Category Archives: Union Budget

5 oppn amendments to Finance Bill 2017 adopted in Rajya Sabha

By | March 29, 2017

Govt faces embarrassment in RS; 5 oppn amendments to Finance Bill adopted New Delhi, Mar 29 (PTI) The government today faced a major embarrassment in the Rajya Sabha as five amendments moved by the opposition to the Finance Bill 2017 were adopted before the House approved the measure. Of the five opposition amendments, three were… Read More »

Key Changes proposed in Finance Bill 2017

By | March 22, 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 »

Post Budget Memorandum on Direct Taxes – 2017-18- BOCA

By | March 11, 2017

Bombay Chartered Accountants Society Date : 8th March 2017 Mr. Arun Jaitley Hon. Minister of Finance Government of India North Block New Delhi – 110 001. Respected Sir, THE FINANCE BILL – 2017 We compliment you for the focused and non populist Budget that was presented on 1st February. The idea of combining the Rail… Read More »

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

By | March 9, 2017

 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

By | March 7, 2017

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

By | March 7, 2017

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 »

Withdrawa ICDS – Budget 2017-18 Suggestions -ICAI

By | March 6, 2017

Income Computation and Disclosure Standards introduced under section 145 vide Finance Act (No.2), 2014 – ICDSs may be withdrawn Section 145 of the Income-tax Act, 1961 provides for the method of accounting. Section 145(1) requires income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” to be computed… Read More »

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

By | March 6, 2017

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

By | March 6, 2017

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

By | March 4, 2017

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

By | March 4, 2017

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

By | March 4, 2017

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

By | March 4, 2017

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

By | March 4, 2017

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

By | March 4, 2017

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 »

Give Tax Exemption on conversion of warrants into equity shares – Budget 2017-18 Suggestions

By | March 3, 2017

Suggestions on Clauses 3, 23 and 25 of Finance Bill 2017 – Section 2(hf), section 47(xb) and section 49(2AE) – Tax neutral conversion of preference shares to equity shares – Clarification regarding tax treatment for earlier years The Finance Bill 2017, proposes to amend Section 47 of the Act, by virtue of which conversion of… Read More »

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

By | March 3, 2017

 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

By | March 3, 2017

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

By | March 2, 2017

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 »

Withdraw Surcharge@10% for total income between Rs.50 lakhs to Rs. 1 crore -Budget 2017-18 Suggestions

By | March 2, 2017

Paragraph A of Part III to the First Schedule – Proposed Surcharge @ 10% for income exceeding Rs 50 lakhs – Removal of surcharge to ensure parity in effective tax rates vis-à-vis small and medium companies Surcharge @ 10% is proposed in cases where total income of an individual/HUF/AOP/BOI exceeds Rs.50 lakhs but do not… Read More »