Presented By

Mr P.K Das
Contd.
Three-Tier Federal Structure
The Union Government

The State Governments

The Urban/ Rural Local Bodies

The power to levy taxes and duties is distributed among the three tiers of Governments,
in accordance with the provisions of the Indian Constitution
1. Direct Taxes

Tax on Corporate Income
Wealth Tax
Personal Income Tax
Tax Incentives
Double Taxation Avoidance Treaty
2. Indirect Taxes

Taxes Levied by Central Government

Excise Duty
Customs Duty
Service Tax
Taxes Levied by State Government

Sales Tax
Stamp Duty
State Excise Duty
Land Revenue
Duty on Entertainment
Tax on Professions & Callings.

Taxes Levied by Local Bodies

Tax on properties

Octroi

Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.


PERSONAL TAXATION
No additional exemption limit for Female Taxpayer

New category of Very senior citizen introduced eligible for higher exemption limits of Rs 5,00,000

Age criterion for senior citizens to be relaxed from 65 years to 60 years.

Basic exemption limit for senior citizens to be increased from Rs.2,40,000 to Rs.2,50,000

Income Slab Rates as per Budget
Upto Rs1,80,000 Exempt
Rs1,80,000 5,00,000 10 Percent
Rs5,00,000 8,00,000 20 percent
Rs Above 8,00,000 30 Percent
Deduction under Chapter VI
Deduction under Section 80C

The total limit under this section is Rs 1 lakh.
Qualifying Investments
Provident Fund (PF) & Voluntary Provident Fund (VPF)
Public Provident Fund (PPF)
Life Insurance Premiums
Equity Linked Savings Scheme (ELSS)
Home Loan Principal Repayment
Stamp Duty and Registration Charges for a home
National Savings Certificate (NSC)
Pension Funds
5-Yr bank fixed deposits (FDs)
5-Yr post office time deposit (POTD) scheme
Unit linked Insurance Plan

Deduction under Section 80D

Any Premium which is paid for medical insurance that has been taken on the health of
the assessee, his spouse, dependent parents or dependent children, is allowed as a
deduction, subject to a ceiling of Rs 15,000.

Where any premium is paid for medical insurance for a senior citizen, an enhanced
deduction of Rs 20,000 is allowed. The deduction is available only if the premium is paid
by cheque
Deduction under Section 80CCF

Deduction in respect of Infrastructure Bond is allowed subject to ceiling of Rs 20000
Deduction under Section 80E

The deduction under section 80E is available to an individual if following conditions are
satisfied:
1. Deduction available only to Individual not to HUF or other type of Assessee.
2.Deduction amount: The amount of interest paid is eligible for deduction and
moreover there is no cap on the amount to be deducted. You can deduct the entire
interest amount from your taxable income. However there is no benefit available on the
repayment of principal amount of the loan.

Deduction under Section 80DDB

An individual, resident in India spending any amount for the medical treatment of
specified diseases affecting him or his spouse, children, parents, brothers and sisters
and who are dependant on him, will be eligible for a deduction of the amount actually
spent or Rs 40,000, whichever is less
For any amount spent on the treatment of a dependent senior citizen an individual is
eligible for a deduction of the amount spent or Rs 60,000, whichever is less is available.

Deduction under Section 80U

It is deduction in the case of a person with a disability. An individual who is suffering from
a permanent disability or mental retardation as specified in the persons with disabilities
(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or the
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation
and Multiple Disabilities Act, 1999, shall be allowed a deduction of Rs 50,000. In case of
severe disability it is Rs. 75,000
Deduction under Section 24
Whenever you take a housing loan to build or buy a new home, the interest payable
on this home loan is eligible for income tax deduction. Maximum deductible amount,
i.e under section 24 is Rs. 1,50,000.
CORPORATE TAX







Tax Rate
Category Existing Rates New Rates
Income Tax 30 percent 30 percent

Surcharge 7.5 Percent 5 Percent

MAT Levied at 18 Percent of
Book Profit
Levied at 18.5 Percent of
Book Profit

Dividend Distribution Tax 15 percent

15 percent

CorparateTax on Foreign Companies are levied @ 40 Percent Plus Surcharge of 2
Percent

Section Nature of Payment Existing
Limit
Proposed
Limit
Rate
194B Winning from Lottery or Cross word puzzle 5,000 10,000 30
194BB Winning from Horse Race 2,500 5,000 30
194C Payment to Contractors [per Transaction] 20,000 30,000 2,1
194C Payment to Contractors [Annual Limit] 50,000 75,000 2,1
194D Insurance Commission 5,000 20,000 10
194H Commission or Brokerage 2,500 5,000 10
194I Rent 1,20,000 1,80,000 10
194J Fees for Professional and Technical Services 20,000 30,000 10
Tax Deduction At Source
Wealth Tax
Wealth tax is charged for every assessment year in respect of net wealth of corresponding
valuation date at the rate of one per cent of the amount by which net wealth exceeds Rs. 30 lakhs
The following assets are subjected to wealth tax:

Guesthouse, farm-house, commercial complex, shopping mall and residential complex are
subjected to the wealth tax.
Valuable items like jewelry and any items made up of precious metals like gold, silver, platinum or
any other precious metals.
Aircrafts, yachts, boats that is used for non-commercial purpose
Cash in hand that is more than 50,000, for individual and Hindu undivided families.
Any cash that is not recorded on the account log book is subjected to the wealth tax.
Motor car that is owned by an individual.
Any urban land situated in the jurisdiction where there is a total population of ten thousand as per
last census is subjected to the wealth tax.

