Category Archives: Finance

India Union Budget 2018 – India Union Budget Highlights and General Knowledge


India Union Budget 2018

The India Union Budget 2018 aims to focus on development of agriculture, rural economy, improved health & education and increased employment.

Here’s are the Key Highlights of India Union Budget 2018 :

A.  Changes that will affect Individuals

1. Income Tax Slabs, Rebate under section 87A, Surcharge in India Union Budget 2018

The rates for A.Y. 2019-20 (F.Y. 2018-19) are unchanged  in India Union Budget 2018 from A.Y. 2018-19 (F.Y. 2017-18).

India Union Budget 20182.  Cess

For the purpose of raising funds for education, it is proposed to replace Education Cess @ 2% and Secondary and Higher Education Cess @ 1% by Health and Education Cess @ 4%.

The impact of the same will be as follows:

  • Individuals (Less than 60 years of age)
Slab Net Taxable Income Existing Tax (including Cess) Proposed Tax (including Cess) Increase in Tax
Up to Rs. 2,50,000/- Rs. 2,50,000/-  Nil Nil Nil
Rs. 2,50,000/- to Rs. 5,00,000/- Rs. 5,00,000/- Rs. 12,875/- Rs. 13,000/- Rs. 125/-
Rs. 5,00,000/- to Rs. 10,00,000/- Rs. 10,00,000/- Rs. 1,15,875/- Rs. 1,17,000/- Rs. 1,125/-
Above Rs. 10,00,000/- Rs. 20,00,000/- Rs. 4,24,875/- Rs. 4,29,000/- Rs. 4,125/-


  • Senior Citizens (60 Years or more but less than 80 years)
Slab Net Taxable Income Existing Tax (including Cess) Proposed Tax (including Cess) Increase in Tax
Up to Rs. 3,00,000/- Rs. 2,50,000/-  Nil Nil Nil
Rs. 3,00,000/- to Rs. 5,00,000/- Rs. 5,00,000/- Rs. 10,300/- Rs. 10,400/- Rs. 100/-
Rs. 5,00,000/- to Rs. 10,00,000/- Rs. 10,00,000/- Rs. 1,13,300/- Rs. 1,14,400/- Rs. 1,100/-
Above Rs. 10,00,000/- Rs. 20,00,000/- Rs. 4,22,300/- Rs. 4,26,400/- Rs. 4,100/-
  • Super Senior Citizens (80 years or more)
Slab Net Taxable Income Existing Tax (including Cess) Proposed Tax (including Cess) Increase in Tax
Up to Rs. 5,00,000/- Rs. 5,00,000/- Nil Nil Nil
Rs. 5,00,000/- to Rs. 10,00,000/- Rs. 10,00,000/- Rs. 1,03,000/- Rs. 1,04,000/- Rs. 1,000/-
Above Rs. 10,00,000/- Rs. 20,00,000/- Rs. 4,12,000/- Rs. 4,16,000/- Rs. 4,000/-


3.   Deductions under Chapter VIA

a.    80D – Deduction in respect of medical insurance premium

It is proposed to increase the amount of deduction available to senior citizens for payment of mediclaim premium as follows:

Existing deduction limit Proposed Changes in limit
Amount of Deduction allowed for Senior Citizen and Very Senior Citizen:
Rs. 30,000/- Rs. 50,000/-

b. Section 80DDB – Deduction for expenditure incurred on medical treatment etc.

It is proposed to increase the amount of deduction available to senior citizens as follows:

Existing deduction limit Proposed Changes in limit
Amount of Deduction allowed for:
Senior Citizen: Rs. 60,000/-  

Senior Citizen and Very Senior Citizen: Rs. 1,00,000/-

Very Senior Citizen: Rs. 80,000/-

To know about specified diseases under section 80DDB click here.

c. Section 80JJAA – Deduction in respect of employment of new workmen

It is proposed to extend the benefit of this section to Footwear and leather business also. Under this section, 30% of the salaries and wages paid to new employees who have worked for at least 240 days in a financial year was allowed as a deduction. The condition of at least 240 days in a financial year is now proposed to be relaxed to 150 days.

