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Limit of Deduction of Rent Increased from ₹ 24000 to ₹ 60000

Budget - Dated:- 29-2-2016 - 100% Deduction of Profits for 3 out of 5 Years for Start-Ups withdrawal upto 40% of the Corpus to be Tax-Free at the time of Retirement Deduction of Additional Interest of ₹ 50,000 Per Annum for First-Time Home buyers New Dispute Resolution Scheme to be Introduced Thirteen Cesses Levied by Various Ministries having Revenue Collection less than ₹ 50 Crore to be Abolished E-Sahyog and E-Assessment to be Expanded Further 100% Deductions for Profits to an und .....

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s for promoting affordable housing (6) Additional resource mobilization for agriculture, rural economy and clean environment (7) Reducing litigation and providing certainty in taxation (8) Simplification and rationalization of taxation (9) Use of technology for creating accountability. Announcing relief to small tax payers Shri Jaitley proposed to raise the ceiling of tax rebate U/s. 87A from ₹ 2000 to ₹ 5000. With this, individuals having income up to ₹ 5 lakh will get a relie .....

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taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to ₹ 50 lakh. Announcing the measures to boost growth and employment generation Shri Arun Jaitley said that the accelerated depreciation provided under IT Act will be limited to maximum 40% from 1st April 2017. The benefit of deductions for research would be limited to 150% from 1st April 2017 and 100% from 1st April 2020. The benefit of Section 10-AA to new SEZ units will be available to those units whic .....

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rther proposed to lower the Corporate Tax rate for the next financial year for relatively small enterprises i.e., companies with turnover not exceeding ₹ 5 crore (in the financial year ending March 15), to 29% +Surcharge and Cess. Recognizing the importance of start-ups in employment generation and as key partners in Make in India programme, Shri Jaitley proposed 100% deduction of profits for three out of five years for start-ups set up during April 2016 to March 2019 entailing MAT liabili .....

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s. Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts. Shri Jaitley said that determination of residency of foreign company on the basis of place of effective management (POEM) will be deferred by one year and reiterated commitment to implement General Anti Avoidance Rules (GAARs). He further proposed exemption of Service Tax on services provided under Deen Dayal Upadhyay Gramin Kaushalya Yojana and .....

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a campaign of the Government Shri Arun Jaitley proposed 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 and Mineral Oils, Chemicals and Petrochemicals, Paper, Paperboard and Newsprint, Maintenance Repair and Overhauling (MRO) of aircraft and ship repair. Announcing measures for pensioners Shri Arun Jaitley said tha .....

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annuation fund of ₹ 1.5 lakh per annum for taking tax benefit. Exemption from Service Tax for annuity services provided by NPS and services provided by EPFO to employees will be given. He also announced reduction of Service Tax on single premium annuity (Insurance Policies) from 3.5% to 1.4% of the premium paid in certain cases. To address the housing needs of all and more specifically the poor, in a time-bound manner, Shri Arun Jaitley announced 100% deduction for profits to an undertakin .....

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t of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax (DDT), in respect of dividend distributed after the specified date. Shri Jaitley also proposed to exempt Service Tax on construction of affordable housing up to 60 sq. mtrs. under any scheme of the Central or State Government including PPP Schemes. He also proposed Excise Duty exemption presently available to concrete mix manufactured at site for use in construction work to .....

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chase of luxury cars exceeding value of ₹ 10 lakh and purchase of goods and services in cash exceeding ₹ 2 lakh. He proposed to increase security transaction tax in case of Options from 0.017 to 0.05 per cent. Equalization levy of 6% of gross amount for payment made to non-residents exceeding ₹ 1 lakh a year in case of B2B transactions was also proposed. He further proposed Krishi Kalyan Cess @ 0.5% on all taxable services w.e.f. 1st June 2016. Proceeds from this would be exclu .....

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ed levy of 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 Crore and 12 Crore respectively. The Finance Minister further proposed to raise Excise Duty on ready-made garments with retail price of ₹ 1,000 or more to 2% without input tax credit or 12.5% with input tax credit. He also propos .....

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approach the Finance Minister desired to give an opportunity to the earlier non-compliant to move to the category of compliant. He reiterated government s commitment to provide a stable and predictable taxation regime and reduce black money. Shri Arun Jaitley announced that domestic tax payers 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. Such .....

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so be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition, he said. Shri Jaitley announced a High Level Committee chaired by Revenue Secretary to oversee fresh cases where Assessing Officer applied the retrospective amendment. In case of mis-reporting of facts, the Finance Minister proposed penalty rates of 200% of tax and 50% penalty in case of under-reporting of income. He said this allowance will be limited to 1% of the average monthly value of i .....

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ing an appeal by a single member Bench of ITAT will be enhanced from ₹ 15 lakh to ₹ 50 lakh. He also announced creation of 11 new Benches of Customs, Excise and Service Tax, Appellate Tribunal (CESTAT) to remove backlog of cases. Stressing on simplification and rationalization of taxation the Finance Minister said that 13 cesses, levied by various Ministries in which revenue collection is less than ₹ 50 Crore, will be abolished. For non residents providing alternative documents .....

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