Tax Reforms Points from the Union budget 2016: It is the sector where the middle-class eyes are always on and they are little disappointed with this budget. Finance minister tries to give some woes to this class with the different ways.
Following are the few Points on tax reforms from the Union budget 2016:
- Two crore tax payer will get relief of Rs 3,000 under case of total income under Rs five lakh. Tax rebate for tax payees with up to Rs 5 lakh Total income Has raised to Rs 5000 from Rs 2000
- Increase HRA to Rs 60,000 Per annum from Rs 20000 earlier
- Relief for those who lives in rented houses: deduction u/s 88G has been raised from Rs 24,000 to Rs 60,000
- Incentives for new Mfg companies and relatively small enterprise companies in Corporate income tax
- Suitable changes to be made in customs & excise duty rates to improve competitiveness and boost Make In India
- Service tax exempted for housing construction of houses less than 60 sq. meters.
- Krishi Kalyan Cess of 0.5% on all taxable services
- Income tax dept. will expand e-sahyog to assist small taxpayers
- 1% tax on Super luxury goods and cars, Infrastructure cess of 1% on small cars & 2.5% on diesel cars
- 10% extra DDT on dividend recipients earning above Rs 10 lakh per annum
- It proposed to raise the surcharge for firms and cooperative societies from 12% to 15% having income above 1 crore.
- For first time home buyers thru Home Loans it announced to give deduction for additional interest of 50,000 per annum. Condition with loans up to 35 lakh sanctioned provided the value of the house does not exceed 50 lakh
- An extra duty is levied on tobacco other than BIDI products. It is good to see the tax reforms in budget
Why there are Demand and importance of GST (Goods and Services Taxation)?