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FINANCE
ACT 2014 |
MINISTRY OF LAW AND
JUSTICE
(Legislative Department)
New Delhi
Dated: March 5, 2014
The following Act of Parliament
received the assent of the President on the 4th March, 2014, and is hereby
published for general information:-
THE FINANCE ACT, 2014
(NO. 11 OF 2014)
Dated: March 4, 2014
An Act to continue the existing
rates of income tax for the financial year 2014-2015.
BE it enacted by Parliament in
the Sixty-fifth Year of the Republic of India as follows:-
CHAPTER I
PRELIMINARY
Short title and
commencement. 1.
(1) This Act may be called the Finance Act, 2014.
(2)
Section 2 shall come into force on the 1st day of April, 2014.
CHAPTER II
RATES OF income tax
income tax.
2. The provisions of section 2 of, and the First Schedule to, the Finance Act,
2013, shall apply in relation to income tax for the assessment year or, as the
case may be, the financial year commencing on the 1st day of April, 2014, as
they apply in relation to income tax for the assessment year or, as the case
may be, the financial year commencing on the 1st day of April, 2013, with the
following modifications, namely:- (17 of 2013.)
(a)
in section 2,-
(i) in sub-section
(1), for the figures "2013", the figures "2014" shall be
substituted;
(ii) in sub-section (3), for the first, second and
third provisos, the following provisos shall be substituted, namely:-
"Provided
that the amount of income tax computed in accordance with the provisions of section
111A or section 112 shall be increased by a surcharge, for purposes of the
Union, as Provided in Paragraphs A, B, C, D or Paragraph E of Part I of
the First Schedule:
Provided further that in respect
of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA,
115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB or section
115JC of the income tax Act, the amount of income tax computed under this
sub-section shall be increased by a surcharge, for purposes of the Union, calculated,-
(A) in the case of every
individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of
clause (31) of section 2 of the income tax Act, or co-operative society or firm
or local authority, at the rate of ten per cent. of such income tax, where the
total income exceeds one crore rupees;
(B)
in the case of every domestic company,-
(i) at the rate of
five per cent. of such income tax, where the total income exceeds one crore rupees but does not exceed ten crore
rupees;
(ii) at the rate of ten per cent. of such income
tax, where the total income exceeds ten crore rupees;
(C) in the case of every
company, other than a domestic company,-
(i) at the rate of
two per cent. of such income tax, where the total income exceeds one crore rupees but does not exceed ten crore
rupees;
(ii) at the rate of five per cent. of such income
tax, where the total income exceeds ten crore rupees:
Provided also that in the case of
persons mentioned in item (A) of second proviso, having total income chargeable
to tax under section 115JC of the income tax Act, and such income exceeds one crore rupees, the total amount payable as income tax on
such income and surcharge thereon shall not exceed the total amount payable as
income tax on a total income of one crore rupees by
more than the amount of income that exceeds one crore
rupees:
Provided also that in the case of
every company having total income chargeable to tax under section 115JB of the
income tax Act, and such income exceeds one crore
rupees but does not exceed ten crore rupees, the
total amount payable as income tax on such income and surcharge thereon, shall
not exceed the total amount payable as income tax on a total income of one crore rupees by more than the amount of income that exceeds
one crore rupees:
Provided also that in the case of
every company having total income chargeable to tax under section 115JB of the
income tax Act, and such income exceeds ten crore
rupees, the total amount payable as income tax on such income and surcharge
thereon, shall not exceed the total amount payable as income tax and surcharge
on a total income of ten crore rupees by more than
the amount of income that exceeds ten crore
rupees.";
(iii) in sub-section (13), in clause (a), for the
figures "2013", the figures "2014" shall be substituted;
(b)
in the First Schedule,-
(i) for Part I, the following Part I shall be substituted,
namely:-
"PART I
income tax
Paragraph A
(I) In the case of every
individual other than the individual referred to in items (II) and (III) of
this Paragraph or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of
clause (31) of section 2 of the income tax Act, not being a case to which any
other Paragraph of this Part applies,-
Rates of income tax
|
(1) where the total income does not exceed Rs.
