Wednesday, May 1, 2013

Lok Sabha passed Finance Bill 2013:List of Amendments


on Wednesday, May 1, 2013

  1. Trading in commodity derivatives is not be treated as a speculative transaction:(read details here)
  2. No wealth-tax on agriculture land (subject to few conditions ): (read details here)
  3. Gold coins weighing less than 10 gms will be subject to TCS on Jewellery  :With effect from June 1, 2013, consideration of any coin or any other article weighing 10 grams or less shall not be excluded while calculating the monetary limit of Rs. 2,00,000.
  4. TAN not required to deduct tax from payment made for purchasing an immovable property:The Finance Bill, 2013 approved of the provisions of Section 194-IA. However, it provided an exemption to the transferee from obtaining a TAN, which is otherwise a mandatory requirement for deduction of tax at source.
  5. Normal TDS rate for Non-resident referred to in Section 194LC even not having  PAN: Under the amended provisions of Section 206AA, in respect of payment of interest on long-term infrastructure bonds to a non-resident (as referred to in Section 194LC), tax will be deducted at the normal rate of 5%, even if the non-resident-recipient does not have PAN.
  6. Concessional withholding rates on certain rupee denominated long-term infrastructure bonds is changed : This amendment has been withdrawn in the Finance Bill, 2013. However, a new provision is inserted in Section 194LD which provides as under:
    1. Tax under this section shall be deducted in respect of interest on a rupee denominated bond of an India company or Government security which is payable after May 31, 2013 but before June 1, 2015;
    2. Tax at concessional rate shall be deducted if payment is made to a FII or a qualified foreign investor;
    3. Tax to be deducted at 5%;
    4. If tax is deducted under Sec. 194LD, provisions of Sections 195 and 196D will not be applicable.
  7. Tax Residency Certificate – Can be a conclusive evidence but has to be supported by prescribed documents:Considering these apprehensions of the taxpayers, the provision proposed by the Finance Bill, 2013 that TRC was a necessary but not a sufficient condition for claiming benefit under DTAA has been removed.As per the amended version, apart from the submission of a TRC (which is a necessary condition), the assessee shall also provide such other documents and information as may be prescribed for claiming benefits under the DTAAs.
  8. Scope of Sec. 10(48) widened to include other prescribed income also and not just income arising from sale of crude oil :The Finance Bill, 2013 as passed by the Lok Sabha (herein after referred to as 'the Finance Bill, 2013') enlarges the scope of Section 10(48). With effect from the assessment year 2014-15, the exemption will also be available in respect of income arising on account of sale of any other goods or rendering of services as notified by the Central Government.
  9. Service tax on services provided by railway From 01.07.2012 to 30.09.2012 is also exempted .

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