FINANCE ACT

2014

APPLICABLE FOR

MAY 2015/NOV
2015
CA KARISHMA
www.cakarishma.c
om

GK MALIK &
A S S O C I AT E S
Chartered
Accountants

TAX RATES
AMENDMENTS
BASIC EXEMPTION
LIMIT
SURCHARGE &
MARGINAL RELIEF
REBATE u/s 87A

250000/300000/5000
00
Same (10% if net
income exceeds
1crore)
Same (Rs 2000Resident Individual if
NI does not exceed
5Lakhs)

GK MALIK & ASSOCIATES Chartered

Accountants

www.cakarishm

INCOME FROM HOUSE PROPERTY

24(b)

OLD

NEW

INTEREST ON
BORROWED
CAPITAL

150000

200000

GK MALIK & ASSOCIATES Chartered

Accountants

www.cakarishm

PROFITS AND GAINS OF BUSINESS OR PROFESSION

PARTICULARS
Investment
Allowance to a
Manufacturing
Company
DEDUCTION:
15%

OLD
32AC(1)

1-4-2013 to 3103-2015
Invest more
than 100 crores
in new plant
GK MALIK & ASSOCIATES
Chartered
and
machinery
Accountants

NEW
32AC(1A)

1-4-2014 to 3103-2017
Invest more
than 25 crores
in new plant
and
machinery
www.cakarishm

CAPITAL EXPENDITURE ON SPECIFIED

BUSINESS
1. Two new businesses included
Laying and operating a slurry
pipeline for the transportation of
iron ore.
Setting up and operating a
semiconductor wafer fabrication
manufacturing unit.
2. Capital asset claimed must be used
for&specified
business for a
GK MALIK
ASSOCIATES Chartered
www.cakarishm
Accountants
period of eight years

PROFITS AND GAINS OF BUSINESS OR

PROFESSION
SECTION

OLD

37(1) General
CSR expenditure
Deduction
allowed
40(a)(i)
Disallowed if Tax
Disallowance of
deducted was not
expenditure Non paid before the
resident
end PY
40(a)(ia)
100 % Disallowed
Disallowance of
expenditure
Resident
44AE Presumptive HGV-5000 p.m
Chartered p.m
Accountants
Income GK MALIK & ASSOCIATES
OGV-4500
GK MALIK & ASSOCIATES Chartered

NEW

Disallowed
Disallowed if Tax
deducted was not
paid before the
due date of ROI
30% Disallowed

Any vehicle 7500

p.m
www.cakarishm

CAPITAL GAINS
SECTION
54 & 54F

54EC

HP
<=36M

OLD
Investment in a
residential house

NEW
Investment in one
residential house situated
in India
Restricts the investment
during Relevant PY&
subsequent PY to 50 lakh

Restricts the
investment during
any financial year
to 50 lakh
2(42A) Definition of STCA
Others
Others
unlisted securities Unlisted securities
Unlisted shares
GK MALIK & ASSOCIATES Chartered Accountants
Units of Debt www.cakarishma.
oriented MF

TAX TREATMENT OF MF w.e.f

11/7/2014
TYPE OF
MF
STCA
LTCA

STCA
LTCA

HOLDING PERIOD

TAX TREATMENT

DEBT OREINTED MF
<=36M
Tax at normal rates
>36M
Tax at 20% with
Indexation
EQUITY OREINTED MF
<=12M
111A @15%
>12M
If STT is paid
Exempt u/s 10(38)
If STT is not paid

Option1: Indexation

GK MALIK & ASSOCIATES Chartered Accountants

IFOS
PARTICULARS
Advance
forfeited
for transfer of a
capital asset

OLD
If any amount
was forfeited
upto 31.3.2014
then it shall be
deducted from
the cost of
acquisition as
per old sec. 51.

GK MALIK & ASSOCIATES Chartered

Accountants

NEW
Advance
forfeited due to
failure of
negotiations for
transfer of a
capital asset to
be taxable as
Income from
other sources
[Section 56(2)]
www.cakarishm

DEDUCTIONS
SECTIO
N
80C

PARTICULARS

CEILING
LIMIT (`)
1,50,000

Investment
in
specified
instruments
80CCC
Contribution
to
1,00,000
certain
pension
funds
80CCD(1
Contribution to new
1,00,000
)
pension scheme of
Government
80CCE
Aggregate deduction
1,50,000
under section 80C,
GK MALIK & ASSOCIATES Chartered
80CCC & 80CCD (1)
www.cakarishm
Accountants

PRACTICAL QUESTION
1.Mr. X invested 1,20,000 in pension plan of
insurance company.
How much deduction he can claim u/c VI-A?
2.Mr. Y invested total 1,20,000 in NPS. How much
deduction he can claim u/c VI-A?
3.Mr. Z invested total 1,20,000 in PPF+NSC+LIP.
How much deduction he can claim u/c VI-A?
4.Mr. A invested total 1,20,000 in Pension plan of
insurance company and 40,000 in PPF. How
much deduction he can claim u/c VI-A?
GK MALIK & ASSOCIATES Chartered
Accountants

www.cakarishm

TDS
PARTICULARS
NATURE OF
PAYMENT

194DA
Any sum under
LIC

DEDUCTOR

Insurance
Companies
Resident
2%

DEDUCTEE
RATE

EXEMPTION

(a)Upto 100000
(b)If
exempt u/s
GK MALIK & ASSOCIATES
Chartered
10(10D)
Accountants

194LBA
Distributed
incomeu/s
115UA
Business Trust
Unit Holder
Resident- 10%
Non Resident
5%
Nil
www.cakarishm

CHARITABLE TRUSTS & INSTITUTIONS

Taxability of anonymous donations

Section 115BBC has been amended to provide that the
income-tax payable shall be the aggregate of
(i) the amount of income-tax calculated @30% on the
aggregate of anonymous donations received in excess of
5% of the total donations received by the assessee or
one lakh rupees, whichever is higher; and
(ii)the amount of income-tax with which the assesse
would have been chargeable had his total income been
reduced by the aggregate of the anonymous donations
received in excess of 5% of the total donations received
by the assessee or ` 1 lakh, as the case may be

GK MALIK & ASSOCIATES Chartered

Accountants

www.cakarishm

THANK YOU

www.cakarishma.c
om

GK MALIK &
A S S O C I AT E S
Chartered
Accountants