Summery of Budget

Budget – tax reforms

– relief to small tax payers
Rebate of rs 5000 from 2000 for income below 50000

– presumptive taxation for business limit increased to 2cr

– presumptive income for professionals – profit being 50% of turnover – limit 50L

– phasing out of exemptions
– additional depreciation to be curtailed,  r&d benefit to be curtailed to 150%

– new mfg companies taxedd at @25%, if no profit linked deduction

– business with turnover less than 5cr to be taxed at 29% from next year

– 10% income in respect of patent registered in India

– long term capital gain term for unlisted shared down to 2 years

– poem to be deferred by 1 year

– country by country reporting applicable for company having turnover of 750 billion euro

– no change in exemption limit for individuals

– General anti avoidance time to be implemented from April 1, 2017

– first time home buyer – additional interest deduction subject to limits

– if income from dividend greater than 10 lakh, additional tax @10%

– surcharge @15% up from 12% for super rich – income exceeding 1cr

– infrastructure cess on cars

– excise duty on jewellery and silver items without input credit

– excise duty on branded garments exceeding rs. 1000

– excise duty increased on tobacco products by 10 to 15%

– limited period compliance window for domestic resident @ 45% of undisclosed income 1 St June to 30 September 2016

– 3 lakh case pending before first appellate authority, new scheme for reduction of litigation (eligible under both direct and indirect tax)

– dispute amendment for cases affected by retrospective amendment

– penalty rates changed from 50% & 200% in specified circumstances

– disallowance u/s 14A – rule 8d to be modified to not increase expenditure incurred

– recommendation of eashwar committee accepted

– TDs provision rationalised

– 206AA not apply if non resident has tax identification number (in absence of pan)

– scope of e-assessment to be widened

– interest u/s 244A – interest rate hiked to 9% from 6% – officer to be held accountable

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