THE FINANCE MINISTER HAS ASKED THE BANKS TO PASS ON THE BENEFIT OF REDUCED INTEREST RATES TO BORROWERS, HE WAS REVIEWING THE ANNUAL PERFORMANCE OF PUBLIC SECTOR BANKS FOR THE YEAR 2014-15, THE BORROWERS MAY GET THE BENEFIT OF REDUCED INTEREST FROM 01-7-2015.
BUDGET – INTEREST BENEFIT FOR LOWER CATEGORY – TDS FOR HIGHER VALUE HOMES – SERVICE TAX ABATEMENT AT 70% FOR HIGH END APARTMENTS
First Home Buyer will get an additional benefit on Interest limit:
There is an additional deduction available on interest repaid on a loan for a first time house purchase. The benefit has been increased by an additional Rs 1 lakh and this will be over and above the Rs 1.5 lakh limit already available,provided, if the house property price is less than Rs 40 lakh and the loan(availed) is Rs 25 lakh or less. This benefit can be claimed or availed in the next year, if not availed in the first year.
Tax Deducted at Source:
The Finance Minister has proposed 1% TDS for all immovable properties valued over Rs50,00,000/-. The seller of the house property worth Rs 50 lakh or more, will have to ensure a 1% tax deduction at source on the amount of the sale and will have to deposit this with the government. The TDS amount has to be deposited as per the guidelines and obtain a certificate and must be attached or furnished or submitted to the sub-registrar at the time of registration.
Service Tax:
As per the new proposal, The Service Tax for the new apartments(high end) either 2000 Square feet of CARPET AREA or the VALUE IS ABOVE Rs1,00,00,000/-, the abatement is 70%, which was uniform at 75% in the preceding year.
It means that the high end apartments will have to pay additional service tax on 5%.
Details:
Tax Deduction at Source (TDS) on transfer of certain immovable properties (other than agricultural land)
This amendment will take effect from 1st June, 2013.
There is a statutory requirement under section 1 39A of the Income-tax Act read with rule 11 4B of the Income-tax Rules, 1962 to quote Permanent Account Number (PAN) in documents pertaining to purchase or sale of immovable property for value of Rs.5 lakh or more. However, the information furnished to the department in Annual Information Returns by the Registrar or Sub-Registrar indicate that a majority of the purchasers or sellers of immovable properties, valued at Rs.30 lakh or more, during the financial year 2011-12 did not quote or quoted invalid PAN in the documents relating to transfer of the property.
Under the existing provisions of the Income-tax Act, tax is required to be deducted at source on certain specified payments made to residents by way of salary, interest, commission, brokerage, professional services, etc. On transfer of immovable property by a non-resident, tax is required to be deducted at source by the transferee. However, there is no such requirement on transfer of immovable property by a resident except in the case of compulsory acquisition of certain immovable properties. In order to have a reporting mechanism of transactions in the real estate sector and also to collect tax at the earliest point of time, it is proposed to insert a new section 194-IA to provide that every transferee, at the time of making payment or crediting of any sum as consideration for transfer of immovable property (other than agricultural land) to a resident transferor, shall deduct tax, at the rate of 1% of such sum.
In order to reduce the compliance burden on the small taxpayers, it is further proposed that no deduction of tax under this provision shall be made where the total amount of consideration for the transfer of an immovable property is less than fifty lakh rupees.
Changes in Service Tax – High end apartments
This will come into effect from March 1, 2013.
Subject: Union Budget 2013: Changes in Service Tax-reg.
The service tax changes in Budget 2013 are largely guided by the objectives to provide a stable tax regime and improve voluntary compliance. The important changes are as follows:
A. Legislative changes
Following changes are being made in the Finance Act, 1994:
C. Abatement
5. The abatement available under S. No 12 of notification 26/2012-ST dated June 20, 2012 for construction of a complex, building, civil structures etc. is being reduced from the existing 75% to 70% for construction other than residential properties having a carpet area up to 2000 sq ft or where the amount charged is less than Rs. 1 crore.
TAX BENEFITS OF INVESTMENT IN RESIDENTIAL UNIT
This amendment will take effect from 1st April, 2014
Income tax benefit
A new section 80EE, has been proposed in the Direct Tax, which provides an additional exemption of Up to Rs. 1 lakh against the interest payable.
The proposed new section 80EE seeks to provide that in computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section,
- interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.
- It is further provided that the deduction under the proposed section shall not exceed one lakh rupees
- and shall be allowed in computing the total income of the individual for the assessment year beginning on 1st April, 2014
- and in a case where the interest payable for the previous year relevant to the said assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment year beginning on 1st April, 2015.
It is also provided that the deduction shall be subject to the following conditions:-
(i) the loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and ending on 31st March, 2014;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
(iii) the value of the residential house property does not exceed forty lakh rupees;
(iv) the assesse does not own any residential house property on the date of sanction of the loan.
It is also provided that where a deduction under this section is allowed for any assessment year, in respect of interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Income-tax Act for the same or any other assessment year.
It is also proposed to define the term “financial institution”.
This amendment will take effect from 1st April, 2014 and accordingly apply in relation to the assessment year 2014-15 and subsequent assessment year.
OPPORTUNITY FOR FRAUDS, CHEATS, TAX EVADERS, CORRUPT AND TAINTED OFFICIALS AND POLITICIANS AND DESH DROHEES TO DECLARE THEIR ILLEGAL WEALTH & MONEY STASHED AWAY ABROAD!!!!!!! BY ALL, EXCEPT CRIMINALS AND TERRORISTS
GOT ILLEGAL WEALTH, MONEY AND ASSETS – DO NOT WORRY – THE GOVERNMENT MAY GIVE YOU A BREATHER – BRING IN AND EARN AND ENJOY !!!!!!!!!!!!!!!!!!!!!!!!!!!
VOLUNTARY DISCLOSURE SCHEME TO BRING BACK THE BLACK MONEY @!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The government is seriously considering the option of a voluntary disclosure scheme” for bringing back unaccounted money kept in banks abroad. VDIS was launched by the finance ministry domestically in 1997 and it helped the government increase revenue collections dramatically.
It was recommended that an offshore voluntary disclosure scheme may be considered by the government so that taxes could be collected on such monies kept abroad in undisclosed accounts and the assets held by resident Indians abroad.
Under the new scheme, the government may not ask a person the source of the money, but criminal action would be taken if it is proved the money was earned though unlawful activities.
The penalty for non disclosure of income or tax evasion is at 100 to 300 per cent and if a penalty of 100 per cent is imposed on taxable income at 30 per cent, one would be able to retain 40 per cent of the money but still can bring it back.
2G SCAM- MORE SKELETONS TUMBLE OUT –
THE FAMOUS RAJA OF 2 G SCAM CHARGES P.CHIDAMBARAM AND P.M. MANMOHAN SINGH AS XXXXXXXXXXXX AND STATES THAT HE FOLLOWED THEIR DIRECTIONS
Former Telecom Minister and 2G accused A Raja on Monday dragged in the Prime Minister and then finance minister Chidambaram names while defending himself in court.
Deposing before a special CBI court for the first time, Raja said that the Prime Minister & P.Chidambaram were aware of the sale of equity by Swan and Unitech to foreign companies and further stated that Finance Minister, in the presence of the PM, had said that the sale of equity is not illegal and was to attract FDI.
