HIGHLIGHT’S OF DIRECT TAX PROPOSALS IN UNION BUDGET 2018-19

HIGHLIGHT’S OF DIRECT TAX PROPOSALS IN UNION BUDGET
2018-19
CA Suresh Babu S
Managing Partner
M/s SBS and Company LLP
suresh@sbsandco.com
+91 9440883366
by
Hyderabad Branches of CMA and CS
02nd February, 2018

2
RATES OF INCOME TAX
2
Individual/HUF
(Less than 60 years of
age)/HUF/AOP/BOI/AJP)
Resident Individual/HUF
(Age of 60 or more)
Resident Individual /HUF
(Age of 80 or more)
Income Rates
Upto 2,50,000 NIL
Rs. 2,50,000 –
Rs. 5,00000
5% of total
income-2,50,000
Rs. 5,00,000 –
Rs. 10,00,000
Rs12,500 + 20%
of (total income-
Rs. 5,00,000)
Above Rs.
10,00,000
Rs 1,12,500 + 30%
Of (total income -
Rs. 10,00,000)
Income Rates
Upto 3,00,000 NIL
Rs. 3,00,000 –
Rs. 5,00000
5% of (total
income-3,00,000)
Rs. 5,00,000 –
Rs. 10,00,000
Rs10,000 +20% of
(total income-
5,00,000)
Above Rs.
10,00,000
Rs 1,10,000+30%
of (total income-
Rs. 10,00,000)
Income Rates
Upto 5,00,000 NIL
Rs. 5,00,000 –
Rs. 10,00,000
20% of (total
income -5,00,000)
Above
Rs. 10,00,000
1,00,000 + 30%of
(total income -
5,00,000)
Rebate of Rs. 2500/- Is available
if Total income of resident
individual does not exceed
Rs.3,50,000
suresh@sbsandco.com www.sbsandco.com +91 9440883366

No change for the tax rates and Income tax slabs for Individuals/ HUF for the Asst.
Year 2019-20.
Other Important Points in Tax Structure : (for Individuals & HUF)
 Surcharge
 'Health and Education Cess’ of 4% is to be levied on personal income tax.
RATES OF INCOME TAX
Total Income Surcharge
> Rs.50 Lakhs – 1 crore 10% of Total Income
> 1 crore 15% of Total Income

Tax Rates
Income Tax Rates for Entities:
Business Entity Income Tax Rate @
Firms/ LLP/ Local Authority 30%
Domestic Company up to Turnover of Rs. 250 Crores 25%
Domestic Company Turnover > Rs. 250 Crores 30%
Foreign Company 40%
The Rate of Surcharge
Income up
Up to Rs. 1 Crore 1 Cr to 10 Cr > 10Cr
Domestic Company NIL 7% 12%
Domestic Company NIL 2% 5%
The Health & Education cess @ 4% shall be computed on aggregate of Income tax &
surcharge.

 A standard deduction of Rs.40,000/- is introduced in lieu of transport and medical
reimbursements.
 NPS withdrawal exemption extended to non-employees:- Any payment from the National
Pension System Trust to an Assesse on closure of his account or on his opting out of the pension
scheme, to the extent it does not exceed 40 % of the total amount payable to him at the time of
such closure or his opting out of the scheme shall not be included in their total income.(shall be
allowed as exemption)
Additional benefit -Salaried employees

 Trading in agricultural commodity derivatives are not speculative transaction [Sec 43(5)):
 trading in commodity derivatives carried out through a recognized stock exchange shall be treated
as non-speculative transaction, if the same is chargeable to commodity transaction tax.
Amendment:
 It is proposes to amend section 43(5) to provide that transaction in agricultural commodity
derivatives done through a registered stock exchange or registered association would be treated as
non-speculative transaction even if the same is not chargeable to CTT
 Exemption to Foreign Company from sale of leftover stock of crude oil on termination of agreement
[sec 10(48)B]:-
 Exemption under section 10(48B) is available to a foreign company on account of sale of leftover
stock of crude oil after the expiry of the agreement or arrangement subject to such conditions as
may be notified.
 The benefit of exemption is presently not available on sale out of the leftover stock of crude in case
of termination of the said agreement.
 it is proposed to amend section 10(48B) to provide that the benefit of tax exemption in respect of
income from left over stock will be available even if the agreement is terminated.
Profits and gains of Business or Profession

