Page 20 - MASTER IN BUDGET
P. 20
# Plan / Non-Plan classiication to be done away with from 2017-18.
# Every new scheme sanctioned will have a sunset date and outcome review.
# Rationalised and restructured more than 1500 Central Plan Schemes into about 300
Central Sector and 30 Centrally Sponsored Schemes.
# Committee to review the implementation of the FRBM Act.
RELIEF TO SMALL TAX PAYERS
# Raise the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax
burden on individuals with income upto `5 laks.
# Increase the limit of deduction of rent paid under section 80GG from `24000 per
annum to `60000, to provide relief to those who live in rented houses.
BOOST EMPLOYMENT AND GROWTH
# Increase the turnover limit under Presumptive taxation scheme under section 44AD
of the Income Tax Act to `2 crores to bring big relief to a large number of assesseesin
the MSME category.
# Extend the presumptive taxation scheme with proit deemed to be 50%, to
professionals with gross receipts up to `50 lakh.
# Phasing outdeductionunderIncomeTax:
Accelerated depreciation wherever provided in IT Act will be limited to
maximum 40% from 1.4.2017
Beneit of deductions for Research would be limited to 150% from 1.4.2017
and 100% from 1.4.2020
Beneit of section 10AA to new SEZ units will be available to those units
which commence activity before 31.3.2020.
The weighted deduction under section 35CCD for skill development will
continue up to 1.4.2020
# Corporate Taxrate proposals:
New manufacturing companies incorporated on or after 1.3.2016 to be given
an option to be taxed at 25% + surcharge and cess provided they do not claim
proit linked or investment linked deductions and do not avail of investment
allowance and accelerated depreciation.
Lower the corporate tax rate for the next inancial year for relatively small
enterprises i.e companies with turnover not exceeding `5 crore (in the
inancial year ending March 2015), to 29% plus surcharge and cess.
# 100% deduction of proits for 3 out of 5 years for startups setup during April, 2016
to March,2019. MAT will apply in such cases.
# 10% rate of tax on income from worldwide exploitation of patents developed and
registered in Indiaby a resident.
# Complete pass through of income-tax to securitization trusts including trusts of
ARCs. Securitisation trusts required to deduct tax at source.
# Period for getting beneit of long term capital gain regime in case of unlisted
companies is proposed to be reduced from three to two years.
@Mahendra’s 20 MASTER IN BUDGET 2016-17
# Every new scheme sanctioned will have a sunset date and outcome review.
# Rationalised and restructured more than 1500 Central Plan Schemes into about 300
Central Sector and 30 Centrally Sponsored Schemes.
# Committee to review the implementation of the FRBM Act.
RELIEF TO SMALL TAX PAYERS
# Raise the ceiling of tax rebate under section 87A from `2000 to `5000 to lessen tax
burden on individuals with income upto `5 laks.
# Increase the limit of deduction of rent paid under section 80GG from `24000 per
annum to `60000, to provide relief to those who live in rented houses.
BOOST EMPLOYMENT AND GROWTH
# Increase the turnover limit under Presumptive taxation scheme under section 44AD
of the Income Tax Act to `2 crores to bring big relief to a large number of assesseesin
the MSME category.
# Extend the presumptive taxation scheme with proit deemed to be 50%, to
professionals with gross receipts up to `50 lakh.
# Phasing outdeductionunderIncomeTax:
Accelerated depreciation wherever provided in IT Act will be limited to
maximum 40% from 1.4.2017
Beneit of deductions for Research would be limited to 150% from 1.4.2017
and 100% from 1.4.2020
Beneit of section 10AA to new SEZ units will be available to those units
which commence activity before 31.3.2020.
The weighted deduction under section 35CCD for skill development will
continue up to 1.4.2020
# Corporate Taxrate proposals:
New manufacturing companies incorporated on or after 1.3.2016 to be given
an option to be taxed at 25% + surcharge and cess provided they do not claim
proit linked or investment linked deductions and do not avail of investment
allowance and accelerated depreciation.
Lower the corporate tax rate for the next inancial year for relatively small
enterprises i.e companies with turnover not exceeding `5 crore (in the
inancial year ending March 2015), to 29% plus surcharge and cess.
# 100% deduction of proits for 3 out of 5 years for startups setup during April, 2016
to March,2019. MAT will apply in such cases.
# 10% rate of tax on income from worldwide exploitation of patents developed and
registered in Indiaby a resident.
# Complete pass through of income-tax to securitization trusts including trusts of
ARCs. Securitisation trusts required to deduct tax at source.
# Period for getting beneit of long term capital gain regime in case of unlisted
companies is proposed to be reduced from three to two years.
@Mahendra’s 20 MASTER IN BUDGET 2016-17
