BUDGET 2015-2016

HIGHLIGHTS

Presented By,

CA Shrikrishna Barure

DIRECT TAXES

Individual

No change in tax slabs.

Total exemption of up to Rs. 4,44,200 can be achieved.

Limit of deduction of health insurance premium increased from `15000

to ` 25000,for senior citizens limit increased from `20000 to `30000.

Wealth-tax replaced with additional surcharge of 2 per cent on super

rich with a taxable income of over `1 crore annually..

Limit on deduction on account of contribution to a pension fund and

the new pension scheme increased from ` 1 lakh to `1.5 lakh

DIRECT TAXES

Individual

Transport allowance doubled from Rs 800 to Rs 1600 per month.

. EPF-Employees contribution to the EPF should be optional.

Corporate Tax:

As a major boost to industry, reduced corporate tax rate to 25 percent from 30

percent earlier for the next 4 years. The FM said he will rationalise & remove

exemptions for corporates in the next 4 years

Income tax slabs for individual

(Male/Female)/HUF taxpayers:

Income slab

( 2014-15)

Income slab

( 2015-16)

Rates of

Income Tax

Upto Rs. 2,50,000 Upto Rs. 2,50,000 Nil

Rs. 2,50,001 to Rs.

5,00,000

Rs. 2,50,001 to Rs. 5,00,000 10%

Rs. 5,00,001 to Rs.

10,00,000

Rs. 5,00,001 to Rs.

10,00,000

20%

Above Rs. 10,00,000 Above Rs. 10,00,000 30%

Income tax slabs for senior citizens:

Age Group

60-80yrs

Age Group

80yrs and above

Rates of

Income Tax

Upto Rs. 3,00,000 Upto Rs. 5,00,000 Nil

Rs. 3,00,001 to Rs.

5,00,000

10%

Rs. 5,00,001 to Rs.

10,00,000

Rs. 5,00,001 to Rs.

10,00,000

20%

Above Rs. 10,00,000 Above Rs. 10,00,000 30%

INDIRECT TAXESSERVICE TAX

Service Tax Rate:

The rate of Service Tax is being increased from 12% plus Education Cesses to

14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall

be subsumed in the revised rate of Service Tax. Thus, the effective increase

in Service Tax rate will be from the existing rate of 12.36% (inclusive of

cesses) to 14%, subsuming the cesses.

The new Service Tax rate shall come into effect from a date to be notified by

the Central Government after the enactment of the Finance Bill, 2015.

Enabling provision for levy of “Swachh Bharat Cess”:

The Central Government to impose a Swachh Bharat Cess on all or any of the

taxable services at a rate of 2% on the value of such taxable services. This cess shall

be levied from such date as may be notified by the Central Government after the

enactment of the Finance Bill, 2015.

Goods Transport Agency(GTA):-

At present, service tax is payable on 30% of the value of rail transport for goods and

passengers, 25% of the value of goods transport by road by a goods transport

agency and 40% for goods transport by vessels. The conditions prescribed also

vary.

A uniform abatement is now being prescribed for transport by rail, road and vessel

and Service Tax shall be payable on 30% of the value of such service subject to a

uniform condition of non-availment of Cenvat Credit on inputs, capital goods and

input services.

Abatements

Manpower supply and security services when provided by an individual,

HUF, or partnership firm to a body corporate are being brought to full

reverse charge. Presently, these are taxed under partial reverse charge

mechanism.

Reverse Charge Mechanism

Rule 4(7) is being amended to allow Cenvat Credit of Service Tax paid

under partial reverse charge by the service receiver without linking it

to the payment to the service provider. This change will come into effect

from 1.4.2015.

The period for taking Cenvat Credit is being extended from six months

from the date of invoice to one year from the date of invoice.

Changes to CENVAT Credit Rules

EXCISE DUTY

AMENDMENTS IN THE FIRST SCHEDULE TO THE CENTRAL EXCISE TARIFF

ACT, 1985:

Education Cess and Secondary & Higher Education Cess leviable on excisable

goods are being fully exempted.

Simultaneously, the standard ad valorem rate of duty of excise (i.e. CENVAT) is

being increased from 12% to 12.5%.

General

GST to be in place by April 1, 2016.

Quoting PAN Made

mandatory for any sale

exceeding Rs.1 lakh.

BUDGET HIGHLIGHTS PRESENTATION BY :-

CA.Shrikrishna BarurePune | Maharashtra | India E-mail; shribarure@gmail.com