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Jagdish T Punjabi June 25, 2014
Income- tax amendments applicable for the
assessment year 2014-15 and
E-Filing of returns of Income.
2
Contents
Persons obliged to file return of income.
Due dates for filing return of income.
Rates of tax applicable for AY 2014-15.
Amendments to the Act, relating to filing of return of income, applicable with effect
from AY 2014-15.
Forms to be used by various assessees.
Persons required to file return electronically.
Cases where return is to be digitally signed.
Changes in the Forms.
Data required for filing return of income which may not be available from financial
statements to be taken in filing returns of income
Jagdish T Punjabi June 25, 2014
3
Persons obliged to file return of income
Jagdish T Punjabi June 25, 2014
Sr.
No.
Status of the Assessee Conditions
1 Firms (including LLP) Every Firm irrespective of earning income or incurring
loss
2 Company Every Company irrespective of earning income or
incurring loss
3 Person other than Company or Firm If his or its total income during the previous year
exceeds maximum amount not chargeable to tax,
without considering deduction u/ss. 10A, 10B, 10BA,
and Chapter VI-A
4 Charitable or religious trust If the total income in the previous year exceeds the
maximum amount not chargeable to tax without giving
effect to section 11 and section12
5 Every person To whom notice u/s 142(1) or 148 is issued
6 Any resident person other than not
ordinary resident
Who has any asset (including financial interest in any
entity) located outside India or signing authority in any
account located outside India
4
Persons obliged to file return of income…
Jagdish T Punjabi June 25, 2014
Sr.
No.
Status of the Assessee Conditions
7 • Research Association u/s 10(21)
• News Agency u/s 10(22B)
• Association / Institution referred u/ss.
10(23A) and 10(23B)
• Universities / Hospitals / Medical
institutions referred under various sub-
clauses of Section 10(23C) i.e. (iiiad) or
(iiiae) or (iv) or (v) or (vi) or (via)
• Trade Union referred u/ss. 10(24)(a)
and 10(24)(b)
• Board / Trust / Commission referred u/s
10(46)
• Infrastructure Debt Fund referred u/s
10(47)
If the income exceeds maximum amount not
chargeable to tax without considering
exemptions under respective provisions of
section 10
8 University, college or any other institution
referred u/s 35(1)(ii)/(iii)
Required to furnish return of income / loss even if
not required to furnish return of income under
any other provisions
9 Political Party Total income in the previous year without giving
effect to section 13A exceeds the maximum
amount not chargeable to income tax
5
Due dates for filing return of income for AY 2014-15Due date for filing return of income depends upon –
1. legal status of the person;
2. whether the provisions of s. 44AB of the Act are applicable to such person;
3. whether such person is required to obtain Transfer Pricing Report under s.92E.
The due dates for filing of return of income by various categories of persons can be
summarized as under –
Belated Return can be filed at any time upto 31st March, 2016 provided assessment is not
completed upto that date {under s. 139(4)}.
A return of income filed under s. 139(1) can be revised at any time upto 31st March, 2016.
Modified return u/s 92CD is required to be filed within a period of 3 months from the end of
the month in which advance pricing agreement was entered into.
Jagdish T Punjabi June 25, 2014
Particulars Due Date
Persons required to obtain Transfer Pricing Report under s. 92E (TPR) 30th November, 2014
Every person liable to get its accounts audited under s. 44AB of the
Act or under any other law but not required to obtain a TPR.
30th September, 2014
WP of a firm liable to Tax Audit u/s 44AB of the Act or under any other
law
30th September, 2014
Companies not required to obtain TPR 30th September, 2014
Persons other than those stated above 31st July, 2014
6
Tax Rates for Assessment Year 2014-15
Individuals / HUF / AOP / BOI
Co-operative Society
Tax Rate Total Income Slabs
Individual who is Resident
Very Senior Citizen
(> 80 yrs)
Individual who is
Resident Senior Citizen
(60 - 80 yrs)
Other Individual /
HUF/AOP/BOI
Nil ≤ 5,00,000 ≤ 2,50,000 ≤ 2,00,000
10% - > 2,50,000 ≤ 5,00,000 > 2,00,000 ≤ 5,00,000
20% > 5,00,000 ≤ 10,00,000 > 5,00,000 ≤ 10,00,000 > 5,00,000 ≤ 10,00,000
30% > 10,00,000 > 10,00,000 > 10,00,000
Tax Rate Total Income Slabs (in Rs.)
10% ≤ 10,000
20% > 10,000 ≤ 20,000
30% > 20,000
Jagdish T Punjabi June 25, 2014
Note : In addition to tax at
above rates, EC & SHEC @
3% of income-tax is also
payable, in certain cases
surcharge is also leviable –
see separate slide
7
Tax Rates
Tax Payer Tax Rate
Partnership Firm (including LLP) 30%
Local Authority 30%
Domestic Company 30%
Foreign Company -
# in respect of royalty received from Government or an Indian concern in
pursuance of an agreement made by it with the Indian concern after
31.3.1961 but before 1.4.1976 or fees for rendering technical services
in pursuance of an agreement made by it after February 29, 1964 but
before April 1, 1976 and where such agreement has, in either case,
been approved by the Central Government.
50%
# in respect of royalty received from Government or an Indian concern in
pursuance of an agreement made by it with the Indian concern after
31.3.1976 or fees for rendering technical services in pursuance of an
agreement made by it after 31.3.1976 and where such agreement has,
in either case, been approved by the Central Government.
25%
# in respect of other income 40%
Others
Jagdish T Punjabi June 25, 2014
8
Tax Rates
Tax Payer Tax Rate
Minimum Alternate Tax (MAT) – As a percentage of Book Profit (payable by
Companies) (115JB)
18.50%
Alternate Minimum Tax (AMT) – As per rate given u/s 115JC on adjusted
total Income (payable by Other than Companies) (115JC)
18.50%
Tax on dividend declared, distributed or paid by a domestic company
(115O)
15.00%
Tax on ―distributed income‖ by domestic company on buy back of shares not
listed on a recognised stock exchange
20.00%
Tax on income distributed by Securitisation Trust 25.00%
Others
Jagdish T Punjabi June 25, 2014
9
Tax Rates - Trusts
Particulars Tax Rate
Public Religious / Charitable Trust / income Exempt u/s 11
Corpus Donations Exempt u/s 11
Private religious trust / religion specific charitable
trust
Taxable as AOP (rates applicable to
individuals)
Religious / Charitable Trust - for non exempt
income / loss of exemption u/s 13(1)(c) & 13(1)(d)Maximum Marginal Rate*
Any other taxable income of religious / charitable
trusts
Taxable as AOP (rates applicable to
individuals)
Anonymous Donations (‗AD‘) (section 115BBC)30% on AD in excess of 5% of total
donations or Rs. 1 lakh
Private trust – shares of beneficiaries known
(no business profits)
Trustee assessed as Representative
Assessee of each beneficiary (section
161)
Private trust – shares of beneficiaries unknown
(no business profits)
Maximum Marginal Rate*
(taxable as AOP in certain circumstances)
Private trust earning business profits Maximum Marginal Rate*
Oral Trust Maximum Marginal Rate*
* Maximum Marginal Rate for AY 2014-15 –33.99% including surcharge & cess
Jagdish T Punjabi June 25, 2014
10
Rates of Tax given in various sections of the Act.Tax rates specified in the Income-tax Act - The following incomes are taxable at the rates
specified by the Income-tax Act. (the list contains often used rates. It is not exhaustive list)
Jagdish T Punjabi June 25, 2014
Section Income Income-taxrates
111A Short-term capital gains 15
112 Long-term capital gains 20
115A(1)(a)(i) Dividend received by a foreign company or a non-resident non-
corporate assessee [*it is not applicable in the case of
dividends referred to in section 115-O]
20*
115A(1)(a)(ii) Interest received by a foreign company or a non-resident non-
corporate assessee from Government or an Indian concern on
moneys borrowed or debt incurred by Government or the
Indian concern in foreign currency
20
115A(1)(a)(iia) Interest received from an infrastructure debt fund referred to in
section 10(47)
5
115A(1)(a)(iiaa) Interest received from an Indian company specified in section
194LC
5
115A(1)(a)(iiab) Interest of the nature and extent referred to in section 194LD
(applicable from the assessment year 2014-15)
5
11
Rates of Tax given in various sections of the Act...
