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Clause by Clause Analysis of Direct tax proposals

Clause by Clause Analysis of Direct tax proposals. Purpose of Budget. The purpose of Budget is to garner finances not only to run the country but also maintain financial stability and improve the scope of development by paving path for prosperity. गांव - गरीब. Farmer 27 times

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Clause by Clause Analysis of Direct tax proposals

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  1. Clause by Clause Analysis of Direct tax proposals

  2. Purpose of Budget • The purpose of Budget is to garner finances not only to run the country but also maintain financial stability and improve the scope of development by paving path for prosperity.

  3. गांव - गरीब • Farmer 27 times • Agriculture 29 times • Poor – 21 times • Salaried – 7 times • From Ease of doing business to Living

  4. Annexures in Budget • Supreme Court in K.P. Varghese [TS-11-SC-1981-O] had examined the relevance of Budget “Budget Speech which states the circumstances in which the amendment came to be passed, explains the reason for the introduction of the Bill, can always be referred to for the purpose of ascertaining the mischief sought to be remedied by the legislation and the object and purpose for which the legislation was enacted.”

  5. Snapshot

  6. Rate of Tax

  7. What lost in last year?

  8. INCOME FROM SALARY

  9. Senior Citizens

  10. National Pension Scheme

  11. Taxation of LTCG from Equity Shares-New Sec. 112A

  12. Why STT was introduced • Balance of Payments • Huge foreign investments helped country • FII investment would reduce and Dollar prices would cost INR and Oil Bill shall increase • Benefit available in DTAA - Netherlands • STT revenue much more as not dependent on gains • FAQ – No STT at time of purchase

  13. Taxation of LTCG from Equity Shares-New Sec. 112A

  14. COST OF ACQUISITION Whichever Is Lower Whichever Is Higher

  15. CALCULATION OF GAINS

  16. Dividend tax on Units 115R

  17. Conversion of SIT into Cap Asset • Conversion not withdrawal • Withdraw and continue to hold

  18. Implications

  19. Charitable Organizations : Disallowance of deductions.

  20. SALE/PURCHASE OF IMMOVABLE PROPERTY

  21. Income computation disclosure standards

  22. Conflict removed retrospectively

  23. ICDS Related changes- Valuation(Sec. 145 A)

  24. Securities

  25. Para 12 of ICDS 8 “Notwithstanding anything contained in para 9,10 and 11, at the end of previous year, securities not listed on recognised stock exchange; or listed but not quoted on a recognised stock exchange with regularity from time to time, shall be valued at actual cost initially recognised.” * Stock is unsold as on 31.03.2017. As per para 12, the said securities need to be valued at cost. Thus, the incremental impact is on profit. (200 -20)

  26. Retention money

  27. ICDS Related Changes-Profits of construction contracts /service contracts(Sec 43 CB)

  28. ICDS related changes -Others

  29. Sec.2(22)(e)

  30. Dividend : Scope of Accumulated Profit widened Section 2(22) defines dividend which includes distribution of accumulated profits Definition of accumulated profit widened w.e.f. 01.04.2018 (A.Y. 2018-19 onwards) Gautam Sarabhai Trust overruled Accumulated profit/loss of Amalgamating Company Accumulated profit of Amalgamated Company Accumulated profit for the purpose of dividend

  31. Significant economic presence • Digital PE • On certain criteria’s TDS may be required to be deducted on imports • DTAA’s would still prevail • Amazon, flipkart

  32. Farm Producer Companies

  33. Sec. 44AE

  34. Section 44AE • (15) "gross vehicle weight" means in respect of any vehicle the total weight of the vehicle and load certified and registered by the registering authority as permissible for that vehicle; • (16) "heavy goods vehicle" means any goods carriage the gross vehicle weight of which, or a tractor or a road-roller the unladen weight of either of which, exceeds 12,000 kilograms;  • (48) "unladen weight" means the weight of a vehicle or trailer including all equipment ordinarily used with the vehicle or trailer when working, but excluding the weight of a driver or attendant; and where alternative parts or bodies are used the unladen weight of the vehicle means the weight of the vehicle with the heaviest such alternative part or body; 

  35. Insolvency and Bankruptcy Code

  36. Section 80JJAA

  37. Startups S.80IAC • The definition of eligible business has been expanded to provide that the benefit would be available if it is engaged in innovation, development or improvement of products or processes or services, or a scalable business model with a high potential of employment generation or wealth creation

  38. MISCELLANEOUS

  39. MISCELLANEOUS

  40. E-assessment

  41. This budget is Income-tax officer’s budget. It will enable the officer what he always wanted to do but did not have that authority to do. • S.E.Dastur

  42. Thank You CA Pankaj G. Shah G.J. Shah & Company Chartered Accountants Mobile 9691893040 E-mail: pankajgshah@gmail.com

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