2,00,000 |
Nil; |
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(2) where the total income exceeds Rs. 2,00,000
but does not exceed Rs. 5,00,000 |
10 per cent. of the
amount by which the total income exceeds Rs. 2,00,000; |
|
(3) where the total income exceeds Rs. 5,00,000
but does not exceed Rs. 10,00,000 |
Rs. 30,000 plus 20 per cent.
of the amount by which the total income exceeds Rs. 5,00,000; |
|
(4) where the total income exceeds Rs. 10,00,000 |
Rs. 1,30,000 plus 30 per cent. of the amount by
which the total income exceeds Rs. 10,00,000. |
(I) In the case of every
individual, being a resident in India, who is of the age of sixty years or more
but less than eighty years at any time during the previous year,-
Rates of income tax
|
(1) where the total income does not exceed Rs.
2,50,000 |
Nil; |
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(2) where the total income exceeds Rs. 2,50,000
but does not exceed Rs. 5,00,000 |
10 per cent. of the amount by which the total
income exceeds Rs. 2,50,000; |
|
(3) where the total income exceeds Rs. 5,00,000
but does not exceed Rs. 10,00,000 |
Rs. 25,000 plus 20 per cent. of the amount by which
the total income exceeds Rs. 5,00,000; |
|
(4) where the total income exceeds Rs.
10,00,000 |
Rs. 1,25,000 plus 30 per cent. of the amount by
which the total income exceeds Rs. 10,00,000. |
(III) In the case of every individual, being a resident in
India, who is of the age of eighty years or more at any time during the
previous year,-
Rates of income tax
|
(1) where the total income does not exceed Rs.
5,00,000 |
Nil; |
|
(2) where the total income exceeds Rs. 5,00,000
but does not exceed Rs. 10,00,000 |
20 per cent. of the amount by which the total
income exceeds Rs. 5,00,000; |
|
(3) where the total income exceeds Rs.
10,00,000 |
Rs. 1,00,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 10,00,000. |
Surcharge on income tax
The amount of income tax
computed in accordance with the preceding provisions of this Paragraph, or the
provisions of section 111A or section 112, shall, in the case of every
individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person
referred to in sub-clause (vii) of clause (31) of section 2 of the income tax
Act, having a total income exceeding one crore
rupees, be increased by a surcharge for the purposes of the Union calculated at
the rate of ten per cent. of such income tax:
Provided that in the case of persons
mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income tax and
surcharge on such income shall not exceed the total amount payable as income
tax on a total income of one crore rupees by more
than the amount of income that exceeds one crore
rupees.
Paragraph B
In
the case of every co-operative society,-
Rates of income tax
|
(1) where the total income does not exceed
Rs.10,000 |
10 per cent. of the total income; |
|
(2) where the total income exceeds Rs.10,000
but does not exceed Rs. 20,000 |
Rs. 1,000 plus 20 per cent. of the amount by which
the total income exceeds Rs.10,000; |
|
(3) where the total income exceeds Rs. 20,000 |
Rs. 3,000 plus 30 per cent. of the amount by which
the total income exceeds Rs. 20,000. |
Surcharge on income tax
The amount of income tax
computed in accordance with the preceding provisions of this Paragraph, or the
provisions of section 111A or section 112, shall, in the case of every
co-operative society, having a total income exceeding one crore
rupees, be increased by a surcharge for the purposes of the Union calculated at
the rate of ten per cent. of such income tax:
Provided that in the case of every
co-operative society mentioned in this Paragraph, having total income exceeding
one crore rupees, the total amount payable as income
tax and surcharge on such income shall not exceed the total amount payable as
income tax on a total income of one crore rupees by
more than the amount of income that exceeds one crore
rupees.
Paragraph C
In
the case of every firm,-
Rate of income tax
On
the whole of the total income 30 per cent.