Jagdish T Punjabi June 25, 2014
Section Income Income-tax rates
115A (1)(b) Royalty or fees for technical services (not referred to in section 44DA)
received by a foreign company or non-resident non-corporate assessee
from an Indian concern or Government in pursuance of an agreement
approved by the Central Government—
Assessment year 2014-15 - If such agreement is made at any time
after March 31, 1976
25
115AB Income of an overseas financial organisation on transfer of units purchased
in foreign currency being long-term capital gains
10
115AC Income from bonds or Global Depository Receipts1 or on bonds or Global
Depository Receipts1 of a public sector company sold by the Government
and purchased in foreign currency or long-term capital gains arising from
their transfer *[not applicable in the case of dividends referred to in section
115-O]
10*
12
Rates of Tax given in various sections of the Act...
Jagdish T Punjabi June 25, 2014
Section Income Income-tax rates
115ACA Income from Global Depository Receipts held by a resident individual who is
an employee of an Indian company engaged in information technology
software/services
Dividend [other than dividend referred to in section 115-O] on global
Depository Receipts issued under employees stock option scheme
and purchased in foreign currency
10
Long-term capital gain on transfer of such receipts 10
115AD Income in respect of securities received by a Foreign Institutional Investor
as specified by the Government
Short-term capital gain covered by section 111A 15
Any other short-term capital gain 30
Long-term capital gain 10
Interest referred to in section 194LD (applicable from the assessment
year 2014-15)
5
Other income [*not applicable in the case of dividends referred to in
section 115-O]
20*
13
Rates of Tax given in various sections of the Act...
Jagdish T Punjabi June 25, 2014
Section IncomeIncome-tax rates
115B Profits and gains of life insurance business 12.5
115BB
Winnings from lotteries, crossword puzzles, or race including horse race
(not being income from the activity of owning and maintaining race horse)
or card game and other game of any sort or from gambling or betting of any
form or nature 30
115BBA(1)
(a)/(b)
Income of a non-resident foreign citizen sportsman for participation in any
game in India or received by way of advertisement or for contribution of
articles relating to any game or sport in India or income of a non-resident
sport association by way of guarantee money 20
115BBA(1)
(c)
Income of non-resident foreign citizen (being an entertainer) for
performance in India 20
115BBC Anonymous donation 30
115BBD
Income of an Indian company by way of dividends declared, distributed or
paid by a specified foreign company (in which the Indian company holds 26
per cent or more of equity share capital) 15
115BBE Income referred to in sections 68, 69, 69A, 69B, 69C and 69D 30
14
Rates of Tax given in various sections of the Act...
Jagdish T Punjabi June 25, 2014
Section Income Income-tax rates
115E
Income from foreign exchange assets and capital gains of non-resident
Indian
a. income from foreign exchange asset [*not applicable in the case of
dividends referred to in section 115-O]
20*
b. long-term capital gain 10
115JB Tax on book profits of certain companies 18.5
115JC Alternate minimum tax in the case of any non-corporate taxpayer 18.5
115O Tax on dividend declared, distributed or paid by a domestic company 15
115QA Tax on ―distributed income‖ by domestic company on buy back of shares
not listed on a recognised stock exchange
20
115TA Tax on income distributed by Securitisation Trust 25
161(1A) Profits and gains of a business in the case of a trust 30
164 Income of private discretionary trust where shares of beneficiaries are
indeterminate
30
164A Income of an oral trust 30
167A Income of a firm 30
15
Rates of Tax given in various sections of the Act...
Jagdish T Punjabi June 25, 2014
Section Income Income-tax rates
167B Income of an association of persons or body of individuals if shares of
members are unknown
30
167B(2) Income of an association of persons or body of individuals if total income of
any member (excluding share from the association or body) exceeds the
maximum amount not chargeable to tax [*if total income of any member of
the association or body is chargeable to tax at a rate higher than 33.99 per
cent for the assessment year 2014-15, then tax shall be charged on that
portion of the total income of the association/body which is relatable to the
share of such member at such higher rate and the balance of the total
income is taxable at a rate of 33.99 per cent for the assessment year 2014-
15]
30*
16
Rates of Tax given in various sections of the Act...Notes :
1. Surcharge - The above income-tax rates are subject to surcharge. Surcharge is calculated
as a percentage (given below) of income-tax –
† or book profit (for the purpose of section 115JB) or adjusted total income (for the purpose
of section 115JC).
2. Education cess - 2 per cent of income-tax and surcharge
3. Secondary and higher education cess : 1 per cent of income-tax and surcharge.
4. Marginal relief is available to individuals, HUF, AOP, BOI, every artificial juridical person, co-
operative society, firm, domestic company, foreign company. MR is also for MAT & AMT.
Jagdish T Punjabi June 25, 2014
If total income
If total income† is
up to Rs. 1 crore
If total income† is
> Rs.1 cr ≤ Rs 10 cr
If total income† is
> Rs. 10 crore
Individuals/HUF/AOP/BOI
/Artificial Juridical PersonNil 10% 10%
Firm Nil 10% 10%
Co-operative Society Nil 10% 10%
Local Authority Nil 10% 10%
Domestic Company Nil 5% 10%
Foreign Company Nil 2% 5%
Alternate Minimum Tax Nil 5% 10%
17
ITR Forms to be used
Jagdish T Punjabi June 25, 2014
Form
No.
Applicable To Not Applicable To
ITR-1
(Sahaj)
Individual having income
only from Salaries,
Pension, House Property
(HP), Income from Other
Sources (IOS)
Individual having:
i. More than one HP
ii. B/f losses under HP or loss under IFOS
iii. Winnings from Lottery or Income from Race
Horses
iv. R & OR having foreign assets/ signing
authority in foreign bank account
v. Claim for foreign tax credit/ relief under
section 90/90A/91
vi. Exempt income exceeding Rs.5,000
ITR-2 Individual/HUF Individual/HUF having business/professional
income
ITR-3 Individual/HUF who is
partner in a firm
Individual/HUF having any other business/
professional income
ITR-4 Individual/HUF having
business/ professional
income
-
18
Form
No.
