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Excise Duty on Jewellery

Amrit DalmiaIn this year’s Budget, a nominal excise duty of 1% [without CENVAT Credit on Capital Goods and Inputs] and 12.5% [with CENVAT Credit on Capital Goods and Inputs] has been imposed on articles of jewellery [excluding silver jewellery, other than studded with diamonds or other precious stones] w.e.f March 01, 2016. Even for this nominal 1% excise duty, manufacturers are allowed to take credit of Input Services, which can be utilised for payment of excise duty on jewellery.

Changes in Service Tax, Excise, Customs Duty vide Union Budget 2016: Open issues

The Union Budget, 2016, proposing flurry of changes in Indirect Taxes, has been a talk of the town since the day of its presentation. On May 5, 2016, the Lok Sabha passed the Finance Bill, 2016 and later on May 11, 2016, the Finance Bill, 2016 was passed by the Rajya Sabha. Now, the Hon’ble President has given assent to the Finance Bill, 2016 on Saturday, May 14, 2016. Accordingly, the Finance Bill, 2016 now becomes the Finance Act, 2016 (28/2016).

Budget proposals relating to income tax return

The Finance Minister has proposed some changes in the provisions relating to income tax returns. Let us discuss these provisions.

Provisions relating to filing of income tax returns

At present, an Individual or an HUF has to file its income tax return, before the due date which is generally 31st July of the subsequent year, if the total income before deducting various deductions available under Chapter VIA exceeds the basic exemption limit.

FEMA provisions of Guarantee to Persons Resident Out of India

We are in the modern era in which whole world became our play ground. Gone are the days, when people were afraid of for going abroad. We Indian proved our mantle all over the world, through our business sense and information technologies developments. Our multinational companies are spreading their business all over the world and they are competing with many multinationals of other countries. The government has provided various facilities and support to increase export and reduce import to the country.

Budget 2016 – Enabling of Filing of Form 15G/15H for rental payments

The provision of sub-section 194-I of the Act, inter alia, provides for tax deduction at source (TDS) for payments in the nature of rent beyond a threshold limit. The existing provisions provide threshold of Rs. 1,80,000 per financial year for deduction of tax under this section. In spite of providing higher threshold for deduction tax under this section, there may be cases where the tax payable on recipient’s total income, including rental payments , will be nil.

Budget 2016 Changes in Time limit for carry forward & set off of loss

The existing provisions of section 73A of the Act provide that any loss, computed in respect of any specified business referred to in section 35AD shall not be set off except against profits and gains, if any, of any other specified business. Further, section 80 of the Act inter-alia provides that a loss which has not been determined in pursance of return filed in accordance with the provisions of sub-section (3) of section 130, shall not be carried forward and set-off under sub-section (1) of section 72 or sub-section (2) of section 73 or sub-section (1) or sub-section (3) or section 74 or sub-section 74A.

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