Surcharge on income tax
The amount of income tax
computed in accordance with the preceding provisions of this Paragraph, or the
provisions of section 111A or section 112, shall, in the case of every firm,
having a total income exceeding one crore rupees, be
increased by a surcharge for the purposes of the Union calculated at the rate
of ten per cent. of such income tax:
Provided that in the case of every firm
mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income tax and
surcharge on such income shall not exceed the total amount payable as income
tax on a total income of one crore rupees by more
than the amount of income that exceeds one crore rupees.
Paragraph D
In
the case of every local authority,-
Rate of income tax
On
the whole of the total income 30 per cent.
Surcharge on income tax
The amount of income tax
computed in accordance with the preceding provisions of this Paragraph, or the
provisions of section 111A or section 112, shall, in the case of every local
authority, having a total income exceeding one crore
rupees, be increased by a surcharge for the purposes of the Union calculated at
the rate of ten per cent. of such income tax:
Provided that in the case of every local
authority mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income tax and
surcharge on such income shall not exceed the total amount payable as income
tax on a total income of one crore rupees by more
than the amount of income that exceeds one crore
rupees.
Paragraph E
In
the case of a company,-
Rates of income tax
I.
In the case of a domestic company 30 per cent. of the total
income;
II.
In the case of a company other than a domestic company-
(i) on so much of the total income as consists of,-
(a)
royalties received from Government or an Indian concern in pursuance of an
agreement made by it with the Government or the Indian concern after the 31st
day of March, 1961 but before the 1st day of April, 1976; or
(b)
fees for rendering technical services received from Government or an Indian
concern in pursuance of an agreement made by it with the Government or the
Indian concern after the 29th day of February, 1964 but before the 1st day of
April, 1976,
and
where such agreement has, in either case, been approved by the Central
Government 50 per cent.;
(ii)
on the balance, if any, of the total income 40 per cent.
Surcharge on income tax
The amount of income tax
computed in accordance with the preceding provisions of this Paragraph, or the
provisions of section 111A or section 112, shall, be increased by a surcharge
for the purposes of the Union calculated,-
(i) in the case of every domestic company,-
(a)
having a total income exceeding one crore rupees but
not exceeding ten crore rupees, at the rate of five
per cent. of such income tax; and
(b)
having a total income exceeding ten crore rupees, at
the rate of ten per cent. of such income tax;
(ii)
in the case of every company other than a domestic company,-
(a)
having a total income exceeding one crore rupees but
not exceeding ten crore rupees, at the rate of two
per cent. of such income tax; and
(b)
having a total income exceeding ten crore rupees, at
the rate of five per cent. of such income tax:
Provided that in the case of every
company having a total income exceeding one crore
rupees but not exceeding ten crore rupees, the total
amount payable as income tax and surcharge on such income shall not exceed the
total amount payable as income tax on a total income of one crore
rupees by more than the amount of income that exceeds one crore
rupees:
Provided further that in the case of
every company having a total income exceeding ten crore
rupees, the total amount payable as income tax and surcharge on such income
shall not exceed the total amount payable as income tax and surcharge on a
total income of ten crore rupees by more than the
amount of income that exceeds ten crore
rupees.";
(ii)
in Part IV, in Rule 8,-
(A)
for sub-rules (1) and (2), the following sub-rules shall be substituted,
namely:-
"(1)
Where the assessee has, in the previous year relevant
to the assessment year commencing on the 1st day of April, 2014, any
agricultural income and the net result of the computation of the agricultural
income of the assessee for any one or more of the
previous years relevant to the assessment years commencing on the 1st day of
April, 2006 or the 1st day of April, 2007 or the 1st day of April, 2008 or the
1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April,
2011 or the 1st day of April, 2012 or the 1st day of April, 2013, is a loss,
then, for the purposes of sub-section (2) of section 2 of this Act,-
(i) the loss so
computed for the previous year relevant to the assessment year commencing on
the 1st day of April, 2006, to the extent, if any, such loss has not been set
off against the agricultural income for the previous year relevant to the
assessment year commencing on the 1st day of April, 2007 or the 1st day of
April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the
1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April,
2013,
(ii)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2007,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2008 or the 1st day of April, 2009 or the 1st day of April,
2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day
of April, 2013,
(iii)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2008,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April,
2011 or the 1st day of April, 2012 or the 1st day of April, 2013,
(iv)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2009,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April,
2012 or the 1st day of April, 2013,
(v)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2010,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April,
2013,
(vi)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2011,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2012 or the 1st day of April, 2013,
(vii)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2012,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2013,
(viii)
the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2013,
shall be set off against the
agricultural income of the assessee for the previous
year relevant to the assessment year commencing on the 1st day of April, 2014.