Also the benefit of this section is proposed to be extended to new employee even if he has worked for a less than 240 days if he works with the employer for at least 240 days in the next financial year

d. 80TTB – Deduction in respect of interest on deposits in savings accounts

It is proposed to increase the amount of deduction available to senior citizens by insertion of a new section 80TTB as follows:

Particulars Existing deduction limit Proposed Changes in limit
Amount of Deduction allowed for Senior Citizen and Very Senior Citizen:
Interest from Savings Bank Account and Post Office Rs. 10,000/-  

Rs. 50,000/-

Interest from Fixed Deposits and Recurring Deposits: Nil

Also, no TDS shall be deducted under section 194A on the amount of such interest earned by Senior Citizens and Very Senior Citizens upto Rs. 50,000/-.

e.  Benefit of National Pension Scheme:

The benefit of tax-free withdrawal from NPS upto 40% of amount, which was earlier allowed to employee subscriber is now extended to non-employee subscriber in India Union Budget 2018.

4.  Income from Salaries

It is proposed to allow a standard deduction of Rs. 40,000/- in lieu of Transport and reimbursement of miscellaneous medical expenses. This deduction shall also be available to Pensioners who currently do not get any such benefit. Medical reimbursement benefits in case of hospitalisation etc will continue to be available in addition to above standard deduction.

However the Transport allowance benefit of Rs. 19,200/- per Annum and Medical allowance benefit upto Rs.15,000/- per Annum will be withdrawn.

5.  Capital Gains

a. The Finance Minister has proposed to withdraw tax exemption under S-10(38), on sale of Equity shares and/or units of Equity Oriented Funds, which are held by taxpayer for more than 12 months (i.e long term capital gain). We have broken down and tabulated this important amendment, especially for the benefit of our Return filers, as it has far reaching impact on your investment kitty.

Sr.No Scenario Tax Impact
1. Long Term Capital Gain realized, at any time during the F.Y 2017-18. No Capital Gains Tax. Exemption under S-10(38) is intact.
2. Long Term Capital Gain on shares purchased on or before 31st January, 2018 but sold at any time after 31st March, 2018. The amount of *Capital Gain in excess of Rs 1,00,000/- will be taxable @ 10%. However relief to the extent of capital gains as on 31st January, 2018 (Refer **example below, as pointed out in budget speech)
3. Long term Capital Gain on shares purchased after 31st January, 2018. The amount of *Capital gain in excess of Rs 1,00,000/- will be taxable @ 10%.

*Capital Gain- It is the excess of sales consideration over cost of acquisition of security, on sale of security. No indexation benefit will be allowed on cost of acquisition.

**Example: If Equity shares are purchased on 01/07/2017 at Rs.100 per share. And are sold on 01/09/2018 at Rs. 130 per share. Then there is a Long Term Capital Gain (LTCG) of Rs.30 per share.

Now suppose highest share price on 31/01/2018 is Rs.120 per share. Then, the taxable LTCG will be Rs.10. That is Rs 130 – Rs 120 = Rs.10.

The Exemption under section 10(38) will also not be available for similar long term capital gains in case of FII (Foreign Institutional Investors).

b. Exemption relating to investment in REC, NHAI bonds under section 54EC have been restricted.

Exemption from capital gain on investment in specified bonds restricted to gain from Land and Building only. Holding period increased from 3 years to 5 years.

Earlier this exemption was available to all long term Capital Gains.

c.   It is proposed to tax income distributed by Equity Oriented Mutual Funds @ 10%.

d.  Real Estate: In case of Capital Gains on immovable property, consideration or circle value whichever is higher is adopted and the difference is taxed in the hands of purchaser and seller. It is proposed that no adjustment to be made if the circle rate does not exceed 5% of consideration.

6. Presumptive Income u/s 44AE for Transport Business:
In case of Heavy Goods Vehicle (More than 12MT Gross Vehicle Weight) – Income will be deemed to be an amount equal to Rs 1000 per ton of Gross Vehicle weight or Unladen Weight as the case may be. No Change in Taxation of Income from Other Type of Vehicles.

7. In case of stock in business (if taxpayer is carrying out any business) is converted into capital Asset:

In case stock in business is converted into capital asset, the same will be taxed based on fair market value as on date of such conversion, as business income. Further the period of holding for determination of capital gain, on sale of such converted capital asset at a later stage shall be reckoned from date of such conversion.

8. Amendment to Sec. 143(1)(a)(vi)- Intimation received by taxpayers:

It is proposed to provide that no adjustment shall be made in respect of addition of income appearing in Form 26AS or Form 16A or Form 16 which is not been included in total income declared in return.

9. Changes for Non Residents

It is proposed to charge Alternate Minimum Tax (AMT) on non-corporate taxpayers operating in IFSC (International Financial Services Sector) at the concessional rate of 9%. Also it is proposed to exempt transfer of derivatives and certain securities by non residents from capital gains tax.

B. Taxation of Cryptocurrencies in India Union Budget 2018

The government has clarified that cryptocurrencies are not legal tender. Measures will be taken to curb its use for illegal activities.

