CBDT has published the explanatory notes to the provision of the finance act (No. 2) 2014

1.      
Introduction

 

1.1 The Finance (No.2) Act, 2014
(hereafter referred to as ‘the Act’) as passed by the Parliament, received
the assent of the President on the 6th day of August, 2014 and has been enacted
as Act No. 25 of 2014. This circular explains the substance of the provisions
of the Act relating to direct taxes.

 

2. 
Changes made by the Act

 

2.1 The Act has-

 

(i) specified the rates of income-tax
for the assessment year 2014-15 and the rates of income -tax on the basis of
which tax has to be deducted at source and advance tax has to be paid during
financial year 2014-15.

 

(ii) amended sections 2,10, 10AA, 11,
12A, 12AA, 24, 32AC, 35AD, 37, 40, 43, 44AE, 45, 47, 48, 49, 51, 54, 54EC, 54F,
56, 73, 80C, 80CCD, 80CCE, 80-IA, 92B, 92C, 92CC, 111A, 112, 115A, 115BBC,
115BBD, 115JC, 115JEE, 115-O, 115R, 115TA, 116, 119, 133A, 139, 140, 145 153,
153B, 153C, 194A, 194LC, 200, 200A, 201, 206AA, 220, 245A, 245N, 245-O, 269SS,
269T, 271FA, 271G, 271H, 276D and 281B of the Income-tax Act, 1961;

 

(iii) Substituted new sections for sections 142A
and 285BA;

 

(iv) inserted new sections 133C, 142A,
194DA, 194LBA and 271FAA in the Income-tax Act, 1961;

 

(v) inserted Chapter XII-FA consisting
of section 115UA in the Income-tax Act, 1961;

 

(vi) amended sections 22A of the
Wealth-tax Act, 1957;

 

(vii) amended sections 97 and 98 of
the Finance (No.2) Act, 2004;

 

(viii) amended section 13 of the Unit Trust
of India (Transfer of Undertaking and Repeal) Act, 2002.

 

3.     
Rate structure

 

3.1 Rates of
income-tax in respect of incomes liable to tax for the assessment year 2014-15

 

3.1.1 In respect of income of all
categories of assessees liable to tax for the assessment year 2014-15,
the rates of income-tax have been specified in Part I of the First Schedule to
the Act. These rates are the same as those laid down in Part III of the First
Schedule to the Finance Act, 2013 for the purposes of computation of “advance
tax”, deduction of tax at source from “Salaries” and charging of tax payable in
certain cases during the financial year 2013-14.

 

The main features of
the rates specified in the said Part I are as follows: 

 

3.1.2 Individual, Hindu undivided family,
association of persons, body of individuals or artificial juridical person. –

 

Paragraph A of Part I of the First Schedule
specifies the rates of income-tax in the case of every individual, Hindu
undivided family, association of persons, body of individuals or artificial
juridical person (other than a co-operative society, firm, local authority and
company) as under:-

Download explanatory notes to the provision of the finance act (No. 2) 2014

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