HIGHLIGHTS OF AMENDMENTS IN INCOME TAX ACT INFINANCE BILL 2013:- Followings are few amendments in finance bill 2013:-

  • Basic Exemption:- There is no change in basic exemption limits or slab rates.
  • Surcharge:- If total income of Individuals, HUF, AOP, BOI, Co-operative society, firm etc, exceeds Rs.1 crore then the surcharge shall be levied 10%.
  • Income of securitization trust shall be exempted.
  • Income of an Investor Protection Fund set up by a depository to be exempt.
  • Income arising to a shareholder on buy back of it shares by an unlisted company shall be exempted.
  • Income of National Financial Holdings Company Ltd. shall be exempted for Assessment Year 2013-14 and 2014-15.
  • Commodities Transaction Tax paid by an assessee in respect of his business in such transactions to be deductible.
  • Any immovable property received for inadequate consideration, if the shortfall in consideration from its stamp duty value exceeds Rupees fifty thousand (Rs.50,000/=) to be taxable in the hands of recipient.
  • Life Insurance Premium on a policy issued on or after 01.04.2013, where the person insured suffers from a disability (Sec – 80-U) or a disease (Sec 80DDB) to be deductible up to 15% of the sum assured.
  • Subscription to a notified health scheme (like CGHS) also deductible.
  • Donation to National Children’s Fund eligible for 100% deduction instead of 50%.
  •  No deduction for cash donation to political parties.
  • Deduction for power sector undertaking extended up to 31.03.2014.
  • Resident Individual assessee having total income up to Rs. 5 Lakhs, shall be allowed a tax rebate equal to the amount of tax or Rs.2000/=, whichever is less.
  • Tax to be deducted at source 1% on payment of consideration for transfer of an immovable property (except agricultural land) to a resident transferor, where the consideration is Rs.  50 Lakhs or above, with effect from 01.06.2013.