C. Pradhan Mantri Vaya Vandana Yojana

The amount that can be deposited to Pradhan Mantri Vaya Vandana Yojana is proposed to be increased from Rs. 7.50 Lakhs to Rs. 15 Lakhs. The amount so deposited is available as deduction under section 80C subject to maximum of limit specified.

D. e-Assessment

It is proposed to extend the implementation of E-assessment introduced in previous budgets nationwide. The existing system of assessment shall be replaced with E-assessment. The assessment will be done in an electronic mode. It will almost eliminate person to person contact leading to greater efficiency and transparency.

For more finance and business related information like India Union Budget 2018, please visit our Finance Section.

Leave Travel Allowance (LTA) – Rules, Exemption & Calculation


Leave Travel Allowance (LTA or LTC) – Exemption & Calculation

What is Leave Travel Allowance (LTA)?

Leave Travel Allowance (LTA) is a allowance type which is given to an employee from his employer to cover his travel expenses when he is on leave from work. LTA is exempted from tax u/s 10(5) of Income Tax Act, 1961.

Leave Travel Allowance (LTA)LTA or LTC can be broadly categorized as below in 2 parts:

1) Any travel assistance received by employee from his employer for himself and his dependent family to cover expenses incurred in travelling while on leave.
2) Any travel assistance received by employee from his former employer for himself or his dependent family to cover expenses incurred in travelling after retirement or termination of his service.

Dependent Family Members includes:

  1. a) Spouse of individual
    b) Children of individual
    c) Parents of individual (mainly or wholly dependent on the individual)
    d) Brothers and sisters of individual (mainly or wholly dependent on the individual)

Exemption Rules

  • People incur several kinds of expenses during their holiday trip but not all of them are covered by LTA. Expenses made on food, shopping, etc. are not tax deductible.
  • Only the expenses made by employee on travelling are born by the employer for which he provides LTA to the employee.
  • The individual must preserve the proof of travel as the same may be required at the time of tax auditing.
  • Exemption is allowed for only twice within a block of 4 years.
  • Amount of exemption is decided as per the mode of transportation opted for and the connectivity of the place of travel

 

What are Leave Travel Allowance (LTA) block years?

LTA block is a period of 4 years suggested by IT Department during which exemptions can be claimed 2 times during every block period.

Here is the list of the block years suggested by IT department so far:

Block no. Period
1 1986-89
2 1990-93
3 1994-97
4 1998-01
5 2002-05
6 2006-09
7 2010-13
8 2014-17

Current LTA Block Year

The current on-going block year is the 8th block year. The 4 years in this block are the years 2014, 2015, 2016 and 2017.

List of Expenses Exempt under LTA

1) In case of travel by Air

economy air fare of national carrier by the shortest route or the actual amount spent on travel whichever is less is exempt from tax.

2) In case of travel by Rail

A.C. first class rail fare by shortest route or actual amount spent on travel whichever is less is exempt from tax.

3) If the origin and destination spots of journey are connected by rail but journey is performed by other mode of transport and not air or rail

A.C. first class rail fare by shortest route or actual amount spent on travel, whichever is less is exempt from tax.

4) If the origin & destination points are not connected by rail or air (partly/fully) but connected by other recognized Public transport system

first class or deluxe class fare of such transport by shortest route or actual amount spent on travel, whichever is less is exempt from tax.

5) If the place of origin & destination are not connected by rail or air (partly/fully) and also not connected by other recognized Public transport system

AC first class rail fare by shortest route (if the journey was performed by rail) or the amount spent on travel, whichever is less is exempt from tax.

If the assesse did not use LTA provided by his employer either once or twice (the permitted limit) in a 4 years block period he can still claim LTA exemption by using LTA in the year immediately succeeding the earlier 4 years block.

Let’s understand this with the help of an example:

Suppose Mr. Ramesh claimed only one exemption during the 7th block which lasted from 2010-13. He still has one exemption remaining. So when can he claim it?

Mr. Ramesh can claim this concession in the next year, i.e. 2014 which is part of the current block. So, in the current block period (i.e. 2014-17), he can avail LTA claims 3 times in total but he needs to claim the carry over LTA of previous block in 2014 only and not later than that.

Limitations or Restrictions Applicable under LTC

  • LTC covers only domestic travel, i.e. only within India. International travel is not covered under this.
  • To claim LTA, the mode of travel should be either air, railway or public transport.
  • LTA is provided for only travel expenses.
  • Tax exemption on LTA cannot be claimed for more than 2 children on an individual. This restriction is not applicable if children are born before October 1st 1998.
  • Children born out of multiple birth after the first child will be treated as one child only. So the above mentioned restriction will not be applicable in this case also.

