- The determination of residency of foreign company on the basis of Place of Effective Management is proposed to be deferred by one year. It shall now apply with effect from1.04.2017.
- The provisions of section 115JB of the Income-tax Act so as to provide that Minimum Alternate Tax (MAT) shall not be applicable to a foreign company, w.e.f. 01.04.2001 if the foreign company does not have as a permanent establishment under relevant Double Taxation Avoidance Agreement (DTAA) or a place of business in India
- Capital gain arising from transfer of a long term asset being share of a private limited company shall be chargeable to tax at the rate of ten per cent.
- Acquisition of shares by an individual or HUF as a consequence of demerger or amalgamation of a company shall not attract tax liability under section 56(2)(vii) of the Income tax Act.
- A monetary limit of `1.5 lakh is proposed to be provided for annual contribution by an employer to a recognised provident fund as well as superannuation fund.
- Exemption is proposed to be provided for one-time portability from a recognised provident fund or superannuation fund to National Pension System.
- The date of agreement fixing the amount of consideration for the transfer of immovable property and not the date of registration shall be taken for the purposes of computing capital gains in case of transfer of immovable property if any payment in consequence of such agreement has been made by the purchaser of the property through any mode other than cash.
- Fees paid for obtaining right to use the spectrum is to be amortized over the period for which the right to use the spectrum has been granted.
- No set off of losses shall be allowed against deemed undisclosed income u/s 68 to 69D (Unexplained Income & Expenditure) of the Income-tax Act
- where a trust or institution registered u/s 12AA of the Income-tax Act ceases to be charitable organisation or if on dissolution a charitable trust or institution does not transfer all its assets within one year of dissolution to another charitable organization, the amount of accreted income to the extent not transferred shall be charged to additional income-tax at the maximum marginal rate
Karthik & Sunil 