TaxHeal - GST and Income Tax Complete Guide Portal

(Last Updated On: 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 exceed Rs. 1 crore. Surcharge of 15% would continue to be applicable where the total income of an individual/HUF/AOP/BOI exceeds Rs 1 crore. [Read Surcharge on income above Rs 50 lakhs w.e.f AY 2018-19 ]

The levy of such surcharge would result in inequity in the effective rate of tax (i.e., more than 30%) for individual/HUF/AOP/BOI assessees with total income exceeding Rs.50 lakhs vis-cl-vis the rate of 25% proposed for small and medium companies. The inequity would arise not only vis-cl-vis salaried assessees but individuals/HUFs engaged in small businesses would also have to bear the brunt of surcharge which may go against the present Government’s aim of promoting ease of doing business.

Suggestion:

It is suggested that the proposed surcharge@10% for total income between Rs.50 lakhs to Rs. 1 crore be withdrawn to ensure equity in effective rate of tax vis-a-vis the proposed rate for small and medium companies.

Source- ICAI Post-Budget Memoranda-2017

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

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

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

Gift u/s 56(2)(x) not treated as Income u/s 2(24)? Budget 2017-18 Suggestions

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

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

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

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

Partly Cash Expenditure on Asset – entire amount Disallowed ? Budget 2017-18 Suggestions

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