Friend's here is some important Amendment's to Income tax and Indirect tax highlight's given in the slides

1. Presented by Hon’ble Finance Minister Arun jaitley
at Parliament on 28.2.2015
“Article Assistant-Jugola Kishore Pradhan”
Highlight’s of Budget 2015-
16
Srikanth and Shanthi
Associates

2. Non-Tax
Revenue
10%
Service Tax &
Other Taxes
9%
Borrowing &
Other
Liabilities
24%
Union Excise
Duties
10%
Income Tax
14%
Customs
9%
Corporate Tax
20%
Non-Debt
Capital
Receipts
4%
Rupee
comes
From
Budget At a Glance-Total Revenue
Recipts-`23,39,086 Crore
Note-Above given percentage’s are all subject to round off on approximate basis

3. States' Share
of Taxes &
Duties
23%
Central Plan
11%
Interest
Payments
20%
Plan
Assistance to
States & Uts
9%
Non-Plan
Assistance to
State & UT
Govts
5%
Other Non-
Plan
Expenditure
11%
Subsidies
10%
Defence
11%
Rupee
Goes To
Note-Above given percentage’s are all subject to rounded off on approximate ba

4. Content ’S
Direct tax
Amendment’s
Indirect tax
Amendment’s
 Basic Rate of Tax.
 Heads of Income.
 Deduction’s.
 International Taxation.
 Transfer Pricing.
 Custom duty
 Excise duty
 Service tax
Srikanth and Shanthi
Associates

5. Income Tax
Basic exemption limit
for Individual and HUF
unchanged i.e
Income Range Rate %
Up to 250000 * Nil
250001 to 500000 10
5000001 to 1000000 20
1000001 to above 30
* Exemption for senior and super senior citizen remains unchanged the at `
3,00,000 and ` 5,00,000 respectively.
Surcharge limit enhanced from limit 10 % to 12% on Individual, HUF, AOPs,
BOIs, artificial juridical persons, firms, cooperative societies and local
authorities having income exceeding 1 crore
Income From partnership firm and co-operative societies remain
unchanged. surcharge enhanced from 10 to 12 per cent for incomes
exceeding 1 crore in FY 2015-16.

6. Cause of proposal for increment made in surcharge
from 10% to 12% has mentioned by the FM jaitely.
To abolish wealth tax with low yield
which is Rs.1008 CRORE in the FY
2013-14 .
As against a tax sacrifice Department
would be collecting about Rs.9,000
CRORE from the 2% additional
surcharge.

7. Company Old Rate New Rate Old Surcharge New surcharge
Domestic
company
30 % 25 % 5% of income >1 crore
< 10 crore
10 % of Income> 10
crore
7% of Income >
1 crore < 10
crore &
12 % of income
> 10 crore
Foreign
company
40 % 40 % 2 % of Income > 1
crore < 10 crore &
5% of Income > 10
crore
2 % of Income >
1 crore < 10
crore &
5% of Income >
10 crore
Corporate tax changes detailed in Table given below
 Distribution tax rates Remain unchanged . Surcharge enhanced from 10 to
Education cess at 2 per cent(2%) and secondary and higher education cess
remain unchanged.

8. Amendment to Salary income
No significant amendment to salary income but one noted below
 Transport allowance amended by increasing from Rs.800 to Rs.1600 per month.
Income from business and profession
Benefit of additional depreciation enhanced to 35 % on cost of new plant and
machinery acquired and installed by a manufacturing undertaking set-up during
april 1 2015 to march 31 2020 in notified backward areas of Andhra pradesh and
Telengana.
In respect of claim of additional depreciation in manufacturing and power
sector, where new plant and machinery is put to use for 180 days or less in the year
of acquisition ,unutilized additional depreciation is carried forward to succeeding
year.

9. Benefit of additional investment allowance under section 32AD at 15% now available to
new manufacturing undertaking set-up during April 1 2015 to march 31 2020 in notified
backward areas of Andhra Pradesh and Telengana.
Book profit under MAT to exclude net income from securities arising to foreign
institutional investors(FII) and members of Association of person.
CAPITAL GAINS
No significant changes proposed.
INCOME FROM HOUSE PROPERTY
No significant changes proposed