 Non applicability of MAT in case Foreign Companies opt for presumptive taxation
[Sec 10(48B)]
 It is proposed to the provisions of MAT under Section 115JB that the provisions of section
115JB of the Act shall not be applicable to a foreign company if its total income comprises
consists only profits and gains from business referred to in section 44B or section 44BB or
section 44BBA or section 44BBB.

 Rationalization of presumptive taxation scheme in case of goods carriage [Sec 44AE]
 Taxpayers who is engaged in the business of plying, hiring or leasing of Goods Carriage and
having not more than 10 good carriage, has an option to avail presumptive taxation scheme
under section 44AE. In this case, income of taxpayer is deemed to be Rs. 7,500 per goods
carriage per month, without an rationale of large capacity/ size goods carriages, even if
number is less than 10.
 Therefore, it is proposed to amend the section 44AE of the act, in the case of heavy
goods vehicle (more than 12MT gross vehicle weight), the income would deemed to be
an amount equal to
 Rs. 1,000 per ton of gross vehicle weight or unladen weight,
(as the case may be per month or part of the month for each goods vehicles) or
 The amount claimed to be actually earned by the assesse
The vehicle other than heavy goods vehicle will continue to be taxed per the existing rates.
Whichever is
higher

 Value of Consideration [Section 43CA, 50C and 56]:-
 As per the current provisions, when a taxpayers claims that the sales consideration received by him
from transfer of an immovable property is less than the value adopted by the Stamp authorities, then
the stamp value is deemed as the actual sales consideration. Deeming the stamp value as the sales
consideration result in higher amount of capital gains even if the seller has not gained anything due to
such higher stamp valuation. Further, such difference in the stamp value and the actual consideration
disclosed by the parties is also taxed in the hands of the buyer.
Amendment:
 In order to minimize hardship in case of genuine transactions in the real estate sector, it is proposed to
provide that no adjustments shall be made in a case where the variation between stamp duty value and
the sale consideration is not more than five percent of the sale consideration. These amendments will
be applicable for all transactions occurred entered into on or after April 1, 2018.
Capital Gains

 Exemption only for immovable properties [Section 54EC]:-
 Section 54EC of the Act provides exemptions up to Rs. 50 lakhs if any long-term capital gain is invested
in the specified bonds of NHAI and RECL within a period of six months after the date of such transfer.
Such investments in these bonds have a lock-in period of 3 years.
Amendment:
 The Finance Bill has significantly curtailed the scope of this exemption. As per proposed amendment,
exemption under Section 54EC shall be allowed only if long-term capital gains arising from transfer of
an immovable property (land or building or both) is invested in the specified bonds. The lock-in period
of such bonds has also been increased to 5 years.
Capital Gains

 No more exemption for the Capital Gains arising from Listed Equity Shares [Sec 10(38), 112A]
 Currently, long term capital gains arising from transfer of listed equity shares or units of equity
oriented fund or units of business trusts, are exempt from income-tax under Section 10(38) of the
Act.
 The proposed Section 112A has been inserted which says that the long term capital gains from
transfer of equity shares of a company or unit of equity oriented fund or unit of business trusts
will be now taxable @ 10% if-
on such transfer, securities transaction tax (STT) has been paid.
(and)
long term capital gain on such transfer exceeds Rs. 1,00,000.
LTCG – 112A

 While calculating LTCG, resident individual & HUF can avail the basic exemption.
 Benefit of indexation shall not be available.
 No Chapter VIA deductions – No Claim U/s 80C to 80U.
 Relief U/s 87A .
 In case of Long Term Capital Loss, the same can be carried forward and set off against
future gains as per Section 70 and 71 of IT Act.
LTCG – 112A