Applicable To Not Applicable To
ITR-4S
(Sugam)
Individual/HUF having
presumptive business
income computed
under section
44AD/44AE
Individual/HUF :
i. Being R & OR having foreign assets/ signing
authority in foreign bank account
ii. Claiming foreign tax credit/ relief under
section 90/90A/ 91
iii. Having exempt income exceeding Rs.5,000
ITR-5 Person other than
Individual / HUF /
company
Persons required to file return
u/s.139(4A),(4B),(4C) or (4D) – They are required
to file ROI in Form ITR 7
ITR-6 Company Company required to file ITR 7
ITR-7 Person (including
company) required to
file return under
section 139(4A),(4B),
(4C) or (4D)
-
Jagdish T Punjabi June 25, 2014
ITR Forms to be used
19
Manner of Filing of Returns
Persons Electronic
Filing
Physical
Filing
Digital Signature
(Compulsory)
All persons whose total income is up
to 5 lacs (except Companies and
person required to furnish return in
ITR-7) and is not required to furnish
a report of audit u/s 10A, 10AA,
44AB, 44DA, 50B or 92E.
a a r
All persons whose total income is
more then Rs. 5 lacs (except
Companies and person required to
furnish return in ITR-7)
a r r
Firm or Individual or HUF, which is
required to furnish a report of audit
u/s 10A, 10AA, 44AB, 44DA, 50B or
92E.
a r a
Company including company
required to file return in ITR-7a r a
Jagdish T Punjabi June 25, 2014
20
Changes in Online Filing of Returns
Persons Electronic
Filing
Physical
Filing
Digital
Signature
(Compulsory)
Person claiming benefit of Double Taxation
Avoidance Agreement (‗DTAA‘) (u/s 90 or 90A)
or unilateral relief (u/s 91)
a r r
Person required to furnish return in ITR-7 -
# and who is required to furnish a report of
audit under sections 10(23C)(iv),
10(23C)(v), 10(23C)(vi), 10(23C)(via), 10A,
10AA, 12A(10(b), 44AB, 44DA, 50B, 80IA,
80IB, 80IC, 80ID, 80JJA, 80LA, 92E,
115JB or 115VB
a r a
# others a a r
Individual or HUF being resident and ordinarily
resident having assets outside India or signing
authority in any account located outside India
a r r
Jagdish T Punjabi June 25, 2014
22
Some of the amendments to the Act, relating to filing of return of income,
applicable with effect from AY 2014-15
Jagdish T Punjabi June 25, 2014
Amendments impacting Sections
Exempt Income10(10D), 10(23DA), 10(23FB),
10(34A), 10(35A), 10(48), 10(49)
Computation of Income from Salaries None
Computation of Income from House Property None
Computation of Profits & Gains of Business or
Profession32AC, 36, 40, 43, 43CA
Computation of Capital Gains 2(1A), 2(14)
Computation of Income from Other Sources 56
Deductions under Chapter VI-A80C, 80CCG, 80D, 80EE, 80G,
80GGB, 80GGC, 80IA, 80JJA
Rebate 87A
Buy back of shares 115QA
23
Amendment to s. 2(1A) and s. 2(14)The definition of the terms `agricultural land‘ and `capital asset‘ have been amended. Prior
to the amendment land situated in an area notified by the Central Government was regarded
as non agricultural land. Also, income from such land was not regarded as agricultural
income. Central Government could notify land situated within a distance of not more 8 kms
from the local limits of a local authority or a cantonment board. While so notifying the areas,
the Government had to have regard to the extent of, scope for urbanization of that area and
other relevant considerations.
Post the amendment w.e.f. 1.4.2014, the land situated outside the local limits of local
authority or cantonment Board will be regarded as non agricultural land considering the
population of the local authority or a cantonment board.
If the population is more than 10,000 but upto 1,00,000 then land situated within 2 kms from
the local limits of the local authority or cantonment board will be non agricultural land.
If the population is more than 1,00,000 but upto 10,00,000 then land situated within 6 kms
from the local limits of the local authority or cantonment board will be non agricultural land.
If the population is more than 10,00,000 then land situated within 8 kms from the local limits
of the local authority or cantonment board will be non agricultural land.
For this purpose, population means the population according to the last preceding census of
which the relevant figures have been published before the first day of the previous year.
For AY 2014-15, the relevant figures will be the figures of the census which figures have
been published before 1.4.2013. The distance is to measured aerially.
Jagdish T Punjabi June 25, 2014
24
Amendment to s. 10(10D)
Under section 10(10D) any sum received under a life insurance policy, including the sum
allocated by way of bonus on such policy is exempt from tax. However, amounts received
under certain policies are not exempt. One such policy is an insurance policy issued on or
after 1.4.2012 in respect of which the premium payable for any of the years during the term
of the policy exceeds 10% of the actual capital sum assured. Effective 1.4.2014 a proviso is
added to this which provides that in case a policy is issued on or after 1.4.2013 and is for
insurance on life of a person who is
1. a person with disability; or
2. a person with severe disability as referred to in s. 80U; or
3. is a person suffering from disease or ailment specified in rules made under s. 80DDB
then for the words 10% the words 15% are substituted.
The term ―actual capital sum assured‖ in relation to a life insurance policy shall mean the
minimum amount assured under the policy on happening of the insured event at any time
during the term of the policy, not taking into account –
1. The value of any premium agreed to be returned; or
2. Any benefit by way of bonus or otherwise over and above the sum actually assured,
which is to be or may be received under the policy by any person.
Corresponding amendment has been made in s. 80C as well.
Jagdish T Punjabi June 25, 2014
25
Insertion of Section 10(34A)
S. 10(34A) provides that any income arising to an assessee, being a shareholder, on
account of buy back of shares (not being listed on a recognized stock exchange) by the
domestic company as referred to in s. 115QA will be exempt.
This section applies to any assessee irrespective of legal status and residential status. The
assessee should be a shareholder. Income should arise to the assessee on account of buy
back of shares which are not listed on a recognized stock exchange. Income should arise
from the domestic company referred to in s. 115QA. This section has been introduced since
the company buying back the shares is now required to pay tax under section 115QA /
Chapter XII-DA. A tax of 20% of the distributed income paid to shareholders is required to be
paid by the domestic Company.
Jagdish T Punjabi June 25, 2014
26
Insertion of Section 10(35A)
Amendments have been made to tax Securitisation Trust. Correspondingly, with a view to
avoid double taxation, s. 10(35A) has been introduced so as to provide that any income
received by an investor of a Securitisation Trust from such trust by way of distributed income
referred to in s. 115TA shall be exempt under s. 10(35A).
Jagdish T Punjabi June 25, 2014
27
Insertion of Section 32ACIncentive for Investment in new Plant or machinery: Deduction equal to 15% of the actual
cost of new assets acquired and installed after 31.3.2013 but before 1.4.2015.
Applicable to : A company. Residential status is not relevant.
Conditions required to be satisfied:
1. the Company is engaged in the business of manufacture or production of any article or
thing;
2. the Company acquires and installs new asset after 31.3.2013 but before 1.4.2015; (the
term `new asset‘ is defined in sub-section (4) of section 32AC)
3. actual cost of such new assets exceeds one hundred crore rupees.
Deduction to be allowed:
1. For assessment year 2014-15: 15% of the actual cost of new assets acquired and
installed after 31.3.2013 but before 1.4.2014 if the actual cost of new assets exceeds
one hundred crore rupees.
2. For assessment year 2015-16: 15% of the actual cost of new assets acquired and
installed after 31.3.2013 but before 1.4.2015 as reduced by the amount of deduction
allowed in assessment year 2014-15.
New asset is defined to mean any new plant or machinery (other than ship or aircraft) other
than items specifically excluded.
Jagdish T Punjabi June 25, 2014
28
Insertion of Section 32AC…Items specifically excluded from the definition of the term `new asset‘ –
1. any plant or machinery which before its installation by the assessee was used either
within or outside India by any other person; (this is any way evident from the term
`new‘);
2. any plant or machinery installed in any office premises or any residential
accommodation, including accommodation in the nature of a guest house;
3. any office appliances including computers or computer software;
4. any vehicle; or
5. any plant or machinery, the whole of the actual cost of which is allowed as a deduction
(whether by way of depreciation or otherwise) in computing the income chargeable
under the head `Profits and gains of business or profession‘ of any previous year.
If the actual cost of new assets acquired and installed after 31.3.2013 but before 1.4.2014 is
less than rupees one hundred crore then such company will not get a deduction under this
section in assessment year 2014-15.