For more information on Income Tax and other topics related to Finance, please visit our Business & Finance Section.

Major Changes other than Goods Services Tax (GST) impacting our world from 1st July 2017


Major Changes other than Goods Services Tax (GST) impacting our world from 1st July 2017

Arun Jaitley - Goods Services TaxGovernment of India has decided to get Goods Services Tax (GST) implemented from July 1st, 2017.

Here are the major changes that are coming into effect on July 1 other than Goods Services Tax (GST):

  • No filing of I-T return without Aadhaar
Government of India has now made it mandatory to mention Aadhaar for filing of income tax return.

  • Linking of Aadhaar with PAN made mandatory
Government of India has also made it mandatory to link Aadhaar with PAN in order to stop people using multiple PANs to avoid taxes.

  • No PAN card without Aadhaar
Aadhaar has been made must for getting new PAN.

  • No passport without Aadhaar card
Ministry of External Affairs (MEA) has mentioned Aadhaar card as one of the mandatory documents for applying for a passport. So no passport without Aadhaar from July 1.
  • Aadhaar-PAN linking made mandatory from July 1

  • Linking PF account with Aadhaar
Employees’ Provident Fund Organisation (EPFO) has made it mandatory to link PF account with Aadhaar.

  • No concession on railway tickets
In order to plug misuse and leakages, Indian Railways have made it mandatory to quote Aadhaar from July 1 to avail discounts and concessions on railway tickets.

  • Scholarships for schools and colleges
HRD ministry has also notified that school & college going students, who either want to get government scholarship or are already availing it, should furnish Aadhaar details.

  • No PDS benefit without Aadhaar
Public distribution related benefits have been linked to Aadhaar. So individuals will have to link Aadhaar with ration cards before July 1 to get all the PDS subsidy benefits.

  • No departure form for flyers from July 1
Indians flying abroad will not be required to fill departure cards from July 1. This move is aimed at ensuring hassle-free movement and reducing the time required to complete overall immigration formalities.

  • New curriculum for CA
Prime Minister Narendra Modi will be launching on July 1 a new syllabus for chartered accountants. The new syllabus will be in accordance with the International education standards of the International Federation of Accountants and it also includes new taxation system, Goods Services Tax (GST).

  • Online visitor visa for Indians flying to Australia
Australian government has declared that Indian visitors can now apply for a visitor’s visa online from July 1 onward. This online visa facility is desired to speed up the approval process.

For more articles on Finance related information, please visit our Finance Section.

Income Tax Slabs For AY 2018-19 – Tax Planning for FY 2017-18


Income Tax Slabs For AY 2018-19 For Individuals

Income Tax SlabsIncome Tax Slabs for assessment year 2018-19 can be very useful in tax planning for FY 2017-18. There are certain interesting and beneficial revisions to the tax slabs.

Individual resident aged below 60 years

Income Tax Slabs :

Income Slabs Tax Rates
i. Where the taxable income does not exceed INR 2,50,000/-. NIL
ii. Where the taxable income exceeds INR 2,50,000/- but does not exceed INR 5,00,000/-. 5% of amount by which the taxable income exceeds INR 2,50,000/-.
Less : Tax Credit u/s 87A – 10% of taxable income upto INR 350,000. Maximum relief – INR 2500/-.
iii. Where the taxable income exceeds INR 5,00,000/- but does not exceed INR 10,00,000/-. INR 12,500/- + 20% of the amount by which the taxable income exceeds INR 5,00,000/-.
iv. Where the taxable income exceeds INR 10,00,000/-. INR 112,500/- + 30% of the amount by which the taxable income exceeds INR 10,00,000/-.

Surcharge :

  • 10% of the Income Tax, where taxable income is more than INR 50 lacs and upto INR 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of INR 50 lacs by more than the amount of increase in taxable income.
  • 15% of the Income Tax, where taxable income is more than INR 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of INR 1 crore by more than the amount of increase in taxable income.

Education Cess :

3% of the total of Income Tax and Surcharge.

