CA.

AJAY JAIN, 9310167881 1 Amendments Budget 2013

I. RATES
Same Slab Rates are applicable. No change.
1. REBATE of ` 2,000 : !"Ne#$ Section %&A'
This section has been inserted to provide a rebate of an amount equal to the amount of income tax payable on the
total income for any assessment year or an amount of `2,000, whichever is less.
The rebate is only available for that assessee:
i. Who is resident of ndia!both "#" and "$#"%, and
ii. Whose total income is upto !does not exceed% `&,00,000 after availin' deductions u(s )0* to )0+.

The cess shall be computed after 'ivin' the rebate of 2,000.
E(ample
The 'ross total income of ,r. -, a resident a'ed .0 years , for the /.0.201.112 comprises of salary (`
&,0&,000% and interest on savin's ban3 !` ),000%. *ompute his tax liability for the 4.0.201211&, assumin'
that he has deposited ` &0,000 in public provident fund.
Ans#er
)omp*tation of total income of +r. , for the A.-.201.1/
0artic*lars ` `
Salary
Interest on savings bank account
1ross Total Income
Less: 2e3*ctions *n3er chapter 4IA
Section 80C (deposit in PPF)
Section 80TT (interest on savings bank account)
Total Income
!0"000
8"000
!"0!"000
80"000
/,15,000
!8"000
.,//,000
)omp*tation of ta( liabilit6 of +r. , for the A.-.201.1/
0artic*lars `
Tax on total income 5106 of 2,&&,000 !` 2,&&,000 1 ` 2,00,000%
7ess: Rebate *n3er section %&A
!Key Sk!!:# $ebate is given be%ore cess)
4dd: 7ducation cess526
8econdary and hi'her education cess516
Total ta( liabilit6
Ro*n3e3 off *8s 2%%B
2&,&00
2,000
2.,&00
290
2.&
2.,20/
2.,210
2. S*rcharge on incometa( :
every person havin' a total income!after deductions of chapter :14% exceedin' ` 1 crore
109 s*rcharge shall be impose3 on income ta(:s*rcharge shall be calc*late3 on ta(;
)hanges intro3*ce3 b6 B*3get 2015
:applicable for +A- 201. < No= 201.;
"s#$e%:1 !E(tracts of B*3get Speech'
T&e current slabs 'ere introduced only last year( )ence" I a* a%raid" t&ere is no case to revise eit&er t&e slabs or
t&e rates( +esides" even a *oderate increase in t&e level o% t&res&old e,e*ption 'ill *ean t&at &undreds o%
t&ousands o% ta, payers 'ill go out o% t&e ta, net and t&e ta, base 'ill be severely eroded( -evert&eless" I a*
inclined to give so*e relie% to t&e ta, payers in t&e %irst bracket o% ` . lak& to ` ! lak&(
CA. AJAY JAIN, 9310167881 2 Amendments Budget 2013
II. 0R>?ITS AN2 1AINS >? B@SINESS >R 0R>?ESSI>N

1. In=estment allo#ance for +an*fact*ring )o.s for in=estment in 0<+ : !"Ne#$ A Section52A)'
4n investment allowance 51&6 to a manufacturin' company which invests more than 100 crores in new /;,
durin' the period 1.2.201. to .1...201&.This allowance will be in addition to current rates of depreciation.
*onditions:
a. 4ssessee is a co.
b. n business of manufacture or production of any article or thin'.
c. 4cquires an3 installs new asset from 1.2.201. to .1...201&.
d. nvestment should exceed ` 100 crores.
<eduction:
=or 4.0. 1211&, a deduction of 1&6 of a''re'ate amount invested in =.0. 1.112 if it exceeds `100 crores.
=or 4.0. 1&11>, a deduction of 1&6 of a''re'ate amount in=este3 3*ring 1.2015 to 515201/ if it exceeds
`100 crores, reduced by deduction availed under same section in 40 1211&.
?oc3 in period:
& years, if the new asset acquired is sold !except transfer by way of amal'amation or mer'er%before & years then
the sale consideration shall be char'ed to tax as income u(h /@A/.

