Finally the Finance Bill 2013-14 has been passed in the Lok Sabha after much protest over the coalgate scam and walkout by the opposition. The bill has been passed without any debate but with certain key amendments.
List of key amendments made in Finance Bill 2013
- Trading in commodity derivatives carried out on a recognised association shall not be treated as a speculative transaction and now can be settled with other business income.
- No wealth-tax on agriculture land.
- Gold coins weighing less than 10 gms will be subject to TCS on Jewellery w.e.f June 1, 2013.
- TAN is not required by the deductor to deduct tax under section 194IA (TDS on immovable property) introduced by Finance Bill, 2013.
- Regarding payment of interest on long-term infrastructure bonds to a non-resident tax will be deducted at the normal rate of 5%, even if the non-resident-recipient does not have PAN.
- The amendment regarding concessional withholding rates on certain rupee denominated long-term infrastructure bonds has been withdrawn. However, a new provision is inserted in Section 194LD which provides that tax under this section shall be deducted in respect of interest on a rupee denominated bond of an India company or Government security which is payable after May 31, 2013 but before June 1, 2015:
- Tax at concessional rate shall be deducted if payment is made to a qualified foreign investor or a FII;
- Tax to be deducted at 5%;
- If tax is deducted under Sec. 194LD, provisions of Sections 195 and 196D will not be applicable.
- To claim the benefits of DTAA, the assessee shall provide Tax Residency Certificate together with such other documents and information as may be prescribed for claiming benefits under the DTAAs.
- With effect from the assessment year 2014-15, the exemption under Section 10(48) will also be available in respect of income arising on account of sale of any other goods or rendering of services as notified by the Central Government.
- Service tax on services provided by railway From 01.07.2012 to 30.09.2012 is also exempted.
Check out our previous posts about the Changes in Taxation Structure in Union Budget 2013 and also the impact of budget on the common man.