Amidst all he hues cry ranging from forced taxes on forced savings to increase in service tax by 0.5% in the name of Krishi Kalyan Cess to increase in excise duty on branded readymade garments, aren’t we doing injustice to such a reformist budget which after a long time focusses on farmers, poors, vulnerables and middle class janta ?
It is not that I am endorsing the hike in various taxes, a lot of them needs to be debated and should be rolled back if unjustified .
All the increases made in taxes has been given a proper explanation, take for example another increase in service tax in Modi regime from 12.36% to 15% was to brace ourselves for implementation of much awaited GST whose rate shall lie between 18% to 20%. In fact, government has also increased ceiling limit for deducting Tax at source for various heads and reduces TDS rate for various heads.
I would like to present you some points briefly with respect to tax related matters which are pro ‘aam janta’.
|
Benefit |
Beneficiary |
|
Rebate u/s 87A increased from Rs 2,000 to Rs 5,000 |
2 crores tax payers in this category |
|
Deduction u/s 80GG increased from 24,000pa to Rs 60,000pa for employees who do not get House rent allowance |
Salaried class employees |
|
Benefit of presumptive taxation scheme u/s 44AD proposed to be increased from 1crores to 2 crores thus, reducing their burden of maintaining detailed accounts |
33 lakhs small and medium enterprises |
|
Benefit of presumptive taxation scheme has been extended to professional services also with gross receipts of Rs 50 lakhs with the presumprion of profit being 50% of gross receipts |
Small tax payers engaged in providing professional services |
|
Corporate income tax rate has been reduced from 30% to 29% |
Small companies with turnover not exceeding Rs 5 crores |
|
Startups to get 100% deduction in profits for 3 out of 5 years set up during April 2016 to March 2019. |
Small entrepreneurs |
|
Period of holding for long term capital gain for unlisted company has been reduced from 3 years to 2 years |
All taxpayers |
|
NBFC’s shall be eligible for for deduction upto 5% in respect of provision for bad and doubtful debts |
NBFC |
|
Service tax on Annuity services provide by National Pension Scheme and EPFO to employees shall be exempted |
Salaried Employees |
|
Waiver of penal action for taxpayer with disputed amount upto Rs 10 lakhs upto date of Assessment Year |
Small taxpayers |
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