Glimpses of Budget 2016

March 26, 2016

lf your income is less than Rs. 5 lakh, you will get a tax rebate of Rs.5,000 under Section 87A. Currently, the tax rebate is Rs. 2,000.

If you do not have a house of your own and you do not get any house rent allowance from your employer, you can claim a deduction of Rs. 60,000. 00 under Section 80GG. At the moment, this Limit is Rs. 24,000.

A National Pension System (NPS) subscriber can withdraw up to 40 per cent of the accumulated corpus tax free .At the moment, withdrawals are taxed at the income-tax slab applicable to the subscriber.

Service tax on single-premium annuity (insurance) policies has been reduced to 1.4 per cent from 3.5 per cent of the premium.

First-time home buyers can claim an additional deduction of Rs.50,000.00 on interest paid for loans up to Rs.35 lakh sanctioned during the next financial year, provided the value of the house does not exceed Rs.50 lakh.

Individuals, HUFs and firms receiving dividends of more than Rs.10 lakh per annum will have to pay 10 per cent tax on the gross amount of dividend.

lncome-tax surcharge has been raised from 12 per cent to 15 per cent on those with income of above Rs.1 crore.

Purchase of luxury cars above Rs.10 lakh and purchase of goods and services in cash exceeding Rs.2 lakh will attract 1 per cent tax deducted at source (TDS).

Securities transaction tax on options has been increased from 0.017 per cent to 0.05 per cent.

Krishi Kalyan Cess of 0.5 per cent on all taxable services from June 1, 2016.

Infrastructure cess of 1 per cent on small petrol, LPG, CNG cars; 2.5 per cent on diesel cars of certain capacity; and 4 per cent on other higher-engine-capacity vehicles.

Non-residents need not pay a higher TDS if they provide documents alternative to the PAN card.