UNION BUDGET 2015& DIRECT TAXESUNION BUDGET 2015 & DIRECT TAXES

CA. M. Lakshmanan

RATES OF TAXNo ChangeTax on companies to be reduced to 25% from 30% in five years Surcharge is increased to 12.5% from 10% for Individuals, HUFs, Co-Operative Societies, LLPs and local authorities if their income exceeds Rs. 1 Crore.

CA. M. Lakshmanan

RATES OF TAXSurcharge for Indian Companies is increased to 7% from the present @ 5% for income between Rs. 1 Crore to 10 Crores and increased to 12% from the present 10% if their income exceeds Rs. 10 Crores Rate of Tax on Firms, Domestic Limited Companies & LLPs remains at 30%The tax rate is reduced from 25% to 10% for Non-Resident who gained income by way of Royalty or Fees for technical services.

CA. M. Lakshmanan

RATES OF TAXIn case of Individual, HUF, AOP and BOI:

Income SlabsRate of TaxUpto Rs. 2,50,000NILRs. 2,50,001 to 5,00,00010%Rs. 5,00,001 to 10,00,00020%Above Rs. 10,00,00030%

CA. M. Lakshmanan

RATES OF TAXIn case of Senior Citizen (60 years and above but below 80 years):

Income SlabsRate of TaxUpto Rs. 3,00,000NILRs. 3,00,001 to 5,00,00010%Rs. 5,00,001 to 10,00,00020%Above Rs. 10,00,00030%

CA. M. Lakshmanan

RATES OF TAXIn case of Resident Very Senior Citizen (80 years and above):

Education Cess @ 2% and Secondary & Higher Education Cess @ 1% are retained.

Income SlabsRate of TaxUpto Rs. 5,00,000NILRs. 5,00,001 to 10,00,00020%Above Rs. 10,00,00030%

CA. M. Lakshmanan

Alternate Minimum Tax @ 18.5 % for all assessees similar to Minimum Alternate Tax (MAT) for companies will continue if the adjusted total income exceeds Rs. 20 Lakhs.The assessees who are engaged in business of plying, leasing or hiring tucks owning not more than 10 trucks , is retained at Rs. 7,500/- per month for all types of vehicles.

CA. M. Lakshmanan

DDT (Dividend Distribution Tax) on Dividends declared by companies increased from 15% to 17% on the gross amount effective rate 20.39%Wealth Tax abolished and Direct Tax Code droppedIncome from Agriculture is to be included in Gross Total Income & Rebate will be allowed

CA. M. Lakshmanan

DEDUCTIONSUnder section 80C Exempt-Exempt-Exempt (EEE) tax benefit is proposed for assessee having a girl child and investing under the Sukanya Samriddhi Account Scheme. The investments made, the interest (9.1%) accruing & withdrawals are exempt.

CA. M. Lakshmanan

80D Mediclaim Premium: Individual Increased from 15,000 to 25,000.Senior Citizen - Increased from 20,000 to 30,000. Very Senior Citizen Expenditue upto 30,000.80G Donation: 100% Deduction for contribution to Swatch Bharat Kosh Clean Ganga Fund and National Fund for control of Drug Abuse.

CA. M. Lakshmanan

80DDB - Treatment of specified diseases : Very Senior Citizen Limit increased from 60,000 to 80,000.80DDB - Disability : Maintenance of dependent with disability - Limit increased from 50,000 to 75,000.Maintenance of dependent with serious disability - Limit increased from 1Lakh to 1.25Lakh.

CA. M. Lakshmanan

80CCC - Contribution to Pension Fund of LIC or IRDA approved Fund: Limit increased from 1Lakh to 1.50Lakh.80CCD - Contribution by employee to National Pension Fund : Limit increased from 1Lakh to 1.50Lakh.Rs.50,000 can be claimed extra and increasing overall cap to 2Lakh available under section 80C.

