budget highlights 2015

BUDGET BUDGET BUDGET BUDGET 2015201520152015----16161616

28/02/2015

M/S Mukesh Bajaj & Associates

Chartered Accountants

The budget looked to be

a very dynamic one indeed….

On an overall note, it was

observed that the Finance Minister

appears to be a little more inclined

towards collection of taxes from the

Indirect sources rather than concentration

or relying upon the Direct Tax Collection…

The only thing that remain unanswered..

Acche Din Kab Aayenge!!!!!!



ACCHE DIN AANE WAALE HAIN

��

DIN AANE WAALE HAIN��

DIN AANE WAALE HAIN



TAX SLAB

Income Slab

Total Income <=2,50,000

Total Income >2,50,000 and <=5,00,00

Total Income >5,00,000 and <=10,00,000

Total Income >

SLAB RATES

INDIVIDUALS & HUFIncome Slab


Total Income >2,50,000 and <=5,00,000

Total Income >5,00,000 and <=10,00,000

Total Income >10,00,000

WOMEN -- Below 60 YearsIncome Slab


Total Income >2,50,000 and <=5,00,00

Total Income >5,00,000 and <=10,00,000


RATES

INDIVIDUALS & HUF Rate Of Tax

Nil

0 10%

Rs.25,000 +20%

Rs.1,25,000 + 30%

Below 60 Years Rate Of Tax Nil

Total Income >2,50,000 and <=5,00,000 10%

Rs.25,000 +20%

Rs.1,25,000 + 30%



SENIOR CITIZENS- Above 60 Years ButBelow 80 Years

Income Slab


Total Income >2,50,000 and <=5,00,00

Total Income >5,00,000 and <=10,00,000


VERY SENIOR CITIZENS- Above 80 YearsIncome Slab


Total Income >5,00,000 and <=10,00,000


Above 60 Years But 0 Years

Rate Of Tax

Nil

Total Income >2,50,000 and <=5,00,000 10%

Rs.25,000 +20%

Rs.1,25,000 + 30%

Above 80 Years Rate Of Tax

Nil

20%

Rs.50,000 + 30%



SURCHARGE

Surcharge at the rate 10% if income is above Rs. 1 crore - applicable for Individual/ HUF/ Firms/ Co-operative Societies/ Local Authorities continued as before .

Domestic Companies Surcharge at the rate 5% to be continued if Taxable Income exceeds Rs. 1 crore but up to Rs. 10 crore.

Surcharge 10% if Taxable Income exceeds Rs. 10 crore.

Foreign Comapnies Surcharge at the rate 2% to be continued as before if Taxable Income exceeds Rs. 1 crore but up to Rs. 10 crore.

Surcharge at the rate 5% to be continued as before if Taxable Income exceeds Rs. 10 crore.



BASIC EXEMPTION LIMITS

There has been no change in the Personal Income

Tax Exemptions as the same stands similar to

Previous Year. The Exemption Limit remains to

Rs.2,50,000 for Individuals below the age of 60

Years and Rs.3,00,000 for Individuals above the age

of 60 Years.

DEDUCTION UNDER SEC.80D

Sec 80 D

Tax Free Health Insurance Limit raised from Rs.15,000 to Rs.25,000.

The limits of Tax Free Health Insurance for Senior Citizen has raised from Rs.10,000 to Rs.30,000

For very senior citizens, who do not qualify for health insurance, Rs 30000 in medical

expenses will qualify for deduction.



TRANSPORT ALLOWANCE ENHANCED

Transport Allowance

Transport allowance, which is currently

Rs 800 per month, has been

increased to Rs 1600 per month.

Applicable from A.Y. 2016-17

NATIONAL PENSION SCHEME

Sec 80 CCC

For contribution toward National

Pension Scheme, exemption limit has

been raised from current

exemption of Rs.1,00,000 to

revised exemption limit of

Rs.1,50,000.




