FEATURES OF BUDGET 2016-2017 – Income Tax

KEY FEATURES OF BUDGET 2016-2017
PART A – INCOME TAX
a. Sec 44AB – Gross receipts limit for tax audit for professionals increased from Rs. 25 lakhs to Rs. 50 Lakhs
b. Sec 87A – Ceiling of tax rebate increased from Rs. 2,000/- to Rs. 5,000/- to lessen tax burden on individuals with income up to Rs. 5 Lakhs
c. Sec 80GG – Limit of deduction for rent paid increased from Rs.24,000/- per annum to Rs.60,000/- per annum, to provide relief to those who live in rented houses.
d. Sec 44 AD – Turnover limit under presumptive taxation scheme increased to Rs. 2 crores to bring big relief to a large number of assessees in the MSME category.
e. Sec 44ADA – Presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to Rs. 50 lakhs
f. Sec 115BA – New manufacturing companies incorporated on or after 01.03.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.
g. Sec 115BBA – Tax on certain dividends received from domestic companies – Where the total income of an assessee, being an individual, HUF or firm, resident in India, includes any income exceeding Rs. 10 lakhs, by way of dividends declared, distributed or paid by a domestic company, the income tax payable shall be the aggregate of—
(a) amount of income-tax calculated on the income by way of such dividends, at the rate of 10% and
(b) amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the amount of income by way of dividends.
h. Sec 194C – Payments to Contractors – Limit for tax deduction at source increased to Rs. 100,000/- from Rs. 75,000/ -w.e.f 1st June 2016
i. Sec 194H – Commission or Brokerage – TDS Rate reduced to 5% from 10% and threshold limit increased to Rs. 15,000/- from Rs. 5,000/- w.e.f 1st June 2016
j. Sec 206C – TCS @ 1% for Motor Vehicle, value exceeding Rs. 10 lakhs w.e.f 1st June 2016
k. Sec 211 – Due dates for payment of advance tax – uniform for all assesses (15th Jun, 15th Sep, 15th Dec, 15th Mar) except for an eligible assessee in respect of an eligible business referred to in section 44AD, to the extent of the whole amount of such advance tax during each financial year on or before the 15th March:
l. Corporate tax rate lowered for the next financial year for relatively small enterprises, that is domestic companies with turnover not exceeding Rs. 5 crores (in the financial year ending March 2015), to 29% plus surcharge and cess. In the case of companies other than domestic companies, the rate of tax will continue to be the same as that specified for assessment year 2016-17.

© Copyright 2016 Carvalho Associates LLP. All rights reserved.
Designed By ImagiNET Ventures

Dialog example

This is dummy copy. It is not meant to be read. It has been placed here solely to demonstrate the look and feel of finished, typeset text. Only for show. He who searches for meaning here will be sorely disappointed.

Your Name (required)

Your Email (required)

Your Download