Wednesday, February 1, 2017

WHAT WAS THERE FOR YOU IN BUDGET ???

What was there for you in the Budget???

(1) 2.5 lakhs to 5 lakhs slab income tax reduced from 10% to 5% and hence you save tax.
(2) Income for individuals between 50 lakhs and 1 crs. To pay a surcharge of 10% and income above 1cr will continue the past surcharge.
(3) No cash transaction above 3 lakhs
(4) Small companies having a turnover less than 50 cr. will pay only 25% tax vs 30% before
(5) Holding period for immovable property for long term reduced to 2 years from earlier 3 years.

TAX ADMINISTRATION:

•Black money: No cash transactions above Rs3 lakh

•Transparency in political funding: Parties continue to receive anonymous donations; propose system of cleaning up: Maximum amount of cash donation that can be received is Rs2,000; political parties can receive donations by cheques or digitally; amendment proposed to RBI Act to issue electoral bonds; every party has to file returns within specified time

•Exempt FPI category 1 and 2 investors from indirect provisions

•Time period of revising tax return reduced to 12 months

•Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-5 lakh; All other categories to get uniform benefit of Rs12,500 per person; to levy surcharge on income bracket Rs50 lakh-Rs1 crore

•Personal income tax: To have simple one-page form for taxable income up to Rs5 lakh

•Direct tax collection not commensurate with income/expenditure pattern of India

•We are largely a tax non-compliant society; predominance of cash in society enables tax evasion

•After demonetization, data received will increase tax net

•Real estate: to make changes in capital gains tax

•Concessional withholding rate will be extended to 30 June 2020 and for rupee-denominated masala bonds

•Start-ups: Relaxing holding rules

•MAT not to be abolished at present; to allow carry-forward for 15 years

•Corporate tax rate: MSMEs’ rate (annual turnover less than Rs50crore) reduced to 25%

•LNG: Reduce customs duty to 2.5%

•Limit of cash donation for charitable trusts cut to Rs2,000

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