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.