E(ample 1.
The followin' amounts were invested by 4A* ?td, a manufacturin' company in purchase of a new /lant ;
,achinery durin' the /(0 201.112. <ecide the amount of deduction which the company can claim u(s .24*.
Ans#er 08- 20151. 2e3*ction
i. BB *r. 1
ii. 100 *r. Nil
iii. 101 *r. 1&6 of 101 *r. C 1/.1/ )r.
E(ample 2.
The followin' amounts were invested by 4A* ?td, a manufacturin' company in purchase of a new /lant ;
,achinery durin' the /(0 201.112 ; /(0 201211&. <ecide the amount of deduction which the company can
claim u(s .24*.
Ans#er )ase :i; 08- 151. 08- 1.1/
4mount nvested BB *r. 2 *r.
BB *r.D2 *r. C 101 *r.
<eduction u(s .24* Nil 101 *r. of 1&6 C 1/.1/ )r.
)ase :ii; 08- 151. 08- 1.1/
4mount nvested 10& *r. 10*r.
10& D 10 C 11&*r.
10& x 1&6 C 1&.9&*r. 11& x 1&6 C 19.2& *r.
<eduction u(s .24* 1/.&/ )r. 19.2&E1&.9& C 1./0 )r.
)ase A :iii; 08- 151. 08- 1.1/
4mount nvested 1&0*r &*r
1&6 of 1&0 C 22.&0 *r. 1&6 of 1&& C 2..2& *r.
<eduction u(s .24* 22./0 )r. 2..2&122.&0 C 0.&/)r.
)ase A :i=; 08- 151. 08- 1.1/
4mount nvested 20*r 90*r
90 D 20 *r C 110 *r.
<eduction u(s .24* Nil 1&6 of 110 *r. C 1B./ )r.
"s#$e%:1 !E(tracts of B*3get Speech'
/&en I need to raise resources" '&o can I go to e,cept t&ose '&o are relatively 'ell placed in society0 T&ere are
1."800 persons # let *e repeat" only 1."800 persons # '&o ad*itted to a ta,able inco*e e,ceeding ` 2 crore per
year( I propose to i*pose a surc&arge o% 20 percent on persons '&ose ta,able inco*e e,ceeds ` 2 crore per year(
T&is 'ill apply to individuals" )3Fs" %ir*s and entities 'it& si*ilar ta, status(
CA. AJAY JAIN, 9310167881 . Amendments Budget 2013
2. 2e3*ction in respect of ne# ta( )ommo3ities Transaction Ta( :)TT; : !"Ne#$Section 5B:1;:(=i;'
The new clause inserted provides deduction of an amount equal to the *TT paid by assessee durin' the previous
year in respect of taxable commodities transactions entered into the co*rse of his b*siness if income arisin' from
such transaction has been included in income.
5. Special pro=isions for ?*ll 4al*e )onsi3eration for transfer of assets other than capital assets in certain
cases: !"Ne#$Section .5)A'
!i% The new section inserted provides that where the consideration for the transfer of an asset :other than capital
asset;, bein' land ore buildin' or both, is less than the stamp duty value, the stamp duty value shall be
deemed to be full value of the consideration for the purpose of computin' income under the head /@A/.
!ii% WhereF
!a% the assessee requests income tax officer that the value of the stamp valuation authority is more than the
fair mar3et value and
!b% assessee has not filed any appeal in any court a'ainst the authority!not contested anywhere%
the income tax officer may refer the valuation of the capital asset to a :aluation #fficer.
4nd then value determined by valuation officer shall be ta3en as sale consideration.
!iii% f the value determined by valuation officer exceeds the value assessed by the stamp valuation authority,
the value of stamp valuation authority shall be ta3en as the sale consideration.
n the hands of buyer purchase price shall be the amount contracted between the two persons.
"s#$e%& !E(tracts of B*3get Speech'
T&ere is no distinction bet'een derivative trading in t&e securities *arket and derivative trading in t&e
co**odities *arket" only t&e underlying asset is di%%erent( CTT s&all be allo'ed as deduction i% t&e inco*e
%ro* suc& transaction %or*s part o% business inco*e(
"s#$e%:1 !E(tracts of B*3get +emoran3*m'
Currently" '&en a capital asset" being i**ovable property" is trans%erred %or a consideration '&ic& is less t&an
t&e value adopted" assessed or assessable by any aut&ority o% a State 4overn*ent %or t&e purpose o% pay*ent o%
sta*p duty in respect o% suc& trans%er" t&en suc& value (sta*p duty value) is taken as %ull value o% consideration
under section !0C o% t&e Inco*e#ta, ct( T&ese provisions do not apply to trans%er o% i**ovable property" &eld
by t&e trans%eror as stock#in#trade(
T&is 'as also done to overco*e t&e decision in 5an construction and Coloni6ers (P()Ltd(" '&ere t&e lla&bad
)ig& court &eld t&at section !0C is not applicable to sale o% plots by a builder since plots are &is stock in trade
and not capital asset(

