BUDGET HIGHLIGHTS 2016

 

 

INCOME TAX  / SERVICE TAX  / EXCISE

 

1. No changes in tax slabs under Income Tax and same is as was earlier, i.e.

Male / Female ( Age upto 60 Years )			Senior Citizen ( Age 60 Years or More )			Super Senior Citizen ( Age 80 Years or More )
0	2,50,000	Nil	0	3,00,000	Nil	0	3,00,000	Nil
2,50,001	5,00,000	10%	3,00,001	5,00,000	10%	3,00,001	5,00,000	Nil
5,00,001	10,00,000	20%	5,00,001	10,00,000	20%	5,00,001	10,00,000	20%
Above 10,00,000		30%	Above 10,00,000		30%	Above 10,00,000		30%

2.  Income tax surcharge for having income Rs. more than 1 crore increased to 15% (previously 12%)
3. Deduction u/s 80GG for RENT payment increased upto Rs. 5,000/- per month (previously Rs.2,000/-)
4. Service tax  – 0.50% agriculture development krishi kalyan surcharge cess
5. Rebate u/s 87A increased from Rs.2,000/- to Rs.5,000/- (persons having taxable income upto Rs.5,00,000/-)
6. 10% Dividend tax for dividend receipt over Rs.10,00,000/- per annum
7. Additional exemption o Rs.50,000/- for first time house buyers on housing loan upto Rs.35.00 lakh, provided cost of house in not more than Rs.50.00 lakh
8. Companies with revenue less than Rs. 5 crore to be taxed at 29% plus surcharge and Cess
9. Service tax exemption for housing construction of houses less than 60 sq. mtr.
10. Tax Audit Limit revised to non professional Rs. 2.00 crore from Rs. 1.00 crore
11. Presumption taxation scheme for  all professionals with gross receipts upto Rs.50 lakh if income declared @ 50%
12. Corporate tax for new manufacturing companies @ 25.00%  + surcharge + cess
13. Withdrawal upto 40% from NPS to be exempted
14. LTCG on unlisted securities limited to 2 years
15. 100% tax deduction for companies building houses upto 30 sq. mtr.
16. TCS on purchase of assets over Rs. 2.00 lakh
17. Penalty for concealment of income reduced to 50% – 200% (previously 100% – 300%)
18. Excise duty on branded garments exceeding Rs. 1,000/-
19. Securities transaction tax on option raised to 0.05%