Important changes under Central and State Tax Laws

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The following are the important changes under Central and State Tax Laws with effect from 1st April 2015 1. Conveyance Allowance - Transport allowance granted to an employee is exempted up to Rs.800 per month. The limit of exemption is now enhanced to Rs.1600 per month. 2. Profession Tax – Those whose salary for a month was more than Rs. 10,000/- were supposed to pay Profession Tax of Rs.150 per month. Now, from 1st April, 2015, the persons drawing salary up to Rs. 15,000/- per month are exempted from Profession Tax. (Applicable for Bangalore) 3. Profession Tax exemption for senior citizens - who have attained age of 60 Years (Applicable for Bangalore) 4. Wealth Tax – Is abolished from 1st April 2015. Keep all the wealth tax papers of past 8 years in safe custody even though wealth tax is abolished from FY 2015-16 5. Mediclaim Insurance – The premium paid towards mediclaim insurance is enhanced from Rs. 15,000/- to Rs. 25,000/- per year & for senior citizen it is enhanced from Rs. 20,000/- to Rs. 30,000/- per year u/s 80D. 6. Basic Exemption Limit for VAT registration in Karnataka – Now the traders who expect to do annual taxable turnover (sales) of less than Rs.10 Lakhs needn’t register under Karnataka VAT Laws. However other aspects of registration which were applicable till March 2015, will continue to apply. 7. Reverse Charge Method under service Tax Laws w.r.t Manpower Consultancy – Currently in case manpower supply or security services is provided by individual, HUF or partnership firm to a body or a corporate, the service provider is liable to deposit Service Tax to the extent of 25% and service receiver liable to deposit Service Tax to extent of 75%. W. e. f 1st April 2015 Service Tax is not required to be charged by specified service provider (i.e., individuals, HUF, Partnership Firms) and the same is to be paid by the service receiver entirely (i. e, instead of 75%, the service receiver has to pay 100%) F. No. 334/5/2015 8. ESIC Payment Through Online – Online payment of ESI contribution made easier. Now facility for payment of ESI contribution through net banking is made available through State Bank of India and 58 major banks. 9. PF Payment Made Online - The EPFO payment has been made online Mandatory effective from 1st May 2015. #pdf