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2016

Budget 2016-17

Taxes

  1. Relief under Section 87A proposed to be increased from Rs. 2,000 to Rs. 5,000.
  2. Deduction under Section 80GG for individuals paying rent but not receiving HRA proposed to be increased from Rs. 24,000 to Rs. 60,000.
  3. 44AB limit amended from 1 Crore to Rs. 2 Crore & for Professional from Rs. 25 Lakh to Rs. 50 Lakh with minimum income shown 50%.
  4. Corporate tax reduced to 29% for small business having turnover less than Rs. 5 Crores.
  5. Propose to rationalise norms for tax deducted at Source.
  6. Dividend Tax rate of 10% for individuals/HUF if dividend in excess of 10 lk/Annum.
  7. Propose to abolish 14 different cesses levied by Ministers.
  8. To lower penalty to 50% of tax in case of under-reporting of Income.
  9. Propose 1-time Scheme w.r.t. Dispute Resolution Provided Case Withdrawn.
  10. STT increase in options from 0.017% to 0.5%.
  11. Propose New Dispute Resolution Scheme.
  12. Offering limited period compliance window for Undisclosed Income.
  13. Voluntary disclosure of income for Black Money.
  14. Benefits of research will be 150% by April 1, 2017 and 100% by April 1, 2020.
  15. Lower corporate tax rates from co with Rev under Rs. 5 Crores to 29% + Surcharge + Cess.
  16. First home buyers an additional deduction of interest of Rs. 50,000 provided value of house does not exceed Rs. 50 Lakh.
  17. Tax exempt 40% of withdrawal from NPS at Retirement.
  18. Propose 100% deduction to undertakings for construction of Affordable Housing.
  19. DDT exempted from REITs.
  20. Propose to implement GAAR from April 1, 2017.
  21. New cos will not be allowed to seek any Exemption.
  22. Clean energy cess for coal Rs. 400/Tone.
  23. To raise excise duty on most tobacco products by 10-15%.
  24. To levy 1% Infra Cess on Small Gasoline Cars.
  25. Propose to make some changes in customs, Excise Duty Rates.
  26. Reduction in Corporate Tax - New manufacturing companies after March 1, 2016 have to pay Tax at 25%.
  27. Increases the turnover limit of presumptive taxation Scheme to 2 Crores.
  28. Registration of Companies should be given in one day - Companies Act proposed to be Amended.
  29. RBI Act to be amended for providing framework for Monetary Policy Code.
  30. SEBI Act proposed to be amended to provide more numbers of Securities Appellate Tribunal.
  31. Amendments in SAFRAESI Act to tackle problem of stressed assets in ARCs.
  32. Proposes various amendments to SARFAESI Act.
  33. Deduction under Section 80JJAA proposed to be extended to all assessee who are subject to tax audit.
  34. Stand up India scheme to promote SC & ST entrepreneur.
  35. National SC/ST hub will be created to provide Professional Support to SC/ST Entrepreneurs.
  36. Certain Dialysis equipment are proposed to be exempted from Basic Custom Duty, Excise Duty and CVD.
  37. Govt. to focus on passing of GST and Bankruptcy Laws.
  38. Govt. will start initiative to provide Free Gas connection to BPL Families.
  39. Forex reserves at highest level and fiscal deficit has declined.
Financial Management