COST OF ACQUISITION
If the capital asset acquired by the assesse before the 01-02-2018, then cost of acquisition
shall be deemed to be the higher of following:-
 Cost of acquisition of such asset; and
 lower of –
• The fair market value of such asset and
 The full value of consideration received or accruing as a result of transfer of the capital
asset.
The FMV of listed equity share shall mean its highest price quoted on the stock exchange
on 31st January, 2018. However if there is no trading in such shares on such exchange on
31st January, 2018, the highest price immediately preceding 31st January 2018.
While in case of units which are not listed on recognized stock exchange, the net asset
value of such units as on 31st January, 2018.
LTCG – 112A

Let's understand the new provisions with some examples of trading in listed equity shares:
Capital Gains
Particulars Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5
Sales Consideration (A) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Date of Sale 31-03-18 01-04-18 01-04-18 01-04-18 01-04-19
Actual Cost of Acquisition (B) 800,000 800,000 800,000 800,000 800,000
Date of Purchase 01-01-17 01-01-17 01-01-17 01-01-17 01-03-18
Quoted Price on Stock
Exchange as on 31/01/2018 (C)
850,000 750,000 900,000 1,100,000 1,100,000
Deemed Cost of Acquisition
(D)*
800,000 800,000 900,000 1,000,000 800,000
Long-term Capital Gains
(E = D-A)
200,000 200,000 100,000 - 200,000
Exemption for Capital Gains
(F = E - 1,00,000)
200,000 100,000 100,000 - 100,000
Tax on Capital Gains (F * 10%) - 10,000 - - 10,000

 Beneficial tax regimes for International Financial Services Centre (IFSC) [Sec 47]
 In order to promote the development of world class financial infrastructure in India, it is proposed
to amend the section 47 of the Act, to provide exemption for the capital gains arising from
transactions entered into by a non-resident on a recognized stock exchange located in any IFSC, if
the consideration is paid or payable in foreign currency for the bonds or GDRs, Rupee
Denominated Bonds of an Indian company or Derivatives.
 AMT chargeable at the rate of 9% instead of 18.50%:-
 In order to promote the development of world class financial infrastructure in India, it is
proposed to amend the section 115JC so as to provide that in case of a unit located in an IFSC
which derives its income solely in convertible foreign exchange, the rate of AMT under
section 115JF shall be at the rate of 9% instead of existing rate of 18.50%.
IFSC

 No-deferment of tax on conversion of stock-in-trade into capital asset [Sec 49]
It is amended that;
 Any profit or gains arising from conversion of inventory into capital asset shall be charged to tax as
business income under Section 28. For the purpose of computing the business profits, the FMV of
the inventory as on the date of conversion, shall be deemed to be the full value of the
consideration of such inventory.
 For the purposes of computation of capital gains arising from transfer of such converted capital
assets, the FMV as on the date of conversion shall be the cost of acquisition as per Section 49 and
the period of holding for such capital asset shall be reckoned from the date of conversion or
treatment.
Stock in trade into capital asset

 Any Charitable trusts or institutions while computing the application of income will be required
to follow
 The provisions of TDS (Disallowance of 30% of amount of Tax, if it is not deducted or
deposited within due date) and
 Will make all expenses in excess of Rs. 10,000 through banking channels.
 Therefore expenditure incurred without deduction of tax or in cash will not be eligible for
application of income for purpose of Charitable trust or any other entity of such nature.
 This action is taken In order to encourage a cash-less economy and to reduce the generation
and circulation of black money.
For Charitable Trust

