Union Budget 2016 Highlights

Union Budget 2016 Highlights:

No Change in Personal Taxation Slab

High Income Individuals to pay enhanced surcharge of 15% in case income > 1.00 crore

Relief u/s 87A increased from 2000 to 5000

Deductions u/s 80GG increased from 24000 to 60000

Limit for 44AD  increased from 1.00 Crore to 2.00 Crore
(Consequently limit u/s 44AB also increased to 2.00 for business and 50.00 lac for professionals)

Limit for 44AD (Professional) now applicable upto 50.00 lac with presumptive rate of income at 50%

Small Corporate Tax Payers to pay @ 29%

No Service tax on Services provided under DeenDyal Upadhyay Kaushal Yozna

100% Exemption from Profits earned from specified Housing Projects, subject to provisions of section 115JC

Tax on dividends in excess of 10.00 lac for Individuals/HUF

Scope of TCS expanded

Vehicle costing more than 10.00 lac to pay 1% additional tax

Infra Cess on Vehicles levied

Excise Duty of 1% on jewellary without input credit tax

Excise duty on tobacco products increased

Another Voluntary Disclosure scheme launched to reduce litigation

Pending litigation also being rationalised

Section 271(1)(c) modified to levy of graded penalty

Section 14A amended

Waiver of Interest and penalty petitions to be decided in one year

11 New benches of Indirect Taxes Tribunals

TDS Provisons rationalised

NRI not be taxed at higher rate on production of specified documents

E-assessments in seven mega cities.

e-Sahyog to be expanded

Enhanced interest on delayed refunds arising out of Appeal effect at 9%. AO to be made responsible for addittional interest.

Union Budget 2016 Highlights.
1. Rs. 35984 crores allotted for agriculture sector.
2. Rs. 17000 crores for irrigation projects.
3. Two new Organic farming scheme for 5 lakh acres.
4. Rs. 19000 crores for Gram Sadak Yojana
5. Rs. 9 Lakh Crores Agriculture Credit Target.
6. Rs. 38500 crores for MANREGA, highest ever.
7. Rs. 2.87 Lakh crores to be spent on Villages in total.
8. Rs. 9000 crores for Swach Bharat Mission.
9. Rs. 97000 Crores for Roads.
10. Total Outlay on Roads and railway Rs. 2.18 Lk Crores.
11. Rs. 2.21 Lakh Crores on Infra Projects.
12. NHAI to raise Rs. 15000 crores via NHAI Bonds.
13. More benches for SEBI Appellate tribunal.
14. Registration of Company in One Day for Start-ups.
15. Rs. 25000 crores for Banks rehabilitation.
16. 100% FDI for food processing.
17. Non planned expenditure of Rs. 14.28 Lk Crores.
18. Planned expenditure increased by 15.3% .
19. Relief Section 87A Rs. 2000 to Rs. 5000
20. Relief Sec 80GG Rs. 24000 to Rs. 60000
21. Section 44AD limits Rs. 1 crores to Rs. 2 crores. Rs. 50 Lakh for professional
22. Accelerated depreciation limited to 40%
23. New manufacturing companies will pay tax @ 25%.
24. LTCG on unlisted securities limited to 2 years.
25. 100% tax deduction for companies building houses upto 30 sq. mtrs.
26. Additional interest deduction for first house.
27. No service tax for building houses upto 60 sq mtrs.
28. 10% dividend tax for recipient over Rs. 10 lakh per annum.
29. TCS on purchase of asset over Rs. 2 Lakh in case and luxury cars.
30. VDS Scheme @ 30% + surcharge, Ist June to 30th September 2016.
31. Dispute resolution for appeal pending before Commissioner(Appeals).
32. Penalty for concealment of Income from 100-300% to 50-200%.
33. Rationalisation of TDS provisions.
34. 11 new benches for Income Tax Appellate tribunal.
35. No face to face scrutiny.

Out of many Budget highlights..service tax increased from 14.5 % to 15 %..will effect almost everything v buy in our day to day life..hotel bills to be heavier than before..
Also diesel vehicles to get costlier

Health, Motor premium to go down: Service tax to be exempted on premium of general insurance policies. That means, health and motor insurance policies to get cheaper.