Budget 2016

First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost not more than Rs 50 lakh

Reduction of Rs 60,000 per annum for those who don’t own house and pay rent

Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

FM announces 9 objectives for tax reforms

Tax rebate for those earning less than 5 lakh per annum

Under 5 lakh income – rebate increased from 2000 to 5000

Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess

Lower Corporate tax for small companies at 29% surcharge + cess

National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

Presumptive tax extended for professional earning up to Rs 50 lakh

New grading system of imposing penalties – on the basis of under reporting or concealment of income

Excise duty on Tobacco products increased by 10-15%

Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr

Scope of e-assessment to be expanded to 7 mega cities

Income tax department will expand e-sahyog to assist small taxpayers

Income tax dept. will expand e-sahyog to assist small taxpayers:

Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019

Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties

Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases

Monetary limit for cases to be decided by 1-member bench up from 15 lakh to 50 lakhs

Incentives for new manufacturing companies and smaller enterprise companies

11 new benches of tax tribunals to be established to reduce pendency

To reduce multiplicity of taxes and cascading – 13 taxes with collection less than Rs 50 Cr a year abolished

Companies Act to amended for ease of doing business; to enable registration of companies in a day

Service tax exempted for housing construction of houses less than 60 sq metres

15% surcharge on income tax for those with incomes exceeding 1 crore pa

I propose to lower corporate IT rate for next financial yr of relatively small enterprises companies with turnovers nt exceeding 5cr

Krishi Kalyan Cess of 0.5% on all taxable services

Tax evasion will be countered strongly:

Service tax on single premium annuity to be reduced to 1.5 percent from 3.5 percent.

10% dividend on earnings over earnings over 10 lakhs

Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

Limited tax compliance window from Jun 1 – Sep 30 2016 for declaring undisclosed income at 45% including surcharge and penalties. There shall be no scrutiny or prosecution in this regard

Clean energy cess increased from RS 200 per tonnne to 400 per tonnne on coal, lignite and peat

Move towards a low tax regime with non litigious approach

Committed to provide a stable and predictable taxation regime

PM Awas Yojna: 100% deduction for profits of undertakings from housing projects in cities during June 2016 – March 2019

MAT will apply for such undertakings

Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

Incentives for new manufacturing companies and smaller enterprise companies

Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana

Hike in to limit from 1 to 2 crore on small business assess in MSME category.

Presumptive income of 8% Committed to increase investment in asset reconstruction companies

Special Patent Regime proposed to power innovation and research

Corporate income tax:

Incentives for new manufacturing companies and relatively small enterprise companies

Committed to implementing GAAR from April 1, 2017

Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

Accelerated depreciation to be limited to 40% wef from Apr 1, 2017
Relief to those who living on rent – Rent deduction raised from Rs 24,000 to Rs 60,000

Revenue deficit estimate for FY 2015-16 down to 2.5% from earlier estimates

Fiscal deficit for Financial Year 2016-’17 targeted at 3.5%

Govt acknowledges role of tax payer in nation building

Taxation is a major tool to remove poverty and inequality in the society’

Tax ceiling has been raised from 2000 to 5000 rupees for those earning less than Rs 5 lakh ruppes pa

Relief to those who living on rent – Rent deduction raised from Rs 24,000 to Rs 60,000

The fiscal target will be retained at 3.9 for 2015-16, and 3.5 for 2016-17

Plan and non-plan classification of govt expenditure will be done away with

FRBM Act has been under implementation for the past decade, a school of though now feels that instead of a fixed figure, there should a range based target for managing fiscal deficit

Direct benefit transfer scheme will be implemented for disbursal of fertilizer subsidy on a pilot basis

Govt stands firmly behind public sector banks, Rs 25k crore for bank recapitalisation

Buffer stock of pulses will be created; 900 crore rupees for Market Stabilization Fund for Pulses

Govt stands firmly behind public sector banks Rs25k crore for bank recapitalisation

Govt will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in passenger segment

Public Money should reach the poor and deserving without any leakage

A bill on targeted delivery of financial services using Aadhar to be introduced

SEBI act to be amended to provide more benches on the security appellate tribunal

Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill in 2017

Number of measures to be undertaken to deepen corporate bond market

RBI Act being amended to provide statutory basis for monetary policy framework

Process of transformation of IDBI has already started, govt will reduce its stake below 50%

PM Mudra Yojna amount snactioned has reached Rs 1 Lakh crore, next year’s target is 1,80,000 crore

Nationwide of ATMS, micro-ATMs across the country

General Insurance companies owned by the govt will be listed in the stock exchanges

Task force has been constituted to rationalize the human resources in various ministries has been instituted

AADHAR NO will not be a proof of citizenship or domicile

Public Utility Resolution of Disputes Bill for resolution of disputes in infra sector

Guidelines of renegotiating PPP contracts will be introduced

New credit rating system for infrastructure

-Considering to incentivize gas production from deep sea, ultra deep water and high temp. areas

-3000 crore rupees earmarked for nuclear power generation

-100% FDI through FAPB route in marketing of food products produced and manufactured in India

-Will encourage CPSEs to sell their assets like land

-Dept of Disinvestment to be renamed as Dept. of Investment and Public Asset Management

-RBI Act being amended to provide statutory basis for monetary policy framework

-Financial Data Management Centre for integrated data collection and analysis

3,500 medical stores to be opened under Pradhan Mantri Jan Aushodi Yojana

-Retail trade is largest service sector employer in country. Many more jobs are created in this, provided the regulations are simplified:

-Shops will be given an option to remain open on all seven days

-85% of stalled road projects back on track

-Total of Rs 97000 crore will be spend on roads and highways

-Rs 218000 crore investment in roads and railways in 2016-17

-10000 kms of national highways in 2016-17

-Additional 50000 kms of state highways will be taken up for up gradation as national highway

-Series of measures to modernize ports

-800 cr for inland waterways

-Action plan for revival of unserved and underserved airports

-Will partner with state govt to develop some of these airports to enhance regional connectivity