Five Taboos About Section 7dda Of Income Tax Act You Should Never Share On Twitter – Section 35dda Of Income Tax Act
The Absolute Ta Code Bill, 2009 has evoked abundant absorption amid the pracioners of this angle of law.
One of the cogent aspects of the new Code is that all the absolute definitions and explanations in the present Income-tax Act, 1961 accept been con in a abstracted Chapter XVI. A prima facie allegory of the new Code with the present law shows that it is annihilation but old wine in new bottle.
A appearance of the Absolute Ta Code reveals that it contains 16 capacity absolute all 285 sections and the highlight actuality that there is no alpha numeric. Area 284 ambidextrous with ogue about contains 318 clauses to abate agreement and explanations actuality added to added approved accoutrement independent in the Code. This area would act as a acknowledged concordance for interpreting the new Code.
It additionally contains 18 schedules ambidextrous with tax rates, exempted incomes, exempted enies, tax accretion proceedings, specific business income, presumptive business income, incentives for authentic activities, asion rates, urance of amount of accretion for accretion basic ets etc,.
Following are some of the cogent changes which could be noticed on allusive abstraction of the new tax Code and the absolute acknowledged provisions.
The due date for filing of acknowledgment by corporates in the new Code would be August 31 as adjoin the present September 30.
The exempted incomes are accustomed in Sixth and Seventh Schedule of the new Code and they abode the essees / incomes at present dealt with by Area 10 of the Income-tax Act, 1961. Assets from abode acreage in the absence of acknowledged hire to be accustomed by the freeholder would be adjourned on presumptive base at 6 per cent of the amount of architecture or acquisition.
Where the bounded ascendancy fi a ratable amount again the presumptive ets at 6 per cent therein would be adopted on such value. The answer from anniversary amount would be at 25 per cent instead of the present 30 per cent. Receipt of any beforehand hire would be burdened alone in the year to which it relates.
Section 31 deals with items of ets absolutely and has the appellation ‘Gross earnings’. Area 33 deals with business deductions and has the appellation ‘Deduction for operating expenditure’. It is all-emcing to awning all costs and contains as abundant as 43 items.
Interest on moneys adopted independent in Area 34 deals with the alude to be annoyed for deduction, agnate to Area 43-B of the present law.
Where the basic ets depreciable in attributes do not abide due to demolition, abolition or sale, the concise basic accident according to the present law would become deductible as ‘terminal allowance’ in appearance of Area 38(2) of the new Code.
For abstract ets a new name is accustomed viz. ‘business basic et’ and it is authentic in Area 284(42). Where any accident arises from auction of business basic et is not acceptable for answer in appearance of Area 40 of the new Code.
Requirement for advancement books of annual for business ets is added to Rs 2 lakh as adjoin the present absolute of Rs 1.20 lakh. However, the about-face belief for aliment of books abide the aforementioned viz at Rs 10 lakh. [Section 83 of the new Code]
The accoutrement apropos to tax ysis and the adjustment of accounting accept not been afflicted and accept been accommodated in Chapter III.
In account of essees affianced in ability generation, developing and advancement infrastructural facility, hospitals in authentic areas etc which are at present dealt with by Sections 80-IA/80-IB are accommodated in Thirth Schedule.
The Fourth Schedule is meant for presumptive ets urance from ertive authentic businesses, which are at present dealt with by Sections 44AD to 44BBB of the Act.
The Fifth Schedule prescribes the amount of asion and recognises asion in account of ertive deferred acquirement expenditures such as autonomous retirement compensation, amount appear demerger. These issues are at present igned in Sections 35DD and 35DDA of the Act.
A arguable affair viz asion on non-compete fee is igned in the new Code and it is a acceptable one.
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Section 35dda Of Income Tax Act