India Budget Series

India Budget Series April 30, 2016

INTRODUCTION OF PRESUMPTIVE TAXATION SCHEME FOR PROFESSIONALS

The existing provisions of presumptive taxation do not include professionals within their ambit. It is proposed to include professionals under the net of presumptive taxation by inserting a new Section 44ADA, which contains the following:- The presumptive taxation scheme shall apply to professionals such as legal, medical, engineering, architecture, accountancy, technical consultancy or interior decoration […]

India Budget Series April 30, 2016

TAXATION OF INCOME FROM PATENTS

With the intent to ensure parity with the global tax regime and in due regard of guidelines issued by the OECD’s BEPS (Base Erosion Profit Shifting) Project, it is proposed to provide a concessional tax regime for eligible assesses engaged in patents and patented products. In this context, it is proposed that in case of […]

India Budget Series April 29, 2016

ENABLING PROVISIONS FOR A FOREIGN COMPANY HELD TO BE RESIDENT FOR THE FIRST TIME

POEM (Place of Effective Management) based residence test was introduced in Finance Act 2015. Consequently a Company shall be resident in India, if it has a place of effective management, at any time, in India. However, it is proposed that the applicability of POEM based residence test is deferred for 1 year and the same […]

India Budget Series April 29, 2016

TAXATION OF UNREALISED RENT AND ARREARS OF RENT

Unrealised rent and arrears of rent under the existing provisions are spread across various Section 25A, 25AA and 25B, wherein the computation mechanism differs under different sections. It is proposed to merge the above sections to a single Section 25A with the proposal that amount of rent received in arrears or unrealised rent received subsequently […]

India Budget Series April 29, 2016

INCREASE IN TIME LIMIT FOR ACQUSITION OR CONSTRUCTION OF SELF-OCCUPIED HOUSE PROPERTY

  As per the existing provisions of Section 24(b), one of the conditions, interalia, to claim the enhanced deduction of interest of Rs. 2 lakhs for a self occupied house property is that the house property shall be purchased or construction shall be completed, within 3 years from the end of the year in which […]

India Budget Series April 29, 2016

RATIONALIZATION OF TAX TREATMENT OF RECOGNISED PROVIDENT FUNDS, PENSION FUNDS AND NATIONAL PENSION SCHEME

Under the existing provisions, tax treatment for National Pension System is EET (Exempt, Exempt and Tax) i.e. periodic contributions are allowed as deductions from income, interest accrued is exempt from tax and lump sum withdrawal are taxable. However, under Recognised Provident Funds and Super Annuation Funds, the treatment is EEE (Exempt, Exempt and Exempt) i.e. […]

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