Venkateshwara Legal and Technical Services

02/07/2018

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09/03/2018

The last date for Filling Income tax Return For F.Y.2015-16 & F.Y 2016-17 is 31st March 2018.
After that you can't file that returns
For any Loan or Term Insurance you require minimum 3 years of ITR.
So Hurry Up!!!!
Add Website www.gstmantri.com

10/07/2014

Budget 2014 Highlights:
1. Income tax exemption limit raised from Rs 2 lakhs at present to Rs 2.5 lakhs
2. For Senior Citizens Income tax exemption limit raised from Rs 2.5 lakhs to Rs 3.0 lakhs
3. Section 80C investment limit raised from Rs 1 lakh to Rs 1.5 lakh for tax benefits
4. Tax exemption on interest component on housing loan raised from Rs 1.5 lakhs to Rs 2 lakhs
5. Annual Public Provident Fund PPF ceiling to be enhanced from Rs 1 lakh to to Rs 1.5 lakhs
6. A special small saving scheme will be introduced encourage savings towards education & marriage of girl child
7. Kisan Vikas Patra to be reintroduced for planned and unplanned savings under small savings schemes
8. Proposal to Introduce single DEMAT account for all types financial transactions
9. EPFO to launch unified account scheme to ensure Provident Fund portability
10. Cheaper Housing Loan & Tax Incentive for LIG - Low Income Groups. Allocated Rs. 4000 for same.
11. Insurance sector FDI to be hiked to 49%, from 26% leading to increase in Insurance pe*******on.
12. Long Term Capital Gain tax on Debt Mutual Funds increased from 10 % to 20% and tenure increased from 12 to 36 months.

09/07/2014

This will help you understand the BUDGET: Terms to know before FM reads his July 10 Budget speech: Here is a list of terms to know before finance minister Arun Jaitley reads his July 10 Budget speech in Parliament.

Capital Expenditure
Expenditure incurred to acquire, build assets, infrastructure or to upgrade existing infrastructure facilities.
Current Capital expenditure-
2013-14 (Rev. Est.) - Rs. 1,90,894 Cr
Gross Fixed Capital Formation
Gross fixed capital formation (GFCF) refers to the net increase in physical assets (investment minus disposals) within a fixed period of time. GFCF in India is estimated at 20 lakh crore in 2013-14 as against 20.02 lakh crore in 2012-13. In terms of GDP at market prices, the rates of GFCF at current and constant (2004-05) prices during 2013-14 are estimated at 28.3% and 32.3%.

Non Plan Expenditure
Any expenditure incurred other than to implement 5 year plans of planning commission and other pre planned ministry demands. Non-plan revenue expenditure is accounted for by interest payments, subsidies, wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments.
Current Non-Plan expenditure-
2013-14 (Rev. Est.) - Rs. 11,14,902.32 Cr.

Subsidy
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of economic problem and is often considered to be in the interest of the public.
India's Total Subsidy bill :
Rs. 2,46,397 Crore ( this includes Oil Subsidy of Rs.63,427 Cr, fertilizer subsidy of Rs. 67,970 Cr etc)
Incremental Capital Output Ratio (ICOR)

ICOR basically refers to the additional capital required for generating additional output.
Revenue Deficit

Revenue deficit refers to the excess of revenue expenditure over revenue receipts.
Current Revenue deficit:
2013-14 (Revised Est.) -- Rs. 91.54 Billion
Fiscal Deficit
It is the difference between the revenue receipts plus non-debt capital receipts and total expenditure including loan, net of repayments.
(This indicates the total borrowing requirements of the government. More the deficit more the debt required by the government)
Current Fiscal deficit:
2013-14 (Revised Est.) -- Rs. 5.08 Trillion i.e. 4.5% of GDP

Current Account Deficit
If a country's total imports of goods, services is more than its total export of goods, services and transfers it results in current account deficit.
2013-14 (advance estimates): -32.4 ($ billions)
Plan Expenditure
It consists of both Revenue Expenditure and Capital Expenditure of the Center on the Central Plan, Central Assistance to States and Union Territories. . This is developmental in nature and is spent on schemes detailed in the Plan.
2013-14 (revised): Rs 475532 crore
Tax Deduction
It is a deduction from gross income that arises due to various types of expenses incurred by a taxpayer.
Excise Duties
An indirect tax levied on goods manufactured within the country. Usually these are passed on to the consumer.

