Budget Highlights

28-Feb-2015 , 04:20:18 pm | By CASANSAAR print

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.
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.