Senior Citizen – Individual resident who is of the age of 60 years or more but below the age of 80 years

Income Tax Slabs :

Income Slabs Tax Rates
i. Where the taxable income does not exceed INR 3,00,000/-
Less : Tax Credit u/s 87A – 10% of taxable income upto INR 350,000. Maximum relief – INR 2500/-.
NIL
ii. Where the taxable income exceeds INR 3,00,000/- but does not exceed INR 5,00,000/- 5% of the amount by which the taxable income exceeds INR 3,00,000/-.
Less : Tax Credit u/s 87A – 10% of taxable income upto a maximum of INR 2000/-.
iii. Where the taxable income exceeds INR 5,00,000/- but does not exceed Rs. 10,00,000/- INR 10,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv. Where the taxable income exceeds INR 10,00,000/- INR 110,000/- + 30% of the amount by which the taxable income exceeds INR 10,00,000/-.

Surcharge :

  • 10% of the Income Tax, where taxable income is more than INR 50 lacs and upto INR 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of INR 50 lacs by more than the amount of increase in taxable income.
  • 15% of the Income Tax, where taxable income is more than INR 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of INR 1 crore by more than the amount of increase in taxable income.

Education Cess :

3% of the total of Income Tax and Surcharge.

Super Senior Citizen – Individual resident who is of the age of 80 years or more

Income Tax Slabs :

Income Slabs Tax Rates
i. Where the taxable income does not exceed INR 5,00,000/-. NIL
ii. Where the taxable income exceeds INR 5,00,000/- but does not exceed INR 10,00,000/- 20% of the amount by which the taxable income exceeds INR 5,00,000/-.
iii. Where the taxable income exceeds INR 10,00,000/- INR 100,000/- + 30% of the amount by which the taxable income exceeds INR 10,00,000/-.

Surcharge :

  • 10% of the Income Tax, where taxable income is more than INR 50 lacs and upto INR 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of INR 50 lacs by more than the amount of increase in taxable income.
  • 15% of the Income Tax, where taxable income is more than INR 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of INR 1 crore by more than the amount of increase in taxable income.

Education Cess:

3% of the total of Income Tax and Surcharge.

For more Finance and tax related information, visit our Finance Section.

Indian Income Tax Act Amendments To be Effective from 01 April 2017


Indian Income Tax Act Amendments

Income Tax Act Amendments
PC: arunjaitley.com

Government of India has made certain changes to the Income Tax Act and are going be effective from 1st April 2017.

The Indian Income Tax Act amendments are as given below:

(1) As per the new Income Tax Act Amendment, limit for payment of expenses by cash  (both, capital and revenue expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person.  Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes.  However, the cash payment limit for lorry fright etc. remains the same at Rs.35000.
(2) No person shall receive an amount of two lakh rupees or more, by cash (Sec. 269ST) —
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion.
The penalty for violation of above is to be a sum equal to the amount of such receipt.
Examples for above –
 i) If one person sells goods worth Rs. 3 Lakh through three different bills of Rs.1 Lakh each to another person and accepts *cash in a single day* at different times then section 269ST(a) will be considered to be violated.
ii) If one person sells goods worth Rs. 3 Lakhs through *single bill* to another person and receives cash of Rs.1.5 Lakhs on day 1 and another Rs.1.5 Lakhs on day 2 then section 269ST(b) will be considered to be violated, since it pertains to the same single transaction.
iii) If one accepts cash of Rs.1.8 Lakhs for *sales* and Rs.20, 000 for *freight charges*,  then section 269ST(c) will be considered to violated even if cash is accepted on different dates, since they pertain to a single sales event.
iv) If one sells his car for Rs.3 Lakhs and receives the amount in cash, then penalty levied on him will be Rs.3 Lakhs.
(2A)  In view of the newly introduced above said penal provisions relating to cash sales, the existing provisions (in vogue from 1.6.2016) relating to collection of TCS @ 1% on cash sales exceeding Rs.2 lakhs (Rs.5 lakhs, in the case of jewellery) are deleted.  Consequently, there is no need to collect TCS on cash sales exceeding Rs.2 lakhs.  Straight away it will attract equal amount penalty now.
(3) For below Rs.2 crores turnover cases –
-For Non Cash Sales (through Digital, Online, cheque, Bank etc.)  : Net Profit will be taken as 6% of Turnover/Gross Receipt.
-For Cash Sales : Net Profit will be taken as 8% of Turnover/Gross Receipt.
(4) Tax Exemption limit is Rs.2,50,000/- (same as earlier) –
– After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%).  Tax rebate of maximum Rs.2500 will be allowed, for total income upto Rs.3.50 lakhs.
-Individuals having total income exceeding Rs.50 lakhs but below Rs.1 crore, are to pay surcharge @ 10% of the tax.  Those having total income exceeding Rs. 1 crore shall continue to pay surcharge @ 15%.
(5) Payment of Rent – Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) – deduct TDS @ 5%.


