Tax sops for small I-T payers, hike in super-rich surcharge

It has hiked the surcharge by 3% on earnings above Rs 1 crore, levied a pollution cess on petrol, diesel cars and SUVs, among others.
The Union Budget for 2016-17 on Monday has offered sops for small and marginal income tax payers. www.taxxcel.com


It has hiked the surcharge by 3% on earnings above Rs 1 crore, levied a pollution cess on petrol, diesel cars and Sports Utility Vehicles (SUVs) and has offered a one-time compliance window for domestic black money holders slapping a tax and penalty of 45%.
Presenting his third Budget, Finance Minister Arun Jaitley has also proposed a ‘Krishi Kalyan’ cess of 0.5% on all taxable services to improve agriculture and reduction of duties on project imports for the cold room for cold chain, refrigerated containers and a number of other items.

Cigarette and tobacco products will become costlier with the hike in excise duty by 10 to 15%.

While the revenue loss on direct taxes will be Rs 1,060 crore, Jaitley’s indirect tax proposal will mobilise an additional Rs 20,670 crore. The net revenue gain will be Rs 19,610 crore.

Income Tax Expectations From Arun Jaitley

Finance Minister Arun Jaitley will present the Budget for 2016-17 on February 29. The salaried class has a lot of expectations from the Budget. Increase in the personal income tax exemption limit and a higher deduction limit on home loan interest are among the common ones, say analysts.

Budget 2016: Income Tax Expectations From Arun Jaitley

“Considering the increase in cost of living, the current basic exemption limit of 2.5 lakh should be raised to

Additional surcharge on Rs 1 crore income to increase tax outflow by almost Rs 1 lakh

The Finance Minister has increased the surcharge on income above Rs 1 crore, from 12% to 15%. This means that the super-rich would pay approximately 1% more income tax as their effective tax rate increases from 34.6% to 35.6%. This will result in an additional cash outflow of approximately Rs 1 lakh per annum(see box).

Budget 2016: Four-month window for domestic black money holders to come clean

Government on Monday came out with one time four-month compliance window for domestic black money holders to come clean by paying tax and penalty of 45% per cent.

“I want to give an opportunity to earlier non-complaint to move to the category of complaint. I propose a limited period compliance window for domestic tax payers to declare undisclosed income represented in any form of assets and clear up past transgression by paying tax at 30%, a surcharge at 7.5%, a penalty at 7.5% which is total of 45% of undisclosed income,” Finance Minister Arun Jaitley said.www.taxxcel.com

Unveiling the Budget for 2016-17, Jaitley said those declaring their assets will get immunity from prosecution.

“There will be no scrutiny or inquiry regarding tax in these declaration under Income Tax Act or Wealth Tax act and declarations will have immunity from prosecution. Immunity from Beneami transaction has been proposed subject to certain conditions,” he said.

The government plans to open the compliance window under the Income Tax Disclosure Scheme from June 1 to September 30 2016 with option to pay amount due within 2 months of declaration.

In the last Budget, the government had come out with similar compliance window for people holding undisclosed assets abroad.

He, however said that tax evasion will be “countered strongly”.

Capability of the tax department to detect tax evasion has improved because of enhanced access to information and availability of technology, the minister said.

Jaitley further said the surcharge levied on undisclosed income called ‘Krishi Kalyan Surcharge’ will be used for agriculture and rural economy.

“We plan to open window under the income tax disclosure scheme from June 1 to September 30, 2016, with option to pay amount due within two months of declaration.

“Our government is fully committed to removing black money from economy… We would like to focus all our resources to bringing back black money to the books,” Jaitley said.

Budget 2016: Tax sops for small I-T payers, hike in super-rich surcharge


 

It has hiked the surcharge by 3% on earnings above Rs 1 crore, levied a pollution cess on petrol, diesel cars and SUVs, among others.


 

The Union Budget for 2016-17 on Monday has offered sops for small and marginal income tax payers.www.taxxcel.com

It has hiked the surcharge by 3% on earnings above Rs 1 crore, levied a pollution cess on petrol, diesel cars and Sports Utility Vehicles (SUVs) and has offered a one-time compliance window for domestic black money holders slapping a tax and penalty of 45%.

Presenting his third Budget, Finance Minister Arun Jaitley has also proposed a ‘Krishi Kalyan’ cess of 0.5% on all taxable services to improve agriculture and reduction of duties on project imports for the cold room for cold chain, refrigerated containers and a number of other items.

Cigarette and tobacco products will become costlier with the hike in excise duty by 10 to 15%.

While the revenue loss on direct taxes will be Rs 1,060 crore, Jaitley’s indirect tax proposal will mobilise an additional Rs 20,670 crore. The net revenue gain will be Rs 19,610 crore.www.taxxcel.com

10 Big Tax-Related Announcements In Budget 2016

Finance Minister Arun Jaitley did not change income tax slabs in his third Budget, but he did tweak some deductions and announced multiple new cesses, which will impact tax liability for the common man.www.taxxcel.com

10 Big Tax-Related Announcements in Budget 2016

Here is a complete list of new tax measures announced in Budget 2016:

Direct Tax:

1) Deduction limit under Section 87A of the Income Tax Act has been raised from