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Union Budget 2016-17 Live Updates: No change in Income Tax slabs, rent relief increased to Rs 60,000

By Reema Sharma | By Ajeet Kumar | Last Updated: Monday, February 29, 2016 - 13:00
Zee Media Bureau

New Delhi: While making no change in personal Income Tax slabs in the Union Budget 2016-17, Finance Minister Arun Jaitley on Monday announced deduction for additional interests of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first time home buyers, where house costs does not exceed Rs 50 lakh. 

Jaitley also proposed to increase the limit of deduction of rent paid from Rs 24,000 per annum to Rs 60,000 spelling respite to those who don’t own any house and live in rented accommodation.

For those earning less than Rs 5 lakh per annum,  FM announced to raise the ceiling of tax rebate from Rs 2000 to Rs 5000 giving an additional relief of Rs 3000 in their tax liability.

Stay tuned as we bring you live updates from the Budget.

Latest Updates

13:00 PM

-No change in Income Tax slabs

-First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost not more than Rs 50 lakh  

-Reduction of Rs 60,000 per annum for those who don’t own house and pay rent

-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-FM announces 9 objectives for tax reforms

-Tax rebate for those earning less than 5 lahk per annum

-Under 5 lakh income – rebate increased from 2000 to 5000

-Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess

-Lower Corporate tax for small companies at 29% surcharge + cess

-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt

-Presumptive tax extended for professional earning up to Rs 50 lakh

12:46 PM

-New grading system of imposing penalties - on the basis of under reporting or concealment of income

-Excise duty on Tobacco products increased by 10-15%

-Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr

-Scope of e-assessment to be expanded to 7 mega cities

-Income tax department will expand e-sahyog to assist small taxpayers

-Income tax dept. will expand e-sahyog to assist small taxpayers:

-Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019

12:40 PM

-Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties

-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts

-Tax arrears can be paid in lieu of interest liabilities  in retrospective taxation cases

-Monetary limit for cases to be decided by 1-member bench up from 15 lakh to 50 lakhs

-Incentives for new manufacturing companies and smaller enterprise companies

-11 new benches of tax tribunals to be established to reduce pendency

-To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs 50 Cr a year abolished

-Companies Act to amended for ease of doing business; to enable registration of companies in a day

-Service tax exempted for housing construction of houses less than 60 sq metres

-15% surcharge on income tax for those with incomes exceeding 1 crore pa

-I propose to lower corporate IT rate for next financial yr of relatively small enterprises companies with turnovers nt exceeding 5cr

-Krishi Kalyan Cess of 0.5% on all taxable services

-Tax evasion will be countered strongly:

-Service tax on single premium annuity to be reduced to 1.5 percent from 3.5 percent.

-10% dividend on earnings over earnings over 10 lakhs

-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

-Limited tax compliance window from Jun 1 - Sep 30 2016 for declaring undisclosed income at 45% including surcharge and penalties. There shall be no scrutiny or prosecution in this regard

-Clean energy cess increased from RS 200 per tonnne to 400 per tonnne on coal, lignite and peat

-Move towards a low tax regime with non litigious approach

-Committed to provide a stable and predictable taxation regime

 

12:29 PM

-PM Awas Yojna: 100% deduction for profits of undertakings from housing projects in cities during June 2016 - March 2019

-MAT will apply for such undertakings

-Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

-Incentives for new manufacturing companies and smaller enterprise companies

-Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana

 

12:19 PM

-Hike in to limit from 1 to 2 crore on small business assess in MSME category.

-Presumptive income of 8% Committed to increase investment in asset reconstruction companies

-Special Patent Regime proposed to power innovation and research

Corporate income tax:

-Incentives for new manufacturing companies and relatively small enterprise companies

-Committed to implementing GAAR from April 1, 2017

-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.

-Accelerated depreciation to be limited to 40% wef from Apr 1, 2017

 

12:16 PM

-Relief to those who living on rent - Rent deduction raised from Rs 24,000 to Rs 60,000

-Revenue deficit estimate for FY 2015-16 down to 2.5% from earlier estimates

Fiscal deficit for Financial Year 2016-'17 targeted at 3.5%

-Govt acknowledges role of tax payer in nation building

-Taxation is a major tool to remove poverty and inequality in the society'

-Tax ceiling has been raised from 2000 to 5000 rupees for those earning less than Rs 5 lakh ruppes pa

-Relief to those who living on rent - Rent deduction raised from Rs 24,000 to Rs 60,000

 

12:08 PM

-The fiscal target will be retained at 3.9 for 2015-16, and 3.5 for 2016-17

-Plan and non-plan classification of govt expenditure will be done away with

-FRBM Act has been under implementation for the past decade, a school of though now feels that instead of a fixed figure, there should a range based target for managing fiscal deficit

-Direct benefit transfer scheme will be implemented for disbursal of fertilizer subsidy  on a pilot basis

-Govt stands firmly behind public sector banks, Rs 25k crore for bank recapitalisation

-Buffer stock of pulses will be created; 900 crore rupees for Market Stabilization Fund for Pulses

-Govt stands firmly behind public sector banks Rs25k crore for bank recapitalisation

-Govt will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in passenger segment

-Public Money should reach the poor and deserving without any leakage

-A bill on targeted delivery of financial services using Aadhar to be introduced

12:00 PM

-SEBI act to be amended to provide more benches on the security appellate tribunal

-Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill in 2017

-Number of measures to be undertaken to deepen corporate bond market

-RBI Act being amended to provide statutory basis for monetary policy framework

-Process of transformation of IDBI has already started, govt will reduce its stake below 50%

-PM Mudra Yojna amount snactioned has reached Rs 1 Lakh crore, next year's target is 1,80,000 crore

-Nationwide of ATMS, micro-ATMs across the country

-General Insurance companies owned by the govt will be listed in the stock exchanges

-Task force has been constituted to rationalize the human resources in various ministries has been instituted

-AADHAR NO will not be a proof of citizenship or domicile

 

11:55 AM

-Public Utility Resolution of Disputes Bill for resolution of disputes in infra sector

-Guidelines of renegotiating PPP contracts will be introduced

-New credit rating system for infrastructure

-Considering to incentivize gas production from deep sea, ultra deep water and high temp. areas

-3000 crore rupees earmarked for nuclear power generation

-100% FDI through FAPB route in marketing of food products produced and manufactured in India

-Will encourage CPSEs to sell their assets like land

-Dept of Disinvestment to be renamed as Dept. of Investment and Public Asset Management

-RBI Act being amended to provide statutory basis for monetary policy framework

-Financial Data Management Centre for integrated data collection and analysis

 

11:47 AM

-3,500 medical stores to be opened under Pradhan Mantri Jan Aushodi Yojana

-Retail trade is largest service sector employer in country. Many more jobs are created in this, provided the regulations are simplified:

-Shops will be given an option to remain open on all seven days

-85% of stalled road projects back on track

-Total of Rs 97000 crore will be spend on roads and highways

-Rs 218000 crore investment in roads and railways in 2016-17

-10000 kms of national highways in 2016-17

-Additional 50000 kms of state highways will be taken up for up gradation as national highway

-Series of measures to modernize ports

-800 cr for inland waterways

-Action plan for revival of unserved and underserved airports

-Will partner with state govt to develop some of these airports to enhance regional connectivity

 

First Published: Monday, February 29, 2016 - 13:05
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