India Budget Series

India Budget Series November 10, 2016

TIME LIMIT FOR CARRY FORWARD AND SET OFF OF SUCH LOSS UNDER SECTION 73A

Section 80 mandates the assesses to file a return of loss within the time limit specified under Section 139 (1) in order to carry forward and set off such loss. In other words, non-filing of a return of loss, within the specified time limit, disentitles the assesses from carrying forward and setting off such loss […]

India Budget Series November 10, 2016

REVISED GUIDELINES FOR STAY OF DEMAND AT THE FIRST APPEAL STAGE(PRESS RELEASE DT.03.03.16)

Under the revised guidelines, where the outstanding demand is disputed before Commissioner (Appeals), the Assessing Officer shall grant stay of demand till disposal of first appeal on payment of 15%of the disputed demand. Any deviation from the standard pre-payment of 15% either requested by the assessee or by the Assessing Officer, shall be decided by […]

India Budget Series November 10, 2016

PROPOSED PHASE OUT PLAN OF INCENTIVES

SL No. Section Incentive currently available in the Act Proposed phase out measures/Amendment 1 32 read with rule 5 Accelerated depreciation upto 100% Highest rate of depreciation shall be restricted to 40% w.e.f01.04.2017. 2 35(1) (ii) – Expenditure on scientific research. Weighted deduction to the extent of 175% of any sum paid Weighted deduction shall […]

India Budget Series November 10, 2016

EXEMPTION OF INCOME OF FOREIGN NATION AND MULTI NATIONAL OIL COMPANIES

With a view to develop India’s Strategic Reserves, the Indian Strategic Petroleum Reserves Limited is setting up underground crude oil storage facility in which private players including Foreign National Oil Companies and Multi National Oil Companies are participating. However, these oil companies shall be liable for taxation upon sale of crude oil from this storage […]

India Budget Series November 10, 2016

TAX INCENTIVES FOR START-UPS

The Government envisages the start-ups to be the engine for growth and technological innovation in the country. In this regard, the following proposals have been considered: Insertion of new Section 80-IAC Eligible start-ups shall be allowed a deduction of 100% of the profit and gains derived from the eligible business. This deduction shall be allowable […]

India Budget Series November 10, 2016

INCENTIVES FOR PROMOTING HOUSING FOR ALL

With the intent to promote the objective of “Housing for All”, the government has proposed to provide incentives to both; the promoter as well as the buyer of the house property. For Promoters develops and builds affordable housing projects, shall be provided deduction of 100% of profits from such business, subject to following condition:- -The […]

India Budget Series November 10, 2016

TAX INCENTIVE FOR EMPLOYMENT GENERATION

The existing provision of Section 80JJAA provides for deduction of 30% additional wages paid to the new regular workmen employed by an Indian Company only in the manufacturing sector, for the period of 3 years. The minimum number of days of employment in the financial year is 300 days. Further, deduction is allowed only if […]

India Budget Series November 10, 2016

ENHANCING LIMIT UNDER SECTION 80GG

Under the existing provisions of Section 80GG, the maximum deduction available for rent paid is Rs.2,000 per month, cummulating to Rs. 24,000 per annum. However, in view of interest of individual tax payers, the limit is proposed to be increased to Rs. 5,000 per month, aggregating to Rs. 60,000 per annum. This amendment will take […]

India Budget Series November 8, 2016

RATIONALISATION OF LIMIT OF REBATE UNDER SECTION 87A

The existing provisions of Section 87A provide for a maximum rebate of tax of Rs.2,000 provided the total income of the resident individual does not exceed Rs.5 lakhs. It is proposed to increase the said limit to Rs.5,000. This increase in limit, in effect, would ensure that an additional income of Rs.30,000 is not subject […]

India Budget Series May 1, 2016

PAYMENT OF INTEREST ON REFUND

It is proposed to make the following amendments under Section 244A in relation to interest on refund:   Particulars Interest rate From Date To Date Return filed after the due date 6% Date of filing of return Date on which refund is granted Return filed on or before the due date but taxes paid after […]

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