DEDUCTION

DEDUCTION UNDER SEC.80

Sec 80 DD

For expenditure expended towards

the medical treatment (including

nursing), training and rehabilitation of

a dependant, being a person with

disability under the above section,

deduction has be

from Rs.50,000 to revised

deduction limit of Rs.75,000

For Expenditure towards Severe

Disability, the deduction

been raised from Rs.75,000 to

revised deduction limit of

Rs.1,50,000

Applicable from A.Y. 2016

80DD

For expenditure expended towards for

the medical treatment (including

nursing), training and rehabilitation of

a dependant, being a person with

y under the above section, the

been raised

from Rs.50,000 to revised

Rs.75,000

For Expenditure towards Severe

deduction has

en raised from Rs.75,000 to

revised deduction limit of




DEDUCTION

Let’s hear it from the speech..

DEDUCTION UNDER SEC.80

Sec 80 DDB


medical treatment of specific disease or

ailment under the above section,

deduction limit available for

very senior citizens has

raised from current deduction

of Rs.40,000 to revised


Applicable from A.Y. 2016


“ Individual Tax Payers will benefit to the Extent of Rs.4,44,200the exemptions announced ”

- Finance Minister during the

Budget 2015 Deliverable…

80DDB


medical treatment of specific disease or

ailment under the above section, the

deduction limit available for

senior citizens has been

d from current deduction

0,000 to revised




“ Individual Tax Payers will benefit to the Extent of Rs.4,44,200 from the exemptions announced ”

Finance Minister during the

Budget 2015 Deliverable…



SUKANYA SAMRIDHI YOJNA

Sec 10 clause 11A

A big leap forward towards the Dream

Vision of Beti Bachao Beti

Padhao, wherein any contributions

made under the above

mentioned Yojana would be now

tax free as against the earlier cap

of contribution up to Rs.1,50,000


SWACH BHARAT YOJNA

Sec 10, clause (23C)(iiia) & (iiiaa)

Any Contributions towards the Funds of Swach Bharat and

Clean Ganga Campaign would be available for 100% deduction.



CORPORATE

TAXATION

With the Budget Speech came an announcement, surprise

to all indeed...

The Corporate Tax rate has been reduced

to 25% from the current existing tax rate

of 30% over the next 4 years.

“Tax is an Instrument of Socio- Economic engineering”..

- - Finance Minister, during the Budget 2015 speech ….

��

Acche Din aane wale

hain moto was similar

to a morning prayer

during the Election

Campaign…

Guess Corporate

World’s seems to be

celebrating more.

Ironical!!

��

Finance Minister must

be congratulated for

“this pro-poor, pro-

growth, pro-middle

class, pro-youth &

paradigm shifting

budget”!!

- Prime Minister Tweets



Introduction of Yoga as a Charitable Activity

Amendment in the clause 15 of Sec.2

Defines Charitable Purpose as :

� includes relief of the poor, � education,

� yoga,

� medical relief,

� and the advancement of any other object of general

public utility.

Provided further:

(ii) The following Proviso is added to the Definition as follows:

� Provided that the advancement of any other object of general public utility

shall not be a charitable purpose,

� if it involves the carrying on of any activity in the nature of trade,

� commerce or Business,

� or any activity of rendering any service in relation to any trade,

commerce or business,

� for a cess or fee or any other consideration,

� irrespective of the nature of use or application, or retention, of the

income from such activity,

� unless—

i. such activity is undertaken in the course of actual carrying out of such

advancement of any other object of general public utility; and

ii. the aggregate receipts from such activity or activities during the

previous year, do not exceed twenty per cent. of the total receipts, of

the trust or institution undertaking such activity or activities, of that

previous year;”



Amendment in meaning of Resident in India

For Companies

Sec 6 Clause 3

A Company would be considered to be

Resident in India if.

� It is an Indian Company � Place of Effective

Management, AT ANY TIME IN THAT YEAR is in India.

