Vignesh SC Bose

Finance Minister, Mr. Arun Jaitley, did not propose any change in the income-tax slab rates. However, various changes have been proposed in the income-tax provisions which impact the taxable income of an individual. All relevant proposals made for an Individual are as under: (1)   Rate of surcharge shall be increased to 15% from 12% if total income of an individual exceeds Rs. 1 crore. (2)   An additional tax at the rate of 10% of gross amount of dividend shall be paid by a resident individual, HUF or a firm, if dividend received by them from a domestic company exceed Rs. 10 lakhs per annum. Dividend income is otherwise exempt under Section 10(34), however, such exemption is proposed to be withdrawn in case of rich investors receiving dividend exceeding Rs. 10 lakhs [Section 115BBDA]. (3)   Relief under Section 87A is proposed to be raised from Rs. 2,000 to Rs. 5,000 in order to provide relief to small taxpayers. Relief under Section 87A is available to a res...

Introduction The Point of taxation rules were introduced in 2011 and since then, the govt. has made numerous amendments to it. Recent Changes 1.     In case of individuals and firms, where the taxable services provided in a year do not exceed Rs. 50 lakhs, they have the option to pay service tax on receipt basis. 2.       In-case service provider receives up to Rs. 1000 in excess of the invoice amount; there is no need to raise fresh invoice for such excess amount if POT rules are followed. 3.     Exporter of service is not required to pay tax if payment is received within the period specified by RBI. 4.       Date of payment has been specifically defined under Rule 2A ·            In normal case - Prior to entry into books of accounts or actual credit ·            In case of change of rate or new levy betw...