Budget Highlights 2014: -Presumptive income under section 44AE being increased to Rs 7,500 per month per vehicle irrespective of heavy goods vehicle or other vehicle. -Payment to non residents not to be disallowed in case tax on such payment is deposited before due date of filing return. -Disallowance under section 40(a)(ia) to be restricted to 30per cent as against 100 per cent disallowance. However all payments liable for TDS including Payment of Salaries and Directors fee will be covered by section 40(a)(ia). -Concessional rate of15 per cent tax under Section 115BBD to continue in perpetuity in respect of dividend recd from foreign companies. -Reopening for TDS possible for 7 years from the end of financial year in which amount is paid or credited under section 201(3). -Tax to be deducted at source at the rate of 2 per cent on payment of Maturity amount of Key man insurance. -Shares other than of listed companies and units of mutual fund ( other than equity oriented) to be considered as short term capital asset if held for less than 36 months as agains present period of 12 months. -Deduction under section 54EC for investment in Bonds to be restricted to Rs 50 lacs even if it is spread over two years -Benefit of Section 54 and Section 54F to be allowed only for one residential house and that too in India. No benefit for residential house outside India. -Advance forfeited in respect of sale of property to be taxed as Income From Other Sources. -Trust can claim benefit of registration in case of pending assessments in case registration under section 12AA is granted. -Benefit of Section 10(23C) will not be allowed if trust is registered under section 12AA. -Depreciation will not be allowed while computing income of Charitable Trust and Institution. judgement of Punjab and Haryana High Court in the case of Tiny Tots being overruled -Income of business to be computed in accordance with Computation and Disclosure Standards to be notified under Section 145(2). -Divedend Distribution tax rate effectively increased from 17. Per cent to 20.4 per cent -CSR Expenditure will not be eligible for deduction while computing business income.
Posted on: Sun, 13 Jul 2014 06:50:50 +0000
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