As amended against “during that year, the control and management of its

affairs is situated wholly in India.”

For the purposes of this clause

“place of effective

management”

� means a place where key

management

� and commercial decisions

that are necessary

� for the conduct of the

business of an entity as a

whole are,

� in substance made.



Amendment in Reliefs to Charitable Trusts.

• Sec 13 sub section 9 introduced

• According to this new

from the Total Income of the Previous Year of a person in

Receipt of same u/s

� the statement referred to in clause (a)

in respect of such income

� is not furnished on or before the due date

� specified under sub

� for furnishing the return of income for the previous year;

� the return of income for the previous year

� is not furnished by such person on or before the due date

� specified under sub

� for furnishing the return of income for the said previous year.”.


ec 13 sub section 9 introduced

According to this new subsection No Income shall be excluded


Receipt of same u/s 11 (2) IF-

statement referred to in clause (a) of the said sub

in respect of such income

not furnished on or before the due date

specified under sub-section (1) of section 139

for furnishing the return of income for the previous year;

return of income for the previous year

not furnished by such person on or before the due date

specified under sub-section (1) of section 139

for furnishing the return of income for the said previous year.”.


No Income shall be excluded


of the said sub-section

for furnishing the return of income for the previous year; or

not furnished by such person on or before the due date

for furnishing the return of income for the said previous year.”.



Amendment in Calculation of Depreci

In regards to the benefit of Additional Depreciation made available to the

Assessee under the Income Tax Act,

� Earlier wherein if the asset was put in use for less than 180 days, the

Additional Depreciation benefit was limited to 50% in the Year in which

the asset was put to use.

� Correspondingly, the remaining 50% benefit couldn’t be utilized by the

Assessee.

With the Introduction of Finance Bill, 2015

The Finance Minister has provided the much needed relief to the

assessee in respect of the same by introducing the following:

The balance amount of the additional depreciation which

remain un utilized in the year

The same can now be availed in the

IMMIDIATELY SUCCEDING PREVIOUS

YEAR IN RESPECT OF SUCH ASSET.

Amendment in Calculation of Depreciation.


Assessee under the Income Tax Act,

Earlier wherein if the asset was put in use for less than 180 days, the


the asset was put to use.

Correspondingly, the remaining 50% benefit couldn’t be utilized by the

h the Introduction of Finance Bill, 2015




remain un utilized in the year of put to use,




ation.


Earlier wherein if the asset was put in use for less than 180 days, the


Correspondingly, the remaining 50% benefit couldn’t be utilized by the









Further, the Finance Minister added…

• Sec 32 clause (iia) (B) before the proviso, the foll

� where an assessee,

� sets up an undertaking or enterprise

production of any article or thing

� on or after the 1st day of April, 2015

notified by the Central Government in this behalf,

� in the State of Andhra Pradesh or in the State of

� and acquires and installs any new machinery or plant

(other than ships and aircraft)

� for the purposes of the said undertaking or enterprise

� during the period

and ending before the 1st day of April, 2020

� in the said backward area, then,

� the provisions of clause (iia) shall have effect, as if for the

words “twenty per cent.”, the words “thirty

had been substituted:”

i.e. Additional Depreciation available to such companies would be 35% of

the value of Plant and Machinery rather than the normal 20% of the

value.


Sec 32 clause (iia) (B) before the proviso, the following proviso shall be inserted

where an assessee,

sets up an undertaking or enterprise for manufacture or

production of any article or thing,

on or after the 1st day of April, 2015 in any backward area


State of Andhra Pradesh or in the State of Telangana

acquires and installs any new machinery or plant

(other than ships and aircraft)

for the purposes of the said undertaking or enterprise

during the period beginning on the 1st day of April, 2015

and ending before the 1st day of April, 2020

in the said backward area, then,

the provisions of clause (iia) shall have effect, as if for the

“twenty per cent.”, the words “thirty-five per cent.”

had been substituted:”




owing proviso shall be inserted

for manufacture or

in any backward area

Telangana,

acquires and installs any new machinery or plant

for the purposes of the said undertaking or enterprise

beginning on the 1st day of April, 2015

the provisions of clause (iia) shall have effect, as if for the

five per cent.”





