29/02/2016
Key Highlights of the Union Budget 2016 (26.02.2016)
Social and General Measures
• Rs. 38000 crore proposed to be spent on MANREGA in FY 16-17
• 2,000 Crores allocated to provide LPG connections to poor families
• New mission to provide LPG connection in name of female poor members, Scheme for 2 years
• Govt will launch new health protection scheme to provide health cover of Rs. 1 Lakh with top up of Rs. 30,000 proposed for senior citizen
• Certain Dialysis equipment are proposed to be exempted from Basic Custom Duty, Excise Duty and CVD
• Rs. 1700 crores allocated for Skill India Mission under Pradhan Mantri Kaushal Vikas Yojna
• Govt. will pay 8.33% provident fund for new employees for first 3 years, 1,000 crore budget proposed
• Govt. will pay 8.33% provident fund for new employees for first 3 years, 1,000 crore budget proposed
• Deduction under Section 80JJAA proposed to be extended to all assessee who are subject to tax audit
• Sec. 80JJAA deduction extended from only manufacturing units to all assessees who are subject to tax audit
• Amendments to be made in Motor Vehicles Act; Entrepreneurs can ply buses on various routes subject to safety norms
• 100% FDI to be allowed in marketing of food products manufactured and produced in India
• A comprehensive code to provide bankruptcy resolution mechanism will be presented
• Proposes various amendments to SARFAESI Act.
• Registration of Companies should be given in one day - Companies Act proposed to be amended
Taxation
• Relief under Section 87A proposed to be increased from Rs. 2,000 to Rs. 5,000
• Sec-80GG increased to Rs. 60000.00 from 24000.00
• Presumptive taxation under sec-44AD threshold limit increased to Rs. 2 Crore from 1 Crore for business
• Presumptive taxation scheme introduced for all professionals with receipts up to Rs. 50 lakhs.
• Corporate tax reduced to 29% for small business having turnover less than 5 crores
• Reduction in corporate tax - New manufacturing companies after March 1, 2016 have to pay tax at 25%
• Capital gain exemption proposed for investment in start-up
• 40% Withdrawal from Super Annuation Funds proposed to be tax exempt
• proposed to provide tax exemption on withdrawal of 40% from national pension Scheme at the time of retirement
• Surcharge raised from 12 to 15% on incomes above 1 Crore
• Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh
• Propose to grant stay in case of 15% of the demand is paid
• proposed to introduce limited period compliance window for domestic taxpayer to declare domestic black Money
• proposes to amend Section 14A; disallowance under Sec. 14A should not increase the actual expenditure
• No higher withholding tax if non-resident does not have PAN but furnishes an alternative document
• Income Tax Department shall pay interest @9% in case of delay in giving effect to appeals orders
• Proposes a tax of 45% on undisclosed income under new tax amnesty scheme.
• Penalty to be 50% of tax in income under reporting cases and 200% in case of misreporting of facts.
• 100% tax deduction for new startups for first 3 years
• Krishi Kalyan Cess 0.5%to be levied on all taxable services
• Excise duty on branded ready made garments rised to 6% without input credit from Nil
• proposes to increase excise duty on to***co products from 10% to 15%
• proposed to introduce limited period compliance window for domestic taxpayer to declare domestic black Money
• A new dispute resolution scheme is introduced, no penalty upto disputed amount of 10 lacs (both applicable in Direct and Indirect Tax)
• 11 news benches of CESTAT proposed to be setup
• 1% tax on luxury goods and cars