Therefore, if in the current year, claim under section 32AC cannot be made since the actual
cost of new assets acquired and installed after 31.3.2013 but before 1.4.2014 is less than
one hundred crore rupees then the company may be able to claim deduction in assessment
year 2015-16 if the actual cost of new assets acquired and installed after 31.3.2013 but
before 1.4.2015 is more than one hundred crore rupees.
Jagdish T Punjabi June 25, 2014
29
Insertion of Section 32AC…This deduction is in addition to depreciation allowable under section 32 of the Act.
The claim for deduction under this section does not go to reduce the actual cost which needs
to be added to the block of assets for computing `written down value‘ on which depreciation
is allowable.
If the actual cost of the new assets acquired and installed after 31.3.2013 but before
1.4.2014 is more than one hundred crore rupees then irrespective of whether the result of
computation under the head `Profits and Gains of Business or Profession‘ is a profit or a loss
for assessment year 2014-15, the assessee company will be able to claim this deduction.
The incremental loss, if any, arising on account of such claim will be allowed to be carried
forward as a business loss but not as unabsorbed depreciation.
While the deduction under this section goes to reduce the total income chargeable under the
normal provisions of the Act, it does not reduce the `book profits‘ on which tax is payable
under section 115JB.
Deduction under this section will be allowable only while computing income under the head
`Profits and gains of business or profession‘ and not while computing income under the head
`Income from Other Sources‘.
The section requires that the new asset should be acquired and installed after 31.3.2013 but
before 1.4.2014. User of the asset does not seem to be necessary. Also, even if the new
asset is used for less than 180 days during the previous year still the amount of deduction
will be the same.
Jagdish T Punjabi June 25, 2014
30
Insertion of Section 32AC…
What is necessary is that the new asset should be acquired and installed within the dates
given in the section i.e. both acquisition and installation should happen in the specified
period. Orders placed earlier but delivery received in the period mentioned may still qualify.
Advance may have been paid earlier but delivery received in the period mentioned will also
qualify. However, if acquisition was in an earlier year and installation is in the period
specified then it could be a debatable question as to whether the deduction will be allowable.
Also, if asset is acquired but not installed then also the allowability of the claim for deduction
under this section may be doubtful.
In case the new asset acquired and installed is sold or otherwise transferred (otherwise than
in connection with an amalgamation or demerger) within a period of 5 years from the date of
its installation then the amount of deduction allowed under s. 32AC(1) in respect of such
asset shall be taxable as business income in the previous year in which such new asset is
sold or otherwise transferred.
In case the new asset acquired and installed is sold or otherwise transferred in connection
with an amalgamation or demerger within a period of 5 years from the date of its installation
then the amount of deduction allowed under s. 32AC(1) in respect of such asset shall be
taxable as business income of the amalgamated company or resulting company.
Jagdish T Punjabi June 25, 2014
31
Amendment to Section 36
S. 36(1)(vii) has been amended. An explanation has been inserted to provide that for the
purposes of the proviso to clause (vii) of sub-section (1) and clause (v) of sub-section (2), the
account referred to therein shall be only one account in respect of provision for bad and
doubtful debts under clause (viia) and such account shall relate to all types of advances,
including advances made by rural branches.
Jagdish T Punjabi June 25, 2014
32
Amendment to Section 40Sub-clause (iib) has been inserted to clause (a) of S. 40 to provide for disallowance of certain
payments made by State Government Undertaking to a State Government. The term `State
Government Undertaking‘ is defined in an Explanation to this sub-clause to include a corporation,
company, authority, a board or an institution which satisfies the conditions laid down in the
Explanation. The amounts paid which are to be disallowed are –
a. royalty, license fee, service fee, privilege fee, service charge or any other fee or charge,
by whatever name called, which is levied exclusively on; or
b. which is appropriated, directly or indirectly, from,
a State Government undertaking by the State Government.
The term `state government undertaking is defined to include –
i. a corporation established by or under any Act of the State Government;
ii. a company in which more than fifty per cent of the paid-up equity share capital is held by the
State Government;
iii. a company in which more than fifty per cent of the paid-up equity share capital is held by the
entity referred to in clause (i) or clause (ii) (whether singly or taken together);
iv. a company or corporation in which the State Government has the right to appoint the
majority of the directors or to control the management or policy decisions, directly or
indirectly, including by virtue of its shareholding or management rights or shareholders
agreements or voting agreements or in any other manner;
v. an authority, a board or an institution or a body established or constituted by or under any Act
of the State Government or owned or controlled by the State Government.
Jagdish T Punjabi June 25, 2014
33
Amendment to the definition of `speculative transaction’ – section 43
Clause (e) has been inserted in proviso to clause (5) of section 43 to provide that an eligible
transaction in respect of trading in commodity derivatives carried out in a recognized
association shall not be deemed to be a speculative transaction. Explanation 2 defines the
term `commodity derivative‘, `eligible transaction ‗ and `recognized association‘.
Commodity derivative means –
a contract for delivery of goods which is not a ready delivery contract; or
a contract for differences which derives its value from prices or indices of prices-
of such underlying goods; or
of related services and rights, such as warehousing and freight; or
with reference to weather and similar events and activities having bearing on the
commodity sector.
The definition of eligible transaction is on the same lines as definition of the said term for the
purpose of share derivatives.
Losses incurred in commodity derivatives in earlier years may have been c/fd as speculation
loss. Gains, subsequent to the amendment will be Non Speculative. Therefore, a question
will arise whether loss b/fd can set off against gains.
Gajendra Kumar Agarwal v. ITO (142 TTJ 612)(Mum)
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34
Insertion of Section 43CA This section has been introduced by the Finance Act, 2013 with effect from 1.4.2014. This
section applies to all assessees.
Conditions to be fulfilled:
1. The assessee transfers an asset (other than a capital asset)
2. The asset transferred is land or building or both;
3. Such transfer is for a consideration;
4. Consideration received or accruing as a result of such transfer is less than the value
adopted or assessed or assessable for the purpose of payment of stamp duty in respect
of such transfer.
Consequence if the above conditions are satisfied:
for the purposes of computing profits and gains from transfer of such asset, the value
adopted or assessed or assessable by any authority of a State Government shall be
deemed to be full value of consideration received or accruing as a result of such
transfer.
Exception:
1. There is an agreement fixing the value of consideration for transfer of the asset;
2. The date of such agreement and date of registration of such transfer of asset are not
the same;
3. On or before the date of the agreement, the consideration or part thereof has been
received by a mode other than cash.
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35
Insertion of Section 43CA… Then,
The value assessable by any authority of the State Government as on the date of agreement
shall be taken to be full value of consideration received or accruing as a result of the transfer
instead of the value on the date of registration.
Provisions of s. 50(2) and 50C(3) shall apply in relation to determination of value adopted or
assessed or assessable.
Issues:
1. Is letter of allotment an agreement?
2. If the initial amount is paid in cash but all subsequent amounts are paid by cheque then
will the benefit of sub-section (3) be denied?
3. In which year is the difference between the stamp duty value and the consideration
chargeable to tax?
4. Is this section applicable to sale of under construction flats by a builder / developer?
5. Is this section creating a charge or is laying down a computation provision or is merely a
rule of evidence?
6. In which year should the difference be offered for taxation in case of an assessee who
is following percentage completion method?
7. Are the provisions of this section applicable even to cases where income is offered for
taxation on presumptive basis.