Insertion of New Sec 32 AD

A new Section has been inserted by the Finance Act 2015, which envisages as follows:

� Where an assessee,

� sets up an undertaking or enterprise

any article or thing,

� on or after the 1st day of April, 2015 in any backward area

notified by the Central Government in this behalf

� in the State of Andhra Pradesh or in the State of Telangana

� and acquires and installs any new asset for the purposes of the said

undertaking or enterprise

� during the period beginning on the 1st day of April, 2015 and ending before the

1st day of April, 2020

� in the said backward area, then,

� there shall be allowed

� a sum equal to fifteen per cent

asset for the assessment year relevant to the previous year in

which such new asset is installed

Insertion of New Sec 32 AD


Where an assessee,

sets up an undertaking or enterprise for manufacture or production of

any article or thing,



State of Andhra Pradesh or in the State of Telangana,

and acquires and installs any new asset for the purposes of the said

undertaking or enterprise

during the period beginning on the 1st day of April, 2015 and ending before the

1st day of April, 2020

in the said backward area, then,

shall be allowed a deduction of

a sum equal to fifteen per cent of the actual cost of such new


which such new asset is installed.


cture or production of


and acquires and installs any new asset for the purposes of the said

during the period beginning on the 1st day of April, 2015 and ending before the

of the actual cost of such new




For the Purpose of this Section,

“new asset” means any new plant or machineryaircraft) but does not include � any plant or machinery, which before its installation by the

assessee, was used either within or outside India by any other

person;

� any plant or machinery installed in any office premises or any

residential accommodation, including accommodation in the nature

of a guest house;

� any office appliances including computers or computer software;

� any vehicle; or

� any plant or machinery,

allowed as deduction (whether by way of depreciation or otherwise)

in computing the income chargeable under the head “Profits and

gains of business or profession” of any previous year.’

• However If any new asset ac

otherwise transferred,

• except in connection

referred to in clause (xiii) or clause (xiiib) or clause (xiv) of section 47,

• within a period of five years from the date of its installation

• the amount of deduction allowed under sub

asset

• shall be deemed to be the income of the assessee chargeable

• under the head “Profits and gains of business or profession” of

previous year

• in which such new asset is sold or otherwise transferred

• in addition to taxability of gains, arising on account of transfer of such new

asset.

For the Purpose of this Section,

“new asset” means any new plant or machinery (other than a ship or but does not include-

any plant or machinery, which before its installation by the


any plant or machinery installed in any office premises or any


any office appliances including computers or computer software;

any plant or machinery, the whole of the actual cost of which is



gains of business or profession” of any previous year.’

However If any new asset acquired and installed by the assessee is

otherwise transferred,

except in connection with the amalgamation or demerger or re-organization of business

referred to in clause (xiii) or clause (xiiib) or clause (xiv) of section 47,

five years from the date of its installation,

the amount of deduction allowed under sub-section (1) in respect of such new

deemed to be the income of the assessee chargeable

“Profits and gains of business or profession” of

in which such new asset is sold or otherwise transferred,

taxability of gains, arising on account of transfer of such new

(other than a ship or

any plant or machinery, which before its installation by the


any plant or machinery installed in any office premises or any


any office appliances including computers or computer software;

the whole of the actual cost of which is



quired and installed by the assessee is sold or

organization of business

,

section (1) in respect of such new

deemed to be the income of the assessee chargeable

“Profits and gains of business or profession” of the

taxability of gains, arising on account of transfer of such new



DEDUCTION UNDER SEC.80JJAA

Sec 80 JJAA

Amendment in Deduction in respect of Employment of New

Workmen

For sub section of the section, prior to amendment, the benefit

of this deduction was available only to INDIAN

COMPANIES.

