capital expenditure is allowed as deduction to be carried forward only if return is filed in time.