INCOME‐TAX:
Department of Income tax has increased the Bank term Deposit Limit to Rs. 1.50 Lakh from 1lakh with respect to Section 80C. As per the amendment made to the Bank Term Deposit Scheme, 2006, now this scheme may be called the Bank Term Deposit (Amendment) Scheme, 2014 which shall come into force on the date of its publication in the Official Gazette. An assessee can opt for many small savings schemes like NSC, PPF and other pension plans, payment of life insurance premiums and investment in specified government infrastructure bonds are also eligible for deduction under Section 80C.
Service Tax:
The Hon’ble High Court of Kerala (“Kerala HC”) in the case of Kerala Classified Hotels and Resorts Association and others Vs. Union of India and others held that levy of Service tax on Restaurants and hotels is beyond legislative competence of Parliament. It was declared that sub-clauses (zzzzv) and (zzzzw) to Section 65(105) of the Finance Act, 1994 (“the Finance Act”) as amended by the Finance Act, 2011 is beyond the legislative competence of the Parliament as the said sub-clauses are covered by Entry 54 and Entry 62 respectively of the State List in the Seventh Schedule. The Kerala HC also allowed refund of Service tax paid by the Petitioners in the stated case. Being aggressive by the impugned order, the Department filed a Writ Appeal before the Division Bench of the Kerala HC.
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