With the Finance Bill 2015 rolling, the words INDIAN COMPANY have

been omitted, thereby giving the benefit of Deduction to all assessee wherever

eligible.




Amendmen

Sec 92 BA

A much needed relief provided by Finance Act , 2015 comes our way by

increasing the Threshold Limit of all the

transactions entered into by the Assessee from

� The Existing Limit of Rs.5 Crores to the Revised Limit of

Rs.20 Crores.

Effective From Assessment Year 2016

Amendment in Taxation in case of Foreign Company

Sec 115A

Tax on dividends, royalty and technical service fees in the case of

foreign companies{ a non

foreign company } HAS BEEN REDUCED

� The Existing Rate of 25% to the Revised Rate of 10%

Effective From Assessment Year

Amendment in Transfer Pricing


increasing the Threshold Limit of all the Aggregate value of the

transactions entered into by the Assessee from –

The Existing Limit of Rs.5 Crores to the Revised Limit of

Rs.20 Crores.

Effective From Assessment Year 2016-2017

t in Taxation in case of Foreign Company

dividends, royalty and technical service fees in the case of

{ a non-resident (not being a company) or of a

HAS BEEN REDUCED from –

The Existing Rate of 25% to the Revised Rate of 10%

Effective From Assessment Year 2016-2017

t in Transfer Pricing


Aggregate value of the

The Existing Limit of Rs.5 Crores to the Revised Limit of

t in Taxation in case of Foreign Company

dividends, royalty and technical service fees in the case of

resident (not being a company) or of a

The Existing Rate of 25% to the Revised Rate of 10%.



Amendment in Computation of M.A.T.

Sec 115 JB

For computation of Book Profit as per MAT, the following

amendments are proposed as follows :

�

income of the AOP, on

payable

86 of the Act,

�

�

member under 115JB of the Act

Further, the Expenses if any debited to Profit &

Loss account corresponding to such income are also

be added back to the Book Profit for the purpose of computation

of MAT.

With the Finance Minister more determined to allow Foreign Investments in India,

further has proposed to amend the provisions as follows in respect of Foreign

Institutional Investors:

� Income arising from transactions in Securities

� Other than short term capital gains on which S.T.T is not

chargeable

� Arising to a F.I.I.

� Shall be excluded from the Chargeability of MAT.

Applicable from AY 2016

t in Computation of M.A.T.


amendments are proposed as follows :

� The share of a member of an AOP , in the

income of the AOP, on which no Income Tax is

payable in accordance with the provisions of Sec

86 of the Act,

� should be Excluded

� while computing the MAT liability of the

member under 115JB of the Act


Loss account corresponding to such income are also




Income arising from transactions in Securities

Other than short term capital gains on which S.T.T is not

Arising to a F.I.I.

Shall be excluded from the Chargeability of MAT.

Applicable from AY 2016-17

t in Computation of M.A.T.


The share of a member of an AOP , in the

which no Income Tax is

in accordance with the provisions of Sec

while computing the MAT liability of the


Loss account corresponding to such income are also proposed to




Other than short term capital gains on which S.T.T is not

Shall be excluded from the Chargeability of MAT.



Amendment in

With the Earlier Finance Minister making dramatic steps towards

simplification of the Compu

Minister has made the Calculations for Wealth Tax much easier than it

was in years before…

��

An Additional

Surcharge of 2% on the

Income if it Exceeds

Rs.1 Crore

Applicable from AY

2016-17

��

Amendment in Wealth Tax.

G.A.A.R

General Anti Avoidance Regulations which

were earlier deferred have further been

deferred by 2 more years and now will be

applicable only from F.Y. 2017


simplification of the Computation of Wealth Tax, our


was in years before…

��

An Additional

on the

Income if it Exceeds

Applicable from AY

��

��

The Finance Minister

has abolished the

existing Provisions of

Wealth Tax.