(6) Capital Gain in respect of Land & Buildings –
– Periodicity for long term Capital Gain is reduced from 3 years to 2 years.
– Base year shifted from 01 April 1981 to 01 April 2001 for all assets including Immovable property.
(7) Corporate tax rate for the account year 2017-18 for companies with annual turnover upto Rs. 50 crores (in the account year 2015-16) is reduced to 25%.  No change in firm tax rate of 30%.
(8) Donations made exceeding Rs.2000 will be not be eligible for deduction under section 80G, unless these are made using modes other than cash.  Consequently, trusts accepting 80G donations may advise their donors to give donations exceeding Rs.2000 vide cheque / RTGS / digital modes.
(9) Sale of unquoted shares to be taxed at (deemed) fair value.
(10) In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.


(11)  From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.
(12) Every person who is eligible to obtain AADHAR number, should quote such number, on or after 1 July 2017, in the Return of income. Furthermore, every person who has been allotted PAN as on 1st July 2017 must intimate the AADHAR number to the Tax Authority, failing which, PAN allotted to such person shall be deemed to be invalid.  Kindly note that linking of AADHAR with PAN is not possible, unless name as per AADHAR and PAN match perfectly.  Hence, please take steps to rectify your name as per AADHAR to match as per PAN.
(13) Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval of the modified clauses.
Hope the above information on amendments in Income Tax Act will help you plan your finances better.
For more articles like Indian Income Tax Act Amendments, please visit Finance Section.


Goods & Services Tax (GST) Bills Passed in Loksabha, India


Goods & Services Tax (GST) Supplementary Bills Passed in Loksabha

Goods and Services Tax got passed in Loksabha (Indian Parliament) on 29th March 2017. It is expected that implementation of GST will bring in 10 major changes in the taxation system in India.

GST
PC: arunjaitley.com

Much debated Goods and Services Tax (GST) system has now become reality by coming closer to meet its rollout across India on July 1 this year. Loksabha today approved its 4 supplementary legislations.

Following supplementary bills were passed on Wednesday, 29th March 2017:

  1. The Central GST Bill, 2017
  2. The Integrated GST Bill, 2017
  3. The GST (Compensation to States) Bill, 2017
  4. The Union Territory GST Bill, 2017

These bills were passed with number of amendments suggested by and negotiated with opposition parties.

After successful rollout of GST the goods and services are expected to become cheaper as there would be only 1 tax across India as against the current mechanism of having tax on tax.

Following 10 major revisions are expected to happen in Tax Regime after GST rollout:

  1. After the rollout, there will be only 1 tax applicable across whole of India. Earlier few taxes used to be levied by Central Government and few by State Governments. This used to result in tax on tax scenario, making goods and services costlier.
  2. State and Central government together will decide and impose one single tax on goods and services which will result in bringing down the cost of goods and services across the country. Finance Minister said that there is no intention to put extra burden on general public. Luxury items and items harmful to health are going to be taxed heavily.
  3. There will be different types of taxes. As per FM, there is no point in having same tax rates for different types of goods and services. For e.g. Flip-flops and BMW can be taxed at the same rate as one is necessity and other is luxury.
  4. GST Council is having representatives from 32 states and Union Territories. It is mentioned that during the first 5 years if any of state gets loss on account of tax received, then Central government will compensate the loss to the state. Jammu & Kashmir is kept out of the GST regime.
  5. It is expected that after GST rollout, tax evasion would be difficult.
  6. Movement of Goods and Services would be easier and seamless throughout the country.
  7. Rollout will improve the tax collection by both central and state governments.
  8. This unification of taxation system will benefit the consumers. It is expected that this will boost the online transactions and will further increase number of tax payers. This will eventually benefit the honest taxpayers.
  9. According to the study conducted by World Bank, new tax regime will add 2% to the GDP.
  10. Though no tax slabs have yet been finalized. It is said that there could be tax slabs like 0%, 5%, 12%, 18%, and 28%. Essential food items could be taxed at 0% while the harmful luxury items could be taxed heavily.

So lets hope Goods and Services Tax (GST) achieves its desired objectives and we see inflation coming down.

For more articles on Finance related information, please visit our Finance Section.

