Presented by:02 – Jayesh Chandnani12 – Saylee Dhonde22 – Nivedita Banerjee32 – Anurag Bhagchandani42 – Taher Ghadialy

Income Tax provisions related to Income from Salary, House Property,

Income from Other Sources and Capital Gains

Introduction Income from Salary• Any income accrued or received by a person for any service rendered

under an implied contract

• Includes income from Wages, Annuity, Gratuity, Pension, Fees, Commissions, Receipts from PF etc.

Income From House Property• Profits earned from any business or profession on a piece of land

owned by the owner is chargeable to tax

• Includes income from Houses, Buildings, Bungalows, Godowns etc.

Income from Other Sources• Any income which is not chargeable under any of the other heads of

income tax

• Includes dividend received from any company other than a domestic company, winning of lotteries, crosswords puzzles, interest from subletting, bank deposits etc.

Income from Capital Gains• Any profits or gains arising from the transfer of a Capital Asset

effected in the previous year

• Both, Short term and Long term Capital Gains are charged at different rates

Budget Highlights Tax rate, surcharge and education cess

remain unchanged

Education cess to continue at 3%

Section 80C deduction limit raised from INR 1,00,000 to INR 1,50,000

To open 60 more Seva Kendras during the current financial year to promote excellence in service delivery.

To make greater use of information technology techniques.

To extend the investment linked deduction to two new sectors, namely, slurry pipelines for the transportation of iron ore, and semiconductor wafer fabrication manufacturing units.

To provide that income arising to foreign portfolio investors from transaction in securities will be treated as capital gains.

Net Effect of the direct tax proposals is revenue loss of Rs 22,200 crore

Policy ProposalsGovernment to review the Direct Taxes Code (DTC) in its

present shape

Committing to provide a stable and predictable taxation regime

Resident tax payers enabled to obtain an advance ruling in respect of their income-tax liability above a defined threshold

A High Level Committee is proposed to be set to interact with trade and industry on a regular basis

Salary• Basic exemption limit increased by INR

50,000 for Individuals taxpayers

• This will help taxpayers to save:-

Salary (p.a) Tax Savings (p.a)

Up to 5 lacs 8000/-

Up to 10 lacs 15,000/-

More than 10 lacs 20,000/-

Salary Includes:

• Wages

• Annuity or Pension

• Gratuity

• Fees, Commission, Perquisite or Profit in lieu of salary

• Advance of salary and leave salary

• Employers contribution to RPF (Recognized Provident Fund)

• Contribution made by Central Government to Pension scheme of New Government Employees.

House Property Deduction limit for interest

expense in respect of self occupied property raised from INR 1,50,000 to INR 2,00,000

Method of calculating income or loss on house property has been changed subsequent on introduction of additional interest rebate of Rs. 1 lakh

An additional Rs. 1.5 lakh interest rebate will be applicable only if the housing loan amount did not exceed Rs. 25 lakhs

Real-Estate investment trust to be set up in accordance with regulations of the SEBI to provide a conducive tax regime for Infrastructure Investment Trusts

Before Budget 2014 Person Having Income Upto ₹ 5 lacs

 After Budget 2014 Person Having Income Upto ₹ 5 lacs 

Gross Salary ₹500000 Gross Salary ₹500

000

less deduction U/S 80 + 80CCC

₹-100000

less deduction U/S 80 + 80CCC

₹-150000

Taxable salary ₹ 400000 Taxable salary ₹ 350

000

Loss from HP (due to interest on loan   taken for

construction or renovation of house)

₹1,50,000

Loss from HP (due to interest on loan   taken for construction or renovation of house)

₹-200000

Net Taxable income

₹2,50,000

Net Taxable income

₹1,50,000

Other Sources In Union Budget 2014, finance minister Arun Jaitley hikes

tax exemption limit under Section 80C to Rs1.5 lakh and income tax slab for exemption.

Computation of tax on anonymous donations rationalized.

Capital GainsUnlisted security and units (other than equity

oriented mutual fund) to be short-term capital asset if held up to 36 months

LTCG from transfer of units of mutual funds, other than equity oriented funds, to be tax at 20 per cent as against the present levy of 10 per cent

Capital gain exemption on investment in an residential house property available only if the investment is made in one residential house situated in India.