 Marked to market losses: ICDS – I
 provides for not allowing marked to market loss or expected loss while computing income
under the head "profits and gains of business or profession" unless such loss is recognized
in accordance with the provisions of any other ICDSs.
 proposes to insert section 36(1)(xviii), which provides that any marked to market loss or
other expected loss as computed in accordance with the ICDS shall be allowed as
deduction
 Valuation of Inventory: ICDS – II
 Deals with valuation of inventory and in the event of dissolution of firm and continuation
of business by surviving partners the inventory is valued at cost or market price whichever
is less
 Proposes necessary amendment in Section 145(2), and provides that the valuation of
inventory shall be made at lower of cost or net realizable value in accordance with ICDS.
Amendments - ICDS

 Construction contracts: ICDS – III
 It is proposes to recognize whatever is contained in ICDS-III as valid by inserting section 43CB
which says that the profits and gains arising from construction contract or a contract for providing
service is to be determined in accordance with the ICDS notified under section 145(2).
 However, section 43CB will not apply to following contracts
 duration of contract is not more than 90 days for which the income shall be determined on the
basis of project completion method
 involves indeterminate number of acts over a specified period of timeand the income has to be
determined on the basis of straight line method
 Revenue Recognition: ICDS – IV
 It is proposes to insert a new section 145B to tax the export incentives as income of the previous year
in which reasonable certainty of its realization is achieved.
 It also proposed that section 145B provide that the subsidy/ grants/cash incentives/duty drawback etc.
as defined in section 2(24)(xviii) is taxable in the year of receipt, if not charged to tax in any of the
earlier previous years.
Amendments - ICDS

 Foreign currency gains or losses: ICDS –VI
 It proposes to insert section 43AA where it gives weightage to ICDS –VI by stating that any gain or
loss arising on account of any change in foreign exchange rates shall be treated as income or loss.
For the purpose of calculating gains or loss, foreign currency transaction includes;
 Monetary items and non-monetary items
 Translation of financial statements of foreign operations
 Forward exchange contracts
 Foreign currency translation reserves
Amendments – ICDS

21
• Sec 80AC : Certain Deductions not to be allowed if return is not filed on time
• As per existing provisions of Section 80AC of the Act, no deduction would be admissible
under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or
section 80-IE, unless the return of income by the assessee is furnished on or before the due
date specified under Section 139(1).
• it is now proposed that the scope of section 80AC shall be extended to all similar deductions
which are covered in heading "C.—Deductions in respect of certain incomes" in Chapter VIA
(sections 80 H to 80RRB)
• Section 80D : Deduction in respect of medical insurance
Deductions under Chapter - VI A
Assessee Limit
Senior Citizen ₹50,000 (increased from ₹30,000)
Other than Senior Citizen ₹25,000

22
• Section 80DDB : Deduction in respect of disability
• Section 80-IAC (Deduction in respect of eligible start-ups):
 Eligible start-ups NOW include Companies and LLP incorporated till 31st March 2021, which
was previously restricted to 31st March 2019;
 To be an eligible start-up, the turnover shall not exceed ₹25 crores in any of the seven
Financial Years from the date of incorporation.
• Section 80JJAA (Deduction in respect of employment of new employees):
 Additional employee now includes an employee, employed by an assessee engaged in a
business of footwear or leather products for a period of less than 150 days during the
previous year (previously employed for a period of less than 240 days).
Assessee Limit
Senior Citizen ₹1,00,000 or actual amount spent
(which ever is lower)
Other than Senior Citizen ₹40,000 or actual amount spent
(which ever is lower)

23
• Section 80PA (deduction of profits for of producer companies): Producer company can
claim deduction of 100% of the profits and gains subject to following conditions:
 Turnover shall be less than ₹100 crores;
 The deduction shall be allowed net of deductions claimed under other sections of the Act;
 Deduction is allowed during the FY 2018-19 to FY 2023-24.
What is a Producer Company ?
Producer company means a Company engaged with following objectives:
 production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary
produce of the Members or import of goods or services for their benefit;
 processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of
its Members;
 manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
 providing education on the mutual assistance principles to its Members and others;

24
 rendering technical services, consultancy services, training, research and development and all
other activities for the promotion of the interests of its Members;
 generation, transmission and distribution of power, revitalisation of land and water resources,
their use, conservation and communications relatable to primary produce;
 insurance of producers or their primary produce;
 promoting techniques of mutuality and mutual assistance;
 welfare measures or facilities for the benefit of Members as may be decided by the Board;
 any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i)
or other activities which may promote the principles of mutuality and mutual assistance
amongst the Members in any other manner;
 financing of procurement, processing, marketing or other activities specified in clauses (a) to
(j) which include extending of credit facilities or any other financial services to its Members.