CA. AJAY JAIN, 9310167881 2 Amendments Budget 2013
III. )A0ITA7 1AINS:
1. 2efinition of @rban agric*lt*ral lan3 has been altere3 !Section 2:1.;'
The =inance 4ct, 201. has amended so as to provide that Gcapital assetH would include the a'ricultural land
situated in any area within such distance, measured aerially!as the crow flies%, in relation to the ran'e of
population accordin' to the last proceedin' census as shown hereunder E
Shortest aerial 3istance from the local limits of
a m*nicipalit6 or cantonment boar3 referre3 to
in item :a;
0op*lation accor3ing to the last prece3ing cens*s
of #hich the rele=ant fig*res ha=e been p*blishe3
before the first 3a6 of the pre=io*s 6ear.
i. I 2 3ilometers J10,000I1,00,000
ii. I > 3ilometers J1,00,000I10,00,000
iii. I ) 3ilometers J10,00,000

I4. 2E2@)TI>N ?R>+ 1R>SS T>TA7 IN)>+E
1. 2e3*ction in respect of in=estment ma3e *n3er an eC*it6 sa=ing scheme: !Section%0))1'
Intro3*ce3 b6 ?inance Act 2012 b*t fe# amen3ments #ere ma3e b6 ?inance Act 2015.
$ow deduction is allowed to assesse whose @T is upto 12 la3hs!previously it was 10 lacs%.
$ow assesse can invest in . continuous years to claim this deduction!previously it was only in 1 year%
2. 2e3*ction in respect of 7ife Ins*rance 0remi*m : ! Section %0)'
<eduction u(s )0* shall be available only for the premium paid towards policies issued after 11212012, if it does
not exceed 106 of actual capital sum assured.
Aut this limit has been increased to 1& 6 for insurance on the life of any person who is:
a. 4 person with disability or a person with severe disability as referred to in section )0+K
b. 8ufferin' from disease or ailment as specified in rule 11<<( section )0<<A.
5. 2e3*ction in respect of health ins*rance premi*m: ! Section %02'
8ection )0< is amended to allow the benefit of deduction under this section of any payment or contribution made
by the assessee to such other health scheme as may be notified by the *entral @overnment.
"s#$e%& !E(tracts of B*3get +emoran3*m'
So*e insurance policies %or persons 'it& disability or su%%ering %ro* speci%ied diseases provide %or an annual
pre*iu* o% m'(e t$)n ten *e( #ent o% t&e actual capital su* assured( +ut t&e deduction under section 80C is
eligible only to an e,tent o% t&e pre*iu* paid up to 20 7 o% t&e 8actual capital su* assured9(
!E(tracts of B*3get Speech'
I propose to rela, t&e eligibility conditions o% li%e insurance policies %or persons su%%ering %ro* disability or
certain ail*ents(
CA. AJAY JAIN, 9310167881 & Amendments Budget 2013
.. Restriction on mo3e of pa6ment of
3onation ma3e to political parties <
electoral tr*sts:
!Section %011B an3 %011)'
8ections )0@@A and )0@@* have been amended so as to provide that no deduction shall be allowed under this
section in respect of any sum contributed in cash to any political party or an electoral trust.!7arlier payment upto
10,000 was allowed in cash%. Aut cash payment upto 10,000 can be made in )0@@4.
/. 1009 3e3*ction to National )hil3ren ?*n3: !Section %01'
This 8ection has been amended to allow 1006 deduction in respect of donations to $ational *hildren =und as
a'ainst &06 deduction allowed under existin' provisions.
+S$%ted %('m B #)teg'(y t' A #)teg'(y,
B. Interest on 7oan taDen for Resi3ential Eo*se 0ropert6: !"Ne#$Section%0EE'
Section %0 EE
Interest on 7oan taDen for Resi3ential Eo*se 0ropert6
1. 0ersons entitle3 ndividual !"esident or $on E resident%
2. 0a6ment regar3ing nterest payable on loan ta3en for acquisition !construction or purchase% of Louse
property
5. F*ant*m of
3e3*ction
,aximum deduction allowed for ` 1,00,000
f interest payable is less than 1,00,000 in 40 1211& , then deduction for
balance shall be claimed in 4.0. 1&11>.
.. )on3itions for
3e3*ction
?oan is sanctioned by a financial institution in /0 201.112
?oan amount does not exceed ` 2& la3hs
:alue of Louse property is upto ` 20 la3hs
$o house property owned by assessee on the date of sanction of loan.
/. <eduction shall not be allowed in respect of such interest under any other provisions of the 4ct for the same
or any other assessment year
"s#$e%:1 !E(tracts of B*3get +emoran3*m'
It &as been noticed t&at t&ere are ot&er &ealt& sc&e*es o% t&e Central and State 4overn*ents" '&ic& are si*ilar
to t&e C4)S but no deduction %or suc& sc&e*es is available to t&e subscribers o% suc& sc&e*es( In order to
bring suc& sc&e*es at par 'it& t&e C4)S" it is proposed to a*end section 80:(
!E(tracts of B*3get Speech'
Contributions *ade to t&e Central 4overn*ent )ealt& Sc&e*e are eligible %or deduction under section 80: o%
t&e Inco*e#ta, ct( I propose to e,tend t&e sa*e bene%it to si*ilar sc&e*es o% t&e Central 4overn*ent and State
4overn*ents(