NSE Holidays, BSE Holidays, MCX Holidays – Trading Holidays Calendar 2017


NSE Holidays, BSE Holidays, MCX Holidays

For year 2017, following are the NSE Holidays, BSE Holidays and MCX Holidays.

nse holidays

 

Trading Holidays Calendar for NSE, BSE, MCX

# Holidays Date Day
1 Republic Day 26th January 2017  Thursday
2 Maha Shivratri 24th February 2017  Friday
3 Holi 13th March  2017  Monday
4 Ram Navami 04th April  2017  Tuesday
5 Good Friday &
Dr.Baba Saheb Ambedkar Jayanti
 14th April  2017  Friday
6 Maharashtra Day  01st May 2017  Monday
7 Id-Ul-Fitr (Ramzan Id)  26th June 2017  Monday
8 Independence Day  15th August 2017  Tuesday
9 Ganesh Chaturthi  25th August 2017  Friday
10 Mahatama Gandhi Jayanti  02nd October 2017  Monday
11 Diwali-Laxmi Pujan*  19th October 2017  Thursday
12 Diwali-Balipratipada  20th October 2017  Friday
13 Christmas  25th December 2017  Monday


*Muhurat Trading is scheduled on Thursday, 19 October 2017 (Dipawali- Laxmi Pujan).

Exchanges will notify the timings for Muhurat Trading subsequently.

Holidays For Currency Trading And Clearing & Settlement

# Holidays Date Day
1 Chhatrapati Shivaji Maharaj Jayanti 19th February 2017 Sunday
2 Mumbai Municipal Elections 21st February 2017 Tuesday
4 Gudhi Padwa 28th March 2017 Tuesday
3 Annual Bank Closing 01st April 2017 Saturday
5 Parsi New Year 17th August 2017 Thursday
6 Id-e-Milad 1st December 2017 Thursday


Holidays For Commodity Trading- MCX/NCDEX

# Holidays Date Day Morning Session Evening Session*
1 New Year’s Day 01st January 2017 Sunday Closed Closed
2 Republic Day 26th January 2017 Thursday Closed Closed
3 Mahashivratri 24th February 2017 Friday Closed Open
4 Holi (Rang Panchami) 13th March 2017 Monday Closed Open
6 Ram Navami 04th April 2017 Tuesday Closed Open
5 Good Friday & Ambedkar Jayanti 14th April 2017 Friday Closed Closed
7 Mahavir Jayanti 09th April 2017 Sunday Closed Open
8 Maharashtra Day 01st May 2017 Monday Closed Closed
9 Buddha Poornima 10th May 2017 Wednesday Closed Closed
10 Ramzan Id 26th June 2017 Monday Closed Open
11 Independence Day 15th August 2017 Tuesday Closed Closed
12 Ganesh Chaturthi 25th August 2017 Friday Closed Open
13 Bakri Id 02nd September 2017 Saturday Closed Open
14 Gandhi Jayanti 02nd October 2017 Monday Closed Closed
15 Dassera 30th September 2017 Saturday Closed Open
16 Moharum 01st October 2017 Sunday Closed Open
17 Diwali – Lakshmi Puja 19th October 2017 Thursday Closed Open**
18 Diwali – Balipratipada 20th October 2017 Friday Closed Open
19 Guru Nanak Jayanti 04th November 2017 Saturday Closed Open
20 Id-E-Milad 30th November 2017 Thursday Closed Open
21 Christmas 25th December 2017 Monday Closed Closed

Morning Session will be between 10:00 HRS to 17:00 HRS &  Evening session will be between 17:00 HRS to 23:30/23:55 HRS

*17:00 HRS to 21:00 HRS/21:30 HRS for Internationally linked Agricultural commodities

**Exchanges will notify the timings for Muhurat Trading subsequently.

Happy with information on NSE Holidays, BSE Holidays and MCX Holidays! For more information on Business and Finance, visit Business & Finance

Budget 2017 – 18 Highlights – Union Budget 2017 India


BUDGET 2017 HIGHLIGHTS

1. During Budget 2017 presentation, FM highlighted that India stands out as a bright spot amid world economic gloom .
2. Focus will be onenergizing youth to reap benefits of growth and employment.
3. IMF estimates worldBudget 2017 GDP will grow by 3.4 per cent in 2017.
4. Oil prices, rising dollar and volatile commodity prices seen as risks to Indian economy.
5. India is seen as engine of global growth, have witnessed historic reform in last one year.
6. Demonetisation is a bold and decisive measure, for many decades tax evasion was a way of life for many.
7. Note ban is expected to have only a transient impact on economy .
8. I am reminded of what our father of the nation Mahatma Gandhi said: “A right cause never fails”.
9. The pace of remonetisation has picked up.
10. Effects of demonetisation not expected to spill over to next year.


