Page 22 - MASTER IN BUDGET
P. 22
# Surcharge to be raised from 12% to 15% on persons, other than companies, irms
and cooperative societies having income above `1 crore.
# Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding
value of `10 lakh and purchase of goods and services in cash exceeding `2 lakh.
# Securities Transaction tax in case of ‘Options’ is proposed to be increased from
.017% to .05%.
# Equalization levy of 6% of gross amount for payment made to non-residents
exceeding `1 lakh a year in case of B2B transactions.
# Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016. Proceeds
would be exclusively used for inancing initiatives for improvement of agriculture
and welfare of farmers. Input tax credit of this cess will be available for payment of
this cess.
# Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of
certain capacity and 4% on other higher engine capacity vehicles and SUVs. No
credit of this cess will be available nor credit of any other tax or duty be utilized for
paying this cess.
# Excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles
of jewellery [excluding silver jewellery, other than studded with diamonds and some
other precious stones], with a higher exemption and eligibility limits of `6 crores
and `12 crores respectively.
# Excise on readymade garments with retail price of `1000 or more raised to 2%
without input tax credit or 12.5% with input tax credit.
# ‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment
Cess’ and rate increased from `200 per tonne to `400 per tonne.
# Excise duties on various tobacco products other than beedi raised by about 10 to 15%.
# Assignment of right to use the spectrum and its transfers has been deducted as a
service leviable to service tax and not sale of intangible goods.
PROVIDING CERTAINITY IN TAXATION
# Committed to providing a stable and predictable taxation regime and reduce black money.
# Domestic taxpayers can declare undisclosed income or such income represented
in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty
at 7.5%, which is a total of 45% of the undisclosed income. Declarants will have
immunity from prosecution.
# Surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan
surcharge to be used for agriculture and rural economy.
# New Dispute Resolution Scheme to be introduced. No penalty in respect of cases
with disputed tax up to `10 lakh. Cases with disputed tax exceeding `10 lakh to be
subjected to 25% of the minimum of the imposable penalty. Any pending appeal
against a penalty order can also be settled by paying 25% of the minimum of the
imposable penalty and tax interest on quantum addition.
# High Level Committee chaired by Revenue Secretary to oversee fresh cases where
assessing oficer applies the retrospective amendment.
# One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.
# Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax
where there is misreporting of facts.
# Disallowance will be limited to 1% of the average monthly value of investments
yielding exempt income, but not exceeding the actual expenditure claimed under
rule 8D of Section 14A of Income Tax Act.
@Mahendra’s 22 MASTER IN BUDGET 2016-17
and cooperative societies having income above `1 crore.
# Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding
value of `10 lakh and purchase of goods and services in cash exceeding `2 lakh.
# Securities Transaction tax in case of ‘Options’ is proposed to be increased from
.017% to .05%.
# Equalization levy of 6% of gross amount for payment made to non-residents
exceeding `1 lakh a year in case of B2B transactions.
# Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016. Proceeds
would be exclusively used for inancing initiatives for improvement of agriculture
and welfare of farmers. Input tax credit of this cess will be available for payment of
this cess.
# Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of
certain capacity and 4% on other higher engine capacity vehicles and SUVs. No
credit of this cess will be available nor credit of any other tax or duty be utilized for
paying this cess.
# Excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles
of jewellery [excluding silver jewellery, other than studded with diamonds and some
other precious stones], with a higher exemption and eligibility limits of `6 crores
and `12 crores respectively.
# Excise on readymade garments with retail price of `1000 or more raised to 2%
without input tax credit or 12.5% with input tax credit.
# ‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment
Cess’ and rate increased from `200 per tonne to `400 per tonne.
# Excise duties on various tobacco products other than beedi raised by about 10 to 15%.
# Assignment of right to use the spectrum and its transfers has been deducted as a
service leviable to service tax and not sale of intangible goods.
PROVIDING CERTAINITY IN TAXATION
# Committed to providing a stable and predictable taxation regime and reduce black money.
# Domestic taxpayers can declare undisclosed income or such income represented
in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty
at 7.5%, which is a total of 45% of the undisclosed income. Declarants will have
immunity from prosecution.
# Surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan
surcharge to be used for agriculture and rural economy.
# New Dispute Resolution Scheme to be introduced. No penalty in respect of cases
with disputed tax up to `10 lakh. Cases with disputed tax exceeding `10 lakh to be
subjected to 25% of the minimum of the imposable penalty. Any pending appeal
against a penalty order can also be settled by paying 25% of the minimum of the
imposable penalty and tax interest on quantum addition.
# High Level Committee chaired by Revenue Secretary to oversee fresh cases where
assessing oficer applies the retrospective amendment.
# One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.
# Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax
where there is misreporting of facts.
# Disallowance will be limited to 1% of the average monthly value of investments
yielding exempt income, but not exceeding the actual expenditure claimed under
rule 8D of Section 14A of Income Tax Act.
@Mahendra’s 22 MASTER IN BUDGET 2016-17
