Budget -1% TDS on transfer of Immovable property exceeding Rs.50 lakh

Tax Deduction at Source (TDS) on transfer of certain immovable properties (other than agricultural land)

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.

This amendment will take effect from 1st June, 2013.


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Budget -Income Tax Surcharge Rate hiked for higher Income Assessees

The Finance Bill 2013-14 proposes a surcharge of 10 per cent on persons whose taxable income exceed Rs. 1 crore per year. This will apply to individuals, HUFs, firms and entities with similar tax status. Presenting the Union Budget in the Lok Sabha, the Finance Minister Shri P.Chidambaram said that he also proposes to increase the surcharge from 5 per cent to 10 per cent on domestic companies whose taxable income exceeds Rs.10 crore per year. In the case of foreign companies, the surcharge will increase from 2 per cent to 5 per cent.

In all other cases, such as dividend distribution tax or tax on distributed income, the current surcharge of 5 per cent is being increased to 10 per cent. The additional surcharges will be imposed for only one year, i.e., financial year 2013-14. The education cess for all taxpayers shall continue at 3 per cent. The Finance Minister said that he expects the relatively prosperous to bear a small burden for one year.

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TDS Rates for FY 2013-14 / AY 2014-15

      2 Comments on TDS Rates for FY 2013-14 / AY 2014-15

Applicable TDS Rates are same as were in force for F.Y. 2013-13 except the changes specified below.

I.Rates for deduction of income-tax at source during the financial year 2013-14 from certain incomes other than – “Salaries”.

The rates for deduction of income-tax at source during the financial year 2013-14 from certain incomes other than “Salaries” have been specified in Part II of the First Schedule to the Bill. The rates for all the categories of persons will remain the same as those specified in Part II of the First Schedule to the Finance Act, 2012, for the purposes of deduction of income-tax at source during the financial year 2012-13, except that in case of certain payments made to a non-resident (other than a company) or a foreign company, in the nature of income by way of royalty or fees for technical services, the rate shall be twenty-five percent of such income.

(1)Surcharge –

The amount of tax so deducted, in the case of a non-resident person (other than a company), shall be increased by a surcharge at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees .

The amount of tax so deducted, in the case of a company other than a domestic company, shall be increased by a surcharge at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees and it shall be increased by a surcharge at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

No surcharge will be levied on deductions in other cases.

(2) Education Cess –

Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, of income tax including surcharge wherever applicable, in the cases of persons not resident in India including companies other than domestic company.

 II. Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2013-14.

The rates for deduction of income-tax at source from “Salaries” during the financial year 2013-14 and also for computation of “advance tax” payable during the said year in the case of all categories of assessees have been specified in Part III of the First Schedule to the Bill. These rates are also applicable for charging income-tax during the financial year 2013-14 on current incomes in cases where accelerated assessments have to be made, for instance, provisional assessment of shipping profits arising in India to non-residents, assessment of persons leaving India for good during the financial year, assessment of persons who are likely to transfer property to avoid tax, assessment of bodies formed for a short duration, etc.

To view the TDS rates of FY: 2013-14, Click here
To view the TDS rates of FY: 2014-15, Click here
To view the TDS rates of FY: 2015-16, Click here
To view the TDS rates of FY: 2016-17, Click here
To view the TDS rates of FY: 2017-18, Click here

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Income Tax rates FY 13-14 after budget 2013 dated 28.02.2013

 There is no change in income tax rates, slabs at all. No change in exemption limit. Only tax rebate of Rs 2000 has been allowed for income tax slabs between 2 lakh-5 lakh. So if your income is more than 500000 and less than 1  crore then no tax rate change for you. Income is more 10 % surcharge has been imposed on income tax more than one crore.

Rebate of Rs 2000 for individuals having total income up to Rs 5 lakh

With a view to provide tax relief to the individual tax payers who are in lower income bracket, it is proposed to provide rebate from the tax payable by an assessee, being an individual resident in India, whose total income does not exceed five lakh rupees.

The rebate shall be equal to the amount of income-tax payable on the total income for any assessment year or an amount of two thousand rupees, whichever is less. Consequently any individual having income up to Rs 2,20,000 will not be required to pay any tax and every individual having total income above Rs. 2,20,000/- but not exceeding Rs. 5,00,000/- shall get a tax relief of Rs. 2000/-. Section 87 has also been consequentially amended.

 

RATES OF INCOME-TAX after Budget 2013 dated 28.02.2013

A. Normal Rates of tax:
1. Where the total income does not exceed Rs. 2,00,000/-. Nil
2. Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/- 10 per cent of the amount by which the total income exceeds Rs.2,00,000/-
3.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4.Where the total income exceeds Rs. 10,00,000/-. Rs. 130,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year:
1.Where the total income does not exceed Rs.2,00,000/-. Nil
2.Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/-. 10 per cent, of the amount by which the total income exceeds Rs. 2,00,000/-
3.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4.Where the total income exceeds Rs. 10,00,000/-. Rs. 130,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
C. Rates of tax for an individual, resident in India and of the age of sixty years or more but less than eighty years at any time during the financial year:
1.Where the total income does not exceed Rs. 2,50,000/-. Nil
2.Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/-. 10 per cent, of the amount by which the total income exceeds Rs. 2,50,000/-
3.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4.Where the total income exceeds Rs. 10,00,000/-. Rs. 125,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.
D. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:
1.Where the total income does not exceed Rs. 5,00,000/- Nil
2.Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
3.Where the total income exceeds Rs.10,00,000/- Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs.10,00,000/-
1. Surcharge on Income tax: There will be no surcharge on income tax payments by individual taxpayers during FY 2011-12 (AY 2012-13).
2. Cess :3 %
3. 10 % surcharge applicable on income more than one crore
4.Rs 2000 rebate for Income up to Rs 500000/-

Others changes:

  1. Home loan deduction additional one lakh for loans up to 25 lakh for new houses after 01.04.2013
  2. Securities transaction (STT) tax reduced.
  3. CTT (Commodity transaction Tax) imposed.
  4. Rajiv Gandhi equity scheme available for 2 years more, further income limit increased to 12 lakh.


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