1. D. DHANDARIA & CO. OVERVIEW OF FINANCE BILL, 2010 [DIRECT TAXES ONLY] D. DHANDARIA & COMPANY CHARTERED ACCOUNTANTS TINSUKIA * KOLKATA

2. D. DHANDARIA & CO. INDIVIDUALS NO INCREASE IN BASIC EXEMPTION LIMITS TAX SLABS CHANGED (Details in subsequent slides) ADDITIONAL DEDUCTION UPTO RS. 20000 FOR INVESTMENT IN INFRASTRUCTURE BONDS [Section 80CCF – details in subsequent slides ]. CONTRIBUTION TO “CENTRAL GOVT. HEALTH SCHEME” TO QUALIFY FOR DEDUCTION U/S. 80D SIMPLIFIED SARAL FORM TO BE NOTIFIED.

3. D. DHANDARIA & CO. COMPANIES NO CHANGES IN RATES OF TAX FOR COMPANIES NO CHANGES IN RATES OF CORPORATE DIVIDEND TAX MAT INCREASED FROM 15% TO 18% SURCHARGE IN CASE OF DOMESTIC COMPANIES REDUCED FROM 10% TO 7.5%

4. D. DHANDARIA & CO. NON-RESIDENTS RETROSPECTIVE AMENDMENT OF SECTION 9 ENLARGING THE SCOPE OF “INCOME DEEMED TO ACCRUE OR ARISE IN INDIA”. BENEFIT OF PRESUMPTIVE TAXATION U/S. 44BB NOT AVAILABLE TO BUSINESS OF EXPLORATION, ETC. OF MINERAL OILS [Section 44BB amended] SPECIAL PROVISION FOR COMPUTING INCOME TAX BY WAY OF ROYALTIES IN CASE OF NON- RESIDENTS [Section 44DA].

5. D. DHANDARIA & CO. TAX AUDIT THRESHOLD LIMIT FOR TAX AUDIT INCREASED TO RS. 60 LAKHS FOR BUSINESS INCOME AND TO RS. 15 LAKHS FOR PROFESSIONALS PENALTY FOR FAILURE TO GET ACCOUNTS AUDITED ENHANCED TO RS. 1,50,000/- W.E.F. 01-4-2011.

6. D. DHANDARIA & CO. TAX SLABS FOR INDIVIDUALS RATESGENERALWOMENSR. CITIZENS Exemption Limit Rs. 1,60,000Rs. 1,90,000Rs. 2,40,000 10%From 1,60,001 to 5,00,000 From 1,90,001 to 5,00,000 From 2,40,001 to 5,00,000 20%5,00,000 – 8,00,000 30% Rs. 8,00,001 and above Education cess & S.H.E.cess together remain at 3%. No surcharge.

7. D. DHANDARIA & CO. TDS/TCS THRESHOLD LIMITS FOR DEDUCTION OF TAX AT SOURCE INCREASED W.E.F. 01-7-2010 IN SOME CASES [ Details in subsequent slides ] RULES FOR DISALLOWANCE OF EXPENSES DUE TO DELAYED DEPOSITS RELAXED. NOW NO DISALLOWANCE IF DEPOSITS MADE BEFORE DUE DATE OF RETURN [Section 40(a)(ia) – details in subsequent slides ] INTEREST ON DELAYED DEPOSIT OF TDS INCREASED FROM 1% TO 1.5% PER MONTH DEMAT PLAN OF TDS CERTIFICATES POSTPONED

8. D. DHANDARIA & CO. DEDUCTION U/S. 80CCF In case of an individual and a H.U.F., an extra deduction upto Rs. 20000 will be admissible for investment in “Long-term Infrastructure Bonds” as may be notified by the Central Government. This deduction upto Rs. 20000 will be in addition to existing overall deduction of Rs. 1,00,000 under sections 80C, 80CCC and 80CCD.

9. D. DHANDARIA & CO. DEDUCTION U/S. 80D DEDUCTION WILL BE ALLOWED FOR CONTRIBUTION MADE TO “CENTRAL GOVERNMENT HEALTH SCHEME” ALSO. THE EXISTING LIMIT OF Rs. 15000 IS NOT ENHANCED.

10. D. DHANDARIA & CO. WEIGHTED DEDUCTION FOR RESEARCH Category of Research association, university, college, etc. Weighted deduction as per existing provisions Weighted deduction as per proposed amendment Research Association or to University or college or other institutions engaged in scientific research 125%175% National Laboratory or a University or an Indian Institute of Technology or a specified person engaged in scientific research 125%175% Contd.

11. D. DHANDARIA & CO. WEIGHTED DEDUCTION FOR RESEARCH Category of Research association, university, college, etc. Weighted deduction as per existing provisions Weighted deduction as per proposed amendment Company engaged in the business of bio-technology or in the business of manufacture or production of any drugs, pharmaceuticals, electronic equipments, computers, telecommunications equipments, chemicals or any other notified article or thing which incurs any expenditure on scientific research or in- house research and development facility. 150%200%

12. D. DHANDARIA & CO. INCOME FROM OTHER SOURCES (Gifts- I) RECEIPT OF BULLION ( Gold, Silver and other precious metals ) ALSO MADE TAXABLE W.E.F. 01-6-2010. RECEIPT OF IMMOVABLE PROPERTY FOR INADEQUATE CONSIDERATION NOT TAXABLE IN THE HANDS OF TRANSFEREE RETROSPECTIVELY W.E.F. 01-10-2009. NO TAX ON RECEIPT OF STOCK-IN-TRADE, RAW MATERIAL AND CONSUMABLE STORES OF ANY BUSINESS

13. D. DHANDARIA & CO. INCOME FROM OTHER SOURCES (Gifts-II) NEW PROVISIONS FOR TAXATION OF DEEMED GIFTS HAVE BEEN INTRODUCED IF A COMPANY OR A FIRM ACQUIRES SHARES OF OTHER UNLISTED COMPANY FOR INADEQUATE CONSIDERATION AND AGGREGATE FAIR MARKET VALUE EXCEEDS Rs. 50000/-, SUCH COMPANY OR FIRM WILL BE LIABLE TO TAX.