Jagdish T Punjabi June 25, 2014
36
Amendment to section 56(2)(vii)(b)Item (ii) has been inserted in sub-clause (b) of clause (vii) of sub-section (2) of section 56 of
the Act. This clause provides that when an individual or a hindu undivided family receives an
immovable property (being land or building or both) for a consideration which is less than its
stamp duty value and the difference between the two is more than Rs. 50,000 then the
difference between the stamp duty value and the consideration will be charged to tax under
the head `Income from Other Sources‘ in the year of receipt. The immovable property so
received should be capital asset of the recipient. The charge is attracted in the year of
receipt of the immovable property. The proviso to this item provides that in case an
assessee has entered into an agreement which fixes the consideration of the immovable
property and the date of such agreement is different from the date of registration and the
assessee has on or before the date of agreement paid consideration or part thereof by a
mode other than cash then the stamp duty value on the date of agreement may be
considered instead of the stamp duty value on the date of registration.
Issues:
1. Is the provision retroactive?
2. Will the provision apply to booking of flats under construction?
3. Is the provision applicable to rural agricultural land?
4. Is letter of allotment an agreement?
Jagdish T Punjabi June 25, 2014
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Amendment to section 80C
Section 80C provides for deduction for amounts invested / saved / deposited in the modes
specified in the section. This section interalia grants deduction for premia paid by the
assessee to insure life of the assessee or any member of his family. In respect of a policy
issued on or after 1.4.2012 premia paid qualifies for deduction only if the amount of premia
does not exceed 10% of the capital sum assured in any of the years during the term of the
policy. With effect from 1.4.2014 it is now provided that in respect of a policy issued on or
after 1.4.2013 for insurance on life of a person who is a person with disability or a person
with severe disability as referred to in s. 80U; or is a person suffering from disease or ailment
specified in rules made under s. 80DDB then the premia paid can be upto 15% of the capital
sum assured in any of the years during the term of the policy.
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38
Amendment to Section 80CCG
This section provides for deduction to a resident individual in respect of investment made
under equity savings scheme. The section provided that the assessee should acquire listed
equity shares in accordance with Rajiv Gandhi Equity Savings Scheme, 2013. Investment in
listed units of an equity oriented fund did not qualify for deduction under this section. The
section has been amended to provide that with effect from AY 2014-15 investment made
even in listed units of an equity oriented fund will also qualify for deduction. Further, the
section provided for deduction equivalent to 50% of the amount invested subject to a
maximum cap of Rs. 25,000. The deduction was allowed only for one assessment year.
With effect from AY 2014-15 the deduction is allowable for three consecutive assessment
years beginning with the assessment year relevant to the previous year in which the listed
equity shares or listed units of equity oriented fund were first acquired. One of the conditions
for claiming deduction under this section was that the gross total income of the resident
individual should not be in excess of Rs. 12 lakhs. This has now been changed to Rs.10
lakhs with effect from AY 2014-15.
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Amendment to Section 80DSection 80D provides a deduction of sum paid, by an assessee who is an individual or a
hindu undivided family, to insure the health of the assessee or his family. With effect from AY
2013-14 amount upto Rs. 5,000 paid for preventive health check-up is also allowable as a
deduction. The deduction under this section is subject to satisfaction of the conditions
mentioned in the section. One of the conditions was that the amounts qualifying for
deduction under this section should be paid by a mode other than cash. It has also been
provided that the any sum paid on account of preventive health check-up can be paid by any
mode including cash.
Another amendment is that what qualified for deduction under this section was premia paid
to insure health or contribution made to Central Government Health Scheme. It has now
been provided that amount paid to a scheme notified by Central Government will also qualify
for deduction. There are many schemes of Central and State Government which are similar
to CGHS but the contributions to these schemes did not qualify for deduction under this
section. The objective of the amendment is to bring such schemes at par with CGHS. The
following schemes have been notified for this purpose.
Contributory Health Scheme of Department of Space (Notification No. 06/2014 dated
15.01.2014)
Jagdish T Punjabi June 25, 2014
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Insertion of Section 80EESection applies to: An assessee being an individual. Residential status is not relevant.
Conditions to be satisfied to claim deduction u/s 80EE:
a. The assessee is an individual.
b. The assessee has taken a loan.
c. Loan is taken from a financial institution. Financial institution is defined in sub-section
(5).
d. The loan is taken for the purpose of acquisition of a residential house property.
e. Loan has been sanctioned by the financial institution during the period beginning on
1.4.2013 and ending on 31.3.2014.
f. Amount of loan sanctioned for acquisition of the residential house property does not
exceed Rs. 25 lakhs.
g. The value of the residential house property does not exceed Rs. 40 lakhs.
h. The assessee does not own any residential house property on the date of sanction of
the loan.
Amount of deduction: Lower of the following –
a. Interest payable on loan taken from the financial institution for acquisition of residential
house property; OR
b. Rs. 1,00,000.
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Insertion of Section 80EE…Deduction of upto Rs. 1,00,000 is allowable only for AY 2014-15. However, in case the
amount of interest is lower than Rs. 1,00,000 then the balance amount i.e. Rs. 1,00,000
minus the amount of interest allowed in AY 2014-15 will be allowed as a deduction in AY
2015-16.
Consequence of claiming deduction under this section: Sub-section (4) provides that in
respect of interest for which deduction has been allowed under this section, deduction shall
not be allowed for such interest under any other provisions of the Act for the same or any
other assessment year.
Financial Institution is defined to mean –
a. a banking company to which the Banking Regulation Act, 1949 applies; and
b. including any bank or banking institution referred to in section 51 of that Act; or
c. a housing finance company
Housing Finance Company means a public company formed or registered in India with the
main object of carrying on the business of providing long-term finance for construction or
purchase of houses in India for residential purposes.
Jagdish T Punjabi June 25, 2014
42
Amendment to Sections 80G, 80GGB and 80GGC
Section 80G provides for deduction in respect of donations. Donations to persons listed in
sub-section (2) qualify for deduction. Of the persons listed in sub-section (2) donations to
certain persons can be without any upper limit and donations to others can be subject to a
maximum cap of 10% of adjusted gross total income i.e. gross total income minus
deductions under chapter VI-A (other than deduction under section 80G). Donation to
National Children‘s Fund qualified for deduction @ 50% of the amount donated. With effect
from AY 2014-15, section 80G has been amended to provide that donations to National
Children‘s Fund will now qualify for deduction @ 100%.
Section 80GGB provides for deduction to an Indian Company of amounts paid by it as
contribution to any political party or to an electoral trust. With effect from AY 2014-15 it is
now provided that deduction under this section shall not be allowed in cases where such
contribution is in cash.
Section 80GGC provides for deduction to an assessee other than local authority and every
artificial juridical person wholly or partly funded by the Government of amounts paid by it as
contribution to any political party or to an electoral trust. With effect from AY 2014-15 it is
now provided that deduction under this section shall not be allowed in cases where such
contribution is in cash.
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43
Amendment to Section 80IA
The sunset date for industrial undertakings claiming deduction under section 80IA and which
are engaged in generation of power or transmission or distribution of power by laying a
network of new transmission or distribution lines or undertaking substantial renovation and
modernization of existing network of transmission or distribution lines has been extended
from 31.3.2013 to 31.3.2014.
Jagdish T Punjabi June 25, 2014
44
Amendment to Section 80JJAA
Section 80JJAA provided deduction to an Indian Company whose gross total income
included profits and gains derived from an industrial undertaking engaged in manufacture or
production of an article or thing. Deduction was equivalent to an amount equal to 30% of
additional wages paid to new regular workmen employed by the assessee in the previous
year for 3 assessment years. This section is now amended to provide that the deduction will
be allowed to an Indian company whose gross total income includes any profits and gains
derived from the manufacture of goods in a factory. Therefore, earlier the qualifying
condition was that the gross total income should have included profits and gains derived
from an industrial undertaking engaged in manufacture or production of an article or
thing. Now, it is that the gross total income should included profits and gains derived from
manufacture of goods in a factory. For this purpose the term `factory‘ has been defined to
have the same meaning as is assigned to it in s. 2(m) of Factories Act, 1948.
