Budget Highlights
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- GST (Goods & service Tax) will roll out from 01.04.2016.
- Excise Duty and cess hiked from 12.36% to 12.50%.
- Service Tax hiked to 14%.
- ITC under indirect tax can be taken up to 1 year instead of 6months as envisaged earlier.
- 2% Swachha Bharat cess on most services
- Negative list pruned i.e exemptions removed.
- Cut in basic custom duty on 22 items.( Air conditioner, mobile , Automobiles, Air travel etc)
- Excise duty on footwear with price above 1000 reduced to 6%.
- Clean environment cess on coal to be raised from Rs 100/MT to Rs 200/MT.
- SAD on some imports removed.
- Online registration for Service Tax and Excise within 2 days.
- Basic Custom duty on Commercial vehicles doubled to 20 percent.
DIRECT TAXES
- No Change in income tax slabs for individuals and others.
- Corporate tax rate to be reduced to 25% from the current tax rate of 30% over next 4 years. For FY 2016, no change in corporate tax rates.
- Exemptions to corporate to removed in phased manner.
- Exemptions to individual shall continue.
- GAAR deferred for two years.
- Wealth tax abolished. The details would however included in income tax returns.
- Tax on Royalty/ technical services reduced to 10% from the current 25%.
- 2% super rich tax by way of surcharge on income over 1 crore.
- Transport allowance increased from Rs 800 per month to Rs 1600 per month.
- PAN mandatory for any purchase over 1 lac rupees.
- Medi claim limit increased to Rs 25000.
- Rental income from REITS shall have pass through facility
- In case of Senior citizen, the limit has been increased to Rs 30000.
- Additional deduction of Rs 50000 for contribution to pension fund U/s 80CCD.
- Deduction U/s 80DDB increased to Rs 80000.
- 100% deduction for Donation to Swachh Bharat and Clean Ganga scheme.
- Concealment of income/ assets will attract rigorous imprisonment of 10 yrs/7 yrs.
- 300% penalty for concealment of Foreign income/ Foreign assets
- Rationalise capital gains tax regime.
- Change in the permanent establishment norms.
- Yoga included in the definition of charitable purposes.
- Receipts from trading in case of charitable organisation increased to 20% of the receipt as against Rs 25 lacs earlier.
- The domestic transfer pricing ceiling proposed to be raised to 20 crores from the current 5 crores.
- Bill on black money tabled in the current session of parliament.
- The deduction for hiring regular workmen available, even if the number is less than 100 but more than 50.
- Sukanya Smirti Scheme- Interest on deposit exempt u/s 80C
- 10% TDS on Provident fund withdrawn before expiry of 5 years
OTHER CHANGES
- ESI /PF to be made optional for lower rung employees, however the employer’s liability will continue.
- Section:6 of FEMA to be amended to be brought under governments’s control.
- FEMA to be amended to seize foreign exchange assets.
- FEMA to be amended to include black money provisions.
INDIRECT TAXES
- GST (Goods & service Tax) will roll out from 01.04.2016.
- Excise Duty and cess hiked from 12.36% to 12.50%.
- Service Tax hiked to 14%.
- ITC under indirect tax can be taken up to 1 year instead of 6months as envisaged earlier.
- 2% Swachha Bharat cess on most services
- Negative list pruned i.e exemptions removed.
- Cut in basic custom duty on 22 items.( Air conditioner, mobile , Automobiles, Air travel etc)
- Excise duty on footwear with price above 1000 reduced to 6%.
- Clean environment cess on coal to be raised from Rs 100/MT to Rs 200/MT.
- SAD on some imports removed.
- Online registration for Service Tax and Excise within 2 days.
- Basic Custom duty on Commercial vehicles doubled to 20 percent.
DIRECT TAXES
- No Change in income tax slabs for individuals and others.
- Corporate tax rate to be reduced to 25% from the current tax rate of 30% over next 4 years. For FY 2016, no change in corporate tax rates.
- Exemptions to corporate to removed in phased manner.
- Exemptions to individual shall continue.
- GAAR deferred for two years.
- Wealth tax abolished. The details would however included in income tax returns.
- Tax on Royalty/ technical services reduced to 10% from the current 25%.
- 2% super rich tax by way of surcharge on income over 1 crore.
- Transport allowance increased from Rs 800 per month to Rs 1600 per month.
- PAN mandatory for any purchase over 1 lac rupees.
- Medi claim limit increased to Rs 25000.
- Rental income from REITS shall have pass through facility
- In case of Senior citizen, the limit has been increased to Rs 30000.
- Additional deduction of Rs 50000 for contribution to pension fund U/s 80CCD.
- Deduction U/s 80DDB increased to Rs 80000.
- 100% deduction for Donation to Swachh Bharat and Clean Ganga scheme.
- Concealment of income/ assets will attract rigorous imprisonment of 10 yrs/7 yrs.
- 300% penalty for concealment of Foreign income/ Foreign assets
- Rationalise capital gains tax regime.
- Change in the permanent establishment norms.
- Yoga included in the definition of charitable purposes.
- Receipts from trading in case of charitable organisation increased to 20% of the receipt as against Rs 25 lacs earlier.
- The domestic transfer pricing ceiling proposed to be raised to 20 crores from the current 5 crores.
- Bill on black money tabled in the current session of parliament.
- The deduction for hiring regular workmen available, even if the number is less than 100 but more than 50.
- Sukanya Smirti Scheme- Interest on deposit exempt u/s 80C
- 10% TDS on Provident fund withdrawn before expiry of 5 years
-
OTHER CHANGES
- ESI /PF to be made optional for lower rung employees, however the employer’s liability will continue.
- Section:6 of FEMA to be amended to be brought under governments’s control.
- FEMA to be amended to seize foreign exchange assets.
- FEMA to be amended to include black money provisions.
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RAJESH KUMAR
01-Mar-2015 , 07:28:56 amNice