14. D. DHANDARIA & CO. THRESHOLD LIMITS OF TDS SectionNatureThreshold limits w.e.f. 01-7-2010 ExistingProposed 194BWinning from Lotteries500010000 194BBWinning from Horse Races25005000 194CPayment to contractor (for a single transaction) 2000030000 194CPayment to contractor (for aggregate of transactions during a financial year) 5000075000 194DInsurance Commission500020000 194HCommission/Brokerage25005000 194IRent120000180000 194JProfessional Fees2000030000

15. D. DHANDARIA & CO. INTEREST ON DELAYED DEPOSIT OF TDS DescriptionExisting provisionProposed w.e.f. 01.7.2010 Non Deduction 1% p.m. from date it was deductible till date of deposit 1% p.m. from date it was deductible till date of deduction Delayed Deposit 1% p.m. from date of deduction till date of deposit 1.5% p.m. from date of deduction till date of deposit Note: Such interest is not allowed as business expenditure

16. D. DHANDARIA & CO. EXISTING PROVISIONS OF SEC.40(a)(ia) The above section provides for disallowance of certain expenses due to non-deduction or non-payment of TDS. The taxes required to be deducted during 11 months other than the last month of the year can be deposited within the financial year to avoid such disallowance. The taxes required to be deducted in last month of the year can be deposited before due date of filing of return of income to avoid such disallowance. Taxes deducted in subsequent year are allowed in the year of deposit.

17. D. DHANDARIA & CO. PROPOSED AMENDMENT OF SEC. 40(a)(ia) The differential treatment of taxes required to be deducted during 11 months of a year other than March and those required to be deducted in March will be removed. There will be no disallowance if the taxes are deposited before the due date of filing of return of income. [This will apply to both – taxes deducted during 11 months other than March; and taxes deducted during March. Taxes paid after due date and taxes deducted in subsequent year will be allowed in the year in which TDS is deposited.

18. D. DHANDARIA & CO. HOTELS AS SPECIFIED BUSINESS UNDER SECTION 35 AD INTRODUCED IN LAST BUDGET, CAPITAL EXPENDITURE INCURRED BY “SPECIFIED BUSINESS’ IS ALLOWED AS A DEDUCTION NEW HOTELS OF TWO-STAR AND ABOVE CATEGORIES ARE ADDED TO SUCH SPECIFIED BUSINESS w.e.f. 01-4-2011.

19. D. DHANDARIA & CO. LIMITED LIABILITY PARTNERSHIPS NO CAPITAL GAINS TAX ON CONVERSION OF PRIVATE LIMITED OR PUBLIC UNLISTED COMPANY TO LIMITED LIABILITY PARTNERSHIP BUT CONDITIONS FOR ABOVE VERY STRICT

20. D. DHANDARIA & CO. DEDUCTIONS NO NEW DEDUCTIONS PROPOSED EXCEPT U/S. 80CCF STATED ELSEWHERE HOWEVER, TIME LIMIT FOR COMPLETION OF CERTAIN HOUSING PROJECTS EXTENDED BY ONE MORE YEAR AND CERTAIN OTHER RELAXATIONS GIVEN TO THEM.

21. D. DHANDARIA & CO. REFERENCE TO VALUER PURSUANT TO AMENDMENTS IN SECTION 56, PROVISION MADE FOR REFERENCE TO VALUER FOR DETERMINATION OF VALUE OF GIFT IN CASE OF TRANSFER OF PROPERTY WITHOUT CONSIDERATION OR FOR INADEQUATE CONSIDERATION.

22. D. DHANDARIA & CO. MISCELLANEOUS DIRECT TAX CODE TO BE IMPLEMENTED W.E.F. 01-4-2011 GST (GOODS AND SERVICES TAX) TO BE IMPLEMENTED W.E.F. 01-4-2011 GENERAL RATE OF EXCISE DUTY TO BE INREASED FROM 8% TO 10% [ except petroleum products] DOCUMENT IDENTIFICATION NUMBER FROM 01-10-2010.

23. D. DHANDARIA & CO. SERVICE TAX RATE OF SERVICE TAX CONTINUES TO BE 10%. APPREHENSIONS OF INCREASE BELIED RETROSPECTIVE AMENDMENT OF TAXATION OF RENTING OF IMMOVABLE PROPERTY TO OVERCOME THE JUDGMENT OF DELHI HIGH COURT 8 NEW SERVICES ADDED TO TAX NET BUILDER TAXABLE ON ADVANCE BOOKING SOFTWARE PACKAGES EXEMPTED SUBJECT TO SPECIFIED CONDITIONS

24. D. DHANDARIA & CO. CONTACT US AT: For any queries, contact us at: d_dhandaria@rediffmail.com naveen_dhandaria@yahoo.co.in Phones: 94350-35007; 94351-35460; (0374) - 2337684

25. D. DHANDARIA & CO. THANK YOU