CA. M. Lakshmanan

Others:

Transport Allowance exemption for salaried class increased from Rs. 800 to Rs. 1,600 per month.Additional depreciation 20% is allowed on new plant & machinery installed by a manufacturing unit or a unit engaged in generation and distribution of power. If the asset is installed after 30th September of the previous year only 10% of the additional depreciation was allowed. The remaining 10% of the additional depreciation will be allowed in the subsequent previous year

CA. M. Lakshmanan

New manufacturing units in the notified areas in Andhra Pradesh and Telangana from 01.04.2015 to 31.03.2020 will get a additional investment allowance (@15%) and additional depreciation (@15%).Sec 80JJA 30% Deduction of additional wages paid for 50 (instead of 100) additional work man for all assesees (instead of companies only)

CA. M. Lakshmanan

Furnishing Form No 15CA/15CB for payments made to non-resident company is required even if they are not taxable; hitherto it was required if they are taxableTRUSTS have to file Form No. 10 and Return of Income within the due date to avail the benefit of accumulating the income which is not spent henceforth YOGA is a charitable activity

CA. M. Lakshmanan

Threshold limit for specified domestic transaction under Transfer Pricing is increased from Rs. 5 crores to Rs. 20 crores.Undisclosed income from any foreign assets to be taxable at the maximum marginal rate.Non-filing of return/filing of return with inadequate disclosures to have a punishment of rigorous imprisonment upto 7 years.

CA. M. Lakshmanan

TDS:TDS on Interest on Deposits in Co-operative Banks - Rs. 10,000.TDS on Bank interest will be considered for the Bank as a whole Int. from all branches will be clubbedInterest on RD also will be subjected to TDS from 01.06.2015.TDS will be made if the interest on MACT (Motor Accident Claims Tribunal) exceeds Rs. 50,000 at the time of payment to the beneficiary.

CA. M. Lakshmanan

Form 15G/H can be given for certain Life Insurance Maturity Payments exceeding Rs. 1,00,000 which are subject to TDS.The person responsible for making the payment of salary has to obtain from the assessee the evidence or proof or particulars of prescribed claims (including claim for set-off of loss).Transport operators exemption from TDS is only where the operator has 10 or less than 10 goods carriages ( PAN with self-declaration to be provided )

CA. M. Lakshmanan

TDS Rates:

Nature of PaymentsIf exceeding per annumINDIVIDUALS/HUFFirm/ Domestic company1. Interest (sec. 194A) 5,000 10%10% Bank Interest 10,000 10% 10%2. Payment contractors/ sub contractors Except Lorry Hire (sec. 194C) 30,0001%2%3. Commission / Brokerage (sec. 194H)5,000 10%10% Insurance Commission 20,00010%10%4. Rent (sec. 194I) Machinery / Plant / Equipment 180,000 2%2% Land & Building 180,000 10%10%5. Fees for professional services or Technical Services (sec. 194J) 30,000 10%10%

CA. M. Lakshmanan

If the single payment exceeds Rs. 30,000/- tax is to be deducted; For the whole year if the total payments (even if each payment less than Rs. 30,000/-) exceeds Rs. 75,000/- tax is to be deducted.Payments of Rs.20,000/- and above are to be made by account payee cheques only. Upto Rs.19,999/- payments can be made by cash on a single day - one payment only.For lorry hire, payments can be made upto Rs. 35,000/- in cash.

CA. M. Lakshmanan

Time limit for depositing TDS into Central Govt.'s A/c:

The Time limit for depositing TDS is within 30th April, if the payment is made or credited to the payee's account on the last day of the year(31st March).The Time limit for depositing TDS is within one week from the last day of the month in which the deduction is made, if any other case i.e. if payment by cash, cheque draft etc., or credited during the year.