 TDS from payment of interest on specified bonds [Sec 193]:-
 In case of any Interest on 7.75% Savings (Taxable) Bonds, 2018, to extent of Rs. 10,000 during
the financial year.
 New deduction for senior citizens in respect of bank interest [Sec 194A, 80TTA & 80TTB]:-
 A new section 80TTB is proposed to be inserted. This provision allows deduction of up to
Rs. 50,000 to the senior citizen who has earned interest income from deposits with banks or
post office or co-operative banks. Interest earned on saving deposits and fixed deposits both
shall be eligible for deduction under this provision.
 Deduction under Section 80TTA shall not be available to senior citizens in respect of interest
on saving deposits.
 Amendment has been proposed in Section 194A to provide that no tax shall be deducted at
source from payment of interest to a senior citizen up to Rs. 50,000
Tax Deducted at Source

26
Particulars 194IB - Payment of rent by certain individuals or HUF
Payer Individual / HUF
Payee Resident Payee
Nature of Payment Rent
Rate of Deduction @ 5 per cent
Threshold limit Rs.50,000/- per month
Due date to deposit tax Within 30 days
Form 26QC
Certificate of deduction 16 C

Particulars 194IA - Payment on transfer of certain immovable property
Transferor Resident Transferor
Transferee Any person
Person liable to deduct Transferee
Nature of Payment Consideration for transfer of immovable property(Other than agricultural land)
Rate of Deduction @ 1 per cent
Threshold limit Rs.50,00,000/-
Consequence of Non
furnishing of PAN
Tax is to deducted at higher of the following rates:
 the rate prescribed in the Act;
 at the rate in force, i.e., as mentioned in the Finance Act; or
 at the rate of 20 per cent
Form 26QB
Certificate of deduction Form 16-B (to be issued by deductor)
Provisions relating to Tax Deduction and Collection Account Number, shall not apply.

Particulars 195- Other Sums (TDS on Non-Residents payments
Payer Resident
Payee Non-Resident
Nature of Payment Any sum paid (including for purchase of immovable property)
Rate of Deduction At rates in force
Threshold limit No threshold limit
Form 27Q (quarterly) returns
Certificate of deduction Form 16-A
Other Points :
 Payer should obtain TAN. The same can be obtained by applying in Form 49B electronically.
 He should have his own PAN number and PAN number of the NRI payee

No Addition while Processing the Return:
 While Processing the Return of Income, any adjustments in respect of income appearing in
Form 26AS / Form 16A / Form 16 are not to be in respect of Income-tax return so furnished .
E-Assessment
 The Finance Bill 2018 has proposed to come out with a new scheme for scrutiny assessment to
improve effectiveness of tax administration.
 By eliminating the interface between the Assessing Officer and the assessee
 By optimal utilization of the resources.
 Introduction of team-based assessment.
E-Assessment - Sec 143

 Penalty for failure to Furnish of Statement of Financial Transactions(SFT)
 Stringent prosecution for not filing the ITR:
 Section 276CC provides for imprisonment of up to 2 years in case a person doesn't file the
return of income.
 The Finance Bill targets to prevent abuse of the exemption provided on the basis of amount
of tax payable by shell companies or by companies holding Benami properties.
Statement of Financial Transactions - 271FA
Default Penalty
Penalty for not filing Statement within due
date
Rs. 500 per day during which the default continues
Penalty for not filing Statement within time
limit given in notice
Rs. 1,000 per day during which the default
continues

