BUDGET - HIDDEN AMENDMENTS AFFECTING SMALL PRACTITIONERS:
1) In section 50C saving provisos similar to section 43CA (3) and (4) added as follows w.e.f. A.Y. 17-18:
"Provided that where the date of the agreement fixing the amount of consideration and the date of registration for the transfer of the capital asset are not the same, the value adopted or assessed or assessable by the stamp valuation authority on the date of agreement may be taken for the purposes of computing full value of consideration for such transfer:
Provided further that the first proviso shall apply only in a case where the amount of consideration, or a part thereof, has been received by way of an account payee cheque or account payee bank draft or by use of electronic clearing system through a bank account, on or before the date of the agreement for transfer."
2) No loss shall be allowed to set off from income chargeable u/s 115BBE (i.e. income added u/s 68-69-69A-69B-69C-69D) W.E.F. A.Y. 17-18.
3) Section 139(4) and 139(5) changed as follows:
139(4)- Any person who has not furnished a return within the time allowed to him under
sub-section (1), may furnish the return for any previous year at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.";
It means henceforth belated return must be filed before expiry of relevant ast. year!!!
139(5)- " If any person, having furnished a return under sub-section (1) or sub-section (4), discovers
any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.";
It means, henceforth belated return can also be revised!!!
4) Powers of adjustments by way of 143(1) intimation widened to large extent!!!!
5) TDS related Changes:
i) Section 194C : Threshold increased from 75000 to 100000
ii) Section 194H: Threshold increased from 5000 to 15000
iii) Section 194H: Rate reduced from 10% to 5%
iv) TCS @ 1% introduced on sale of motor vehicles value above Rs. 10 Lacs
v) Existing provision of TCS @1% on sale of bullion, jewellery extended to all goods for sale in cash above Rs. 200000/-
(Subject to certain conditions, to be prescribed later)
6) Advance tax provision applicable to 44AD income, advance tax to be paid on or before 15th March in single installment.
(Accordingly interest u/s 234C made applicable on tax on such income u/s 44AD)
CA. C. V. PAWAR