Gross domestic product
Total value of the goods and services produced by economic resources located in a country in a year.
GDP (actual value at constant 2004-05 prices), 2013-14 (provisional): Rs 5,741,791 crore

Gross domestic savings
Gross domestic savings is Gross Domestic Product minus final consumption.
Gross Domestic Savings (% of GDP), 2013-14 (advance estimates): 30.5
WPI inflation
The Wholesale Price Index or WPI is the price of a representative basket of wholesale goods. The inflation rate is the percentage rate of change in the price level.
Inflation - WPI (Average), 2013-14 (advance estimates): 5.9
Revenue expenditure
Revenue expenditure is for the normal running of the government's department and various services, interest charged on debt incurred by government, subsidies etc
2013-14 (revised): Rs 371851 crore

Capital Receipts

Capital Receipts consist of loans raised by the Center from the market, government borrowings from the RBI & other parties, sale of Treasury Bills and loans received from foreign governments. Other items that also fall under this category include recovery of loans granted by the Center to State governments & Union Territories and proceeds from the dilution of the government's stake in Public Sector Undertakings
2013-14 (revised): Rs 546182 crore

Direct Taxes
Taxes paid directly by the person or organisation on whom they are levied. Income Tax and Corporate Tax fall under this tax category.

FRBM Act
The FRBM Act, 2003 which became effective from July 5, 2004 mandates the Central Government to eliminate revenue deficit by March, 2009 and to reduce fiscal deficit to an amount equivalent to 3 per cent of GDP by March, 2008.
Direct Taxes code

The direct tax code seeks to consolidate and amend the law relating to all direct taxes, namely, income-tax, dividend distribution tax, fringe benefit tax and wealth-tax so as to establish an economically efficient, effective and equitable direct tax system which will facilitate voluntary compliance and help increase the tax-GDP ratio.

Central plan outlay
It refers to the government's budgetary support to the Plan. It is the division of monetary resources among different sectors in the economy and ministries of the government.
2013-14 Revised Estimates: Rs 614134 crore

Source: http://businesstoday.intoday.in/story/budget-2014-terms-to-know-arun-jaitley-reads-his-july-10-speech/1/207961.html

Capital ExpenditureExpenditure incurred to acquire, build assets, infrastructure or to upgrade existing infrastructure facilities.Current Capital expenditure-2013-14 (Rev. Est.) - Rs. 1,90,894 Cr

06/07/2014

There are several occasions when an individual will receive an amount in addition to or in lieu of salary.

When this is the case then there is a distinct way in which this would be taxed and hence this would be included in the income of the individual but there is a need to look at the manner and way in which this would be considered for taxation purpose. There are different reasons why this could actually happen and it is important to look at the various conditions that are faced by the salaried individual and the final impact that this will have on their tax liability.

Modification of terms of employment There are times when there is a loss of employment or in many cases there could be a change or a modification in the terms of employment. If there is an amount that is paid to the employee on such occasions then normally they would be capital receipts but due to a specific provision in the income tax act this would be considered as profit in lieu of salary and then taxed as salary income. If there is an amount paid on termination of employment then one can check if there is any tax relief that can be obtained by the individual but the point remains that this would be taxable as salary. The manner in which this would be taxed is either due or receipt basis which means that even if the amount is not received but has become due then this would have to be taken for taxation purposes.

Employee of former employer There is a technical point that the individual would have to consider as normally the amount received from an employer goes under the head of salary income. When this is received from an existing employer regarding the modification of the terms of the employment then the explanation for the classification is simple. However it could be that the amount is received from a former employer and in this case too the figure would have to be taxed as profits in lieu of salary and there would not be any distinction here in terms of the categorisation of the amount. Keyman insurance If there is an insurance policy taken by the employer on the employee which is in the nature of a keyman insurance policy and there is a an amount received on this then too the amount would not be considered as an insurance payout and tax free in the hands of the individual but as a profit in lieu of salary. This is a clear way in which this specific payment has been described and hence this has to be taken into account in case of such a receipt.



