In
a Union Budget that clearly indicated a shift in focus to the rural
economy, Finance Minister Arun Jaitley introduced a slew of taxes and
cess to be imposed on services to help rural welfare programmes.
Islami
Tijara takes a look at some of the highlights from the tax proposals in the
Union Budget 2016-17.
1.
Income
tax remains unchanged
Income
tax slabs for the financial year 2016-17 has remained unchanged, the finance
minister announced in the Parliament today.
2.
House
rent allowance cheer
Jaitley
said that the tax exemption for house rent allowance will be raised to Rs
60,000 from the current Rs 24,000-level. The move is likely to bring in
relief to the common man.
3.
Service
tax
The
government, in the Union Budget for 2016-17, decided to keep service
tax rates unchanged at 14.5% (14% service tax + 0.5% Swacch Bharat Cess) Certain
announcements also ensured there were some ‘taxing times’ ahead for the common
man.
4.
Buying
a car costlier now
An
additional 1% tax on luxury cars above Rs 10 lakh was imposed by the Centre in
the Union Budget today. The Centre also imposed an additional infrastructure
cess of 1% on small petrol cars and a 2.5% cess on diesel cars.
5.
Krishi
Kalyan Tax
Jaitley
announced a 5% tax on all taxable services under the Krishi Kalyan tax in a bid
to benefit the farming community.
6.
Cigarettes
to cost more
Excise
duties on various tobacco products other than beedi have been raised by about
10 to 15%, Jaitley said in the Parliament.
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