Further, sub-section (2) provided that the deduction shall be denied if the industrial
undertaking is formed by splitting up or reconstruction of an existing undertaking or
amalgamation with another industrial undertaking. Now, w.e.f. AY 2014-15 it is provided that
the deduction shall be denied if the factory is hived off or transferred from another existing
entity or acquired by the assessee company as a result of amalgamation with another
company.
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45
Amendment to Section 80JJAA…
Earlier deduction was 30% of additional wages paid to new regular workemen employed by
the assessee in the previous year for three assessment years including the assessment year
relevant to the previous year in which such employment is provided. Now the deduction is
an amount equal to 30% of additional wages paid to the new regular workmen employed by
the assessee in such factory, in the previous year, for three assessment years including the
assessment year relevant to the previous year in which such employment is provided.
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46
Insertion of Section 87A
Rebate under section 87A : For Assessment Year 2014-15 a resident individual whose
total income does not exceed Rs. 5 lakhs is entitled to claim a rebate of 100% of the amount
of income-tax payable by him subject to a maximum of Rs. 2000.
Conditions:
The assessee is a resident individual
His total income does not exceed Rs. 5 lakhs.
Rebate: Lower of –
(a) 100% of amount of tax; or
(b) Rs. 2,000
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47
Levy of tax under section 115QA on Buy Back of Shares
A new Chapter XII-DA has been inserted in the Act with effect from 1.6.2013. This chapter
has sections 115QA to 115QC. The title of the chapter is `Special Provisions relating to Tax
on Distributed Income of Domestic Company for Buy-back of shares‘. When companies
distribute dividend they are liable to pay Dividend Distribution Tax. If the domestic company
buys back the shares which are not listed on a recognised stock exchange then tax has to be
paid u/s 115QA by the domestic company buying back such shares.
Conditions:
The assessee is a domestic company;
The company has bought back shares from a shareholder;
Such shares are not the shares listed on a recognized stock exchange;
Consequence: The company shall pay additional income-tax at the rate of twenty per cent
of distributed income. Distributed income is defined to mean the consideration paid by the
company on buy back of shares as reduced by the amount which was received by the
company for issue of shares.
Buy back has been defined to mean purchase by a company of its own shares in accordance
with the provisions of section 77A of the Companies Act, 1956.
Even if the company is not liable to pay any tax on its total income, yet it shall be required to
pay tax under section 115QA if it has bought back shares and other conditions are satisfied.
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48
Levy of tax under section 115QA on Buy Back of Shares…
Tax required to be paid under this section has to be paid within 14 days from the date of
payment of any consideration to the shareholder on buy-back of shares.
Credit shall not be claimed by the company or by any other person in respect of amount of
tax so paid on buy back of shares.
The income which has been charged to tax under sub-section (1) shall not be allowed as a
deduction under any other provision of the Act to the company or to the shareholder thereof.
Since amounts distributed by the domestic company on buy back of shares are liable to tax
under s. 115QA, exemption has been granted to a shareholder to whom income may arise
on buy back of shares. To provide for exemption income on s. 10(34A) has been inserted to
provide that any income arising to an assessee, being a shareholder, on account of buy back
of shares (not being listed on a recognized stock exchange) by the company referred to in s.
115QA shall be
S. 10(35A) provides that any income by way of distributed income referred to in s. 115TA
received from a securitization trust by any person being an investor of the said trust shall be
exempt from tax.
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49
Provisions dealing with Securitisation Trust
Chapter XII-EA captioned ―Special Provisions relating to Tax on Distributed Income by
Securitisation Trusts‖ has been introduced w.e.f. 1.6.2013. It contains sections 115TA to s.
115TC. Section 115TA levies tax on income distributed by securitization trust to its investors,
s. 115TB provides for interest payable on non-payment of tax and section 115TC deems
securitization trust to be an assessee in default in certain cases mentioned therein. The
Explanation after section 115TC defines the terms ―investor‖, ―securities‖, ―securitized debt
instrument‖ and ―securitization trust‖.
The provisions of s. 115TA(1) begin with a non-obstante clause and are notwithstanding
anything contained in any other provisions of the Act.
Conditions to be satisfied for levy of tax under s. 115TA(1)
1. There is a securitization trust;
2. It distributes any amount of income;
3. Distribution is to its investors
Consequence:
1. Income Distributed by the securitization trust shall be chargeable to tax
2. Such securitization trust shall be liable to pay additional income-tax on such distributed
income at the rates mentioned in s. 115TA(1);
Jagdish T Punjabi June 25, 2014
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Provisions dealing with Securitisation Trust…
Rates of tax :
The rate of tax depends upon the legal status of the investor.
If the investor is an individual or a hindu undivided family the rate is 25%; and
In case the investor is any other person then the rate is 30%.
Exception: Tax under this section is not payable if the income is distributed by securitization
trust to any person in whose case income, irrespective of its nature and source, is not
chargeable to tax under the Act.
The responsibility for payment of tax is on the person responsible for making payment of
income distributed by the securitization trust. Tax has to be paid to the Central Government
within 14 days of the date of distribution or payment of such income, whichever is earlier.
On or before 15th of September a statement is required to be furnished to the prescribed
income-tax authority. The statement is required to be in the prescribed form and in the
prescribed manner and should give details of amount of income distributed to investors
during the previous year, the tax paid thereon and such other relevant details as may be
prescribed. This statement is to be furnished by the person responsible for making payment
of the income distributed by the securitization trust.
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51
Transactions with Cyprus, being a non co-operative tax jurisdiction.
Cyprus has been notified as a non-co-operative tax jurisdiction. Consequently, every
transaction entered into by the assessee with
a) a person who is resident of Cyprus; or
b) a person (not being an individual) is established in Cyprus; or
c) a permanent establishment of a person not falling in (a) or (b) is in Cyprus.
Shall be deemed to be an international transaction; and
all the parties to the transaction of the assessee with any of the above mentioned persons
will be deemed to be associated enterprises within the meaning of s. 92A; and
transfer pricing provisions shall apply.
Deduction in respect of any payment made by the assessee to any financial institution
located in Cyprus shall be allowed only if assessee furnishes an authorization from the said
financial institution authorizing the board or any other income-tax authority acting on its
behalf to seek relevant information from the said financial institution on behalf of the
assessee.
If any sum is received by the assessee from any person located in Cyprus then the onus
would be on the assessee to prove the source of such sum in the hands of such person or in
the hands of the beneficial owner. In case of failure to do so, the amount shall be deemed to
be income of the assessee.
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Transactions with Cyprus, being a non co-operative tax jurisdiction….
Any payment made to a person located in Cyprus which is liable to TDS shall be subjected to
TDS at the highest of the following rates –
a. at the rate or rates in force;
b. at the rate specified in the relevant provisions of this Act;
c. at the rate of thirty percent.
Information required to furnish return of income which may not be readily available in the
financial statements and computation of total income.
Jagdish T Punjabi June 25, 2014
53
Amendments to Forms of Return of
Income for Assessment Year
2014-15
Jagdish T Punjabi June 25, 2014
54
Changes in FormsCommon changes
Suitable changes have been made to incorporate the claim for deduction under section 80EE
and also rebate under section 87A.
If the return being filed is a Modified Return under section 92CD or a return in response to a
notice treating the return as defective then in filing status the relevant information has to be
given i.e. ―Modified Return – 92CD‖ or ―139(9) – Defective,‖
If the return is being filed in response to notice under s. 139(9), 142(1), 148, 153A or 153C –
the date of notice or date of advance pricing agreement is to be stated.
