Changes in provisions related to Capital Gains:
- Tax rates for Short term capital gain have been bifurcated into 3 sections as per the Capital Gains Schedule:
- Short Term Capital Gain @ 15%,
- Short Term Capital Gain @ 30%, and
- Short Term Capital Gain @ applicable rate
- Similarly, tax rates for Long term capital gain have been bifurcated into 2 sections as per the Capital Gains schedule:
- Long Term Capital Gain @ 10%, and
- Long Term Capital Gain @ 20%
Changes in provisions related to Commodity Trade:
F&O transactions in commodities would now be taxable as ‘Normal business income’ instead of ‘Speculative business income’. Those who deal in equity as traders will benefit from this change, as they would be able to set off losses from such transactions against business profits.
Changes in Purchase of Immovable Property:
Buyer of an immovable property (other than agricultural land) is now required to deduct TDS @ 1% from the payment made to the seller if the consideration of the property is Rs. 50 lakh or more. However, in case of sales consideration being less than 50 lakh and stamp duty value being the reason of increase in the total figure to above Rs. 50 lakh, TDS deduction is not applicable. The TDS payment is to be paid through form no. 26QB, available at TIN website, wherein information like PAN of buyer as well as seller, personal details, property details need to be mentioned.
Other tax changes that are applicable for the assessment year 2014-15: