Immediate update on direct tax changes from the budget speech

financial budget speech
financial budget speech

update on direct tax

Immediate update on direct tax changes from the budget speech 

1. Real estate – double taxation in respect of immovable property. No adjustment where 5% difference is there.

2. MSME – Corporate tax rate 25% to companies having T/o under Rs. 250 crore in FY 2016-17. Revenue foregone Rs. 7000 crore FY 18-19.

3. Salaried tax payers – No changes in structure. Salaried taxpayer – standard deduction of Rs. 40,000/- in lieu of transport and reimbursement of medical expenses.

4. Senior citizens – exemption of interest income from FD / RD increased to Rs. 50,000. No TDS u/s 194A for this. Health insurance deduction from Rs. 30,000 to Rs. 50,000.

5. Rs. 1,00,000/- deduction u/s 80DDB for critical illnesses for senior and very senior citizens

6. Payment exceeding Rs. 10,000 in cash disallowed for Trusts. Non-deduction of TDS would be disallowed @ 30%

7. LTCG tax – Tax LTCG exceeding Rs. 1,00,000/- @ 10% w/o indexation. All gains upto 31.1.18 grand fathered. STCG normal 15%. Tax on distributed income by EOF @ 15%.

8. Increase cess by 1%. Total cess @ 4% health and education cess

9. E assessment – to be expanded

update on direct tax

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