11. Budget preponement to February 1 will give sufficient time to departments to implement government schemes.
12. Our Budget agenda is – transform, energise and clean India – TEC India.
13. Our approach in preparing the Budget is to spend more on rural areas, infrastructure and poverty alleviation with fiscal prudence .
14. Agriculture sector is expected to grow at 4.6%, agriculture expenditure targeted at Rs 10 lakh crore.
15. 36% increase in FDI flow; forex reserves at $361 billion in January, which is enough to cover 12 months needs.
16. In Budget 2017 Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation
17. Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 crore, which is 24% higher than last year .
18. One crore houses for poor by 2019.
19. Safe drinking water to cover 28,000 arsenic and Fluoride-affected habitations in the next four years.
20. 133-km road per day constructed under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14 .
21. For senior citizens, Aadhar cards giving their health condition will be introduced .
22. Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat .
23. 3500km railway lines to be put up.
24. Service charge on rail tickets booked through IRCTC to be withdrawn.
25. Rail safety fund with corpus of Rs 100,000 crore will be created over a period of five years.


26. 500 rail stations to be made differently abled-friendly by providing lifts and escalators .
27. A new metro rail policy will be announced, this will open up new jobs for our youth.
28. Foreign investment promotion board (FIPB) to be abolished .
29. Allocation for infrastructure stands at a record Rs 3,96,135 crore .
30. Government to set up strategic crude oil reserves in Odisha and Rajasthan.
31. 1.25 crore people have already adopted Bhim App for digital payments .
32. Aadhaar Pay- an app for merchants- to be launched’ 20 lakh aadhaar-based POS by September 2017 .
33. Government is considering introduction of new law to confiscate assets of offenders who escape the country.
34. Defence expenditure excluding pension at Rs 2.74 lakh crore .
35. Fiscal deficit for 2017-18 pegged at 3.2 percent of GDP .
36. Fiscal deficit target for next three years pegged at 3 percent.
37. India’s tax-to GDP ratio is very low. We are largely a tax non compliance society, when too many people evade taxes burden falls on those who are honest.
38. Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh.
39. Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried.
40. Small firms with turnover up to Rs 50 crore to pay 25% tax now, instead of 30%.


41. Black money SIT has suggested no cash transaction above Rs 3 lakh. The government has accepted this recommendation .
42. Maximum cash donation any party can receive will be Rs 2000 from one source.
43. Political parties will be entitled to receive donations by cheques or digital modes.
44. An amendment being proposed to RBI Act to enable the issuance of electoral bonds for political funding.
45. Shri. Jaitley reduces income tax rate from 10% to 5% for tax slab of Rs 250,000 to Rs 500,000 .
46. Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore
47. 15% surcharge on incomes above Rs 1 crore to continue
 End of Budget 2017 Highlights
For more finance related articles, please visit Finance Articles.

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Ways to save taxes for salaried professionals


Tax planning is always there on everybody’s radar. People always look out for avenues and ways for tax savings and deductions. So if you are one of those guys, then these Tax Savings Tips might be of help to you.

  • Gifts received in the form of cash or cheque

If you have received presents/gifts in the form of cash or cheque in your marriage, then this entire gift amount is tax free.

  • Income from interest on savings bank account not taxable up to Rs. 10,000

Interest income is not taxable up to Rs. 10,000. This means if you have earned say Rs. 12,000 during the year, then you have just pay tax on Rs. 2,000 only.

  • Profit from selling shares or equity mutual funds not taxable if holding period is more than 12 months

There is a short term gain tax applicable if you earn profits from selling shares or equity mutual funds in less than 12 months from the purchase date.

  • Money you’ve inherited

There is no inheritance tax in India. So anything you get from your deceased parents or relatives as per their legal will is fully exempt from tax.

  • Bounty of options available to save Tax under section 80C

Under section 80 C, there is a maximum tax deduction up to Rs. 150,000 provided you invest in any one or multiple of the following:

  • Life Insurance Premium (LIC, HDFC Life etc.)
  • Public Provident Fund (PPF)
  • National Savings Certificate (NSC)
  • Equity Linked Savings Scheme (ELSS)
  • Principal Amount Repaid on Home Loan
  • 5 year fixed deposits with banks and post office
  • Tuition fees paid for children’s education, up to a maximum of 2 children
  • Tax saving on home loan under section 80C, section 24

Home loan offers you couple of options for tax savings/deductions. Firstly the principal amount repaid during the FY can be included in 80c, where you can claim a deduction of up to Rs 150,000. In addition to this you can claim deduction up to Rs 150,000 under Section 24.

Tax Savings Tips
Tax Savings Tips

Tax saving on education loan

Under Section 80E the interest paid on an education loan is fully non-taxable up to any amount. You can also claim this deduction if the education loan is taken for your spouse or children.