President Pranab Mukherjee has given his assent to the Finance Bill, 2015. It means various provisions such as the new taxation norms will now be part of an Act and will be implemented accordingly. Finance Bill 2015 receives assent of president with effect from 14th may 2015.
Though the Rate of 14 % Service tax has been approved by President ith will not change till its got notified. The Finance Ministry will notify the date for implementation of the new rate. service tax will continue to be levied at the rate of 12.36 per cent (inclusive of education cess) till it got notified.
Income Tax Benefit
With the enactment of the Finance Bill, various tax benefit provisions such as a) increase in the limit of deduction in respect of health insurance premium to Rs. 25,000 from Rs. 15,000 (for senior citizens the limit will stand increased to Rs. 30,000 from the existing Rs. 20,000); b) additional deduction of Rs. 25,000 for the differently-abled; and c) Rs. 50,000 investment in the New Pension Scheme (over and above the Rs.1.50-lakh deduction available under Section 80C of the Income Tax Act), beside others, will have legal backing. All these will be deemed to have come into force on the 1st day of April, 2015.
Merger of FMC with SEBI
The enactment also formalises the way forward for the merger of the commodity market regulator, FMC, with the capital market regulator, SEBI. Now, the Government will notify various dates for implementation of various processes of the merger.
Under the new mechanism, a commodity derivative broker will get three months’ time to get a registration from the SEBI. Currently, they are not required to register with FMC.
Post-merger, all the recognised associations (read commodity exchanges) providing trading facility in derivatives trading will be deemed to be recognised stock exchanges under the Securities Contracts (Regulation) Act, 1956.