Category Archives: Union Budget

Key Changes proposed in Finance Bill 2017

Changes proposed in Finance Bill, 2017 Changes made in the Finance Bill, 2017 as passed by the Lok Sabha viz-a-viz the Finance Bill, 2017 presented originally in the Lok Sabha [ Read  Finance Bill 2017 Amendment -Lok Sabha 20.03.2017-Download/Print ]  1) Threshold limit prohibiting cash payments reduced Finance Bill, 2017 had imposed a prohibition on receipt of… Read More »

Reduce holding period of new asset purchased u/s 54/54B/54D & 54F to 2 years – Budget 2017-18 Suggestions

 Holding period of new asset purchased  Suggestion on Clause 3 of Finance Bill 2017 – Section 2(42A) – Reduction in holding period in case of immovable property, being land or building or both, to qualify as long term capital asset – Consequential amendments to be made in sections 54, 54B, 54D and 54F The Finance… Read More »

Relax Scrutiny of Indiviudal Taxpayers from Income Tax dept – Budget 2017-18 Suggestions

Relaxation from scrutiny provisions for assessees, having taxable income upto Rs.5 lakhs other than business income, filing return for the first time – Scope of relaxation to be extended In the Budget Speech, the Hon’ble Finance Minister mentioned that the assessees, having taxable income upto Rs.5 lakhs other than business income, will not be subjected… Read More »

Terms not defined in Tax Treaties – Govt should not give explanation – Budget 2017-18 Suggestions

Suggestions Clauses 39 and 40 of Finance Bill 2017– Sections 90 & 90A – Clarification with regard to interpretation of ‘terms’ used in tax treaties under Section 90/90A but not defined in such treaties – Concern to be addressed Under the existing provisions of Section 90 of the Act, power has been conferred upon the… Read More »

Section 94B- Limitation of interest of overseas loans – Issues – Budget 2017-18 Suggestions

Suggestions on Clauses 43 of Finance Bill 2017 – Section 94B- Limitation of interest benefit provisions introduced – certain concerns to be addressed The Finance Bill, 2017 proposes limitation of interest benefit (deduction) where an Indian company, or a permanent establishment of a foreign company in India, being the borrower, pays interest exceeding rupees one crore… Read More »

269ST – Burning Issues on ban on Cash receipts of Rs 3 Lakh or above -Budget 2017-18 Suggestions

Suggestions on Clause 83 of Finance Bill 2017- Section 269ST- Restriction on cash transactions –Certain concerns to be addressed In order to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money, the Finance Bill 2017 proposes to insert section 269ST in the Act… Read More »

Foreign Tax Credit Dispute settlement – Clarify rectification time limit & documents – Budget 2017-18 Suggestions

Suggestion on Clause 62 of Finance Bill 2017– Claim of Foreign Tax Credit (FTC) pertaining to taxes which are under dispute in the foreign country – Clarification required on certain issues relating to period of limitation and documents which shall constitute evidence of settlement Section 155(14A) proposes to provide that where the payment of foreign… Read More »

Reason to believe to conduct search must be retained – Budget 2017-18 Suggestions

Suggestion on Clause 50 & 51 of Finance Bill 2017- Section 132(1), 132(1A) and 132A(1) – reason to believe to conduct a search, etc. not to be disclosed –retention of existing provisions to reduce undue hardship to genuine assessee It is proposed to insert an Explanation to section 132(1), 132(1A) and 132A(1) to declare that… Read More »

194IB TDS on what portion of Rent ? if rent increased to 50000 p.m during the year – Budget 2017-18 Suggestions

Suggestions on Clause 63 of Finance Bill 2017 – Section 194-IB – Requirement of tax deduction at source by individuals/HUFs paying monthly rent exceeding Rs.50,000 – Enabling measures to facilitate ease of compliance to be introduced & issue of clarification regarding the amount on which tax has to be deducted at source in a situation… Read More »

Clarify whether MAT credit can be carry forward if 10 year period lapsed – Budget 2017-18 Suggestions

Suggestion on Clause 46(a) of Finance Bill 2017– Section 115JAA – Extension of period of carry forward of MAT credit from 10 years to 15 years – Clarity regarding carry forward and set off of MAT credit in cases where the ten year period has expired on or before AY 2016-17 but the fifteen year… Read More »

Define penny stock and expand Exemption list u/s 10(38) – Budget 2017-18 Suggestions

Suggestions on Clauses 6 of Finance Bill 2017 – Section 10(38) – Exemption of long term capital gains subject to payment of STT on acquisition – bona fide transactions to be notified by the Central Government for exemption even if STT not paid on acquisition Section 10(38) of the Income-tax Act, 1961, inter alia, provides… Read More »

How foreign tax credit availment in India will be difficult form AY 2018-19 due to reduction in time limit for filing revised return

Suggestion on Clause 55 of Finance Bill 2017- Section 139(5) – Reduction in time limit for filing revised return – Retention of existing time limit for filing of revised tax return at least in cases of claim of foreign tax credit. The Finance Bill 2017 proposes to amend section 139(5) to provide that the time… Read More »

Indirect transfer tax provisions should be extended to Category III FPI – Budget 2017-18 Suggestions

 Suggestions on Clause 4 of Finance Bill 2017 – Section 9(1)(i)- Benefit of non-applicability of indirect transfer provisions in case of Category I and II FPIs – Benefit to be extended to Category III FPIs and provisions for avoidance of double taxation in case of such indirect transfer provisions, where direct transfer has already been… Read More »

271J Penalty on CA/ Professionals – Reasons for removal -Budget 2017-18 Suggestions

