Page 21 - MASTER IN BUDGET
P. 21
# Non-banking inancial companies shall be eligible for deduction to the extent of 5%
of its income in respect of provision for bad and doubtful debts.
# Determination of residency of foreign company on the basis of Place of Effective
Management (POEM) is proposed to be deferred by one year.
# Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
# Exemption of service tax on services provided under Deen Dayal Upadhyay
Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled
by Ministry of Skill Development & Entrepreneurship.
# Exemption of Service tax on general insurance services provided under
‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare
of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disability.
# Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.
MAKE IN INDIA
# Changes in customs and excise duty rates on certain inputs to reduce costs and
improve competitiveness of domestic industry in sectors like Information technology
hardware, capital goods, defence production, textiles, mineral fuels & mineral oils,
chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair
and overhauling [MRO] of aircrafts and ship repair.
MOVING TOWARDS A PENSIONED SOCIETY
# Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the
case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will
not be taxable.
# In case of superannuation funds and recognized provident funds, including EPF, the
same norm of 40% of corpus to be tax free will apply in respect of corpus created
out of contributions made on or from 1.4.2016.
# Limit for contribution of employer in recognized Provident and Superannuation
Fund of `1.5 lakh per annum for taking tax beneit. Exemption from service tax for
Annuity services provided by NPS and Services provided by EPFO to employees.
# Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to
1.4% of the premium paid in certain cases.
PROMOTING AFFORDABLE HOUSING
# 100% deduction for proits to an undertaking in housing project for lats upto30 sq.
metres in four metro cities and 60 sq. metres in other cities, approved during June
2016 to March 2019 and completed in three years. MAT to apply.
# Deduction for additional interest of `50,000 per annum for loans up to `35 lakh
sanctioned in 2016-17 for irst time home buyers, where house cost does not exceed
`50 lakh.
# Distribution made out of income of SPV to the REITs and INVITs having speciied
shareholding will not be subjected to Dividend Distribution Tax, in respect of
dividend distributed after the speciied date.
# Exemption from service tax on construction of affordable houses up to 60 square
metres under any scheme of the Central or State Government including PPP Schemes.
# Extend excise duty exemption, presently available to Concrete Mix manufactured at
site for use in construction work to Ready Mix Concrete.
RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND
CLEAN ENVIRONMENT
# Additional tax at the rate of 10% of gross amount of dividend will be payable by the
recipients receiving dividend in excess of `10 lakh per annum.
@Mahendra’s 21 MASTER IN BUDGET 2016-17
of its income in respect of provision for bad and doubtful debts.
# Determination of residency of foreign company on the basis of Place of Effective
Management (POEM) is proposed to be deferred by one year.
# Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
# Exemption of service tax on services provided under Deen Dayal Upadhyay
Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled
by Ministry of Skill Development & Entrepreneurship.
# Exemption of Service tax on general insurance services provided under
‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare
of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple
Disability.
# Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.
MAKE IN INDIA
# Changes in customs and excise duty rates on certain inputs to reduce costs and
improve competitiveness of domestic industry in sectors like Information technology
hardware, capital goods, defence production, textiles, mineral fuels & mineral oils,
chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair
and overhauling [MRO] of aircrafts and ship repair.
MOVING TOWARDS A PENSIONED SOCIETY
# Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the
case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will
not be taxable.
# In case of superannuation funds and recognized provident funds, including EPF, the
same norm of 40% of corpus to be tax free will apply in respect of corpus created
out of contributions made on or from 1.4.2016.
# Limit for contribution of employer in recognized Provident and Superannuation
Fund of `1.5 lakh per annum for taking tax beneit. Exemption from service tax for
Annuity services provided by NPS and Services provided by EPFO to employees.
# Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to
1.4% of the premium paid in certain cases.
PROMOTING AFFORDABLE HOUSING
# 100% deduction for proits to an undertaking in housing project for lats upto30 sq.
metres in four metro cities and 60 sq. metres in other cities, approved during June
2016 to March 2019 and completed in three years. MAT to apply.
# Deduction for additional interest of `50,000 per annum for loans up to `35 lakh
sanctioned in 2016-17 for irst time home buyers, where house cost does not exceed
`50 lakh.
# Distribution made out of income of SPV to the REITs and INVITs having speciied
shareholding will not be subjected to Dividend Distribution Tax, in respect of
dividend distributed after the speciied date.
# Exemption from service tax on construction of affordable houses up to 60 square
metres under any scheme of the Central or State Government including PPP Schemes.
# Extend excise duty exemption, presently available to Concrete Mix manufactured at
site for use in construction work to Ready Mix Concrete.
RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND
CLEAN ENVIRONMENT
# Additional tax at the rate of 10% of gross amount of dividend will be payable by the
recipients receiving dividend in excess of `10 lakh per annum.
@Mahendra’s 21 MASTER IN BUDGET 2016-17
