Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

TAX RELIEFS ON AGRICULTURAL LAND

Important amendments under Capital Gains Tax & Wealth-tax provisions under the Finance Act 2013 

Section 2(14) of the Income-tax Act, which defines ‘capital asset,’ excludes from within its purview an agricultural land situated in India at a place having a population of less than 10,000 as per the last preceding census or at an area not comprised within any municipal limits or within a prescribed distance from such municipal limits.

      The Finance Act 2013 has, with effect from F.Y. 2013-14, revised the prescribed distance as being within a range of upto 2, 6 or 8 kms. (such distance being the aerial distance) from the municipal limit, based on the population as described hereunder:

  • Where population is more than 10,000 but not exceeding 1 lakh, 2 kms.
  • Where population is more than 1 lakh but not exceeding 10 lakhs, 6 kms.
  • Where population is more than 10 lakhs, 8 kms. (more…)

CHECK YOUR WEALTH TAX LIABILITY

With current prices of gold, silver & motor cars its worth taking a look if you are liable to wealth tax

There was a time when everything was taxable under Wealth-tax, excepting specific exemptions provided for the purpose. Under the current provisions, only six kinds of assets are treated as taxable, thereby exempting all other assets from the scope of Wealth-tax.

With effect from Assessment Year 1993-94, the basic exemption limit for Wealth-tax applicable for Individuals, Hindu Undivided Families and Companies was steeply raised from Rs.2,50,000 to Rs.15,00,000 and the rate of tax was fixed at a flat rate of 1% as compared to the earlier graded tax system.

It took the Finance Minister nearly 17 years to review the basic exemption limit. With effect from the valuation date 31st March 2010, relevant to Assessment Year 2010-11, the said exemption limit was revised from Rs.15,00,000 to Rs.30,00,000.

What is significant to note, is that prior to Assessment Year 1993-94, everything was taxable under Wealth-tax, excepting specific exemptions provided for the purpose.  However, under the current provisions, only six kinds of assets are treated as taxable, thereby exempting all other assets from the scope of Wealth-tax. (more…)

NRIs treated as Not Required Indians

Harsh, Illogical & Discriminatory Taxing Provisions For NRIs!

Proposals That Will Hurt The Global Indian Sentiment

Flat Rate of Tax

  • 20% flat tax on interest & other investment income.
  • 30% flat tax on all capital gains.
  • Apart from 20% & 30% TDS on above, TDS at a baffling rate of 35% prescribed on all residual income.

No Personal Exemption

  • No personal exemption or deduction allowed in computing the above income treated as ‘income from special sources.’

Weird Interpretation

  • Poor drafting leads to such a weird interpretation that transfer of a capital asset may attract 30% tax on gross sale consideration.

What a Discrimination?

  • Ironical but true! Non-Indian sports-persons, say Ricky Ponting or Shoaib Akhtar, required to pay a concessional tax of 10% on their game, advertisement and column earnings in India, thus enjoying a more privileged tax status than our own sons of the soil living abroad.

(more…)

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