"s#$e%:1 !E(tracts of B*3get +emoran3*m'
To discourage cas& pay*ents by t&e contributors(

"s#$e%&- !E(tracts of B*3get +emoran3*m'
:onations to Funds '&ic& are o% national i*portance &ave been generally provided a deduction o% one
&undred per cent o% t&e a*ount donated( Since t&e -ational C&ildren9s Fund is also a Fund o% national
i*portance" it is proposed to allo' &undred per cent deduction in respect o% any su* paid to t&e Fund in
co*puting t&e total inco*e o% an assessee(
CA. AJAY JAIN, 9310167881 > Amendments Budget 2013
E(ample 1.
,r. 4 avails a home loan of ` 2& la3hs from $ational Lousin' Aan3 !$LA% durin' /(0 1.112 to purchase a new
house for his o#n resi3ence costin' ` .& la3hs. The interest pa6able amounted to ` 2,00,000 which was duly paid
by him in 1.112 and principal amount of .,00,000 was also repaid.
<ecide the amount of deduction available to ,r. 4 under various sections for the /( 0 1.112. 4lso decide that
whether assesse can avail any deduction u(s )077 in the next year.
Ans#er Amo*nt of 3e3*ction a=ailable to +r. A for =ario*s Sections for the 08- 151.
+(s 22!b% for the amount of interest payable on loan 1,&0,000
!?imited to ` 1,&0,000 as the house is self1occupied for own residence%
+(s )0* for "epayment of principal amount of housin' loan 1,00,000
+(s )077 for the amount of interest payable on loan !$ote% 1,00,000
5,/0,000
4ssessee can not avail deduction u(s )077 in the next year, as the maximum deduction allowed under this section
is ` 1,00,000 for both 4(0 201211& ; 4(0 201&11>.
Note: The interest payable amounted to ` 2,00,000. #ut of this amount, deduction of `1,&0,000 has been claimed
u(s 22!b% u(h Louse property.
$ow, as per the 8ection )077, if deduction of interest payable on loan has been claimed under any other section
Min this case 8ec. 22!b%N then no deduction of the same amount shall be 'iven u(s )077. 8o, the remainin' amount
is ` 2,&0,000 !2,00,000 E 1,&0,000%. Aut ma(im*m 3e3*ction allowed u(s )077 is ` 1,00,000. 8o, assessee can
only claim ` 1,00,000 as deduction u(s )077.
E(ample 2.
,r. A avails a home loan of ` 2& la3hs from $ational Lousin' Aan3 !$LA% durin' /(0 1.112 to purchase a new
house for his o#n resi3ence costin' ` .& la3hs. The interest pa6able amounted to ` 1,9&,000 which was duly paid
by him in 1.112 and principal amount of .0,000 was also repaid.
<ecide the amount of deduction available to ,r. A u(s 22!b% and )077 for the 4.0. 1211&. 4lso decide that
whether assesse can avail any deduction u(s )077 in the next year.
Ans#er Amo*nt of 3e3*ction a=ailable to +r. B *8s 2.:b; an3 %0EE for the A8- 1.1/
+(s 22!b% for the amount of interest payable on loan 1,&0,000
!limited to `1,&0,000 as the house is self1occupied for own residence%
+(s )077 for the amount of interest payable on loan !Note% 2&,000
1,&/,000
4ssessee can claim deduction of ` &/,000 u(s )077 in the next year.
