‘Timely filing of Income-Tax returns made mandatory’

Source: The Hitavada      Date: 07 Feb 2018 09:50:02


Business Bureau,

Nagpur Chamber of Commerce Limited (NCCL) had organised an interactive meeting cum workshop on Union Budget 2018 at Chamber’s hall. CA Zainab Kamal explained in detail the changes in Income-Tax in Finance Bill, 2018 to the large number of business community.

According to CA Zainab, “There is no change in tax slab for personal taxpayers. The change is only for corporate taxpayer. Corporate Tax rate are proposed to reduce from 30% to 25% for companies with turnover upto Rs 250 crore in the FY 2016-17. Now, instead of Education Cess of 3%, new Health & Education Cess of 4% was proposed on Income Tax. Standard deduction of Rs 40,000 is introduced but exemption towards transport allowance and reimbursement of medical expenses are taken away resulting a very meager benefit to the salaried person.”

She also explained the several relief given to senior citizens. Now all interest earned on deposits amounting upto Rs 50,000 from banks and post offices can be deducted from the such income. “Now Long Term Capital Gain in excess of Rs 1 lakh arising on sale of shares in recognised stock exchanges held for more than 12 months will be taxable at a concessional rate of 10% without indexation benefit. However, appreciation upto fair market value as on January 31, 2018, will be exempted. Now, exemption under section 54EC (investment in Long Term Capital Bonds) will be available only on transfer of long term land and building and lock-in period is proposed to be increased from 3 years to 5 years,” she said.

She also explained various other changes like applicability of provisions of section 40(a)(ia) and 40A(3) on trust. According to CA Zainab, now irrespective of income or loss, all companies have to file the return of income in time or directors of the companies can be prosecuted u/s 276CC for non filing.

CA. Kailash Jogani explained the impact of Budget on trade, industry and capital market. According to per him, industry and trade are disappointed as they did not get any relief on their long-term demand of structured reform in Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT). Corporate Tax rate of 25% has been extended to companies having turnover of upto Rs 250 crore is a good step. Middle class assesses were disappointed for not increasing the threshold Income-Tax limit and also due to introduction of new Cess on health and education replacing the existing Cess of 3% on education and senior secondary education.

Government has proposed a 10% tax on Long Term Capital Gain Tax. In the previous year, taxpayers took the tax benefit on Rs 3.67 lakh crore towards exempted capital gains.
While explaining the Long Term Capital gain u/s 112A on listed shares, Jogani pointed out that nobody had mentioned that for taking the benefit of section 112A (i.e. 10% capital gain on shares and grandfatherly clause), a precondition in the proposed section is that it is mandatory for STT to have been paid at the time of sale of unites, while in respect of Long Term Capital Gain on listed shares, it makes it mandatory for STT to have been paid at the time of acquisition and sale of shares.
“This means for shares purchased before October 2004 or if purchased after 2004 and not subjected to STT, then the assesee cannot take the benefit of section 112A. Chamber had send a representation to Union Finance Minister for clarification on proposed section 112A,” he said.
The meeting was presided and chaired by President of Chamber Vishu Kumar Pacheriwala and conducted by Anil Sharma, Secretary of Chamber. The meeting was held jointly with Green Heaven Institute of Management & Research, Nagpur. Sheetal Deshmukh proposed vote of thanks.
Present were Venugopal Agarwal, Rajesh Lahoti, Kamlesh Shah, Bhagirath Murarka, Vipin Panpaliya, Shambhu Dayal Tekriwal, Purushottam Thakre, Shankarlal Khadelwal, Natabhai Patel, Sanjay Pandey, Dhawal Singhe Mohite, Deokinandan Khandelwal, Tarun Nirban, Jawahar Chug, Nitin Bansal, Vinod Agrawal, Yogendra Agrawal, Laxmikant Agrawal, CA. Disha Jogani, Mukesh Agrawal, Rajendra Uttwar, Omprakash Agrawal and Jawahar Agrawal, Prof Anup Suchak, Prof Praveen Thakur and others.