10. Sectio
n No.
Nature of Expense/
Investment Eligible for
Deduction
Old ceiling
limit(Rs.)
New ceiling
limit(Rs.)
80C Contn. To sukanya samridhi 1,00,000 1,50,000
80CC
C
Contribution to a pension fund of
LIC or IRDA approved insurer
1,00,000 1,50,000
80CC
D
Contn. To National Pension
Scheme(NPS) by “Employee”
1,00,000 1,50,000
80DD Treatment of disability 50,000 75,000
80U Treatment of severe disability 1,00,000 1,25,000
80D Mediclaim Insurance premium citizen(age<60)
-15,000;Senior
citizen(age>60)
-20,000.
citizen(age<60)-
25,000 ;Senior
citizen(age>60)-
30,000.
80G Eligibility of Donation made to
National Fund for Control of
Drug Abuse(NFCDA)
NIL 100% of the
donation eligible
80G Contn. To Swach Bharat Kosh &
Clean Ganga Fund
NIL 100% of the
donation eligible
80JJA
A
Employement of new regular
workmen extended to
manufacturing entities
Threshold limit
100 new
Regular
Threshold limit
50 new Regular
worker’s

11.  Any advances in relation to immovable property( effective transfer is not
required) must
be given or accepted in the following modes
1.Account payee cheque or
2.Account payee draft or
3. Electronic clearing system
 If the aggregate amount during the year exceeds Rs.20,000 failing which will
violate S- 269 SS & S-269 T.
In nutshell even rental advance accepted or given for letting the property or
advances
for purchase of a rural/urban agricultural land will come in the ambit of the above
mentioned transaction and the amount needs to be paid by any of the above
mentioned
modes.

12. Amendment to the provisions of section 2(15) of the Income-tax Act so as to include
‘yoga’ as a specific category of activity in the definition of ‘charitable purpose’ and also to
provide relief for activities in the nature of business undertaken by genuine charitable
organizations subject to the condition that aggregate receipts from such activity is less than
20% of the total receipts.
Penalty and Prosecution
Incorrect/Non-furnishing of information in respect of foreign remittance to attract of
Rs.1,00,000.

13. Tax withholding
Non-resident payments not subject to tax withholding to be reported.
Pre-mature withdrawal of Rs.30,000 or more from Employee provident fund to
attract tax withholding at 10 per cent.
Benefit of lower tax withholding of 5 per cent on interest on bonds and
securities payable to FIIs and qualified Foreign Investor extended up to june
30,2017.
Tax on royalties and fee for technical services (FTS) arising to non-resident
reinstated to 10 per cent.
International Taxation
1. Detailed clarification as to the scope of capital gains taxation arising on indirect
transfer of substantial interest in an indian company
Taxable when underlying fair market value of indian investment exceeds Rs.1o
crore and also represents 50 per cent or more of assets held by the investor
company .
Capital gain arising on transfer of substantial interest in in indian company to
be computed proportionaly,based on rules to be proposed by central board of
direct taxes (CBDT).

14. No capital gains tax on indirect transfer by minority shareholders(i.e effective
shareholding 5 per cent or lower)who neither hold a right to control nor manage
the investor company holding assets in Indian company .
Onus on Indian company to furnish information in respect of off-shore
transactions resulting into modification of its control or ownership structure
.Non-compliance to attract penalty of Rs.5,00,000 or 2 per cent of transaction
value.
2. CBDT to notify rules for availing credit in respect of taxes paid outside India on
incomes taxed in both jurisdictions.
3. Payment of interest by an indian permanent Establishment of a foreign
banking company to its head office or other overseas branches is taxable in India.
4. The activity of off-shore fund management ,when undertaken through advisors
based in India, is not taxable .Amongst other conditions ,it is critical that the fund
is located in a treaty country , not engaged in activities constituting business
connection in India and the fund manager acts in independent capacity and
remunerated at arm’s length.
Continued…

15. Transfer pricing
Threshold for applicability of transfer pricing regulation on domestic transactions
substantial enhanced from 50 lakh to 2 crore.
OTHER’S
 General Anti-Avoidance Rule(GAAR) provisions to apply prospectivily on transactions
entered during financial year 2017-18 and thereafter.
 Acceptance or repayment in cash of Rs.20,000 or more in respect of buying and selling
of real estate will attract penalty equivalent to cash accepted or repaid.

16. Indirect Tax Amendment’s
“Custom Duty-Highlight’s ”
The Basic Customs Duty(BCD) and education cess maintained at 10 and 3 per cent
respectibily.
Reduction in SAD to address the problem of CENVAT credit accumulation:
1) All goods except populated PCBs, falling under any Chapter of the Customs
Tariff, for use in manufacture of ITA bound goods from 4% to Nil.
2) Naphtha, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and
styrene monomer (SM) for manufacture of excisable goods from 4% to 2%.
3) Metal scrap of iron & steel, copper, brass and aluminium from 4% to 2%.
4) Inputs for use in the manufacture of LED drivers and MCPCB for LED lights,
fixtures and LED lamps from 4% to Nil.