Applicable from AY

2016-17

��

Anti Avoidance Regulations which

were earlier deferred have further been

deferred by 2 more years and now will be

applicable only from F.Y. 2017-18.


tation of Wealth Tax, our Current Finance


��

The Finance Minister

has abolished the

existing Provisions of

Wealth Tax.

Applicable from AY

��



Insertion of New Section in Central Excise Act.

Sec 11 AC

Penalty of Short Levy or Non Levy or Non Payment or Short Payment of Excise

Duty.

where any duty of excise � has not been levied or paid or has been short-levied or

� short paid or erroneously refunded,

� for any reason other than the reason of fraud or

� collusion or any willful miss-statement or suppression of facts or

contravention of any of the provisions of this Act

� or of the rules made there under

� with intent to evade payment of duty,

� the person who is liable to pay duty as determined under sub-

section (10) of section 11A

� shall also be liable to pay a

� penalty not exceeding

• ten per cent of the duty so determined or

• rupees five thousand, whichever is higher

Provided that where such duty and interest payable under section

11AA is paid either before the issue of show cause notice or within

thirty days of issue of show cause notice, no penalty shall be payable

by the person liable to pay duty or the person who has paid the duty

and all proceedings in respect of said duty and interest shall be

deemed to be concluded.



Amendment in Rates of Service Tax.

Sec 66 B

The amount of Service tax rate charged

14% against the existing rates of 12%

No additional Education Cess shall be chargeable as the revised rates of 14%

would be including the Education Cess and Secondary Higher Education Cess.

nt in Rates of Service Tax.

f Service tax rate charged shall be at the rate of

14% against the existing rates of 12%

Education Cess shall be chargeable as the revised rates of 14%


nt in Rates of Service Tax.

shall be at the rate of

Education Cess shall be chargeable as the revised rates of 14%




AMENDMENT UNDER SEC.67

Sec 67 of the 1994 Act

Definition of Consideration would now include the following:

any amount that is payable for the taxable services provided or to be

provided

any reimbursable expenditure or cost incurred by the service provider and charged, in the course of providing or agreeing to provide a taxable service, except in such circumstances, and subject to such conditions, as may be prescribed

the difference in the face value of lottery ticket and the price at which the distributor or selling agent gets such ticket




PENALTY FOR FAILURE TO PAY SERVICE TAX

Where service tax has

� not been levied or paid,

� or has been short-levied or

� short-paid, or

� erroneously refunded,

� for any reason,

� other than the reason of

fraud or collusion or willful

misstatement

� or suppression of facts or contravention of any of the provisions of

this Chapter or

� of the rules made there under

� with the intent to evade payment of service tax,

� the person who has been served notice under sub-section (1) of

section 73 shall,

� in addition to the service tax and interest specified in the notice,

� be also liable to pay a penalty

� not exceeding ten per cent of the amount of such service tax



Provided that where such service tax and interest is paid within a

period of thirty days of––

(i) the date of service of notice under sub-section (1) of section 73, no

penalty shall be payable

(ii) the date of receipt of the order of the Central Excise Officer

determining the amount of service tax under sub-section (2) of

section 73, the penalty payable shall be twenty-five per cent of the

penalty imposed in that order, only if such reduced penalty is also

paid within such period.



Amendment in Rates of Excise Duty.

Amendments have been sought in the First Schedule

to Central Excise Tariff Act.

The rate of Excise Duty charges has been raised from the

Current rate of 12% to the Revised Rates of 12.5% making

articles costlier.



AMENDMENTS TO CURB BLACK MONEY

The Finance Minister in his Speech has stated various measures to curb black

money, particularly held in foreign assets, which are as under:

- Rigorous Imprisonment upto 10 years.

- Penalty equivalent to 300% of tax.

- Non-filing return or giving inade

imprisonment upto 7 years.

- Taxability of undisclosed income at maximum marginal rate.

