1. New Deduction on home loan , but so a many conditions !
individuals are given a new deduction u/s 80EE for interest on home
loan under following conditions
Home loan is sanctioned by financial institutions.
Loan is sanction during FY 2013-14.
Loan amount does not exceed RS 25 lakhs.
Value of property for which loan was sanction does not exceed Rs 40 Lakhs
Individual taking loan should not have any residential house at the
time of sanction of loan.
No other deduction can be claimed for interest on loan
2. TDS of 1 % on Purchase of Immovable Property
Every person including individual buying an immovable property (other
than agriculture land) shall deduct tax at source @ 1 % of value of
property as per new section 194-1A . This provision is applicable only
if the value of immovable property os more than RS 50 Lakhs.
The amendment is effective from 01/06/2013.
3.. Stamp Duty Value of land or building or both is Sales
Consideration for Stock-in Trade
A new section 43A is added to provide that now even if land or
building is shown as Stock-in-Trade, the gain or loss shall be
computed by taking the stamp duty value. This is similar to section
50C for capital gains.
4. Got immovable property for less than stamp duty
If one buys immovable property , which is less than stamp duty value,
the difference shall be charged to tax u/s 56(2)(vii). Readers should
remember, it was introduced during Sri Pranab Mukherjee, but was later
withdrawn.
5. More & More Agriculture Land sale now under Tax net
More and more agriculture land will be under the tax net now as the
definition of capital asset has been tweaked to provide that in
following cases , the agriculture land will be capital asset
The agriculture land is situated with a municipal corporation or
cantonment board having population of more than 10,000. or
The agriculture land is situated in any area which is 2 Kms away from
the local limitof a municipal area or cantonment board and which has
population between 10,000 and 1,00,000. Or
The agriculture land is situated in any area which is 6 Kms away from
the local limitof a municipal area or cantonment board and which has
population between 10,000 and 1,00,000. Or
The agriculture land is situated in any area which is 8 Kms away from
the local limit of a municipal area or cantonment board and which has
population exceeding 1,00,000.
6. Return is Defective if filed with payment of self assessment tax
If anyone files return of income without payment of self assessment
tax , the return shall be treated as defective.
Was an friendly approached budget, especially disability development aspects are welcome.