17. GOOD’S Old
Rate(%)
New Rate
(%)
Ulexite Ore 2.5 0
Isoprene and Liquefied butane 5 2.5
Ethylene dichloride, vinyl chloride monomer and
styrene monomer
2.5 2
Butyl acrylate 7.5 5
Anthraquinone 7.5 2.5
Antimony metal and scrap 5 2.5
Sulphuric acid for manufacture of fertilizers 7.5 5
Change’s in Basic Custom Duty rates of certain Industries Chemicals
,Petrochemicals and Fertilizer’s
Change’s in Basic Custom Duty rates of certain Industries Energy Sector
GOOD’S Old Rate
(%)
New
Rate(%)
Bituminous Coal 55 10
Active Energy controller used in manufacture of
renewable power system inverters subject to
certification by MNRE
7.5 5

18. Change’s in Basic Custom Duty rates of certain Industries Ores and Metals
GOOD’S Old
Rate(%)
New rate
(%)
Iron and Steel and articles 10 15
Metallurgical coke 2.5 5
Metal parts for use in manufacture of electrical
insulator’s
10 7.5
Ethylene-propylene-non-conjugated-diene rubber
,water bloking and mica glass tape used in the
manufacture of insulated wire and cables
10 7.5
Compounds used in the manufacture of catalytic
converters
7.5 5
Component for manufacture of specified CNC lathe
machines
7.5 2.5
Specified inputs in the manufacture of flexible medical
video endoscope
5 2.5
HDPE used in manufacture of telecommunication
grade optical fibre cables
7.5 0
Black light unit module used in manufacture of
LCD/LED TV panels
10 0

19. Excise duty ad valorem incrased from 12% to (12.36% including cess) to 12.50 per
cent. Education cess and secondary higher education cess withdrawn.
HIGHLIGHT’S
Amendment’s
Online registration can be completed with in 2 working day’s.
Time limit for availing credit on inputs increased from 6 to 12 months.
Provision’s of penalties rationalized to minimise litigation .
The duty structure on petrol and diesel rationalised without any overall impact.
Excise Duty

20. Duty on plastic bags for non-industrial use increased to 15 per cent.
Duty on cement increased from Rs.900 to Rs.1000 per tone
The period of furnishing bank guarantee to avail duty exemption on goods for Ultra Mega
Power projects extended from 36 to 42 months .For Mega Power Projects the period stands
extended to 66 months.
Concessional duties on specified goods used in the manufacture of electrically operate
vehicle extended to March 31,2016
Food products including iced tea , lemonade and other specified beverages notified for
Retail Sale Price based assessment.
Continued…..

21. GOOD’S Old
Rate(%)
New
Rate(%)
Cigarettes of length not exceeding 65 mm. 72 90
Cigarettes of other length[i.e-Gold Flack
King’s.etc.)
21 24.15
Cut tobacco Rs.60 per Rs.70 per Kg
TOBACCO PRODUCTS
Changes in Excise Duty rates of certain industries.
Exemption Particular’s
Specified raw material’s[battery, titanium, palladium wire, eutectic wire,
silicone resins and rubbers, solder paste, reed switch, diodes,
transistors, capacitors, controllers, coils (steel), tubing (silicone)] used
in manufacturing of pacemaker’s.
Nil
Pig iron SG Grade and Ferro-silicon –magnesium for manufacture of
wind operated electrically generator’s.
Nil
Round copper wire and tin alloys for manufacture of solar PV ribbon of
solar PV cells.
Nil
Cess on petroleum products including petrol and high speed diesel. Nil

22. GOOD’S Old Rate(%) New Rate(%)
Wafers for manufacture of integrated
circuit modules for smart cards
12 6
Input’s for manufacturie of LED
driver’s and MCPCB for LED light’s
12 6
Tablet computers 12 2(without
CENVAT)
12.5%(with
CENVAT)
Mobile Phones 1% (without
CENVAT)
6(with
CENVAT)
1% (without
CENVAT),12.5%(
with CENVAT)
ELOCTRONICS/HARDWARE
GOOD’S Old
Rate(%)
New Rate(%)
Chassis for ambulances 24 12.5
AUTOMOBILES

23. To Ensure certainty and uniformity in valuation of the goods for the purposes
of levy of excise duty:
GOOD’S Abatement Amendment
All goods falling under Chapter sub-heading 2101
20, including iced tea[Notified under section 4A of
CE act 1944]
30% Inclusion in
Third Schedule
Good’s such as lemonade and other beverages
[Notified under section 4A of CE act 1944]
35% Inclusion in
Third Schedule

