A useful presentation in PPT on clubbing of Income under Income Tax Act 1961-
Download from the link given below and Please let me know if you have any query regarding this.
at 0860 466 48 20

http://www.scribd.com/doc/131832575/Clubbing-of-Income

Happy reading

Benefits available to defaulters under Service Tax by BUDGET 2013

NEW VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013 (VCES) under Service Tax by BUDGET 2013

A new scheme is proposed to be introduced to encourage voluntary compliance main features:
The scheme can be availed of by non-filers or stop-filers or persons who have not made a truthful declaration in their return. 
but to promote voluntary compliance interest and penalties is exempted if they pay their dues truthfully by 30June/31Dec. 2014

Amendments in Budget 2013

Closer look of BUDGET 2013 

As many as 72 indirect tax clauses are sought to be amended this year, against 43 last year, a closer look at the Finance Bill 2013‐14 has revealed.
An analysis of Finance Bills tabled in Parliament in the last 10 years show Chidambaram has always been more aggressive on fine‐tuning indirect tax laws
On the direct tax front, however, only 53 clauses were amended, down from 113 last year, the highest ever in the UPA regime.

ADDED ADVANTAGES OF RAJIV GANDHI EQUITY SAVING SCHEME u/s 80CCG BY FINANCE ACT 2013

RAJIV GANDHI EQUITY SAVING SCHEME AMENDED BY FINANCE ACT 2013

Who are the Eligible Investor ?

- who opened a demat account as a ‘first holder’ after November 23, 2012.

- Opened a demat account prior to this date but never bought any shares or traded in the Futures and Options (F&O) segment.

- still qualifies if his name appeared second in a joint demat account before this date.

- Opened a demat a/c to invest in a Gold ETF too doesn’t disqualify him , Since the demat account has no equity security.

Comparative analysis of Changes with provisions introduced by Finance Budget 2013-14

Particulars	FY 2012-13	FY 2013-14
Section	80CCG
Maximum Eligible total Income	Rs 10 Lac	Rs. 12 Lac
Investment in	Listed Equity Shares	Listed Equity Shares / Units of Equity oriented fund*
Maximum amount can be Invest	Rs. 50000	Rs. 50000
Maximum Deduction	Rs. 25000	Rs. 25000
Duration of deduction	Only 1 FY	3 consecutive FY incl. current
Is this over & above the Section 80C limit?	Yes	Yes

 Extra Charges – Additional expenses incurred on the acquisition of eligible securities like brokerage, stamp duty, securities transaction tax (STT), service tax etc will not be considered.

Lock-in period

- Overall lock-in period of 3 years which is further divided.

• First year is the fixed lock-in period – During this time frame, the investor will not be permitted to sell, pledge or hypothecate any of the shares.
• Next two years are the flexible lock-in years – The investor can sell but will have to buy other eligible securities with the proceeds in the same financial year. This is to ensure adherence to a cumulative holding period of 270 days during each of the 2 years of flexible lock-in.

What can be bought?

- Stocks from the universe that comprise the BSE-100 or CNX-100,

- Shares of listed Navratna, Maharatna and Miniratna public sector enterprises – Click here to see which stocks fall into this category,

- Initial Public Offerings (IPOs) of PSUs with turnover more than Rs 4,000 crore and where the government shareholding pattern is at least 51%,

- Units of Exchange Traded Funds (ETFs) or mutual fund schemes investing in RGESS eligible shares provided these units are listed and traded on the stock exchange and settled through the depository mechanism.

As per regulations, the initial offering period of any mutual fund should not be more than 15 days. But schemes eligible under RGESS have it extended right up to 30 days.

Note :-

* As Per Section 10 (38)

“equity oriented fund” means a fund—

(i) where the investible funds are invested by way of equity shares in domestic companies to the extent of more than 91% of the total proceeds of such fund; and

(ii) which has been set up under a scheme of a Mutual Fund specified under clause 10(23D)

author can be reached at caarpitgupta11@gmail.com

BUDGET 2013 - EVADE TAXES, NOW BE READY TO GO TO JAIL

IMPORTANT PROPOSED CHANGES OF BUDGET 2013 - 

Now Failure to pay excise duty and service tax could lead to arrest of defaulters. 
Offences relating to excise and customs duty evasion of over Rs 50 lakh would be non‐bailable.
Similarly, failure to deposit service tax exceeding Rs 50 lakh would result in imprisonment up to seven years.

Major amendments for INDIRECT TAXES from BUDGET 2013

Major amendments for Indirect Tax from BUDGET 2013

Proposals under Indirect Tax - 

SERVICE TAX : - 

1.  No change in the normal rates of 12 percent for excise duty and service tax.

2.  Vocational courses offered by institutes affiliated to the State Council of Vocational Training and testing activities in relation to agricultural produce also included in the negative list for service tax.

3.  Exemption of Service Tax on copyright on cinematography limited to films exhibited in cinema halls.

4. Proposals to levy Service Tax on all air conditioned restaurant.

5.  For homes and flats with a carpet area of 2,000 sq.ft. or more or of a value of Rs. 1 crore or more, which are high-end constructions, where the component of services is

greater, rate of abatement reduced from from 75 to 70 percent.

6. A onetime scheme called ‘Voluntary Compliance Encouragement Scheme’ proposed to be introduced. Defaulter may avail of the scheme on condition that he files truthful declaration of Service Tax dues since 1st October 2007.

