Direct tax proposals - Union Budget 2014-15 - Professionals - Taxation - TIK Share
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Direct tax proposals - Union Budget 2014-15


Vedanta Deshika

2014-07-10

--->Personal Income-tax exemption limit raised to Rs 2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit
raised to Rs.3 lakh in the case of senior citizens.


--->Rate of surcharge either for the corporates or the individuals, HUFs,
firms etc. remains unchanged

--->The education cess continues to be levied at 3 %.

--->Deduction limit under section 80C raised to Rs.1.5 lakh.

--->Interest Deduction on loan in respect of self occupied house property raised to Rs.2 lakh..

--->Investment allowance - 15 % to manufacturing companies that invests
more than Rs.25 crore in any financial year in new plant and machinery. The benefit to be
available for three years i.e. for investments upto 31.03.2017.

--->Investment linked deduction for new sectors, - slurry pipelines for
the transportation of iron ore & semi-conductor wafer fabrication manufacturing
units.

--->10 year tax holiday extended to the undertakings which begin generation, distribution
and transmission of power by 31.03.2017.

--->Income arising to foreign portfolio investors from transaction in securities to be treated
as capital gains.

--->tax rate 15 % on foreign dividends without any sunset date to be
continued.

--->The eligible date of borrowing in foreign currency extended from 30.06.2015 to
30.06.2017 for a concessional tax rate of 5 % on interest payments. Tax incentive
extended to all types of bonds instead of only infrastructure bonds.

--->“Roll Back” provision introduced in the Advanced Pricing Agreement (APA)
scheme so that an APA entered into for future transactions is also applicable to
international transactions undertaken in previous four years in specified circumstances.

--->Range concept for determination of arm’s length price in TP
regulations introduced 

--->Use of multiple year data for comparability analysis under transfer pricing
regulations now allowed.

--->Rate of tax on LTCG increased from 10 % to 20 % on transfer of units of Mutual Funds, other than equity oriented
funds.

--->Income and dividend distribution tax to be levied on gross amount instead of amount
paid net of taxes.

--->In case of non deduction of tax on payments, 30% of such payments will be disallowed
instead of 100 %.

--->Government to review the DTC in its present shape and take a view in the whole
matter.

--->60 more Ayakar Seva Kendras to be opened during the current financial year to
promote excellence in service delivery.

--->Net Effect of the direct tax proposals to result in revenue loss of Rs.22,200 crore.

Rahul Rai

2014-07-11

A really good budget by finance minister. Hope he delivers what he promised.

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