Amendments Applicable for Assessment Year 2015-16 ( Financial Year 2014-15)

Amendments Applicable for Assessment Year 2015-16 ( Financial Year 2014-15 )




I.        Individual resident aged below 60 years (i.e. born on or after 1st April 1955) or any NRI/ HUF/ AOP/ BOI/ AJP*

Income Slabs
Tax Rates
i.
Where the taxable income does not exceed Rs. 2,50,000/-.
NIL
ii.
Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.
10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.
Where the taxable income exceeds Rs. 10,00,000/-.
Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.
Abbreviations used :
   
NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person


II.        Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year i.e. born on or after 1st April 1934 but before 1st April 1954)

Income Slabs
Tax Rates
i.
Where the taxable income does not exceed Rs. 3,00,000/-.
NIL
ii.
Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-
10% of the amount by which the taxable income exceeds Rs. 3,00,000/-.
Less : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.
Where the taxable income exceeds Rs. 10,00,000/-
Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.


III.        Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year i.e. born before 1st April 1934)

Income Slabs
Tax Rates
i.
Where the taxable income does not exceed Rs. 5,00,000/-.
NIL
ii.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iii.
Where the taxable income exceeds Rs. 10,00,000/-
Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.


IV.        Co-operative Society

Income Slabs
Tax Rates
i.
Where the taxable income does not exceed Rs. 10,000/-.
10% of the income.
ii.
Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.
Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii.
Where the taxable income exceeds Rs. 20,000/-
Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.


V.        Firm
Income Tax : 30% of taxable income.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.


VI.        Local Authority
Income Tax : 30% of taxable income.
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.


VII.        Domestic Company
Income Tax : 30% of taxable income.
Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge
·            At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
·            At the rate of 10% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
Education Cess : 3% of the total of Income Tax and Surcharge.


VIII.        Company other than a Domestic Company
·            @ 50% of on so much of the taxable income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
·            @ 40% of the balance
Surcharge :
The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under
·            At the rate of 2% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
·            At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.
Marginal Relief in Surcharge
When an assessee's taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.
Example :
In case of an individual assesseee (< 60 years) having taxable income of Rs. 1,00,01,000/-
1.
Income Tax
Rs. 28,30,300
2.
Surcharge @10% of Income Tax
Rs. 2,83,030
3.
Income Tax on income of Rs. 1 crore
Rs. 28,30,000
4.
Maximum Surcharge payable
(Income over Rs. 1 crore less income tax on income over Rs. 1 crore)
Rs. 700/- (1000 - 300)
5.
Income Tax + Surcharge payable
Rs. 28,31,000
6.
Marginal Relief in Surcharge
Rs. 2,82,330/- (2,83,030 - 700)





Amendments Applicable for Assessment Year 2014-15 ( Financial Year 2013-14 )


Corporate Income Tax Rates for Financial Year 2013-14  :-


Particulars

IT


SC

EC

SHEC

Total

If Net Income does not exceed Rs. 1 Cr.


30%

NIL

2%

1%

30.90%


If Net Income in the range of Rs. 1 Cr. – Rs. 10 Cr.


30%

5%


2%

1%

32.445%

If Net Income exceeds Rs. 10 Cr.


30%

10%


2%

1%

33.99%



Section 115JB :- Minimum Alternate Tax (MAT) Rate :-

In the Case of domestic company:


Particulars

IT


SC

EC

SHEC

Total

If Net Income does not exceed Rs. 1 Cr.


18.5%

NIL

2%

1%

19.055%


If Net Income in the range of Rs. 1 Cr. – Rs. 10 Cr.


18.5%

5%


2%

1%

20.00775%

If Net Income exceeds Rs. 10 Cr.


18.5%

10%


2%

1%

20.9605%




Section 115-O :- Dividend Distribution Tax (DDT) :



IT


SC

EC

SHEC

Total

15%

10%


2%

1%

16.995%

Income Tax Rates applicable for Individual assessee:


Particulars


Exemption Limit

Tax Rate @10%

Tax Rate @20%

Tax Rate @30%


Resident Women & Any other Resident Individual


Upto Rs.2,00,000

Rs.2,00,001 to Rs.5,00,000

Rs.5,00,001 to Rs.10,00,000

Rs. 10,00,001 and above

Senior Citizen aged above 60 years and below 80 years
(i.e.born during 01.04.1934 to 31.03.1954)


Upto Rs.2,50,000

Rs.2,50,001 to Rs.5,00,000

Rs.5,00,001 to Rs.10,00,000

Rs. 10,00,001 and above


Senior Citizen aged above 80 years (i.e. born before 01.04.1934)


Upto Rs.5,00,000


NIL

Rs.5,00,001 to Rs.10,00,000

Rs. 10,00,001 and above


  • Surcharge @ 10% is applicable if net income exceeds Rs. 1 Crore.
  • Individual whose net income does not exceed Rs. 5,00,000/-is entitled for rebate u/s 87A for 100% Income tax or Rs. 2,000/- whichever is less.




Section 10(34A) :- Income of a shareholder on account of buy back of shares of unlisted company :-

Income arising to the shareholder in respect of buy back of unlisted shares by the company will be exempt from tax under section 10(34A) from the A.Y.2014-15.

Tax on distributed income of domestic company u/s 115QA for buy back of unlisted shares is applicable from June 1, 2013 @ 22.66%. This tax is to be paid by the company and therefore shareholder not to offer income on buy back of unlisted shares.


Section 32AC : Investment allowance for acquisition and installation of new plant and machinery :-

Section 32AC has been inserted to provide for investment allowance in order to encourage substantial investment in new plant and machinery. Investment allowance will be in addition to depreciation. Conditions to avail Investment allowance:-
  1. The assessee is a company.
  2. It is engaged in the business of manufacture or production of any article or thing.
  3. It has acquired and installed a “ new assets”. New assets does not include plant and machinery used earlier within or outside India. It does not include plant and machinery installed in any office premises or any residential accommodation including accommodation in the nature of guest house, any office appliances including computers or computer software, any vehicle, ship or aircraft. The new assets should be acquired and installed after March 31, 2013 but before April 1, 2015.
  4. The aggregate amount of actual cost of such new asset should be more than Rs. 100 Cr.

Investment allowance is 15% of Actual cost of new assets. It is available in the first year of addition of the new assets.


Section 43(5)(e) :- Trading in commodity derivatives – not to be treated as speculative transaction

Section 43(5) has been amended w.e.f. from A.Y.2014-15 to provide that an eligible transaction in respect of trading in commodity derivatives carried out in a recognized association, shall not be treated as a speculative transaction.

Section 80EE : - Deduction in respect of interest on loan taken for residential house property  :-

The deduction under this section is available to the assessee where the housing loan has been availed during April 1, 2013 and March 31, 2014. In this case, the amount of loan sanctioned should not exceed Rs. 25 lacs and the value of residential house property should not exceed Rs. 40 Lacs, Deduction is available in respect of interest payable on the above loan or Rs. 1 Lacs whichever is less.


Section 139 : - Return without self assessment tax to be treated as defective return :-

Section 139 has been amended w.e.f. June 1 , 2013 to provide that the return of income  to be called defective if the taxes due has not been paid along with interest before filing of income tax return.

Section 194 IA :- TDS on purchase of immovable property :-

This section is inserted w.e.f. June 1, 2013. Any person responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property ( other than agriculture land in rural area) is liable to deduct TDS @ 1 percent if the consideration is more than Rs. 50 Lacs.