UNION BUDGET 2015& DIRECT TAXES

UNION BUDGET 2015 & DIRECT TAXES

RATES OF TAX
No Change
Tax on companies to be reduced to 25% from 30% in five
years
Surcharge is increased to 12.5% from 10% for Individuals,
HUFs, Co-Operative Societies, LLPs and local authorities if
their income exceeds Rs. 1 Crore.

RATES OF TAX
Surcharge for Indian Companies is increased to 7% from the
present @ 5% for income between Rs. 1 Crore to 10 Crores
and increased to 12% from the present 10% if their income
exceeds Rs. 10 Crores
Rate of Tax on Firms, Domestic Limited Companies & LLPs
remains at 30%
The tax rate is reduced from 25% to 10% for Non-Resident
who gained income by way of Royalty or Fees for technical
services.

RATES OF TAX
In case of Individual, HUF, AOP and BOI:

Income Slabs

Rate of Tax

Upto Rs. 2,50,000

NIL

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

10%

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

20%

Above Rs. 10,00,000

30%

RATES OF TAX
In case of Senior Citizen (60 years and above but below 80
years):

Income Slabs

Rate of Tax

Upto Rs. 3,00,000

NIL

Rs. 3,00,001 to 5,00,000

10%

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

20%

Above Rs. 10,00,000

30%

RATES OF TAX
In case of Resident Very Senior Citizen (80 years and above):
Income Slabs

Rate of Tax

Upto Rs. 5,00,000

NIL

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

20%

Above Rs. 10,00,000

30%

Education Cess @ 2% and Secondary & Higher Education

Cess @ 1% are retained.

 Alternate Minimum Tax @ 18.5 % for all assessees

similar to Minimum Alternate Tax (MAT) for
companies will continue if the adjusted total income
exceeds Rs. 20 Lakhs.
The assessees who are engaged in business of
plying, leasing or hiring tucks owning not more than
10 trucks , is retained at Rs. 7,500/- per month for all
types of vehicles.

DDT (Dividend Distribution Tax) on Dividends

declared by companies increased from 15% to 17%
on the gross amount effective rate 20.39%
Wealth Tax abolished and Direct Tax Code dropped
Income from Agriculture is to be included in Gross
Total Income & Rebate will be allowed

DEDUCTIONS
Under section 80C Exempt-Exempt-Exempt (EEE) tax
benefit is proposed for assessee having a girl child
and investing under the Sukanya Samriddhi Account
Scheme. The investments made, the interest (9.1%)
accruing & withdrawals are exempt.

80D Mediclaim Premium:

Individual Increased from 15,000 to 25,000.
Senior Citizen - Increased from 20,000 to 30,000.
Very Senior Citizen Expenditue upto 30,000.
80G Donation:
100% Deduction for contribution to Swatch Bharat
Kosh Clean Ganga Fund and National Fund for
control of Drug Abuse.

80DDB - Treatment of specified diseases :

Very Senior Citizen Limit increased from 60,000 to
80,000.
80DDB - Disability :
Maintenance of dependent with disability - Limit
increased from 50,000 to 75,000.
Maintenance of dependent with serious disability Limit increased from 1Lakh to 1.25Lakh.

80CCC - Contribution to Pension Fund of LIC or IRDA

approved Fund:
Limit increased from 1Lakh to 1.50Lakh.
80CCD - Contribution by employee to National
Pension Fund :
Limit increased from 1Lakh to 1.50Lakh.
Rs.50,000 can be claimed extra and increasing
overall cap to 2Lakh available under section 80C.

Others:
Transport Allowance exemption for salaried class
increased from Rs. 800 to Rs. 1,600 per month.
Additional depreciation 20% is allowed on new
plant & machinery installed by a manufacturing
unit or a unit engaged in generation and
distribution of power.
If the asset is installed after 30th September of
the previous year only 10% of the additional
depreciation was allowed.
The remaining 10% of the additional depreciation
will be allowed in the subsequent previous year

New manufacturing units in the notified areas in

Andhra Pradesh and Telangana from 01.04.2015 to
31.03.2020 will get a additional investment
allowance (@15%) and additional depreciation
(@15%).
Sec 80JJA 30% Deduction of additional wages paid
for 50 (instead of 100) additional work man for all
assesees (instead of companies only)

Furnishing Form No 15CA/15CB for payments made to

non-resident company is required even if they are
not taxable; hitherto it was required if they are
taxable
TRUSTS have to file Form No. 10 and Return of Income
within the due date to avail the benefit of
accumulating the income which is not spent
henceforth YOGA is a charitable activity

Threshold limit for specified domestic transaction

under Transfer Pricing is increased from Rs. 5
crores to Rs. 20 crores.
Undisclosed income from any foreign assets to be
taxable at the maximum marginal rate.
Non-filing of return/filing of return with inadequate
disclosures to have a punishment of rigorous
imprisonment upto 7 years.

TDS:
TDS on Interest on Deposits in Co-operative Banks Rs. 10,000.
TDS on Bank interest will be considered for the Bank
as a whole Int. from all branches will be clubbed
Interest on RD also will be subjected to TDS from
01.06.2015.
TDS will be made if the interest on MACT (Motor
Accident Claims Tribunal) exceeds Rs. 50,000 at the
time of payment to the beneficiary.

