LIVE BUDGET 2016.

FM speech Started.

New Three Scheme
Farmer Insurance
Health Insurance
BPL with cooking gas

Budget 2016 built on 9 pillars

1) Agri/Farm and welfare
2) Rural Focus
3) Social Healthcare
4) Education and Job creation
5) Investments to improve quality of Life
6) Infratructure Focus
7) Ease of Business
8) Fiscal discipline
9) Tax Reforms

Agriculture & Farmer Welfare
Target to double the income of farmer in

Rural Economy
Aid to Gram Panchayat
National digital land record system

Social Healthcare
BPL – LPG – Women connection
Health cover upto one lakh
National dialysis center – exempt from Income tax
Promote enter-reship for SC/ST

Education and Job creation
Digital depository of certificates
will pay EPF contribution of 8.33% for all new employees for 1st three years – three years payment – salary upto Rs. 15000

Section 80JJA – all assesse under tax audit – reduction from 300 to 240 with conditions
Retails shops can be opened in all 7 days.

Investments to improve quality of Life / Infrastructure Focus
Abolition of state permit vehicle
Road transport in passenger segment to be opened up to private sector
100% FDI on food processing industry.

Fiscal discipline
Deal with bankruptcy & Discipline
Proposed to amend SEBI Laws
Re-capitilsation of PSU Bank.

Ease of Business
DBT on fertilizers
Fair price shop

Fiscal discipline

Tax reforms

Relief for taxpayer 87A – relief from 2K to 5K
No house/ No HRA – 80GG – Rs. 24K to 60K
Presumptive tax – 44AD – 1Cr. To 2 Cr. – Tax Audit – 8%
Extend all professional 50 L with Profit with 50%
Reduce corporate tax
Accelerate depreciation 40%
R&D
10AA – SEZ – activity – 1.4.2020
80JJA – 1.4.2020
The new manufacturing company 1.4.2016 – option of tax 25% – no special deduction
Turnover not less than 5 Cr – 29%
No tax on notified startup for three years
Patent – 10% tax
LTCG – 2years from 3 years
POEM – deferred by one year
GAAR – 1.4.2017
BEPS – CBC – Euro 750

Service tax – exemption – few government scheme
Changes in custom rate & Excise rate

NPS – 40% tax free – retirement

Super – Anuation – 40% tax free – retirement

100% profit – Housing projects – 60 Sqm – approved – MAT Applicable

Additional 50K – Interest – Loan 35K – Value of Home 50K

DDT – additional 10% in excess of INR 10Lakh ( Other than company)

Exempt Service tax upto House 60Sq

Increase of surcharge from 12% to 15% with income exceeds 1 Cr. (Other than company)

Rate of STT for options increased

Online foreign advertisement – 6% WHT – B2B

Krishi kalyan ce Cess – 1.4.2016 – 5%

Pollution cess on new cars

Limited – Undisclosed Income – tax @ 30% – 45% (Window) 6.2016- 30.09.16

Settlement of cases pending before CIT – Appeal.

Retrospective amendment – indirect transfer – pay tax –waive interest and penalty

Reduce in penalty rates

14A – change in rule 8D . – cannot exceeds expenditure

Cenvat credit rule 2004- related to apportionment of exempted and non exempted

Rationatisation of TDS Provision

Higher rate not apply for Non resident – No PAN

ITO accountable for delays beyond 90 days under E Sahyog.