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10 points to remember in budget 2016-17

 
By : CA. Brijesh Baranwal on 29 February 2016 E-mail Comments     Print Print  Report Abuse
 



10 POINTS TO REMEMBER IN BUDGET 2016-17                          

  1. No changes have been made to existing income tax slabs and therefore tax slabs/income tax rates for individuals will be as under ;

Effective Income Tax slab for individuals

Rates of Income Tax

Income up to Rs. 2.5 Lacs

0%

Income from Rs. 2.5 Lacs to 5 Lacs

10%

Income from Rs. 5 Lacs to 10 Lacs                   

20%

Income from Rs. 10 Lacs and above

30%

 

2.      Individuals with income less than Rs. 5 lacs will get deduction of Rs 5,000 U/S 87A. This was Rs. 2,000 last year.

3.      Deduction for rent payment U/S 80GG has been increased to Rs. 60,000/-. This was Rs. 24,000 last year. This is beneficial to people who do not get HRA but pay rent.

4.      Income Tax Rate for companies will be 25% where turnover is below Rs. 5 Cr.

5.      Two new Cess have been introduced like Krishi Kalyan Cess and Infrastructure Cess.

6.      One time compliance window will be provided for domestic taxpayers to declare undisclosed income by paying 30% tax, 7.5% surcharge and 7.5% penalty.

7.      An additional deduction of Rs. 50,000 will be given to first time house buyers in addition to existing deduction for housing loans up to Rs. 35 lacs, cost of house below Rs. 50 lacs and completion within 3 years.

8.      Govt. will bear PF share of new employees @8.33% for first three years. No deduction will be made from their salary.

9.      Govt. will provide interest at the rate of 9% in certain cases of refund. This was 6% earlier.

10.   General Anti Avoidance Rules will be applicable from 01.04.2017 onwards.

CA. Brijesh Baranwal

 

Source : Budget Analysis ,
Views: 1386

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