Tuesday, March 1, 2016

Union Budget 2016 Highlights

No Change in Personal Taxation Slab

 High Income Individuals to pay enhanced surcharge of 15% in case income > 1.00 crore

 Relief u/s 87A increased from 2000 to 5000

 Deductions u/s 80GG increased from 24000 to 60000

 Limit for 44AD  increased from 1.00 Crore to 2.00 Crore
(Consequently limit u/s 44AB also increased to 2.00 for business and 50.00 lac for professionals)

Limit for 44AD (Professional) now applicable upto 50.00 lac with presumptive rate of income at 50%

 Small Corporate Tax Payers to pay @ 29%

 No Service tax on Services provided under DeenDyal Upadhyay Kaushal Yozna

 100% Exemption from Profits earned from specified Housing Projects, subject to provisions of section 115JC

 Tax on dividends in excess of 10.00 lac for Individuals/HUF

Scope of TCS expanded

 Vehicle costing more than 10.00 lac to pay 1% additional tax

 Infra Cess on Vehicles levied

 Excise Duty of 1% on jewellary without input credit tax

 Excise duty on tobacco products increased

 Another Voluntary Disclosure scheme launched to reduce litigation

 Pending litigation also being rationalised

Section 271(1)(c) modified to levy of graded penalty

 Section 14A amended

 Waiver of Interest and penalty petitions to be decided in one year

 11 New benches of Indirect Taxes Tribunals

TDS Provisons rationalised

 NRI not be taxed at higher rate on production of specified documents

 E-assessments in seven mega cities.

 e-Sahyog to be expanded

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