{"id":3475,"date":"2016-11-29T10:10:55","date_gmt":"2016-11-29T04:40:55","guid":{"rendered":"http:\/\/www.itatonline.org\/articles_new\/?p=3475"},"modified":"2016-11-29T10:13:11","modified_gmt":"2016-11-29T04:43:11","slug":"analysis-of-the-taxation-laws-second-amendment-bill-2016","status":"publish","type":"post","link":"https:\/\/itatonline.org\/articles_new\/analysis-of-the-taxation-laws-second-amendment-bill-2016\/","title":{"rendered":"Analysis of The Taxation Laws (Second Amendment) Bill, 2016"},"content":{"rendered":"

\"CA-GOUTAM-BAID\"<\/p>\n

CA Gautam Baid has prepared a bird’s eye-view review of the Taxation Laws (Second Amendment) Bill, 2016<\/a> in which he has identified all the core points that all tax professionals and tax payers have to be aware about
\n<\/strong> <\/p>\n

Analysis of The Taxation Laws (Second Amendment) Bill, 2016<\/strong><\/p>\n

Amendment to Income Tax Act, 1961<\/strong><\/p>\n

– Tax payable u\/s 115BBE increased from 30% to 60% (Income assessable u\/s 68, 69, 69A, 69B, 69C or 69D)<\/p>\n

– Surcharge on income taxable u\/s 115BBE @ 25% of tax payable
\n<\/p>\n

– Effective tax rate for income assessable u\/s 68, 69, 69A, 69B, 69C or 69D comes to 75%<\/p>\n

– Amendment to section 271AAB \u2013 Penalty where search initiated<\/p>\n

– Penalty @ 30% where:<\/p>\n

– Undisclosed income admitted and manner of deriving income specified in the statement recorded u\/s 132(4) <\/p>\n

– substantiates the manner in which the undisclosed income was derived<\/p>\n

– pay tax and declare such income in return of income.<\/p>\n

–\tPenalty @ 60% in all other cases<\/p>\n

–\tPenalty on the income taxable u\/s 115BBE (New section 271AAC)<\/p>\n

–\t10% of tax payable u\/s 115BBE<\/p>\n

–\tNo penalty if income declared in return of income AND Tax Paid Before End Of Previous Year<\/p>\n

–\tNo penalty u\/s 270A on such income<\/p>\n

TAXATION AND INVESTMENT REGIME FOR PRADHAN MANTRI GARIB KALYAN YOJANA, 2016<\/strong><\/p>\n

–\tAny person may make a declaration in respect of any income, in the form of cash or deposit in an account maintained by the person with a specified entity, chargeable to tax under the Income-tax Act for any assessment year commencing on or before the 1st day of April, 2017.<\/p>\n

–\tTax\/ Surcharge\/ Penalty<\/p>\n

o\ttax @ 30% of income declared under scheme.<\/p>\n

o\tPradhan Mantri Garib Kalyan Cess @ 33% of tax i.e. 9.9% of income declared<\/p>\n

o\tPenalty @ 10% of income declared under scheme<\/p>\n

–\tTotal Tax + Surcharge + Penalty comes to 49.9%<\/p>\n

–\tAt least 25% of income declared shall be deposited in \u2018Pradhan Mantri Garib Kalyan Deposit Scheme, 2016\u2019<\/p>\n

–\tPradhan Mantri Garib Kalyan Deposit Scheme, 2016 <\/p>\n

o\tNo Interest
\no\tLock in period Four Year<\/p>\n

–\tDeclaration to be filed before Pr. Commissioner or Commissioner to be notified<\/p>\n

–\t Tax, Surcharge and Penalty shall be paid before filing of declaration<\/p>\n

–\tAmount declared in the scheme shall not be included in total income of the declarant for any assessment year under income tax <\/p>\n