Note: The interest payable amounted to ` 1,9&,000. #ut of this amount, deduction of `1,&0,000 has been claimed
u(s 22!b% u(h Louse property.
$ow, as per the 8ection )077, if deduction of interest payable on loan has been claimed under any other section
Min this case 8ec. 22!b%N then no deduction of the same amo*nt shall be 'iven u(s )077. 8o, u(s )077 deduction
of the balance amount of ` 2&,000 !1,9&,000 11,&0,000% shall only be allowed for the 4(0 201211&.
"s#$e%& !E(tracts of B*3get Speech'
T&is 'ill pro*ote &o*e o'ners&ip and give a %illip; to a nu*ber o% industries like steel" ce*ent" brick" 'ood"
glass etc( besides <obs to t&ousands o% construction 'orkers( !Gboost'
CA. AJAY JAIN, 9310167881 9 Amendments Budget 2013
4. T2S:
1. 0a6ment on transfer of certain immo=able propert6 other than agric*lt*ral lan3 : !Section 1H.IA'
:i; Section: 1B24
:ii; Nat*re of pa6ment: /ayment on transfer of certain immovable property !except a'ricultural land%
:iii; 0erson from #hose income ta( is being 3e3*cte3: 4ny resident transferor
:i=; 0erson 7iable for 3e3*cting ta(: 4ny "esident person !other than the person payin' compensation on
compulsory acquisition of any immovable property%
:=; E(emption 7imit: *onsideration for transfer is less than `&0,00,000.
:=i; Rates: 16.
E(ample:
,r. - sold his house property in Aan'alore as well as his rural a'ricultural land for a consideration of ` >0 la3h
and ` >& la3h, respectively, to ,r. 0 on 1.).201.. Le has purchased the house property and the land in the year
2011 for ` 20 la3h and ` 10 la3h, respectively. The stamp duty value on the date of transfer, i.e., 1.).201., is ` )&
la3h and ` 20 la3h for the house property and rural a'ricultural land, respectively. <etermine the T<8
implications, if any, in the hands of ,r. 0, assumin' that both ,r. - and ,r.0 are resident ndians.
Ans#er
T2S implications in the han3s of +r. -:
8ince the sale consideration of house property exceeds ` &0 la3h, ,r. 0 is required to deduct tax at source under
section 1B214. The tax to be deducted under section 1B214 would be ` >0,000, bein' 16 of ` >0 la3h. T<8
provisions under section 1B214 are not attracted on rural a'ricultural land.
"s#$e%& !E(tracts of B*3get +emoran3*m'
In order to &ave a reporting *ec&anis* o% transactions in t&e real estate sector and also to collect ta, at t&e
earliest point o% ti*e=In order to reduce t&e co*pliance burden on t&e s*all ta,payers" it is %urt&er proposed
t&at no deduction o% ta, under t&is provision s&all be *ade '&ere t&e total a*ount o% consideration %or t&e
trans%er o% an i**ovable property is less t&an %i%ty lak& rupees(
!E(tracts of B*3get Speech'
Transactions in i**ovable properties are usually undervalued and underreported( >ne#&al% o% t&e transactions
do not carry t&e P- o% t&e parties concerned( /it& a vie' to i*prove t&e reporting o% suc& transactions and t&e
ta,ation o% capital gains" I propose to apply T:S==(( )o'ever" agricultural land 'ill be e,e*pt(