Mention is required to be made if assessee has made any transaction with a person located
in a jurisdiction notified u/s 94A of the Act. (ITR 3, 4, 5, 6, 7)
While section 32AC has been introduced for companies w.e.f. AY 2014-15 there is no
separate cell for filling in the amount of deduction claimed under this section. Therefore, this
will have to be reflected in Form 6 in the cell for ―Other Deductions‖.
In form ITR IV the Trade Name of proprietary concerns needs to be mentioned. Earlier this
was not required.
Schedule BBS : Details of tax on distributed income of a domestic company on buy back of
shares, not listed on stock exchange has been added.
Jagdish T Punjabi June 25, 2014
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Changes in Forms...In Schedule of TDS break up has to be given deductor wise in respect of Unclaimed TDS
brought forward (this is to be financial year-wise i.e. two columns financial year in which
deducted and amount b/fd). This will mean, wherever there is TDS brought forward from
earlier years which is to be claimed in the current year or is to be carried forward to the
subsequent year, one will have to find out Unique TDS certificate number and also the
financial year in which TDS which has been brought forward was deducted. Corresponding
changes have also been made for TCS.
Throughout the forms where two separate cells were earlier required for Name and Address,
now a common cell has been provided for Name and Address. This change to a certain
extent will obviate the difficulty of form not getting validated if either of the two cells was not
filled in.
For LLP and Companies LLPIN and CIN have to be stated.
In respect of partners / directors their DPIN / DIN is required to be mentioned.
Amounts claimed u/s 10A or 10AA were earlier to be deducted in Schedule BP : Computation
of Income from business or profession. Now the same are to be deducted after Gross Total
Income in Part B – TI – Computation of Total Income.
Refund will now be granted only by credit to bank account.
In case of Companies if profit & loss account is not prepared in accordance with the
provisions of Part II of Schedule VI to the Companies Act, whether it is prepared in
accordance with the provisions of the Act governing such company?
.Jagdish T Punjabi June 25, 2014
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Changes in Forms…
Assessees who are required to furnish report under section 92E and / or s. 115JC are
required to state date of furnishing of such reports.
In ITR -5 in status a new category viz. ―Private discretionary trust‘ has been added.
In respect of returns to be filed by Trusts in ITR-7
In addition to the name of the project / institution and nature of activity the form now requires
mention of registration number, registering authority and section under which it is claiming
exemption in respect of the project / institution being run by it.
Accumulation of income for future application has to be reported in the form.
Schedule VC : Voluntary contributions has been inserted for reporting various voluntary
donations received by a trust. Donations are now to be reported along with their nature and
quantum as under –
Local voluntary donations (corpus and non-corpus)
Foreign contributions (corpus and non-corpus)
Anonymous donations
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Changes in Forms…Changes in Profit & Loss Account
Earlier Profit & Loss Account of ITR 5 and ITR 6 was identical. Now changes have been
carried out in ITR 4 and therefore, now the Profit & Loss Account format is same in all the
forms. Therefore, for assessee filling in ITR 4 some further information will be required and
will have to be compiled.
Sales / Gross receipts are to be classified as sale of goods, sale of services and other
operating revenue.
For other income nature and amount need to be stated.
Opening and Closing Stock is now to be bifurcated as Raw Materials, WIP and Finished
Goods.
Amount of compensation paid to non-resident employees, if any, is to be separately stated.
Commission, Royalty, Professional / Consultancy Fees / Fees for technical services /
Interest is to be classified as ―Paid outside India, or paid in India to a non-resident other than
a company or a foreign company‖ and ―To Others‖
Foreign travelling expenses is to be stated separately (earlier it was Travelling expenses
including foreign travel).
In respect of Other Expenses – nature and amount is to be given.
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Changes in Forms…
Changes in Profit & Loss Account….
In respect of Bad Debts – in respect of each person for whom bad debt is Rs. 1 lakh or more
PAN is required to be stated. In respect of persons where amount is more than Rs 1lakh but
PAN is not available such cases are to be aggregated and aggregate amount is to be
mentioned. For bad debts of less than Rs 1 lakh aggregate is to be stated as Others
(amounts less than Rs. 1 lakh).
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Changes in Forms….
Changes in Other Information
The following are now required to be stated -
Amount of contribution to a pension scheme referred to in s. 80CCD.
Securities transaction tax paid in respect of transaction in securities if such income is
not included in business income.
Expenditure of capital nature not allowable u/s 37.
Expenditure laid out or expended wholly and exclusively NOT for the purpose of
business or profession not allowable u/s 37.
Amount paid by way of royalty, license fee, service fee, etc, as per s. 40(a)(iib).
Earlier disallowance u/s 40(a)(i), (ia) and (iii) a consolidated amount was required to be
stated – now separate amounts are to be stated clause wise i.e. 40(a)(i), 40(a)(ia), 40(a)(iii)
In case company has recognized provident fund – information needs to be given about total
number of employees – bifurcated into deployed in India and deployed outside India. (ITR 4,
5, 6, 7)
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60
Changes in Forms….
Changes under the head Salaries
in respect of allowances exempt under section 10 earlier one amount was required to be
given now the same has to be bifurcated into following 4 –
1. Travel concession / assistance received;
2. Tax paid by employer on non-monetary perquisite;
3. Allowance to meet expenditure incurred on house rent;
4. Other allowances.
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Changes in Forms….
Changes under the head House Property
No significant changes in information required under this head.
Earlier one computed annual value of the portion which was owned by the assessee. Now, it
appears that the annual of the property is to be computed and then the share of the
assessee is to be calculated by applying the percentage ownership of the assessee.
Jagdish T Punjabi June 25, 2014
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Changes in Forms….
Changes under the head Business Income
Items of income credited to P & L but considered under other heads – here one has to now
mention the head under which the amount being deducted has been considered – Salaries,
House property, Capital gains, Other sources.
For each item of Exempt income credited to P & L – nature and amount need to be specified
Items of expenses debited to P & L but considered under other heads – here one has to now
mention the head under which the amount being deducted has been considered – Salaries,
House property, Capital gains, Other sources.
Intra head set off of business loss has to be stated – i.e. business loss set off against income
speculative business and Income from specified business.
Deemed income under section 43CA has to be stated.
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Changes in Forms….Changes under the head Capital Gains
Computation of Short Term and Long term capital gains is to be done in following sub-heads-
Jagdish T Punjabi June 25, 2014
Short term Capital Gain Long Term capital gain
sale of land & building or both sale of land & building or both
slump sale slump sale
sale of equity shares or units of EOMF on
which STT is paid
sale of bonds or debentures other than Capital Indexed
Bonds issued by Govt.
For Non Residents not being FII from sale of
shares or debentures of Indian Company (to
be computed with foreign exchange adjusted
under first proviso of s. 48)
sale of listed securities or units or zero coupon bonds
where proviso under s. 112(1) is applicable (taxable @
10% without indexation benefit)
For Non Residents from sale of securities
other than those stated above in iii by FII as
per s. 115AD.
For Non Residents not being FII from sale of shares or
debentures of Indian Company (to be computed with
foreign exchange adjusted under first proviso of s. 48)
Sale of assets other than above. For Non Residents from sale of (i) unlisted securities as
per section 112(1)(c), (ii) units referred to in s. 115AB,
(iii) bonds or GDR as referred in S. 115AC; (iv)
securities by FII referred to in s. 115AD.
Sale of assets where above are not applicable
64
Changes in Forms….
Changes under the head Capital Gains…
In respect of deduction claimed under Ss. 54B, 54D, 54EC, 54F, etc. for each section under
which deduction is claimed one has to state Cost of new asset, date of its acquisition,
amount deposited under capital gains account scheme before due date. Here one will have
to take a call on date of acquisition where a flat under construction has been booked.
