Union Budget 2016-17 - Glimpse
-
Upload
divya-choudhary -
Category
Economy & Finance
-
view
198 -
download
0
Transcript of Union Budget 2016-17 - Glimpse
Highlights of Union Budget 2016-17
Union Budget- A Glimpse
IntroductionThe Union Budget of India, also referred to as the Annual financial statement in the Article 112 of the #Constitution of India,[1] is the annual budget of the Republic of India. It is presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget, which is presented by means of the Financial bill and the Appropriation bill has to be passed by the Houses before it can come into effect on April 1, the start of India's financial year.
Union Budget- A Glimpse
Transforming Rural India, empowering Urban India
Union Budget- A Glimpse
DIRECT TAX PROPOSAL
Union Budget- A Glimpse
Income Tax Slabs
S. No.Income Slab (All amount in INR)
Resident Individual <60 years
Resident Individual >60 years but <80 years
Resident individual >80 years
1 Up to 2,50,000 Nil Nil Nil
22,50,001 to 3,50,000 10% Nil Nil
33,50,001 to 5,00,000 10% 10% 10%
45,00,001 to 10,00,000 20% 20% 20%
5 Above 10,00,001 30% 30% 30%
Union Budget- A Glimpse
Some Cheers to Common Man• Deduction under Sec 80GG for house rent paid has been increased
from Rs 24,000/- to Rs 60,000/-. • Rebate under Sec 87A for assesses having income less than Rs.
5Lakhs enhanced to Rs.5,000/-. • The limit under Sec 17(2)(vii) in relation to employer’s contribution
towards superannuation fund is increased to Rs 150,000/-. • Additional deduction of interest for “First Home Buyers” upto Rs
50,000/- p.a. for loans up to Rs 35 lakhs sanctioned during the FY 2016-17 has been proposed, provided the value of the house does not exceed Rs 50 lakhs.
• Time limit for construction / acquisition of house under Sec 24(b) has been extended from 3 years to 5 years for claiming deduction of interest on housing loan
Union Budget- A Glimpse
Individual Income Tax – Additional Burden• No Change in Income Tax Slabs• Dividend received in excess of Rs 10 Lakhs proposed to be
taxed at 10%. • Rate of Surcharge for those having income more than Rs.
1 Crore is increased to 12%. • Rebate under Sec 87A for assesses having income less
than Rs. 5Lakhs enhanced to Rs.5,000/-.
Union Budget- A Glimpse
Corporate Tax • Proposal for reduction in rate of income tax for the companies
having turnover less of than Rs 5 Crore from 30% to 29%. • Surcharge on domestic companies having income exceeding Rs 1
Crore and not exceeding Rs 10 Crore has been proposed to be increased to 7% and for Companies having income exceeding Rs 10 Crore surcharge has been proposed to be increased to 12%. Other Tax Rates
• Rate of Securities transaction tax in case of options has been increased to 0.05%. Equalization Cess
• Introduction of Equalization levy on specified services (i.e., online advertising under Sec 161) to be with held before making payment to non-residents
Union Budget- A Glimpse
Technology to Create Accountability
Union Budget- A Glimpse
• Scope for e-assessment proposed to be expanded: Expansion in the scope of e-assessments to all assesses in 7 mega cities in the coming years, reducing face to face contact with the assesses.
• Rate of interest on refunds to be increased: The rate of interest on the refunds to be increased from 6% p.a. to 9% p.a., in case there is delay in giving effect to Appellate order beyond ninety days.
• E-sahyog project to be expanded: Income-tax Department (ITD) will fully expand the pilot initiative of ‘e-Sahyog’ with a view to reduce compliance cost, especially for small tax payers. The e-Sahyog’ pilot project is to provide an online mechanism to resolve mismatches in income-tax returns without requiring taxpayers to attend the Income-tax office.
A Glimpse of Digital Initiatives in Railways
Union Budget- A Glimpse
• E-booking of tickets on concessional passes for journalists introduced
• IRCTC website to consider e-commerce initiatives because of high number of hits
• Sale of tickets to be initiated by hand held devices and platform tickets through vending machines
• 400 railway stations to be equipped with wifi, 100 this year, “Intend to commence wi-fi system at 100 stations this year in partnership with Google”,
• Railways to shift to paperless contact management system as e-initiative
Call for Action
Union Budget- A Glimpse
• All are welcome to share your views• Do you think this is a good budget for common man….no
big relief for salaried class who looks like a tax generating machine for the government
• Government need to issue and maintain strict guidelines to the one who evade tax through loopholes so that the burden on salaried employees can be reduced.