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highlights from Finance Bill 2016 with regard to Direct and Indirect Taxes
1. Govt. will pay EPF contribution of 8.33% for all new Govt Employees for first three
years.
2. Rebate U/s 87A increased to Rs 5000 for tax payers earning less than Rs 5 lakhs.
3. Deduction u/s 80GG for rent paid raised to Rs 60000 per annum from existing Rs
24000.
4. Turnover for presumptive taxation increased to 2 crores.
5. Presumptive taxation schemes introduced for all Professionals with receipts up to Rs
50 lakhs.
6. Additional exemption upto Rs 50000 for housing loans upto Rs 35 lakhs, provided the
cost of the house is not above Rs 50 Lakhs.
7. Surcharge increased from 12% to 15% on income above 1 crore for other than
Companies/Firms/Cooperative Societies.
8. Tax @ 10% on dividend in excess of Rs 10 Lakhs to be payable by recipients
9. Advance Tax payment schedules for Assessees other than Companies changed in line
with existing payment schedules for Companies.
10. Assessee opting for computation on presumptive basis shall be required to pay
Advance Tax in one installment on or before 15th March.
11. Corporate Tax :
a. New manufacturing companies established or/post 1st March 2016 proposed
to be given an option to be taxed @ 25% plus surcharge and cess provided
they do not claim any profit linked deductions and not claiming accelerated
depreciation.
b. For small business with turnover less than Rs 5 Crore corporate tax reduced to
29% plus surcharge and cess.
12. Start ups to get 100% tax exemption for 3 years. However MAT will be applicable for
startups that qualify for 100 per cent tax exemption
13. Capital gains exemption proposed for investments in start ups.
14. No higher withholding tax if non-resident does not have PAN but furnishes an
alternative document
15. Finance Minister proposes to rationalize TDS provisions: