Changes Effective from 01-06-2016
1
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Electronic
Hearing under Income Tax law enabled
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2
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Document
required to be issued by an Income Tax Authority can be issued in paper form
or communicated in electronic form
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3
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Equalization
Levy @ 6% on online digital advertisement and incidental services or
provision of digital advertizing space
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4
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TCS
@ 1% on luxury vehicles and cash sale of goods or provision of services
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5
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6
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Non
resident not having PAN shall not be subjected to 20% TDS
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7
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Jurisdiction of Assessing Officer not to
questioned in serach cases after one month from notice u/s 153A
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8
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Non
Corporate assessee also to pay advance tax , 15% by 15th June .
45% by 15th Sep, 75% by 15th Dec and 100% by 15th March
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9
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In
case of presumptive Income 100% advance tax to be paid by 15th
March
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10
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Application
for Waiver of Interest u/s 220(2A) to be disposed off with in one year
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11
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Interest
under section 234C shall not be chargeable in case of an assessee having
income under the head "Profits and gains of business or profession"
for the first time,
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12
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Interest
on Refund for timely filed return to be allowed from 1st April but
interest on refund for belated return to be allowed from date of furnishing
of return
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13
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Interest
on refund of self assessment tax to be allowed from date of filing of return
or payment of tax, whichever is later.
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14
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No
Interest to be allowed if refund is lesser than 10% of determined tax
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15
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Additional 3% Interest for Appeal Effect
delayed beyond 3 months
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16
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In ITAT post of Sr Vice President abolished
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17
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Rectification period of ITAT orders limited
from 4 years to 6 months
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18
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Monetary limit for Hearing of appeal by SMC in
ITAT raised from 15 lacs to 50 lacs u/s 255(3)
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19
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Time
Limit for completion of assessments reduced from 24 months to 21 months .
Assessments to be complted by 31st December.
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20
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Order
for appeal effect to be passed with in 3 months from the end of month in
which appeal order is received
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21
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Limit
of Rs. 5000/- for Winnings from Horse Races enhanced to Rs. 10,000/-
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22
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For
TDS on payment to Contractors Aggregate Annual Limit of Rs. 75000/- increased
to Rs 100000/-
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23
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Monetary
Limit of Rs. 20,000/- for TDS on Insurance Commission u/s 194D reduced to Rs.
15000
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24
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Monetary
Limit for TDS on Commission u/s 194H enhanced from Rs. 5000/- to Rs. 15000/-
and rate reduced from 10% to 5% to bring parity with Insurance Commission.
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25
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Monetary
Limit for TDS on Commission on Lottery Tickets u/s 194G enhanced from Rs. 1000/- to Rs. 15000/- and
rate reduced from 10% to 5% to bring parity with Insurance and other
Commission
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26
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TDS
rate on withdrawl of NSS Deposits reduced from 20% to 10% u/s 194EE
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27
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TDS
on LIC Maturities exceeding Rs. 1,00,000/- not exempt u/s 10(10D) was charged
@2% by Finance Act 2014 wef 01-10-2014 . TDS rate lowered to 1%.
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28
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TDS
@10% for compulsory acquisition of immovable property other than agriculture
land where aggregate payments during financial year exceed Rs. 2 lacs now enhanced
to Rs 2.50 lacs.
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29
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Form
15G/15H enabled for rental payments also
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30
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The
Direct Tax Dispute Resolution Scheme for immunity from post assessment
interest, penalty and prosecution for cases pending before CITA on 29-02-2016
[Scheme Available up to 31st December]
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31
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The
Income Declaration Scheme 2016. Tax, Surcharge and Penalty @ 45% of
Undisclosed Income. Declaration to be filed till 30th September.
Tax etc to be paid till 30th November.s
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Changes Effective From AY 2017-18 i.e. Financial Year 2016-17
1
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In
case of domestic companies where its total turnover or the gross receipt in
the previous year 2014-15 does not exceed five crore rupees tax shall be
charged @ 29%.
