- Investment allowance for high value investments, for investments above Rs 100 Cr. will get 15% more deduction in addition to depreciation. Investment allowance for investments made between FY 13-15.
- No change in tax slab or rate.
- For Rs. 2 lakh to Rs. 5 lakh income slab, tax credit of Rs. 2000 to be provided, 1.8 cr tax payers to benefit.
- Individuals – 10% surcharge on taxable income above Rs. 1cr.
- Liberalized Rajiv Gandhi Equity scheme, Extended to investments in Mutual Funds. Eligible people to include people with income upto INR 12Lacs.
- Corporate tax surcharge, DDT surcharge increase from 5% to 10% Education cess to continue @ 3%.
- Foreign Cos – surcharge to increase from 2.5% to 5%
- 80IA benefit for power sector extended by 1 year.
- Securitisation trust to be exempt from income tax.
- Lower tax on dividend from foreign subsidiary to continue @ 15% for 1 more year;
- No DDT on further distribution to shareholders.
- Pass through status for AIF (angel investors) and specified funds
- 1% TDS on transfer of immovable properties above Rs. 50 lakhs
- 20% TDS on profit distribution by unlisted companies through share buy-back…. FM says this has become a tax avoidance route.
- Royalty & FTS rate for payment to Non-residents to be increased from 10% to 25%, subject to DTAA provisions.
- Commodities Transaction Tax on non-agro futures at 0.01%. CTT will be treated as non-speculative, will be allowed as deduction.
GAAR to be effective from 1 April 2016.
- Propose to incorporate Govt acceptance of Shome committee recommendations on GAAR.
- Safe harbour rules will be issued soon. Separate circular on Taxation of Development Center based on Rangachary Committe report to be issued soon.
- DTC is work in progress.
- DTC intended to be new code, in line with best international practices… FM says will work with Standing Committee and will endeavour to bring DTC bill in budget session itself!
- Tinckering with STT rates
- FM again gives thrust to FDI, says doing business in India must be seen as easy, friendly and mutually beneficial.
- Tax free bonds limit doubled from 25k cr to 50k cr
- Tax Administration Reforms Commission to review tax policy and tax laws.