Read more at: http://www.moneycontrol.com/news/tax/treatmentprofitslieusalary_1119254.html?utm_source=ref_article

04/07/2014

Amendments required in real estate:
1. Higher deduction for interest on loan:
In the year 2001 the Finance Minister raise the deduction limit for interest on Housing loan from Rs. 30,000 to Rs. 150000. The deduction for interest on housing loan was enhanced to Rs. 1,50,000 for individuals and Hindu Undivided Families. Well in last 14 years the prices of the houses have gone up. Moreover, the overall money in the hands of individuals have also gone up and this is evident from the fact that new Real Estate Development and the investment which is made by the home buyers is also going up. Likewise, due to the increase in the salary structure and many more millionaires and multi-millionaires coming up there is a demand for big housing. Presently the deduction available for the housing loan is just Rs. 1,50,000 per annum which means on an average a house can be purchased just of Rs. 15 lakhs and the deduction for interest on loan being allowed upto Rs. 1,50,000 only. The Government should increase the deduction for interest on housing loan to minimum of Rs. 2,50,000 specially in view of rising prices. If the Government expects real dynamic growth in the housing sector, in that situation the best would be to grant interest deduction for house property purchased or investment made during the Financial Year 2014-15 up to unlimited amount. That means for a new home buyer if the entire interest on housing loan is allowed as a tax deduction, surely the sector will boom like anything. In turn the Housing Company and the bank all of them also should try to see that the interest rates are cut down and the prices of the property are controlled.

2. Tax exemption for developer developing Small Housing Project:
Presently the Developer has to pay income-tax on his income whether he develops a residential house property of 1,000 sq. ft. or 10,000 sq. ft. If the Government wants that the Developers throughout India to construct a common man house, in that case the Government through the budget should grant exemption in respect of the income of the Developer specially if he constructs small houses say of 1,000 sq. ft. or maximum up to 1,500 sq. ft. It may be noted here that this type of tax deduction was permissible earlier in the past through section 80IB(10) which provided complete exemption to the Developer if a housing project was taken up on minimum 1 acre of land and the houses were built up to 1,000 sq. ft. in metropolitan town or 1,500 sq. ft. in other towns of India. It is expected that in Delhi alone big housing would be made available due to the changes made in the Master Plan. If the Government wants that in all these new housing developments only small houses should be constructed, in that situation they should bring in this type of important tax exemption for the Developer and also ask the Developer to cut down selling cost. Similar deduction should also be made available to the Developer specially if they are coming up in new township and creating new cities with minimum of 500 acre of land. This type of dynamic approach if adopted by the Finance Minister will definitely help to solve the housing problem in the country.

3. Please do not bring imported taxes:
In India in the last one decade we have seen that imported taxes coming into mainstream. For example, we had a fringe benefit tax which was responsible for hampering the groCheck out: Amendments required in real estate - Moneycontrol.com
wth of the trade and industry.

Read more: http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?autono=1117433

Real Estate Sector happens to be one of the very important sectors for the overall prosperity, employment etc. in the country. Moreover, a new Government has taken a very pragmatic view of providing housing to all may be in the next eight to ten years. Under this situation it is very important tha…

02/07/2014

People have high expectations from the new government at the Centre and they are hoping for positive measures critical for the growth of the sector. The government could perhaps consider the following recommendations:

Extend the Additional Deduction on Home Loans Below Rs 25 lakh: The government had earlier announced an additional income tax deduction of Rs 1 lakh to home buyers who seek a home loan of up to Rs 25 lakh for the first purchase. This deduction was applicable till 31 March 2014 and was a welcome step, as it improved the purchase price/disposable income and affordability index of buyers.

Read more at:
http://economictimes.indiatimes.com/articleshow/37620577.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

People have high expectations from the new govt and they are hoping for positive measures critical for the growth of the real estate sector.

30/06/2014

Breaking news that may break people?
Petrol price was today hiked by a steep Rs 1.69 per litre and diesel by 50 paise a litre as the crisis in Iraq spooked international oil and currency markets.

Petrol in Delhi will cost Rs 73.58 per litre, up Rs 2.02 from Rs 71.56 at present. Diesel rates will go up by 56 paise to Rs 57.84 per litre.

http://economictimes.indiatimes.com/industry/energy/oil-gas/petrol-price-hiked-by-rs-1-69-per-litre-diesel-by-rs-0-50-with-effect-from-midnight/articleshow/37529929.cms

Last week speculation was rife that govt might raise prices of LPG and kerosene aimed at wiping out the Rs 80,000 cr subsidy on the two fuels.

26/06/2014

How superannuation schemes are losing relevance: Superannuation schemes have played a prominent role in structuring retirement benefits for service class Indians working with large corporate.

However, lately such schemes are losing relevance, mainly on account of tax adversities. Although, individuals have an option to secure regular pension payments in future by privately investing in various policies offered by Insurance Companies in the market or in the National Pension Scheme of India (NPS), however, employer framed superannuat ..

Source: http://economictimes.indiatimes.com/wealth/savings-centre/analysis/budget-2014-how-superannuation-schemes-are-losing-relevance/articleshow/37179410.cms