RSP Summit - 2015

CA. PRAVEEN M R© RSP SUMMIT

14.03.2015

RSP Summit - 2015

INDIVIDUALS AGE< 60 YEARS

UPTO Rs.2,50,000 NIL

Rs.2,50,000 – Rs.5,00,000 10%

Rs.5,00,000 – Rs.10,00,000 20%

Above Rs.10,00,000 30%

SENIOR CITIZENS

UPTO Rs.3,00,000 NIL

Rs. 3,00,000 – Rs.5,00,000 10%

Rs.5,00,000 – Rs.10,00,000 20%

Above Rs.10,00,000 30%

UPTO Rs.5,00,000 NIL

Rs.5,00,000 – Rs.10,00,000 20%

Above Rs.10,00,000 30%

SUPER SENIOR CITIZENS * Surcharge of 12% applicable if income exceeds 1 Crore

TAX RATES “TAX THE SUPER RICH”

RSP Summit - 2015

Partnership Firm

TAX RATE 30%

* Surcharge of 12% applicable if income exceeds 1 Crore

Company

TAX RATE 30%

Minimum Alternate Tax 18.50%

• Surcharge of 7% applicable if income exceeds 1 Crore

• Surcharge of 12% applicable if income exceeds 10 Crore

• Tax rate to be reduced to 25% in the next 4 years

TAX RATES “TAX THE SUPER RICH”

RSP Summit - 2015

Wealth Tax abolished from AY 2016 - 2017

GAAR has been deferred by another 2 Years

GST to be introduced from 01.04.2016

Domestic transfer pricing to be applicable for transactions exceeding Rs. 20 Crores(increased from present Rs.5 Crores ]

Application for registration under service tax and central excise to be cleared within 2 days

KEY TAKEAWAYS OF THE BUDGET

RSP Summit - 2015

Service Tax increased from 12.36% to 14%.To be applicable from the date notified in official gazette

Swacch Bharath Cess at 2%To be charged over and above 14%. Total Service tax component to become 16%

Excise Duty rate to be increased from 12.36% to 12.50%To be applicable from 01.03.2015

KEY TAKEAWAYS OF THE BUDGET

RSP Summit - 2015

Concealment of income & assets - 10 years rigorous imprisonment and penalty of 300%

Non filing of income tax returns or filing with inadequate disclosure of foreign assets – 7 years rigorous imprisonment.

Benami Transactions bill

Restriction of cash transactions

LAW ON BLACK MONEY

RSP Summit - 2015

DEDUCTIONS FROM INCOME

SUKANYA SAMRUDHI SCHEME

• Can be invested by parents of a girl

child

• Maximum investment in an year is

Rs.1,50,000

• Account can be opened in Post office or

Bank

• Interest rate at 9.1%

• 50% of the Amount can withdrawn once

the girl achieves age of 18 and is

married

• Account can be closed on girl attaining

21 years.

At the time of investment

Interest Earned

At the time of withdrawl

“BETI BACHAO BETI PADAO”

RSP Summit - 2015

ASSESSEE PREVIOUS LIMIT PRESENT LIMIT

Individual Rs.15,000 Rs.25,000

Senior Citizen

Rs.20,000 Rs.30,000

For individuals whose age is more than 80 years, medical expenditure upto Rs.30,000/- shall be allowed as deduction

DEDUCTIONS FROM INCOME

SECTION 80 D : HEALTH INSURANCE

SUPER SENIOR CITIZENS

RSP Summit - 2015

ASSESSEE PREVIOUS LIMIT PRESENT LIMIT

Individual Rs.60,000 Rs.60,000

Senior Citizen

Rs.60,000 Rs.60,000

Super Senior Citizen

Rs.60,000 Rs.85,000

DEDUCTIONS FROM INCOME

SECTION 80 DDB : EXPENDITURE TOWARDS SPECIFIED DISEASES

RSP Summit - 2015

ASSESSEE PREVIOUS LIMIT

PRESENT LIMIT

Normal Disability Rs.50,000 Rs.75,000

Severe Disability Rs.1,00,000 Rs.1,25,000

DEDUCTIONS FROM INCOME

SECTION 80DD: MEDICAL EXPENDITURE OF DISABLED DEPENDANT

SECTION 80U: MEDICAL EXPENDITURE OF SELF

RSP Summit - 2015

Increase in transportation allowance from present Rs.800 per month to Rs.1600 per month.

No TAN requirement for deducting tax from Non Resident for purchase of immovable property

OTHERS

RSP Summit - 2015

EARLIER

Additional depreciation on machinery purchased by manufacturer @ 20% if used for more than 180 days.

If used for less than 180 days @ 10%

NOW

Additional depreciation on machinery purchased by manufacturer @ 20% if used for more than 180 days.

If used for less than 180 days @ 10% - Balance of 50% can be used in next year

DEPRECIATION “MAKE IN INDIA”

RSP Summit - 2015

FOR INVESTMENT IN ANDHRA & TELANGANA

Additional deduction for investment by way of Plant & Machinery in backward regions of Andhra & Telangana @ 15%

INVESTMENT ALLOWANCE “MAKE IN INDIA”

RSP Summit - 2015

REAL ESTATE INVESTMENT TRUSTs [REITs]

REITMinimum Investment 2 Lakhs Minimum Size

250 Crores

Commercial Establishments

Apartments

Warehouse

BASICS

RSP Summit - 2015

REIT

REAL ESTATE INVESTMENT TRUSTs [REITs]

RETURNS

INCOMEa) Rental Incomeb) Capital Gainsc) Dividend d) Interest

DISTRIBUTION

90% Payout

RSP Summit - 2015

REAL ESTATE INVESTMENT TRUSTs [REITs]

BENEFITS

REIT’sAdvantages

Developer

Investor

GO

vt

FII,

FD

I

• Liquidity • Capital raising opportunity

• Reduced ticket size• Easy entry & exit• Managed by Professionals

• Opportunity to enter real estate market

• Increase in revenue

RSP Summit - 2015

REAL ESTATE INVESTMENT TRUSTs [REITs]

TAXATION

Nature of Income In the hands of the Fund In the hands of the investor

Interest Exempt Taxable

Sale of Shares Taxable as Capital Gains Exempt

Rentals Exempt No TDS

Taxable

Any other Income Taxable at 33.99% [MMR] Exempt

RSP Summit - 2015

GOLD MONETISATION SCHEME

HOW IT WORKS?

GOLD METAL ACCOUNT

INVESTORS JEWELLERS

RSP Summit - 2015

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