India Budget Series

India Budget Series May 1, 2016

RATIONALISATION OF ADVANCE TAX PAYMENT SCHEDULE AND CHARGING OF INTEREST

The current and proposed provisions in relation to schedule of advance tax payment are as follows:- Particulars Current Provisions Proposed Provisions Company Payment of advance tax in 4 installments viz. 15% by 15th June, 45% by 15th September, 75% by 15th December and 100% by 15th March. Payment of advance tax in 4 installments viz. […]

India Budget Series May 1, 2016

PHASING OUT OF DEDUCTIONS & EXEMPTIONS

  Sl. No Section Incentive currently available in the Act Proposed phase out measures/ Amendment 1       10AA- Special provision in respect of newly established units in Special economic zones (SEZ).   Profit linked deductions for profit derived from export of articles or things or services   No deduction shall be for units […]

India Budget Series May 1, 2016

RATIONALISATION OF TIME LIMIT FOR ASSESSMENT IN SEARCH CASES

It is proposed to amend the time limit for completion of assessments made under Section 153A or Section 153C cases as follows:- Particulars Existing Time Limit Proposed Time Limit Completion of assessment under Section 153A for block of 6 assessment years or assessment year for which the search was conducted or requisition was made 2 […]

India Budget Series May 1, 2016

RATIONALISATION OF TIME LIMIT FOR ASSESSMENT, REASSESSMENT AND RECOMPUTATION

In view of increased efficiency within the Department in handling assessments, the following changes in time limits for completion of assessment are proposed: Particulars Existing Time Limit Proposed Time Limit Completion of assessment under Section 143 or Section 144 2 years from the end of the assessment year in which the income was first assessable […]

India Budget Series May 1, 2016

PROCESSING UNDER SECTION 143(1) BE MANDATED BEFORE ASSESSMENT

Under the existing provisions of the Act, processing of a return is not necessary if notice has to be issued to the assessee for scrutiny assessment. Thus, it is proposed to amend the said provisions to provide that a return shall be processed and a summary assessment shall be done compulsorily before initiating a scrutiny […]

India Budget Series May 1, 2016

FILING OF RETURN OF INCOME

As per Section 139 (1) of the Act, a person is required to file the return of income if its total income, before deductions, exceeds the basic exemption limit. Further, the Act contains the provisions in relation to time limit for filing belated returns and revised returns. Furthermore, there is a provision in the Act […]

India Budget Series May 1, 2016

EXEMPTION FOR FOREIGN DIAMOND MINING COMPANIES

In order to encourage trading of rough diamonds in India, a Special Notified Zone has been created which would permit leading mining companies across the world to trade in India. However, as per the existing provisions of Section 5 & Section 9, pursuant to trading, displaying of uncut diamonds by foreign companies creates Business Connection […]

India Budget Series May 1, 2016

ENABLING OF FILING OF FORM 15G/15H FOR RENTAL PAYMENTS

Under the existing provision of Section 194I, TDS has to be deducted at the rate of 10% by the person making the payment of rent to the recipient if the total rent in the entire year exceeds Rs. 1,80,000. There may be instances, where the total income of the recipient of rent, including the rental […]

India Budget Series May 1, 2016

RATIONALIZATION OF TAX DEDUCTION AT SOURCE (TDS) PROVISIONS

The provision of withholding requires every person who is responsible for payment of anyspecified sum to any person shall deduct tax at source at the prescribed rate and deposit it with the Central Government within specified time if the sum exceeds the prescribed amount. In order to rationalise the rates and base for TDS provisions, […]

India Budget Series May 1, 2016

RATIONALISATION OF TAXATION OF DIVIDENDS

Currently under Section 10(34), any dividend, on which Dividend Distribution Tax is paid by the Company under Section 1150, are exempt in the hands of the recipient. It is proposed to tax the dividends received from the domestic company by individual, HUF or Firm, who are resident in India. The dividends received by individual, HUF […]