Last Updated on August 15, 2019 by Ravi Sankar Robbi
When the February month comes most of the people eagerly waits for the last day of this month to see what the government is going to present to the common man in the form of Budget Announcement.
Among the hopes & expectation the Finance Minister, Mr.Arun Jaitley presents his 3rd Union Budget for the Financial Year 2016-17,where the Middle class people, retired persons and salaried employees are absolutely neglected.
Here, we gave some Highlights of Budget 2016-17 of Tax & Finance Analysis.
> Infrastructure and agriculture cess to be levied.
> “Cigarette smoking is not only injurious to health but also harmful to your Pockets now”. Since, Excise duty raised from 10 to 15% on tobacco products other than beedis.
> Buying of Luxury cars becomes premium now.
1 % Service charge on Purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.
> SUVs, Luxury cars to be more expensive. 4% high Capacity Tax for SUVs.
> Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge.
> Limited tax compliance window from Jun 1 – Sep 30 for declaring undisclosed income at 45% incl. surcharge [@7.5%] and penalties[@7.5%].
> Excise duty @ 1 % imposed on articles of Jewellery, excluding silver.
> 0.5 % Krishi Kalyan Cess to be levied on all services.
The government on Monday announced a Krishi Kalyan Cess of 0.5 per cent on all taxable services effective from June 1 this year to fund farm initiatives
> Pollution cess of 1 % on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
> Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 %.
> No changes have been made to existing income tax slabs.
> Rs 1,000 crore allocated for new EPF (Employees’ Provident Fund) scheme
> Govt. will pay EPF contribution of 8.33% for all new employees for first three years
> Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
> Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
> Service tax exempted for housing construction of houses less than 60 sq. m
15 per cent surcharge on income above Rs. 1 crore
Author is a Qualified CMA with an experience of more than 8 years in the industry. He is also an All India Rank holder in both Inter (AIR-26) & Final (AIR-46) examinations of ICAI. He loves to writes articles on Income Tax & GST.