Wednesday, 2 March 2016

Budget 2016 Highlights


  1. FM proposes to amend Companies Act, 2013,
  2. FM proposes to amend RBI Act, suggests committee-based approach which will add transparency to the monetary policy decisions,
  3. Comprehensive code of bankruptcy resolution of financial firms will be introduced as a Bill in 2017,
  4. 100% FDI in marketing of food products produced and manufactured in India,
  5. StandUpIndia scheme allocated Rs.500 Crore for SC, ST & women entrepreneurs,
  6. Proposal to amend SEBI Act for providing more Securities Appellate Tribunal,
  7. Suggestion to introduce comprehensive framework for SEBI CIS Regulation
  8. Indian Patent box - 10% tax rate on income from specified patent exploitation
  9. Limited period compliance window for domestic taxpayers to declare past transgressions at total 45% tax (including interest & penalty)
  10. POEM deferred by 1 year
  11. No deferral of GAAR, to kick in from April 2017
  12. Entire scheme of penalty revisited. Different penalty rate for different classes of mis-demeanors. Minimum penalty rate brought down to 50%. 
  13. Retro panel committee to be headed by Revenue Secy
  14. One time scheme for cases pursuant to retro panel - Drop litigation, drop arbitration. Pay tax arrears, Interest & penalty to be waived.
  15. Rule 8D formula rationalised. 
  16. Proposes to rationalise TDS provisions for smaller taxpayers.
  17. E-assessments for all taxpayers in 7 mega cities
  18. Propose to accept large no. of recommendations of Justice Easwar committee in this budget.
  19. Sunset date for SEZ tax incentives – 2020
  20. In addition to DDT, 10% dividend tax in hands of recipient on dividend income above Rs.  10 lacs
  21. New dispute resolution mechanism announced, offer extended to taxpayers to settle disputes.
  22. Tax incentive for cos engaged in affordable housing construction
  23. WHT introduced on e-commerce advertisements; 6% equalization levy on b2b transactions on online advts
  24. CBC reporting guidelines introduced
  25. Long term capital gains on shares - holding period for unlisted companies to be reduced from 3 yrs to 2 yrs
  26. Presumptive taxation scheme turnover limit increased to Rs. 2cr. 
  27. For Professionals, presumptive taxation scheme turnover limit at Rs. 50 lacs
  28. Accelerated depreciation to be limited to 40% from Apr 2017
  29. Benefit of weighted R&D to be limited to 150% & then 100%
  30. Weighted deduction u/s 35CCD to continue till 2020
  31. New manufacturing cos. incorporated after Apr 2016, to be taxed at 25%
  32. Smaller cos with turnover below 5cr to be taxed at 29% tax
  33. For start-ups, 3 year tax holiday if incorporated between 2016 - 2019 but MAT to apply
  34. NPS - Withdrawal of 40% at the time of retirement exempt
  35. REIT taxation rationalised on dividend distribution by SPVs 
  36. Additional Rs 50,000 interest deduction for first time home buyers, for house cost upto Rs. 50 lacs
  37. Luxury tax on cars costing above 10 lacs
  38. Minor increase in STT for Options
  39. CENVAT credit rules to be rationalised.
  40. 13 different cesses to be abolished
  41. Sec. 206AA to be amended, instead of PAN, foreign tax registration sufficient
  42. Revenue loss of Rs 1,000 cr due to direct tax proposals. Revenue gain of Rs. 20,000 cr on account of indirect tax prop           
  43. Jaitley's speech on budget focused on
    •           Excise duty on tobacco products up by 10-15%
    •           Withdrawal from NPS on maturity made tax-free upto 40%
    •           Tax rebate for persons with income upto Rs 5L increased by Rs 3K
    •           Total outlay for roads and railways to be Rs 2,18,000 cr
    •           Modi government plans to skill 1 crore youth in next 3 years
    •           Govt to build 10,000 kms of national highways in FY17
    •           FM allocates Rs 500 crore to support SC/ST, women entrepreneurs
    •           Govt to pay for new employees for first 3 yrs of employment
    •           Power tariffs to go up as coal cess doubled
    •           Mkt rebounds: Sensex rallies over 150 pts, Nifty50 above 7,050
    •           Roads and highways to get Rs 97,000 crore boost
    •           Additional 5% tax on all taxable services under Krishi Kalyan Tax
    •           Increase HRA to 60,000 per annum
    •           Will reduce burden of tax for small tax payers
    •           Tax rebate those under Rs 5 lakh/year
    •           Relief for those who stay in rented houses
    •           Tax benefits for start-ups announced
    •           Calibrated approach in cutting corporate tax
    •           Impetus to food processing industry
    •           To incentivise gas production from deep sea
    •           Measures to fight bankruptcy situation in banks
    •           Comprehensive codes on financial firms
    •           SEBI to develop new derivatives
    •           New measures to fight ponzi schemes
    •           To revamp public sector banks
    •           Debt recovery tribunal to be strengthened
    •           More ATMs across India
    •           Govt lays roadmaps for consolidation of PSU banks
    •           No change in recap outlay of banks
    •           Aadhar card to be linked to social security benefit
    •           DBT to farmers for fertilisers, in some districts for now
    •           FM retains fiscal deficit targets
    •           To allow start-ups to register in one day
    •           Fiscal deficit target at 3.5%
    •           Fiscal prudence is the mantra says FM
    •           Time for review of FRBM Act
    •           FM announces tax proposals
    •           Relief to small tax payer
    •           9 point plan while drafting tax proposals 
     •    No change in recap outlay of banks
      •    FM retains fiscal deficit targets
     •    To allow start-ups to register in one  day
     •    Fiscal deficit target at 3.5%
     •    Fiscal prudence is the mantra says FM
     •    Time for review of FRBM Act
     •    FM announces tax proposals
     •    Relief to small tax payer
     •    9 point plan while drafting tax  proposals
     

 

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 परोपकाराय फलन्ति वृक्षा: परोपकाराय वहन्ति नद्यः।

 परोपकाराय दुहन्ति गावः परोपकाराय इदं शरीरम्।
   
 
 
                 
 hari krishnamurthy K. HARIHARAN)"'' When people hurt you Over and Over think of them as Sand paper.They Scratch & hurt you, but in the end you are polished and they are finished. ''"Keep away from people who try to belittle your ambitions. Small people always do that, but the really great ones make you feel that you too, can become great."- Mark Twain.
யாம் பெற்ற இன்பம் பெருக  வையகம் 
பெற்றதாய்தனை மகமறந்தாலும் பிள்ளையைப் பெறுந்தாய் மறந்தாலும்
உற்ற தேகத்தை உயிர்ம றந்தாலும் உயிரை மேவிய உடல் மறந்தாலும்
கற்றநெஞ்சம் கலைமறந்தாலும் கண்கள்நின் றிமைப்பது மறந்தாலும்
நற்றவத்தவர் உள்ளிருந்தோங்கும் நமச்சிவாயத்தை நான்மற வேனே.

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