EXCISE DUTY : - 

1.  Relief to readymade garment industry. In case of cotton, zero excise duty at fibre stage also. In case of spun yarn made of man made fibre, duty of 12 percent at the fibre stage.

2.  Handmade carpets and textile floor coverings of coir and jute totally exempted

from excise duty.

3.  To provide relief to ship building industry, ships and vessels exempted from excise duty. No CVD on imported ships and vessels.

4.  Specific excise duty on cigarettes increased by about 18 %. Similar increase on cigars, cheroots and cigarillos.

5.  Excise duty on SUVs increased from 27 to 30 %. Not applicable for SUVs registered as taxies.

6.   Excise duty on marble increased from Rs. 30 per square meter to Rs. 60 per square meter.

7.   Proposals to levy 4 % excise duty on silver manufactured from smelting zinc or lead.

8.  Duty on mobile phones priced at more than Rs. 2000 raised to 6 %

9.   MRP based assessment in respect of branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine to reduce valuation disputes.

CUSTOM DUTY : -

1.  No change in the peak rate of basic customs duty of 10 perent for non-agricultural products.

2. Period of concession available for specified part of electric and hybrid vehicles extended upto 31 March 2015.

3. Duty on specified machinery for manufacture of leather and leather goods including footwear reduced from 7.5 to 5 %

4.  Duty on pre-forms precious and semi-precious stones reduced from 10 to 2 perent.

5.  Export duty on de-oiled rice bran oil cake withdrawn.

6.  Duty of 10 percent on export of unprocessed ilmenite and 5 percent on export on ungraded ilmenite.

7.  Concessions to air craft maintenaince, repair and overhaul (MRO) industry.

8.  Duty on Set Top Boxes increased from 5 to10 percent.

9.  Duty on raw silk increased from 5 to 15 percent.

10.  Duties on Steam Coal and Bituminous Coal equalised and 2 percent custom duty and 2 % CVD levied on both kinds coal.

11.  Duty on imported luxury goods such as high end motor vehicles, motor cycles, yachts and similar vessels increased.

12.  Duty free gold limit increased to Rs. 50,000 in case of male passenger and Rs.1,00,000

in case of a female passenger subject to conditions.

Major amendments for Income Tax from BUDGET 2013

Main Features of budget 2013 - 

Proposals under Income tax 


1. Relief for Tax Payers in the first bracket of Rs. 2 lakhs to Rs. 5 lakhs. A tax credit of Rs. 2000 to every person with total income upto Rs. 5 lakhs.
2. Surcharge of 10 percent on persons (other than companies) whose taxable income exceed Rs. 1 crore
3. Increase surcharge from 5 to 10 percent on domestic companies whose taxable income exceed Rs. 10 crore.
4. In case of foreign companies who pay a higher rate of corporate tax, surcharge to increase from 2 to 5 percent, if the taxabale income exceeds Rs. 10 crore.
5. In all other cases such as dividend distribution tax or tax on distributed income, current surcharge increased from 5 to 10 percent.
6. Additional surcharges to be in force for only one year.
7.  Education cess to continue at 3 percent.
8. Permissible premium rate increased from 10 percent to 15 percent of the sum assured by relaxing eligibility conditions of life insurance policies for persons suffering from disability and certain ailments.
9. Contributions made to schemes of Central and State Governments similar to Central Government Health Scheme, eligible for section 80D of the Income tax Act.
10.  Donations made to National Children Fund eligible for 100 percent deduction.
12. Investment allowance at the rate of 15 percent to manufacturing companies that invest more than Rs.  100 crore in plant and machinery during the period 1.4.2013 to 31.3.2015.
13. ‘Eligible date’ for projects in the power sector to avail benefit under Section 80- IA extended from 31.3.2013 to 31.3.2014.
14. Concessional rate of tax of 15 percent on dividend received by an Indian company from its foreign subsidiary proposed to continue for one more year.
15. Securitisation Trust to be exempted from Income Tax. Tax to be levied at specified rates only at the time of distribution of income for companies, individual or HUF etc. No further tax on income received by investors from the Trust.
16.  Investor Protection Fund of depositories exempt from Income-tax in some cases.
17. Parity in taxation between IDF-Mutual Fund and IDF-NBFC.
18. A Category I AIF set up as Venture capital fund allowed pass through status under Income-tax Act.
19. TDS at the rate of 1 percent on the value of the transfer of immovable properties where consideration exceeds Rs. 50 lakhs. Agricultural land to be exempted.
20. A final withholding tax at the rate of 20 percent on profits distributed by unlisted companies to shareholders through buyback of shares.
21. Proposal to increase the rate of tax on payments by way of royalty and fees fortechnical services to non-residents from 10 percent to 25 percent.
22. Reductions made in rates of Securities Transaction Tax in respect of certain transaction.
23. Proposal to introduce Commodity Transaction Tax (CTT) in a limited way. Agricultural commodities will be exempted.
24. Modified provisions of GAAR will come into effect from 1.4.2016.
25. Rules on Safe Harbour will be issued after examing the reports of the Rangachary Committee appointed to look into tax matters relating to Development Centres & IT Sector and Safe Harbour rules for a number of sectors.
26. Fifth large tax payer unit to open at Kolkata shortly.
27. A number of administrative measures such as extension of refund banker system to refund more than Rs. 50,000, technology based processing, extension of e-payment through more banks and expansion in the scope of annual information returns by Income-tax Department.