Amendments Applicable for Assessment Year 2014-15


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.