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Union Budget (2016) Highlights

Key Features of Budget 2016-2017 Direct Taxes 1.No changes have been made to existing income tax slabs. 2. Tax rebate/ Relief of Rs 3,000 per year to taxpayers with income below Rs.5 Lakh per year; 1 Crore tax payers to get benefit.- Section 87A 3. Deduction in respect of Rent Paid (80GG) up from Rs. 24,000 to Rs. 60,000 p.a., - This is applicable for individuals who are not in receipt of HRA. 4. Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh. 5. 40% of withdrawal at the time of retirement under National Pension Scheme (NPS) to be tax exempt. 6. Surcharge on Income tax for those with incomes exceeding 1 crore per annum increased from 12% to 15%. 7. Limited period compliance window for domestic taxpayers to declare undisclosed income @ Tax rate of 45% including surcharge from 1st June, 2016 to 31st Dec, 2016. Declarations to have immunity from prosecutions. 8 P...
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TDS on Transporter w.e.f 01.06.2015

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TDS ON TRANSPORTER Earlier Provision The earlier provision (upto May 31, 2015) provides that no deduction of tax is required from payments made to the contractor during the course of plying, hiring and leasing goods carriage  if the contractor furnishes his PAN to the payer. New Provision effective June 1, 2015 The new provision of Section 194C, as was informed earlier at the time of the Union Budget, restricts the cases for non-deduction of tax. Non deduction of tax will be available only for small  transport operators owning not more than 10 goods carriages. Analysis: If transporter is not owning more than 10 goods carriage at any time during the previous year,  then we, as payers (Tax deductor’s) have to obtain a declaration from transporter along with  his copy of PAN before credit or payment to transporter, whichever is earlier. If the transporter is owning more than 10 goods carriage at any time during the year, then we,  as payers are l...
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Understanding Your PAN

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Understanding Your PAN Importance of PAN : PAN card has become a must hold   for each and every person to file the tax returns  or to do a financial transaction., whether he is  an Indian citizen or an NRI. What is PAN? A  P ermanent A ccount N umber (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department of India. Each set of numbers is unique to the individual, HUF, company, etc. PAN is a permanent number, is unaffected by a change of address, even between states and is not transferable. It is illegal to own more than one PAN. The PAN”s primary purpose is to bring a universal identification key factor that links and tracks various documents and information regarding taxes and financial transactions, such as loans, investments, buying and selling real estate and other business activities of taxpayers. By tracking the above it indirectly prevents tax evasion through non-intrusive means....
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What is DTC or Direct Taxes Code?

What is DTC or Direct Taxes Code? The D irect Tax Code  (DTC) was first introduced by our current President of India, Shri  Pranab Mukerjee in 2010. He was then the Finance Minister of India. The DTC is meant to be transparent, efficient and extremely simple, which would replace the Income Tax Act 1961. Among other things, the DTC Bill proposes a higher income tax rate of 35 per cent.While the Bill proposes to keep exemption limit at Rs. 2 lakh for individual tax unchanged, it proposes to introduce a fourth slab of 35 per cent tax rate for those with an annual income of over Rs. 10 crore. It also proposes to levy a 10 per cent tax on dividend income of more than Rs. 1 crore.Besides, Minimum Alternate Tax (MAT) may be levied on book profit and not on gross assets, sources said. Further, the Securities Transaction Tax (STT) is likely to be retained, though the Standing Committee on Finance, which had scrutinised the bill, had suggested aboliti...
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Is Goods and Service Tax ( GST ) a step forward ?

What is GST? G oods and S ervices T ax   -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. It is a single uniform tax levied across India on all goods and services. Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain. The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain. It is believed   that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax. Why is it required? The indirect tax system is currently mired in multi-layered taxes levied by the Center and state governments at different stages of the supply chai...
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