Few highlights from Budget 2012

1. Alternate Minimum Tax also applicable to persons other than company if the assessee is claiming deduction under Chapter VI under the Head C and under Section 10AA.

However if the adjusted total income of any assessee being individual, HUF, AOP or BOI whether incorporated or not or an artificial juridical person does not exceed 20L then AMT will not apply.

2. TDS  in case of transfer of immovable property(other than Agri Land) is 1% if:

a. the consideration exceeds 50L where the property is situated in specified urban agglomeration.

b. the consideration exceeds 20L where the property is situated at any other place.

3.TDS of 10% on Directors Remuneration if it is not in the nature of salary.

4. In case of purchase of Jwellery in Cash exceeding Rs.2 L, the Jweller will Collect Tax @ 1% as TCS whether the jewelry is purchased by manufacturer, trader or ultimate consumer.

5. TCS of 1% on purchase of Coal, Lignite or iron core if purchased for any purpose other than for personal consumption.

6.   Where any sum is credited in the books of a closely held company, the Closely held company must ensure the genuineness of the shareholder and source of fund in the hands of the Shareholder. Otherwise the sum so credited will be taxable in the hands of the company under Section 68.

7. In order to curve the practice of laundering of unaccounted money by taking advantage of basic exemption limit, it is proposed to tax the unexplained credit money, investment, expenditure @30% plus surcharge, cess as applicable.

8. Penal provision even if the assessee admits undisclosed income during the course of Search.

9. Share issued at premium  in exess of fair market value, the excess will be treated as income in the hands of the issuing company.

10. Turnover Limit for Audit under Section 44AB raised from 60 L to 100L in case of business and 15L to 25L in case of professionals. The same limit is applicable for Section 44AD.

11.  Exemption from Long term capital gain arising out of sale of residential house property or a plot Land , if the sale consideration is invested in the Equity of SME engaged in the manufacturing Sector and if such SME utilised such equity fund in Purchase of its new plant and machinery subject to certain conditions.

12. Earlier Section 80L has been replaced by Section 80TTA allowing deduction of Interest on Saving Bank Account up to Rs.10000/-

13. Even if TDS is not deducted or short deducted by the Payer on any sum on which tax is required to be deducted, he will not be treated as assessee in default if the payee filed his return of income within due date taken into consideration the sum so received from the payer and discharge his tax liability on the due date then the payer will not considered as assessee in default under Section 201(1). However, the payer has to collect a certificate from a Accountant regarding the filing of return and discharge of liability of the payee.

For disallowance of expenditure under Section 40(a)(ia), the similar provision is applicable.

14. Fees and penalty for delay in filing of TDS statements: Fees of Rs.200/- per day and additional penalty of Rs.10000/- to Rs.100000/-.

15.  Where compensation or consideration is paid in excess of Rs.200000/-(Earlier Rs.100000) TDS to be deducted @10%.

16. Deduction under Section 80G and 80GGA will not be allowed if donation made in cash exceeding Rs.10000/-.

17. Slab Rate:

For Individual and HUF

For Senior Citizen

For Super Senior Citizen

18. Service Tax Rate increased from 10% to 12%.