Finance act

557 views 8 replies

Shivani

Learner

1881 Points Joined December 2012

Hi Friends

Finance Bill is presented usually on Feb 28 of every year.

It gets passed by Parliament and becomes Finance Act usually by mid of May.

My question is

If say as per Finance Act 2012 the TDS rate on say commission is 10%.

But in Finance Bill 2013, the TDS rate is proposed to be increased to 15%.

Now the Finance Bill 2013 will become Finance Act in say by mid of May 2013.

During the month of April 2013, we will deduct TDS on commission at which rate 10% or 15%?

Remember, Finance Bill 2013 hasn't yet become Act in April.

Regards

Shivani

Replies (8)

Saurabh Maheshwari

B.com ACA

5923 Points Joined December 2011

Obviously at 10%.....because generally as regards to changes in TDS rate new rates as proposed by Finance bill are proposed to be made effective from July 1.....but in FB,2013 sec 194IA(tds on trf of immovable prop) was made effective from June 1,2013

Kishor Bhat

CA final CS executive (from Bangalore)

1881 Points Joined June 2008

10% for the month of april. For instance..sec 194E..upto 30.6.2012, 10% and there after it increased to 20%. For every amendments effective date wil be there.

Nitesh Shrivastav

Audit Clerk

23 Points Joined February 2009

Ofcourse 10%... Because generally finance bill passed in feb month of every year so that applicable on as per effective date i.e 1st april but if finance bill had postponed till may than you will applicable old rate i.e.10%.not proposed rate.

Mihir

Wealth Manager

5293 Points Joined December 2008

Wonder why Government follows the financial year starting from 1st March to 28th February.

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3489 Points Joined June 2011

Also, separately, why the calendar period of 4 years is considered for LTA exemption under section 10(5) ? Does it not create confusion and difficulties for grant of exemption to employees when the FY is April to March ?

Wonder, why no body points it out to Finance Ministry.

Thanks,

Shivani

Learner

1881 Points Joined December 2012

thanks to all

Shivani

Learner

1881 Points Joined December 2012

Lets consider following

Suppose in Finance Bill 2013 a TDS rate on commission is proposed to be increased to 15% from 10% w.e.f. 1-Apr-13. Finance Bill 2013 becomes Finance Act 2013 in May 13, now in my opinion for the month of April we will deduct TDS at 10% and then when the Bill becomes Act in May 2013 we further deduct remaining 5%.

I appreciate your views on above.

Am I right?

Shivani