- Amendments in Prevention of Money



money, particularly held in foreign assets, which are as under:-

Rigorous Imprisonment upto 10 years.

Penalty equivalent to 300% of tax.

filing return or giving inadequate disclosure will entail rigorous

imprisonment upto 7 years.

Taxability of undisclosed income at maximum marginal rate.

Amendments in Prevention of Money-Laundering Act, FEMA



quate disclosure will entail rigorous

Taxability of undisclosed income at maximum marginal rate.

Laundering Act, FEMA



FEW OTHER AMENDMENTS In case of search, the Assessing Officer having jurisdiction over the

person who has been searched, has the power to pass on the

documents etc. belonging to any other assessee to the Assessing

Officer having jurisdiction over such assessee. There has been

controversy as regards the meaning of “belonging to”. It is being

provided that if the Assessing Officer is satisfied that such

documents etc. belong to another assessee, he would be empowered

to pass on the documents etc. to other Assessing Officer to make the

assessment on such person.

Section 151 of the Act provides for approval in case of different

circumstances for reopening the assessment by Joint Commissioner

or the Commissioner. With a view to simplify the requirement, it is

being provided that in case reopening is within 4 years from end of

the assessment year approval will be required of Joint Commissioner

and in case of reopening beyond 4 years, approval will be required of

the Principal Chief Commissioner or Commissioner.

Section 234B, which provides for chargeability of interest on short

payment of advance tax till the date of regular assessment is being

amended to provide for chargeability of interest till the date of order

passed in case of Settlement Commission, search case etc



Under Section 263 of the Act Commissioner has the power for

revision of an assessment order if the order is erroneous and

prejudicial to the Revenue. There has been lot of litigation in regard

to the scope of above section. To overcome the judicial

pronouncements certain circumstances are being specified in the

section in which the order will be deemed to be erroneous and

prejudicial to the interest of Revenue.

Under the provisions of Income Tax Act accounts are required to be

audited and number of other certificates is required to be obtained

from Chartered Accountants. By way of amendment in section 288

of the Income Tax Act, it is being provided that no Chartered

Accountant who is not eligible for appointment as auditor under

section 141(3) of the Companies Act and who in any manner, as have

been provided in the Section, is related to or is interested in the

business of the assessee will not be eligible for audit / certification

function under the Act. Further, any Chartered Accountant who has

been convicted by a Court for an offence involving fraud shall not be

eligible to represent the assessee for a period of 10 years.

Certain other procedure amendments are also being made in TDS

and TCS provisions.



Monetary limit for deciding the appeal by Single Member of

Income Tax Appellate Tribunal is being increased from Rs. 5

lacs to Rs. 15 lacs of total income as computed by the Assessing

Officer.

Section 158A of the Act provides that if in case of an assessee an

identical question of law for another year is pending before High

Court or Supreme Court, he may furnish a Declaration before the

Assessing Officer or the Appellate Authority agreeing to apply the

final decision on question of law and accordingly he may not pursue

the matter and decision in the matter pending will be applied to this

year also. Now, with a view to make the corresponding provision to

check the repetitive appeals, a new section 158 AA is proposed to be

inserted providing that after the order of Commissioner (Appeals)

the Department would not file appeal before the Tribunal if similar

question is pending before the Supreme Court for another

assessment year, subject to assessee agreeing to the position.

Against order of Commissioner rejecting the application for approval

or renewal under section 10(23C) of educational institution or

hospital, so far there was no specific provision for appeal to Income

Tax Appellate Tribunal and, therefore, only Writ petition could be

filed in the High Court. Now the provision is being made for filing

the appeal to Income Tax Appellate Tribunal.



M/S MUKESH BAJAJ & ASSOCIATES

C/O N. K. SOM & CO

1, C.R.AVENUE, 1ST FLOOR,

KOLKATA- 700 072

033- 4007 0620

9830078620

[email protected]

[email protected]

budget highlights 2015

Economy & Finance