In schedule for set off of current years capital losses against gains short term capital gain
has to be classified as 15%, 30%, applicable rate and LTCG as 10% and 20%.
Information about accrual/receipt of capital gain has to be given rate wise into 5 categories
i.e. STCG 15%, 30%, applicable rate and LTCG as 10% and 20%.
Jagdish T Punjabi June 25, 2014
65
Changes in Forms….
Changes under the head Other Sources
Total income from other sources has to be bifurcated as chargeable at special rates and
chargeable at normal rates. Within items chargeable at special rates the bifurcation is
between income by way of winning from lotteries, crossword puzzles, races, games,
gambling, betting, etc (u/s 115BB) and Any other income under Chapter XII/XII-A.
Jagdish T Punjabi June 25, 2014
66
Changes in Forms….
Other Changes:
In respect of allowance u/s 35(4) following information has to be provided in Schedule UD :
Unabsorbed depreciation and allowance under section 35(4).
1. Amount of brought forward unabsorbed allowance
2. Amount of brought forward unabsorbed allowance
3. Balance carried forward to next year.
In respect of deductions under s. 10A and 10AA for each undertaking one has to now
mention assessment year in which the unit began to manufacture / produce / provide service.
In respect of Deductions under section 80IA, 80IB, 80IC and 80IE the amount of deduction
claimed for each undertaking has to be separately stated as against a consolidated amount
which was required to be mentioned earlier.
In information regarding partnership firms in which the assessee is a partner now against the
name of each of the firms it is also required to be stated whether the firm is liable for audit?
(ITR 4 – Schedule IF)
Jagdish T Punjabi June 25, 2014
67
Information required to furnish return of income which may not be readily available
in the financial statements and computation of total income.
Date of birth of the assessee / date of formation.
Phone number
Email id
Date of furnishing of tax audit report
Name of auditor signing the report
Membership number of the auditor
PAN of the auditor
In case of LLP / company – LLPIN / CIN
DPIN / DIN of designated partners of LLP and directors of company
Details of bank account – account number, IFSC code, type of account i.e. savings / current /
cash credit
Name of employer, PAN of employer
Address of properties owned by the assessee
Assessee‘s percentage of share in the property
Name of co-owner, PAN of co-owner, Percentage share in property of each co-owner
Name of tenant, PAN of tenant (optional)
Brought forward losses if losses as assessed are different from losses as returned
Adjustments, if any, required to be made to WDV as a consequence of disallowance of
certain expenditure on the ground that it is capital in nature or otherwise.
Date of furnishing of report under Ss. 92E, 115JB, 115JC, wherever applicable
Stamp Duty Value of land or building transferredJagdish T Punjabi June 25, 2014
68
Information required to furnish return of income which may not be readily available
in the financial statements and computation of total income...
Assessment year in which each of the units located in SEZ began to manufacture / produce
(where deduction is being claimed u/s 10A / 10AA.
Name and address and PAN of each of the donees to whom donation has been given and
deduction under s. 80G is to be claimed.
TDS brought forward from earlier years with details of financial year in which it was
deducted, certificate number and the amount.
In case assessee is a partner in a firm / LLP – name of the firm where he is a partner, PAN of
the firm, his profit sharing ratio, his capital balance in the firm as on 31st March.
Particulars of persons who were beneficial owners of shares holding not less than 10% of the
voting power at any time during the previous year – Name and Address, percentage of
shares held, PAN.
In case the assessee is a settlor, beneficiary or a trustee in a trust created outside India
details required for Schedule FA: Foreign Assets viz. Country Name, country code, name
and address of the trust, name and address of trustees, name and address of settlor and
name and address of beneficiaries.
Details of foreign bank accounts along with peak balance during the year (in Rupees)
Following information is required in Balance Sheet / P & L / Other Information :
Foreign currency loans (classified into secured and unsecured)(in case of ITR-5)
Unsecured rupee loans from persons specified in s. 40(A)(2)(b).
Advances from persons specified in s. 40(A)(2)(b)
Jagdish T Punjabi June 25, 2014
69
Information required to furnish return of income which may not be readily available
in the financial statements and computation of total income...
Debtors outstanding for more than one year
Loans and advances for the purpose of business or profession
Loans and advances not for the purpose of business or profession
Creditors outstanding for more than one year
Interest accrued and due on borrowings
Interest accrued but not due on borrowings
Income received in advance
Compensation to employees classified as –
a. Salaries and wages b. Bonus
c. Reimbursement of medical expenses
d. Leave encashment
e. Leave travel benefits
f. Contribution to approved superannuation fund
g. Contribution to recognized provident fund
h. Contribution to recognized gratuity fund
i. Contribution to any other fund
j. Any other benefit to employees in respect of which an expenditure has been incurred
k. Total compensation to employees (total of a to j above)
l. Whether any compensation included above is paid to non-residents
m. If yes, amount paid to non-residents.
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Information required to furnish return of income which may not be readily available
in the financial statements and computation of total income...
Following payments made outside India or paid in India to a non-resident
Commission
Royalty
Professional / Consultancy fees
Interest
Insurance classified as –
a Medical Insurance
b Life Insurance
c Keyman‘s Insurance
d Other Insurance including factory, office, car, goods, etc.
PAN of debtors from whom amounts in excess of Rs. 1 lakh has been written off
Aggregate amount of debtors written off (each amount being in excess of Rs. 1 lakh) for
which PAN is not available
Aggregate amount of bad debts written off where each amount is less than Rs 1 lakh.
Guest House expenses
Conference
Sales promotion including publicity (including advertisement)
Advertisement
Foreign Travelling Expenses
Hotel, boarding and lodging
Jagdish T Punjabi June 25, 2014
71
Information required to furnish return of income which may not be readily available
in the financial statements and computation of total income...
Festival celebration expenses
Entertainment
Hospitality
Where an assessee is on inclusive method of recording purchases, etc following information
may not be readily available in financial statements –
Duties and taxes paid or payable in respect of goods and services purchased
i. Customs duty
ii. Counterveiling duty
iii. Special additional duty
iv. Union excise duty
v. Service tax
vi. VAT / Sales tax
vii. Any other tax paid or payable
Rates and taxes, paid or payable to Government or any local body (excluding taxes on
income)
i. Union excise duty
ii. Service tax
iii. VAT / Sales tax
iv. Cess
v. Any other rate, tax, duty or cess including STT and CTT
Jagdish T Punjabi June 25, 2014
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Select appropriate type of Return Form .
Download Return Preparation Software for selected Return Form.
Fill your return offline and generate a XML file.
Register and create a user id/password .
Login and click on relevant form on left panel and select "Submit Return".
Browse to select XML file and click on "Upload" button .
On successful upload acknowledgement details would be displayed. Click on "Print" to
generate printout of acknowledgement/ITR-V Form.
Incase the return is digitally signed, on generation of "Acknowledgement" the Return
Filing process gets completed. Assessee may take a printout of the Acknowledgement for his
record.
Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V
Form would be generated which needs to be printed by the tax payers. This is an
acknowledgement cum verification form. The tax payer has to fill-up the verification part and
verify the same. A duly verified ITR-V form should be submitted with the Income Tax
Bangalore Office within 30 days of filing electronically. This completes the Return filing
process for non-digitally signed Returns.
Jagdish T Punjabi June 25, 2014
e-Filing process for offline filing of ITR Form
74
How to e-file?Steps to file form offline
Download the applicable ITR form from Downloads
Fill it offline
Generate XML
Register on e-filing website using your PAN.
LOGIN to the portal
Go to e-File link – Upload Return
OR
LOGIN to Prepare and Submit ITR Online
Jagdish T Punjabi June 25, 2014
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