CA. M. Lakshmanan

Other Informations:Due Dates of Advance Tax:

CA. M. Lakshmanan

Due date for payment of Advance TaxFor Non-CompanyFor CompanyBy 15th JuneNIL15%By 15th September30%30%By 15th December30%30%By 15th March40%25%

CA. M. Lakshmanan

Due Dates for filing of returns of Income (for the year ending 31.03.2015) :

Individuals, Firms & HUFDue Dateswhose accounts are not subject to Compulsory Audit31st July 2015whose accounts are subject to Compulsory Audit (if the turnover exceeds Rs. 1Crore or the Professional Receipts exceeds Rs.25 Lakhs)30th September 2015

Limited Companies & Trusts30th September 2015

CA. M. Lakshmanan

Special Provisions for computing Profits and Gains of any Small Business with effect from A.Y. 2011-12.In case of assessees (being resident individual/HUF/firm except limited liability partnership) engaged in any business (except business of plying, leasing or hiring trucks and persons who are running agency business and who are receiving commission & Brokerage), whose turnover/gross receipts do not exceed Rs. 1 Crore from the y.e. 31.03.2013, income from the said business will be computed at 8% of the turnover/gross receipts. No deduction under Business head shall be allowed.

CA. M. Lakshmanan

However, in case of firm, salary and interest paid to its partners shall be deductible as per section 40(b). If an assessee declares income at a lower rate/sum, and his total income exceeds the basic exemption limit for the relevant year, then he shall be required to maintain the necessary accounts (u/s 44AA) and get his accounts compulsorily audited (u/s. 44AB).

CA. M. Lakshmanan

In case of assessees engaged in business of plying, leasing or hiring trucks, owning not more than 10 trucks, at any time during the previous year, income will be estimated at Rs. 7,500/- per month for any goods vehicle whether heavy vehicle or not.The income will be computed for each month (or part thereof) Business head shall be allowed. However, in case of a firm, salary and interest paid to its partners shall be deductible as per section 40(b). If an assessee declares income at a lower rate/sum, then he shall be required to maintain the necessary accounts (u/s 44AA) and get the accounts compulsorily audited (u/s 44AB).

Special Provisions for computing Income of Truck Owners

CA. M. Lakshmanan

Returns Filed:The following assesses have to file returns electronically with digital signature:CompanyAll 44AB Cases where accounts are auditedThe following assesses have to file returns electronically with or without digital signature:Individual or HUF, if the taxable income exceeds Rs. 10 Lakhs.A Resident Individual or a Resident HUF having assets located outside IndiaIf the return is not digitally signed, the ITR-V is to be signed by the Assessee and sent to CPC, Bangalore within 120 days.

CA. M. Lakshmanan

All others not specified above can submit their return in paper format or electronically with or without Digital Signature.Annual Information Return (AIR)

Nature of TransactionLimitCash Deposits in SB A/cRs. 10 LakhsPayments in Cr. CardRs. 2 LakhsInvestments in mutual Funds unitsRs. 2 LakhsInvestments in Bonds & DebenturesRs. 5 LakhsInvestments in shares Rs. 1 LakhPurchase or Sale of Immovable PropertyRs. 30 LakhsInvestments in RBI BondsRs. 5 Lakhs

CA. M. Lakshmanan

COST INFLATION INDEX

S. No.Financial YearCost Inflation IndexS. No.Financial YearCost Inflation Index1.1981-8210018.1998-993312.1982-8310919.1999-003513.1983-8411620.2000-013894.1984-8512521.2001-024065.1985-8613322.2002-034266.1986-8714023.2003-044477.1987-8815024.2004-054638.1988-8916125.2005-064809.1989-9017226.2006-0749710.1990-9118227.2007-0851911.1991-9219928.2008-0958212.1992-9322329.2009-1063213.1993-9424430.2010-1171114.1994-9525931.2011-1278515.1995-9628132.2012-1385216.1996-9728133.2013-1493917.1997-9830534.2014-151024

CA. M. Lakshmanan

CA. M. Lakshmanan

UNION BUDGET 2015 & DIRECT TAXESUNION BUDGET 2015 & DIRECT TAXES*UNION BUDGET 2015 & DIRECT TAXESUNION BUDGET 2015 & DIRECT TAXES*