24. CONSUMER GOOD’S
GOOD’S Old Rate(%) New Rate(%)
Leather footwear of RSP>Rs.1000
per pair
12 6
Water’s including mineral/aerated
water
12 18
Peanut butter 0 2(without
CENVAT)
6 (with
CENVAT)
Condensed milk 0 6(with
CENVAT)
GOOD’S Old Rate(%) New Rate(%)
Solar water heater and system 0 (without
CENVAT)
12.5 (With
CENVAT)
RENEWABLE ENERGY SECTOR

25. Tax Rate increased from 12 per cent plus education
cess(12.36%) to 14 per cent all inclusive*.
Proposal to levy additional 2 per cent on value of taxable
as Swachh Bharat(Clean India) cess*
*To be notified by the CBEC and CBDT
Service
tax
Abatement
SERVICE’S Old
Rate(%)
New
Rate(%)
Taxable
Value
Transport of Goods by Road(GTA). 75% 70% 30%
Transport of Good’s in a vessel. 60% 70% 30%
Transport of Good’s & passenger’s by
Rail with or without accompanied
belonging’s.
70% 70% 30%
Executive (business/first class) air travel. 60% 40% 60%
Services in relation to Chit fund 30% 0% 100%

26. SERVICE’S Exemption
Services of pre-conditioning, pre-cooling, ripening, waxing, retail
packing, labelling of fruits and vegetables
Yes
Life insurance service provided by way of Varishtha Pension
Bima Yojna
Yes
Service provided by way of exhibition of movie by the
exhibitor/theatre owner to the distributor or association of
persons consisting of exhibitor as one of it’s member
Yes
All ambulance services provided to patients Yes
Service provided by way of admission to a museum, zoo,
national park, wild life sanctuary and a tiger reserve
Yes
Transport of goods for export by road from the factory to a land
customs station (LCS)
Yes
New Exemption’s

27. Amendment to Negative list U/s-66D
SERVICE’S Before
Amendmen
t
After
Amendment
Access to amusement facility such as rides, bowling
alleys, amusement arcades, water parks, theme
parks, etc
Exempted
u/s-66D(j)
Taxable
Admission to entertainment event of concerts, non-
recognized sporting events, pageants, music concerts
and award functions.
Exempted
u/s-66D(j)
Exempted
subject to
entry ticket
less then `500
Exhibition of the cinematographic film, circus, dance,
or theatrical performances including drama, ballets or
recognized sporting events
Exempted
u/s-66D(j)
Exempted
u/s-66D(j)
Carrying out any processes as job work for production
or manufacture of alcoholic liquor for human
consumption.
Exempted
u/s-66D(f)
Taxable
All services provided by the Government or local
authority to a business entity
Exempted
u/s-66D(a)
Taxable

28. SERVICE’S After
Amendmen
t
1.Services provided byGovernment shall be restricted only to,
1.A historical monument, archaeological site
2.Canal, dam or other irrigation work;
3.Pipeline, conduit or plant for (i) water supply (ii) water treatment, or
(iii) sewerage treatment or disposal.
Taxable but
Restricted to
some
services.
2. Construction, erection, commissioning or installation of original works
pertaining to an airport or port
Taxable
3. Performing artist in folk or classical art form of (i) music, or (ii) dance,
or (iii) theatre (except brand ambassador).
Taxable ,If
service
value
>`1,00,000
4. ‘Food stuff’ by rail, or vessels or road will be limited to transportation
of food grains including rice and pulses, flours, milk and salt only.
Taxable
subject to
“Definition”
Revision to Mega Exemption Notification No.25/2012-Service

29. SERVICE’S After
Amendment
5.(a)services provided by a mutual fund agent to a mutual fund or
assets management company;
(b) distributor to a mutual fund or AMC; and
(c) selling or marketing agent of lottery ticket to a distributor of
lottery
Taxable
6. (a)Departmentally run public telephone
(b)Guaranteed public telephone operating only local calls
(c)Service by way of making telephone calls from free telephone
at airport and hospital where no bill is issued
Taxable
7. Commission agent located outside India to an exporter located in
India
Taxable
Continued……

30. Reverse charge mechanism
SERVICE’S SERVICE
PROVIDER
SERVICE
RECIPIENT
Manpower supply and security services when
provided by individual, HUF, partnership firm to a
body corporate
NIL 100%
Services provided by mutual fund agents, mutual
fund distributors
? ?
Services provided by lottery agents ? ?
Note –The percentage of the service tax to be paid by the each service
provider and service recipient clearly not mentioned in the budget & yet to be
notified by CBEC.
Effective date -1 April 2015 for above RCM applicability.

31. GO
Green
“Be in India ,
Make in India
& Clean India”