1. Unlisted Share Transfer: Inserted a new clause to provide that unlisted shares of company would be treated as short-term capital asset if it is held for a period of 24 months or less immediately preceding the date of its transfer.
2. Eligible Start-up: As per Finance Bill, Section 80-IAC to provide 100 percent deduction for 3 assessment years to an ‘eligible Start-up’. The ‘eligible start-up’ is defined to mean a ‘company’ engaged in an eligible business. The Finance Bill, 2016 as passed by the Lok Sabha extends the definition of ‘eligible start-up’ to include ‘LLP’.
3. Additional 10% tax of Dividends for tax payers receiving Dividend more than Rs.10 Lakhs: The aggregate amount of dividend (i.e., dividend paid or declared or distributed by one or more domestic companies) shall be considered for the limit of Rs.10 lakhs.
4. TCS on motor vehicles purchase for value exceeding Rs.10 Lakhs: The tax shall be collected under Section 206C only at the time of receipt of consideration.
5. Employers Contribution to EPF: Any contribution by employer in excess of 12% of salary to the recognized provident fund account of the employees shall be deemed as income of employee. The ceiling limit of Rs.1,50,000/- was there in the Finance Bill, 2016.
6. Processing of return before scrutiny assessment: The Finance Bill, 2016 proposed mandatory processing of returns under Section 143(1) even when the scrutiny assessment notice is issued to the assessee. However, the finance bill as passed by the Lok Sabha provides that the processing of return is not necessary before the expiry of one year from the end of the financial year in which return is furnished, where a notice is issued for scrutiny assessment under Section 143(2).
7. Benefit of 25% reduced tax rate extended to the companies engaged in research in relation to or distribution of article or thing manufactured or produced by it.
8. Income Declaration Scheme: Income chargeable to tax is declared in the form of investment in any asset, the fair market value of such asset as on the date of commencement of this scheme shall be deemed to be the undisclosed income. The Finance Bill, 2016 as passed by the Lok Sabha provides that the cost of acquisition of such asset shall be deemed to be the fair market value taken into account for purposes of Income Declaration Scheme, 2016.
9. Withdrawal of amendments related to retirement funds: The proposed amendment to tax withdrawal from EPF and Superannuation fund in the Finance Bill 2016, is withdrawn.

Central Board of Excise & Customs has extended the date of submission of the Form ST-­3 for the period from 1st October 2015 to 31st March 2016, from 25th April 2016 to 29th April 2016 vide Order No. 1/2016-ST. The decision was due the the difficulty faced by assessees in acessing the aces application on 25th April, 2016.

The time limit for registration with Central Excise by Jewelers is being  extended to 01st July, 2016 vide Circular no. 1026/14/2016-CX dated 23-04-2016. How ever the liability of payment of Central Excise will be from 01-03-2016 and the assessee jewelers can make payment of Central Excise duty for the period of March, 2016, April 2016 & May 2016 along with the payment of June 2016.

Income Tax Department activated e-filing of all forms for the Assessment Year 2016-17 (Financial Year 2015-16) in Income Tax Website http://www.incometaxindiaefiling.gov.in. To know, which type of Forms i…

Source: Income Tax Departments activates e-filing of all forms

Income tax department had activated, the Aadhar and Net banking based e-filing verification system (EVC) for tax payers to file the first appeal before a tax officer (CIT – Appeals). E-filing of appeals by Digital Signature was activated few days ago.

One EVC can be used to validate one form of the assessee irrespective of the assessment year. The EVC will be stored against the assessee PAN along with other verification details. The EVC will be valid for 72 hours or otherwise specified.

The following Income Tax Return forms are available for e-filing in the income tax portal http://www.incometaxindiaefiling.gov.in:

• 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

Income tax department launched e-filing appeal system to for filing of first appeal before income tax officer. Similar to filing of Income tax returns, e-appeal can be files using Digital Signature from now on. The electronic verification facility (EVC) using Aadhar, mobile number and email will be activated soon.

The new form is applicable for filing appeals to CIT (Appeals) for those who file their return of income by efiling.