Rate of corporate tax has been reduced to 29% for small businesses having turnover of less than Rs. 5 Cr. Clarification on concessional rate of 10% on the Long term capital gain on Unlisted Securities. Increase in threshold limit for presumptive taxation from Rs. 1 crore to Rs. 2 crore. Professionals included in Presumptive Taxation Scheme.
Advertisement through specific media now taxable. Services of “Radio Taxis or Radio Cabs” will be taxable. Some provisions of Central Excise Act inserted in Service Tax. Some existing Mega Exemptions withdrawn and some new Mega Exemptions introduced. Slab of interest rates which will vary on the basis of extent delay in payment.
Disallowance restricted to 30% due to non-deduction of TDS. New chapter inserted for Business Trust. Exemption from Capital gain by reinvestment in one residential house in India. Forfeiture of advance receipt shall be taxable. Increase in the limit of deduction under Section 80C from Rs. 100,000 to Rs. 150,000.
Service Tax Voluntary Compliance Encouragement Scheme, 2013. Recovery of CENVAT Credit wrongly taken. Personal penalty on director of a company through introduction of a new Section 78A. Power to arrest for certain offences introduced through a new Section 91.
Amendment in General Anti Avoidance Rule. Return of Income filed without payment of self- assessment tax to be treated as defective return. Taxability of immovable property received for inadequate consideration.
General Anti-Avoidance Rules (GAAR) introduced whereby an impermissible avoidance arrangement may be disregarded/ tax benefits denied. Threshold limit for tax audit increased from Rs. 60 lacs to Rs. 100 lacs.
Approach of applicability of service tax on services changed from Positive List to Negative List. Rate of Service tax is being increased from 10% to 12%. Services declared to be taxable to avoid confusion. Changes in abatements rate. Service Recipient to pay service tax in certain cases
Sunset clause for power sector extended. Indirect transfer of assets in India to be taxable. Definition of Royalty enhanced through clarificatory amendment. Advance Pricing Agreement (APA) introduced. New section for TDS on transfer of immovable property.