 Rationalization of Taxation provisions for Start-ups [115BA]-a domestic company can opt to pay tax
at the rate of 25% if they are engaged in the business of manufacturing or production of any article
or doing research in relation thereto
 Finance Bill provides a retrospective clarificatory amendment (effective from 01st April, 2017) that
the beneficial rate of taxation of 25% is available only in respect of income arising from the
business operations of manufacturing, production, etc.
 Relaxation in provisions of carry forward and set off of losses for companies applied for Insolvency
[Sec 79] - It is proposed that the rigors of section 79 shall be relaxed in case of those companies
whose resolution plan has been approved under the Insolvency and Bankruptcy Code, 2016.
 Dividend payouts of equity oriented mutual fund subject to DDT [Sec 115R & 115T]-Specified
company or Mutual Fund shall be liable to pay tax on income distributed to its unit holders. However,
in respect of any income distributed to a unit holder of equity oriented funds is currently not
chargeable to Dividend Distribution Tax.
 Proposed to amend the section 115R to provide that where any income is distributed by a Mutual
Fund, being an equity oriented fund, the fund shall be liable to pay additional income tax at the rate of
10% on income so distributed.
Misc. Provisions

 'Accumulated Profits' redefined for purpose of Deemed Dividend [section 2(22)(d)-is proposed
to be inserted in section 2(22) (e) to widen the scope of the term 'accumulated profits’.
 As per the new Explanation, the accumulated profits/losses of an amalgamated company
shall be increased by the accumulated profits of the amalgamating company (whether
capitalized or not) on the date of amalgamation
 Deemed dividend isn't taxable in hands of receivers [Sec 115-O & 115Q]
 Deemed dividend as specified in section 2(22)(e) were kept out of the ambit of Dividend
Distribution Tax (DDT).
 Now it is proposed to bring deemed dividends also under the scope of dividend distribution
tax, companies are now liable to pay DDT on the deemed dividend, tax at the rate of 30% is
proposed on such deemed dividend. The same shall be exempt in the hands of the receiver
under Sec 10(34).
Misc. Provisions

 The Return of Income of the Company shall be verified by Insolvency Professional
appointed by Adjudicating Authority.
where an application for corporate insolvency resolution process has been admitted by
the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency
and Bankruptcy Code, 2016.
Miscellaneous Provisions:
• No deduction of exp. even if unexplained income is determined by Assessing
Officer[Sec 115BBE]-Any sum found credited in the books of the taxpayer, for which he
offers no explanation about the nature and source thereof or the Assessing Officer
(AO) are not satisfied by the explanation offered by the taxpayer, is termed as
unexplained income. Such incomes are taxed at the flat rate of 60%
• Relief from MAT for companies who have applied for Insolvency [Sec 115JB]-While
calculating book profit for payment of MAT under Section 115JB, lower of brought
forward loss and unabsorbed depreciation, is allowed as deduction. The amount of
deduction becomes nil if either brought forward loss or unabsorbed depreciation is
also nil.
Misc. Provisions

PAN to be obtained by all U/s 139A
 PAN to obtained by all Non- individuals entities, entering into Financial Transaction of Rs.2.5
lakh or more in a Financial Year
 Any person who is the Managing Director, Director, Partner, Trustee, Author, Founder, Karta,
C.E.O or the office bearer or Any Person competent to act on behalf of the person referred to in
the above clause shall also obtain PAN.
Misc. Provisions

Particulars 269SS 269T 269ST
Scope of the
section
Receipt of loans,
deposits and
specified sum
Payments of loans
or deposits or
specified sum
No person should receive in cash in
relation to:
 in aggregate from a person in a day;
 in respect of a single transaction ; or
 in respect of transactions relating to
one event or occasion from a person
Applicability of this
section
Any Person taking or
accepting
Any person paying Any person receiving any amount
Monetary Limit INR 20,000 INR 20,000 INR 2,00,000
Misc. Provisions - Cash Receipts and Payments