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2
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Redemption
of Gold Bonds exempted from capital gains
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3
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Benefit
of Indexation on transfer of Gold Bonds
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4
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Assistance
or Grant for Budgetary Support to Trust established by Central or State
Government towards corpus for operationalizing Central Government Schmes exempted
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5
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Foreign
Company shall be resident in India if place of effective management is in
India, but first time relaxation from procedural provisions
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6
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Taxation of Dividend
for High End assesses @ 10% where aggregate dividend exceeds Rs. 10 lacs
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7
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Royalty income for
Patent of person resident in India who
is true and first patentee taxable @ 10%
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8
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Profit linked
Deduction for Technology driven and Innovative products start up Companies
and LLPs having turnover up to 25 crores
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9
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Capital Gain Exemption
for Investment in funds to finance Start ups to Rs. 50 lacs
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10
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Capital Gain exemption
for investment of 50% or more in share capital of MSME extended to compter or
software based startup companies
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11
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100% Profit Linked
Deduction for Affordable Housing Projects
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12
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Additional
Deduction of Rs. 50000/- p.a.on Housing Loan Interest u/s 80EE:
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13
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Period
of Acquisition/Construction extended to 5 years for enhanced deduction of Rs.
2 lacs towards Housing Loan Interest
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14
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Incentive
provisions for employment generation revampted providing additional 30%
deduction on additional employee cost for 3 years.
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15
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House
Rent deduction for person not availing HRA extended from Rs. 2000 pm to Rs.
5000/- pm
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16
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Shares
received by Individual/HUF under amalgamation or demerger not to be taxed u/s
56 (2)(vii)
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17
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Rebate
u/s 87A available up to Rs. 2000 increased to Rs. 5000in respect of
individual resident in India whose total income does not exceed Rs. 5 lacs,
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18
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30%
Deduction allowed on receipt of unrealized rent also like rent in arrears
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19
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Deduction
of Salary and Interest of partner from 8% presumptive Income withdrawn.
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20
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An
assessee who does not declare 8% presumptive income for 6 consecutive years
barred from benefits of presumptive taxation for subsequent 5 years also from
the year he opts out of presumptive income.
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21
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Presumptive
Income Scheme for professional introduced. Required to reflect 50% Income
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22
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Deduction
of NPA provisions also being allowed to NBFCs
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23
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Set
Off of Loss not to be allowed against Unexplained Credits, Expenditure,
Investments etc.
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24
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Consideration for Restrictive Covenants of
Profession made taxable
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25
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Sale
of Goodwill of Profession also made taxable
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26
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Sum
payable to Railways to be allowed as deduction of payment is made before due
date of filing of return
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27
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For
calculation of capital gains, Stamp duty value of date of agreement for sale
(and not date of registration of sale deed) to be adopted where consideration for agreement for sale is
received by A/c payee cheque etc.
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28
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For
Unlisted shares, thresh hold period of holding for long term capital gain reduced from 36 months to
24 months.
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29
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Return
to mandatorily filed if Gross Total Income without considering exemption for
Long term capital gain on shares exceeds exemption limit
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30
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Return shall not be defective merely because self
assessment tax and interest not paid with return
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31
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Belated filing of Return restricted to end of assessment
year and also belated filing in response to Notice u/s 142 prohibited
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32
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Belated Return can also be revised.
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33
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Prima Facie adjustement in processing of return extended
for wrong carry forward of loss or claim of profit linked deduction for belated return, disallowance arising
from audit qualifications, Differences with 26AS
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34
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Return to be processed before assessment order is issued
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35
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Tax Incentive of 5% to new domestic manufacturing companies
and Research Companies
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36
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Employer’s
Contribution to approved superannuation fund has been enhanced from 1 lakh to
Rs. 150000 u/s 17(2) to bring it in
parity with deduction of Rs. 1.50 lacs for employees contribution u/s
80C(2)(vii)
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37
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The
conversion from recognized provident fund and approved superannuation fund to
new pension scheme has been exempted
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38
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40%
of amount receivable under new pension scheme and commuted annuity at the
time of closure or opting out also exempted from tax.
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39
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Amount
received by nominee under new pension scheme on death of the contributor has
been provided albeit exemption
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40
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New
Penalty provision for underreporting @ 50% and Misreporting 200% of tax
payable Introduced
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41
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Immunity
from Penalty on payment of tax and Interest and not filing appeal before CITA
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Changes Effective from AY 2016-17 i.e. FY 2015-16
1
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Deposit
certificates issued under the Gold Monetisation Scheme, 2015 exempted from
capital gains
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2
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Income
on deposit certificates issued under the Gold Monetisation Scheme, 2015
has been exempted u/s 10(15)
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3
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Exemption
to Foreign Mining Companies from business of uncut and unasserted diamond in Special
Zone notified by Central Government
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4
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Loss
of Specified Business u/s 35AD where capital expenditure is
allowed
as deduction to be carried forward only if return is filed in time
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