*Highlights of Union Budget, 2016.* 1. *No Change in income-tax slabs.*
2. *Individuals having income less than Rs. 5 lakh would get extra benefit of Rs. 3090/- under section 87A. Rebate is increased to Rs. 5000/- from Rs. 2000/-.* 3. *Deduction u/s 80GG towards payment of rent increased to Rs.60000 from Rs. 24000 – Available to individuals who do not have their own house and not receiving any House rent allowance from employer.* 4. *Presumptive tax for small businessman at 8% - Eligibility limit of Turnover increased to Rs. 2 crores from Rs. 1 crore.* 5. *Presumptive tax for professionals introduced – Professionals having gross receipts upto Rs. 50 lakhs – Presumptive income is 50% of such actual receipts.* 6. *40% of the Withdrawal at the time of retirement under National Pension Scheme is exempt.* 7. *Dividend income in excess of Rs. 10 lakh would be subjected to tax at 10% in the hands of individual, HUF and firm. This is not applicable to companies – (Sec.115BBDA) Earlier dividend income was exempt.* 8. *Individuals, HUFs having income of more than Rs. 1 crore – Surcharge increased from 12% to 15%.* 9. *First home buyers – Interest on housing loan - Rs. 50,000 additional deduction available (present deduction for others Rs. 1,50,000) – Condition the loan should not be more Rs. 35 lakhs taken after 1/3/2016 and cost of the house should not exceed Rs. 50 lakhs.* 10. *Income declaration scheme introduced for a limited period – Income not disclosed earlier can be offered for tax by paying 45% - (30% tax + 7.5% surcharged + 7.5% penalty) – No enquiry, no scrutiny, no prosecution.* *Scheme opens on 1/6/2016 and ends on 30/9/2016. The tax at 45% should be paid within 2 months from the date of declaration. * 11. *14A disallowance – Disallowance cannot exceed the actual expenditure.* 12. *Tax disputes before the Commissioner of Income-tax (Appeals) on certain conditions.* 13. * Undertakings constructing residential flats would get 100% exemption of its income with certain conditions – However, MAT would apply.* 14. *Govt. to levy 1 % infra cess on small cars, 2.5 % on diesel and 4 percent of SUVs for anti-pollution.* 15. *Service tax exempted for housing construction of houses less than 60 square meters.* 16. *Motor Vehicles Act to be amended. Entrepreneurs will be able to operate public transport.* 17. *Corporate tax reduced to 29% for small business having turnover less than 5 crores.* 18. *No higher withholding tax if non-resident does not have PAN but furnishes an alternative document.* 19. *Corporate tax reduced to 29% for small business having turnover less than 5 crores (presently 30%).* 20. *Reduction in corporate tax - New manufacturing companies after March 1, 2016 have to pay tax at 25%.* 21. *Under section 80JJAA, presently a company manufacturing goods would be entitled to deduction of 30% of the wages paid to new workmen employed in the year. This concession is now extended to all assesses whose accounts are liable for tax audit u/s 44AB.* 22. * Holding period of shares of unlisted companies reduced to 2 years from 3 years for Long term capital gains.* 23. *Period for construction of new houses for allowing interest on home loan extended to 5 years from 3 years from 1/4/2017.* 24. *Arrears of rent and unrealized rent received would taxable in the year of receipt.* 25. *Deduction u/s 32AC – Company engaged in the business of manufacture acquiring assets exceeding Rs. 25 crores entitled to deduction of 15% in the year of installation. This is now restricted to assets installed on or before 31/3/2017. Such deduction may not be available after the assessment year 2017-18.* 26. *Weighted deduction u/s 35(1)(ii) on donations to scientific research association restricted to 150% against 175% from asst, year 2018-19 onwards. From the asst.year 2021-22, the deduction is only 100%.* 27. *No deduction u/s 35AC from the assessment year 2018-19 onwards.* 28. *Limit for getting the accounts audited for professional u/s 44AB increased to Rs. 50 lakhs against Rs. 25 lakhs.* 29. *100% deduction available on the income from business of developing and building housing projects- project approved after 1/6/2016 – Exemption is available for 3 years under newly instructed section 80IBA from asst. year 2017-18.* 30. * Manufacturing Companies started after 1/3/2016 – Rate of tax is 25% provided they are not claiming any set off of loss or claiming any exemption.* 31. *Income by way of royalty in respect of a patent developed and registered in India is taxable at 10%.* 32. *Revised return now can be filed before the completion of the assessment proceedings. Time limit of one year extended.* 33. *TDS on commission reduced to 5% from 10%- Threshold limit increased to Rs. 15000 from Rs. 5,000/-.* 34. *Tax will be collected at 1% while buying cars exceeding Rs. 10 lakhs. u/s 206C.* 35. *Advance-tax for non-company assesses should be paid in 4 instalments like companies – 15th June – 15%.* 36. *Others:* *100% Foreign Direct Investment through FABP route is available for marketing food products produced and manufactured in India.* *Motor Vehicles Act to be amended. Entrepreneurs will be able to operate public transport.* *Registration of Companies should be given in one day - Companies Act proposed to be amended.* *0.5% cess to be additionally payable on service tax from 1/6/2016.* <http://groups.yahoo.com/subscribe/worldmalayaliclub/> *வாழிய செந்தமிழ்! வாழ்க நற்றமிழர்!* *வாழிய பாரதமணித் திருநாடு!* [image: Dancing smiley animated emoticon] *v **a n a k k a m** S u b b u* [image: Dancing smiley animated emoticon] -- You received this message because you are subscribed to the Google Groups "Thatha_Patty" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/d/optout.