(2)
Where the assessee has, in the previous year relevant
to the assessment year commencing on the 1st day of April, 2015, or, if by
virtue of any provision of the income tax Act, income tax is to be charged in
respect of the income of a period other than the previous year, in such other
period, any agricultural income and the net result of the computation of the
agricultural income of the assessee for any one or
more of the previous years relevant to the assessment years commencing on the
1st day of April, 2007 or the 1st day of April, 2008 or the 1st day of April,
2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day
of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, is
a loss, then, for the purposes of sub-section (10) of section 2 of this Act,-
(i) the loss so computed for the previous year relevant to
the assessment year commencing on the 1st day of April, 2007, to the extent, if
any, such loss has not been set off against the agricultural income for the
previous year relevant to the assessment year commencing on the 1st day of
April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the
1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April,
2013 or the 1st day of April, 2014,
(ii)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2008, to the extent, if any, such loss has
not been set off against the agricultural income for the previous year relevant
to the assessment year commencing on the 1st day of April, 2009 or the 1st day
of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or
the 1st day of April, 2013 or the 1st day of April, 2014,
(iii)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2009, to the extent, if any, such loss has
not been set off against the agricultural income for the previous year relevant
to the assessment year commencing on the 1st day of April, 2010 or the 1st day
of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or
the 1st day of April, 2014,
(iv)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2010, to the extent, if any, such loss has
not been set off against the agricultural income for the previous year relevant
to the assessment year commencing on the 1st day of April, 2011 or the 1st day
of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014,
(v)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2011, to the extent, if any, such loss has
not been set off against the agricultural income for the previous year relevant
to the assessment year commencing on the 1st day of April, 2012 or the 1st day
of April, 2013 or the 1st day of April, 2014,
(vi)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2012, to the extent, if any, such loss has
not been set off against the agricultural income for the previous year relevant
to the assessment year commencing on the 1st day of April, 2013 or the 1st day
of April, 2014,
(vii)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2013, to the extent, if any, such loss has
not been set off against the agricultural income for the previous year relevant
to the assessment year commencing on the 1st day of April, 2014,
(viii)
the loss so computed for the previous year relevant to the assessment year
commencing on the 1st day of April, 2014,
shall be set off against the
agricultural income of the assessee for the previous
year relevant to the assessment year commencing on the 1st day of April,
2015.";
(B)
for sub-rule (4), the following sub-rule shall be substituted, namely:-
"(4)
Notwithstanding anything contained in this rule, no loss which has not been
determined by the Assessing Officer under the provisions of these rules or the
rules contained in Part IV of the First Schedule to the Finance Act, 2006 (21
of 2006), or of the First Schedule to the Finance Act, 2007 (22 of 2007), or of
the First Schedule to the Finance Act, 2008 (18 of 2008), or of the First
Schedule to the Finance (No. 2) Act, 2009 (33 of 2009), or of the First
Schedule to the Finance Act, 2010 (14 of 2010), or of the First Schedule to the
Finance Act, 2011 (8 of 2011), or of the First Schedule to the Finance Act,
2012 (23 of 2012), or of the First Schedule to the Finance Act, 2013 (17 of
2013) shall be set off under sub-rule (1) or, as the case may be, sub-rule
(2).".
(P K Malhotra)
Secy. to the Govt. of India