Form 15G/H can be given for certain Life Insurance

Maturity Payments exceeding Rs. 1,00,000 which are
subject to TDS.
The person responsible for making the payment of
salary has to obtain from the assessee the evidence
or proof or particulars of prescribed claims
(including claim for set-off of loss).
Transport operators exemption from TDS is only
where the operator has 10 or less than 10 goods
carriages ( PAN with self-declaration to be provided )

TDS Rates:
Nature of
Payments

If exceeding
per annum

INDIVIDUA
LS/HUF

Firm/
Domestic
company

1. Interest (sec.
194A)

5,000

10%

10%

Bank Interest
2. Payment
contractors/ sub
contractors

10,000

10%

10%

30,000

1%

2%

5,000

10%

10%

20,000

10%

10%

180,000

2%

2%

180,000

10%

10%

30,000

10%

10%

Except Lorry
Hire (sec. 194C)
3. Commission /
Brokerage (sec.
194H)
Insurance
Commission
4. Rent (sec. 194I)
Machinery / Plant /
Equipment
Land & Building
5. Fees for
professional services
or Technical
Services (sec. 194J)

If the single payment exceeds Rs. 30,000/- tax is to

be deducted; For the whole year if the total
payments (even if each payment less than Rs.
30,000/-) exceeds Rs. 75,000/- tax is to be
deducted.
Payments of Rs.20,000/- and above are to be made
by account payee cheques only. Upto Rs.19,999/payments can be made by cash on a single day - one
payment only.
For lorry hire, payments can be made upto Rs.
35,000/- in cash.

Time limit for depositing

TDS into Central Govt.'s A/c:
The Time limit for depositing TDS is within 30th April,
if the payment is made or credited to the payee's
account on the last day of the year(31st March).
The Time limit for depositing TDS is within one week
from the last day of the month in which the
deduction is made, if any other case i.e. if payment
by cash, cheque draft etc., or credited during the
year.

Other Informations:
Due Dates of Advance Tax:
Due date for
payment of
Advance Tax

For Non-Company For Company

By 15th June

NIL

15%

By 15th September

30%

30%

By 15th December

30%

30%

By 15th March

40%

25%

CA. M. Lakshmanan

Due Dates for filing of returns of Income

(for the year ending 31.03.2015) :
Individuals, Firms & HUF

Due Dates

whose accounts are not subject 31st July 2015

to Compulsory Audit
whose accounts are subject to 30th September 2015
Compulsory Audit (if the
turnover exceeds Rs. 1Crore or
the Professional Receipts
exceeds Rs.25 Lakhs)

Limited Companies & Trusts 30th September 2015

Special Provisions for computing Profits and Gains of

any Small Business with effect from A.Y. 2011-12.
In case of assessees (being resident individual/HUF/firm except
limited liability partnership) engaged in any business (except
business of plying, leasing or hiring trucks and persons who are
running agency business and who are receiving commission &
Brokerage), whose turnover/gross receipts do not exceed Rs. 1
Crore from the y.e. 31.03.2013, income from the said business will
be computed at 8% of the turnover/gross receipts. No deduction
under Business head shall be allowed.

However, in case of firm, salary and interest paid to its partners

shall be deductible as per section 40(b). If an assessee declares
income at a lower rate/sum, and his total income exceeds the
basic exemption limit for the relevant year, then he shall be
required to maintain the necessary accounts (u/s 44AA) and get
his accounts compulsorily audited (u/s. 44AB).

Special Provisions for computing Income of

Truck Owners
In case of assessees engaged in business of plying, leasing or
hiring trucks, owning not more than 10 trucks, at any time
during the previous year, income will be estimated at Rs.
7,500/- per month for any goods vehicle whether heavy vehicle
or not.
The income will be computed for each month (or part thereof)
Business head shall be allowed. However, in case of a firm,
salary and interest paid to its partners shall be deductible as
per section 40(b). If an assessee declares income at a lower
rate/sum, then he shall be required to maintain the necessary
accounts (u/s 44AA) and get the accounts compulsorily
audited (u/s 44AB).

Returns Filed:
The following assesses have to file returns electronically with
digital signature:
Company
All 44AB Cases where accounts are audited
The following assesses have to file returns electronically with
or without digital signature:
Individual or HUF, if the taxable income exceeds Rs. 10 Lakhs.
A Resident Individual or a Resident HUF having assets located
outside India
If the return is not digitally signed, the ITR-V is to be signed by
the Assessee and sent to CPC, Bangalore within 120 days.

All others not specified above can submit their return in paper
format or electronically with or without Digital Signature.
Annual Information Return (AIR)

Nature of Transaction

Limit

Cash Deposits in SB A/c

Rs. 10 Lakhs

Payments in Cr. Card

Rs. 2 Lakhs

Investments in mutual Funds Rs. 2 Lakhs

units
Investments in Bonds &
Debentures

Rs. 5 Lakhs

Investments in shares

Rs. 1 Lakh

Purchase or Sale of
Immovable Property

Rs. 30 Lakhs

Investments in RBI Bonds

Rs. 5 Lakhs

COST INFLATION INDEX

S. No.

Financial Year

Cost Inflation
Index

S. No.

Financial Year

Cost Inflation
Index

1.

1981-82

100

18.

1998-99

331

2.

1982-83

109

19.

1999-00

351

3.

1983-84

116

20.

2000-01

389

4.

1984-85

125

21.

2001-02

406

5.

1985-86

133

22.

2002-03

426

6.

1986-87

140

23.

2003-04

447

7.

1987-88

150

24.

2004-05

463

8.

1988-89

161

25.

2005-06

480

9.

1989-90

172

26.

2006-07

497

10.

1990-91

182

27.

2007-08

519

11.

1991-92

199

28.

2008-09

582

12.

1992-93

223

29.

2009-10

632

13.

1993-94

244

30.

2010-11

711

14.

1994-95

259

31.

2011-12

785

15.

1995-96

281

32.

2012-13

852

16.

1996-97

281

33.

2013-14

939

17.

1997-98

305

34.

2014-15

1024