Particulars 269SS 269T 269ST
Exception  Government;
 Any banking company, post office savings bank or co-operative bank;
 Any corporation established by a Central, State or Provincial Act;
 Any Government Company 11 as defined in
section 617 of the Companies Act, 1956 (1 of
1956);
Such other institution, association or body or class
of institutions, associations or bodies which the
Central Government may, for reasons to be recorded
in writing, notify in this behalf in the Official Gazette
 transactions of
the nature referred to in section 269SS;
 such other
persons or class of persons or receipts,
which the Central Government may, by
Notification in the Official Gazette, specify.
Penalty U/s 100% on such receipt U/s 271D 100% on such
payment U/s 271E
100% on such receipt U/s 271DA wef; 01-
04-2017
Remarks Amount should be paid/ received by account cheque/draft or electronically through bank
account
Misc. Provisions - Cash Receipts and Payments

In aggregate from
a person in a day
• Mr. A transfers’ immovable property worth Rs.5,00,000
to Mr. B and generates 5 different bills of Rs.1,00,000
each and accepts cash in a single day at different times;
a single
transaction
• Mr. A transfers’ immovable property worth Rs.5,00,000
to Mr. B and generates one single bill for Rs.5,00,000.
He then receives cash Rs.1,75,000 on Day 1,
Rs.1,75,000 on Day 2 and Rs.1,50,000 on Day 3 then;
One event or
occasion
• Mr. A books a wedding party at a hotel and the hotel
makes a bill of Rs.1,50,000 for Food and Rs.1,00,000 for
Hall Charges and accepts cash Rs. 2,50,000 from Mr. A
then;
• Even if they are 2 different types of expenses but for
the same wedding.
Misc. Provisions – Examples

Misc. Provisions –269ST may become apply
Sale proceeds of Goods
or Services; movable
or immovable
properties
Advance against sale of
goods/provision of service
Hospitals, Educational Institutions
etc.,
Advance taken or
reimbursement of
expendituref
Withdrawal of capital/ Profit in
Firm
Introduction of capital by partner in
Firm; issue of share capital
Recovery of Loan and interest
Gift in Cash and gift from a relative also covered.
Donations received by Trust
Donations received by Trust

Sec 32/43(1):
Depreciation / Actual
Cost
No depreciation on
Capital Expenditure
incurred in cash of more
than Rs. 10,000/-
Payment should be made
through Banking
Channels only either by
account cheque/draft or
electronically through
bank account
No claim of Depreciation
Applicable
Wef. 01.04.2017
Sec 40A (3)
Reportable in clause 21
(d) of Form 3CD
No cash payment in
relation to expenditure
of more than Rs.
10,000/-
Dis allowance of
expenditure
Applicable wef. 01.04.2017
Misc. Provisions - Cash Payments

www.sbsandco.com/wiki
www.sbsandco.com/digest
Read our monthly SBS e-Journals
Our Presence: Hyderabad, Kurnool, Nellore, TADA, Vizag & Bengaluru: info@sbsandco.com; 040-40183366
40
Thank you!!!
CA Suresh Babu S
Managing Partner
M/s SBS and Company LLP
suresh@sbsandco.com
9440883366
Hyderabad Branches of CMA and CS
02nd February, 2018
At
Disclaimer: Please logon to: http://www.sbsandco.com/disclaimer/
suresh@sbsandco.com
www.sbsandco.com +91
9440883366

HIGHLIGHT’S OF DIRECT TAX PROPOSALS IN UNION BUDGET 2018-19

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à HIGHLIGHT’S OF DIRECT TAX PROPOSALS IN UNION BUDGET 2018-19

Similaire à HIGHLIGHT’S OF DIRECT TAX PROPOSALS IN UNION BUDGET 2018-19 (20)

Plus de Admin SBS

Plus de Admin SBS (20)

Dernier

Dernier (20)

HIGHLIGHT’S OF DIRECT TAX PROPOSALS IN UNION BUDGET 2018-19