Major Amendments in Income Tax Act By Finance bill 2071[SUMMARY]: ********************************************************************************* Followiing are the major amendments made to Income Tax 2058 By Finance Bill 2014. Major Amendments in Income Tax ------------------------------------------- Increase in Tax Base of Natural Person Provision For 2070/71 Rs. 200,000 for Individual and Rs. 250,000 for Couple. Provision for 2071/72 Rs. 250,000 for Individual and Rs. 300,000 for Couple. Presumptive taxation for ‘Small Tax Payer’ has been increased. ================================================== Provision For 2070/71 Rs. 3,500, Rs. 2,000 and Rs. 1,250 for resident natural person operating business at Metro/ Sub Metro, Municipality and Other Area respectively. Provision for 2071/72 Rs. 5,000, Rs. 2,500 and Rs. 1,500 for resident natural person operating business at Metro/ Sub Metro, Municipality and Other Area respectively Fine for Tax Exempted Entity on failure of Submission of Financial Statement with in prescribed time.(New Provision) ==================================================== Provision For 2070/71 N/A Provision for 2071/72 If tax exempted entity fails to submit Financial Statement within prescribed time, they are liable to pay penalty @ 0.1% per annum of gross income Maximum Ceiling of 5% for Banking Industry ===================================================== Provision For 2070/71 Up to 5% of Loan Loss Provision only. Provision for 2071/72 Up to 5% of Loan Loss Provision and Provision for Non-Banking Asset. Maximum Ceiling of 5% for Cooperatives (New Provision) ===================================================== Provision For 2070/71 N/A Provision for 2071/72 Up to 5% of Loan Loss Provision. Extension of facilities under 47Ka for merger and acquisition of Bank and Insurance . ===================================================== Provision For 2070/71 Available up to Ashadh 2072 Provision for 2071/72 Available up to Ashadh 2073 Cash Basis of Accounting for Cooperatives (New Provision) ====================================================== Provision For 2070/71 N/A Provision for 2071/72 Cooperative can account the Interest Income on Cash Basis as well. Capital Based Tourism and Airline Industry (Conditional) (New Provision) ===================================================== Provision For 2070/71 N/A Provision for 2071/72 100% Exemption for 5 Yrs + 50% for next 3 Yrs Extension of facilities under 11(3Gha) for Hydro Power starting construction on or before 7 Bhadra 2071 ===================================================== Provision For 2070/71 Commercial Operation to be commenced by the end of Chaitra 2075 (13 April 2019) Provision for 2071/72 Commercial Operation to be commenced by the end of Chaitra 2080 (13 April 2024) Capital Based Special Industry (Conditional) (New Provision) ===================================================== Provision For 2070/71 N/A Provision for 2071/72 100% Exemption for 5 Yrs + 50% for next 3 Yrs
Posted on: Thu, 25 Dec 2014 19:18:41 +0000