Suggestions on Clause 86 of Finance Bill 2017- Section 271J- Penalty imposable on chartered accountant for furnishing incorrect information in reports or certificates – Penalty may be removed In order to ensure that the person furnishing report or certificate undertakes due diligence before making such certification, new section 271J is proposed to be inserted so… Read More »

E-Flash-Union Budget 2017-18 -ICAI

The Institute of Chartered Accountants of India (ICAI) has released E-Flash on amendment proposed by Finance Bill, 2017  i.e. Union Budget 2017-18. It Contains 5 Sections below- 1. ICAI Press Release—Union Budget 2017 2. Direct Tax Proposals—Highlights 3. International Tax Proposals—Highlights 4. Indirect Tax Proposals—Highlights 5. State Of The Economy—Major Highlights ICAI Press Release— Union Budget 2017… Read More »

Reduce Tax to @ 25% on LLP, Firms, Firms Coverted into Companies, New companies – Budget 2017-18 Suggestions

Suggestions on Paragraph E of Part III to the First Schedule of Finance Bill 2017- Reduction in corporate tax rate – Reduced corporate tax rate to be applicable for erstwhile firms recently converted into companies and also LLPs and companies which were set up subsequent to F.Y.2015-16 The Finance Bill, 2017  proposes a concessional rate… Read More »

Rs 2 Lakh Interest deduction for house property held as stock-in-trade by builders? – Budget 2017-18 Suggestions

Suggestions on Clause 12 of Finance Bill 2017- Section 23(5) – Deemed Taxability of unsold stock of house property after 1 year of lying vacant – Non-applicability of restriction contained in proposed section 71(3A) The Finance Bill, 2017  proposes to insert sub-section (5) in existing section 23 to provide that where the house property consisting… Read More »

Exclude pooling vehicles like Mutual funds, AIP’s from section 115BBDA- Dividend Taxation– Budget 2017-18 Suggestion

Suggestions on Clause 44 of Finance Bill / Budget 2017- Section 115BBDA – Scope of section 115BBDA, initially restricted to individuals, HUFs and Firms, expanded –Certain pooling vehicles like Mutual funds, AIFs etc. to be exempted The Finance Act, 2016 had inserted new Section 115BBDA to tax dividend income in excess of Rs. 10 lacs… Read More »

Clear confusion of TCS on Sale of Jewellery w.e.f 01.04.2017 – Budget 2017-18 Suggestions

Suggestions on Clause 71 of Finance Bill 2017 – Section 206C(1D) – Exclusion of specific reference to sale of jewellery, cash consideration exceeding Rs.5 lakhs -Consequent implication Section 206C(1D) provides for TCS obligation on sale of jewellery, sale of bullion, and residuary limb being any other goods (other than bullion or jewellery) ,if the value of… Read More »

Transfer of carbon credits not treated as Income u/s 2(24)? Budget 2017-18 Suggestions

Suggestions on Clause 45 of Finance Bill / Budget 2017- Insertion of section 115BBG – Income from transfer of carbon credits to be taxed@10% – Inclusion in definition of income under section 2(24) and clarification regarding tax treatment for prior assessment years. The proposed introduction of section 115BBG providing for a 10 percent tax on… Read More »

Capital Gain – joint development agreement -Budget 2017-18 Suggestions

Suggestions on Clause 22 of Finance Bill 2017 – Section 45(5A) – Special provision for computation of capital gain in case of joint development agreement (JDA) -Certain concerns to be addressed and scope to be enlarged The Finance Bill 2017  proposes to insert sub-section (5A) in the existing section 45 to provide that the capital… Read More »

Transfer of unquoted shares – double taxation for seller and buyer -Budget 2017-18 Suggestion

Suggestions on Clause 26 and 29 of Finance Bill 2017 – Section 50CA and section 56(2)(x)(c)- Fair Market Value to be full value of consideration in case of transfer of unquoted shares –Amendment required in view of double taxation in the hands of seller as well as buyer The Finance Bill 2017 proposes to insert new… Read More »

Budget 2017-18 Suggestion- Turnover Limit needs to be increased for TDS section 194A/ 194H/ 194I & 194J

Suggestions on Section 44AB as proposed to be amended by Finance Bill 2017- Increased threshold for presumptive tax cases under section 44AD – Consequential amendments required in section 194A/ 194H/ 194I & 194J The Finance Bill, 2017 proposes to amend the section 44AB to exclude the eligible person, who declares profits for the previous year… Read More »

No exemption for Specific corpus donation by exempt entities to other exempt entities w.e.f AY 2018-19

No exemption for corpus donation by exempt entities to other exempt entities [ Amendment in Section 11 of Income Tax Act – Applicable from Assessment Year 2018-19] Relevant extracts from Explanatory memorandum to the provisions of Finance Bill 2017 Restriction on exemption in case of corpus donation by exempt entities to other exempt entities As… Read More »

Initiation of assessment in case of search & seizure beyond 6 year

Initiation of assessment in case of search and seizure beyond 6 year ( Amendment as per Finance Bill 2017 in Sections 153A and 153C – Applicable from Assessment Year 2017-18 ] Memorandum Explaining Provisions of Finance Bill 2017 Rationalisation of provisions of the Income Declaration Scheme, 2016 and consequential amendment to section 153A and 153C… Read More »

Time limits for completion of Income Tax Assessment after Finance Bill 2017

Time limits for completion of Income Tax Assessment As per Finance Bill 2017 Table of Time limits for completion of Income Tax Assessment Section Particulars Applicable from Time limit 139(5) Time limit for furnishing revised return Assessment year 2018- 19 and onwards Up to the end of the relevant assessment year or before the completion of… Read More »