Changes in Finance Act Wef 1st June 16

[Hemant Mehta]

🌲Finance Act Changes applicable from *1/6/16*

🌴Changes Effective from _June, 2016_

👉Electronic Hearing under Income Tax law enabled

👉Document required to be issued by an Income Tax Authority can be issued in paper form or communicated in electronic form

👉Equalization Levy @ 6% on _online digital advertisement and incidental services_ or provision of digital advertising space

👉TCS @ 1% on luxury vehicles and cash sale of goods or provision of services

👉Exit Tax for Charitable Institutions

👉Non resident not having PAN shall not be subjected to 20% TDS

👉Jurisdiction of Assessing Officer not to questioned in serach cases after one month from notice u/s 153A

👉Non Corporate assessee also to pay advance tax , _15% by 15th June . 45% by 15th Sep, 75% by 15th Dec and 100% by 15th March_

_👉In case of presumptive Income 100% advance tax to be paid by 15th March_

👉Application for Waiver of Interest u/s 220(2A) to be disposed off with in one year

👉Interest under section 234C shall not be chargeable in case of an assessee having income under the head “Profits and gains of business or profession” for the first time,

_👉 Interest on Refund for timely filed return to be allowed from 1st April but interest on refund for belated return to be allowed from date of furnishing of return_

_👉 Interest on refund of self assessment tax to be allowed from date of filing of return or payment of tax, whichever is later._

_👉No Interest to be allowed if refund is lesser than 10% of determined tax_

👉Additional 3% Interest for Appeal Effect delayed beyond 3 months

👉In ITAT post of Sr Vice President abolished

👉Rectification period of ITAT orders limited from 4 years to 6 months

👉Monetary limit for Hearing of appeal by SMC in ITAT raised from 15 lacs to 50 lacs u/s 255(3)

👉Time Limit for completion of assessments reduced from 24 months to 21 months . Assessments to be complted by 31st December.

👉Order for appeal effect to be passed with in 3 months from the end of month in which appeal order is received

👉Limit of Rs. 5000/- for Winnings from Horse Races enhanced to Rs. 10,000/-

_👉For TDS on payment to Contractors Aggregate Annual Limit of Rs. 75000/- increased to Rs 100000/-_

👉Monetary Limit of Rs. 20,000/- for TDS on Insurance Commission u/s 194D reduced to Rs. 15000

_👉Monetary Limit for TDS on Commission u/s 194H enhanced from Rs. 5000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance Commission._

👉Monetary Limit for TDS on Commission on Lottery Tickets u/s 194G enhanced from Rs. 1000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance and other Commission

👉TDS rate on withdrawl of NSS Deposits reduced from 20% to 10% u/s 194EE

👉TDS on LIC Maturities exceeding Rs. 1,00,000/- not exempt u/s 10(10D) was charged @2% by Finance Act 2014 wef 01-10-2014 . TDS rate lowered to 1%.

👉TDS @10% for compulsory acquisition of immovable property other than agriculture land where aggregate payments during financial year exceed Rs. 2 lacs now enhanced to Rs 2.50 lacs.

_👉Form 15G/15H enabled for rental payments also_

👉The Direct Tax Dispute Resolution Scheme for immunity from post assessment interest, penalty and prosecution for cases pending before CITA on 29-02-2016 [Scheme Available up to 31st December]

👉The Income Declaration Scheme 2016. Tax, Surcharge and Penalty @ 45% of Undisclosed Income. Declaration to be filed till 30th September. Tax etc to be paid till 30th November.