Excise Duty
Manufacture of goods in India attracts Excise Duty under the Central Excise act 1944
and the Central Excise Tariff Act 1985. Herein, the term Manufacture means bringing into
existence a new article having a distinct name, character, use and marketability and
includes packing, labeling etc. Most of the products attract excise duties at the rate of
10%. Excise duty is levied on advalorem basis or based on the maximum retail price in
some cases
Small Scale Sector is exempted from payment of excise duty from annual production up
to Rs.1.5Crore
Impact Of The Recent Changes In Our Case
Sl Item Chapter
Heading
Existing
Duty
New Rate condition
1 Coal 27 Nil 5 With Cenvat credit
2 Coke 27 Nil 5 With Cenvat credit

3 Fly Ash 26 Nil 5 With Cenvat credit
Option to pay Excise duty @ 1percent is also available without utilization of Cenvat
Credit
Customs Duty

The levy and the rate of customs duty in India are governed by the Customs Act 1962
and the Customs Tariff Act 1975. Imported goods in India attract basic customs duty,
additional customs duty and education cess. The rates of basic customs duty are
specified under the Tariff Act. The peak rate of basic customs duty has been is 7.5% for
industrial goods. Additional customs duty is equivalent to the excise duty payable on
similar goods manufactured in India
The export duty on iron ore lumps and fines has been enhanced from 15% and 5%
respectively to a uniform rate of 20%.

Full exemption from export duty has been provided to iron ore pellets.


EXPORT DUTY
Service Tax

Service tax is levied at the rate of 10% (plus 3% education cess) on certain identified
taxable services provided in India by specified service providers. The Cenvat Credit
Rules allow a service provider to avail and utilize the credit of additional duty of
customs/excise duty for payment of service tax. Credit is also provided on payment of
service tax on input services for the discharge of output service Tax liability
Goods used for construction have been excluded from inputs while construction
services, work contract service, and other specified services in so far as they are used
for construction have been kept out of the purview of input services

Service Tax on Which Credit is Not Allowed
Services relating to , motor vehicles and personal use or consumption of employee will
not be eligible for Cenvat credit
Central Sales Tax
CST is 2% on manufactured goods against statutory declaration forms otherwise at the
rate prevailing under VAT
Value Added Tax
VAT is a multi-point destination based system of taxation, with tax being levied on value
addition at each stage of transaction in the production/ distribution chain. The term 'value
addition' implies the increase in value of goods and services at each stage of production
or transfer of goods and services. VAT is a tax on the final consumption of goods or
services and is ultimately borne by the consumer
There are four slabs of VAT
0% for essential commodities
1% on bullion and precious stones
4% on industrial inputs and capital goods and items of mass consumption
All other items 13.5%

Petroleum products, tobacco, liquor etc, attract higher VAT rates that vary from State to
State. This is normally up to 20%
Entry Tax
The levy and the rate of Entry Tax in Orissa are governed by the Orissa Entry Tax Act
1999. There shall be levied and collected a tax on entry of the scheduled goods into a
local area for consumption, use or sale therein at such rate of the purchase value of
such goods from such date as may be specified by the State Government and different
dates and different rates may be specified for different goods and local areas subject to
such conditions as may be prescribed. The tax leviable under this Act shall be paid by
every dealer in scheduled goods or any other person who brings or causes to be
brought into a local area such scheduled goods whether on his own account or on
account of his principal or customer or takes delivery or is entitled to take delivery of
such goods on such entry

Emerging New Tax Regime
Definition of Residential Status has been amended to cover only 2 category Resident
and Non Resident

Increase in medical reimbursement limit from ` 15,000 to 50,000

No additional exemption limit for Female Taxpayer

Income Slab Rates as per DTC
Upto Rs 2,00,000 Exempt
Rs 2,00,000 5,00,000 10 Percent
Rs 5,00,000-10,00,000 20 percent
Rs Above 10,00,000 30 Percent
Proposed Changes in DTC
Aggregate deductions for long term eligible savings along with tuition fees paid
proposed to be increased from Rs1lakh to Rs 3lakhs including interest on house loan

What Is GST
GST (Goods & Services Tax) is a domestic consumption tax applicable alike
on all goods and services. It will eliminate the differential treatment of the
manufacturing and service sector. It shall be a multi-stage tax where the
ultimate burden shall lie on the consumer.

The dealer shall charge GST on output and pay GST on inputs. Difference
of Output GST and input GST shall be payable as tax. Thus tax is payable
only on Value addition with no cascading effects.
There will be Dual GST Model
1. Central GST (CGST)
2. State GST(SGST)
State Level Taxes

VAT on sale of goods and deemed sales
Lotteries / Betting/ Gambling
Stamp Duty
Vehicle Tax / Road Tax / Passenger Tax / Toll Tax
Electricity Tax
Property Tax
Entry Tax / Purchase Tax, Octroi
Luxury Tax on services in Hotel and Restaurants.
Entertainment Tax
Cess and Surcharge

Various laws that get subsumed in GST

Central Taxes

Customs Duty on Imports
Central Excise Duty and Additional Excise Duty
Additional Customs Duty (CVD)
Service Tax on rendering of services
Central Sales Tax on Interstate sales
Cess and Surcharges
Various laws that get subsumed in GST