Budget Highlights - Quick review

[CS Swati Dodhi]

Corporate Tax Rate reduced to 25% for over next four years

Exemptions For Individual Tax Players To Continue

Yoga to be included as Charitable Purpose

To Enact New Law For Black Money

Concealment of income will attract 10 yrs of rigorous imprisonment

Stringent penalties and jail for Black Money holders and evaders

Benami property transaction bill to tackle black money transaction in real estate soon

Foreign Exchange Management Act To Allow For Seizure Of Foreign Assets

FEMA Act to be amended to incorporate Black Money provisions: Finance Minister

To Allow Tax Pass-through For Alternative Investment Funds

To Tighten Reporting Of Cash Transactions

To Have Benami Transaction Prohibition Bill For Domestic Black Money

Quoting PAN a must for all purchases above One Lakh

100% deduction allowed for all contributions in Swachh Bharat Abhiyan [except contribution in CSR]

Proposes to rationalise capital gains tax regime for real estate investment trusts

TO DEFER GAAR BY 2 YEARS

Tax pass through to be allowed in alternative investment funds to boost small firms, startups

Propose To Rationalise Capital Gains Regime For REITs/InvITs

TO REDUCE CUSTOMS DUTY ON 22 ITEMS

Rental Income from REITS to have pass through facility

Income Tax On Royalty Fees For Technical Reduced To 10%

TO ABOLISH WEATH TAX;

2% ADDL SURCHARGE ON SUPER-RICH

Reduced taxes on Technical Services to 10% from 25%

Tax reduce for foot wear above 1k per pair

Service Tax increased to 14%

80D Health insurance 15000 to 25000
For senior citizens 30000

80DDB increased to 80000

Wealth Tax abolished

Tax on royalty income decrease from 25% to 10%

Transport Allowance exemption increased to 1600 pm

Domestic Transfer Pricing limit increased from 5crores to 20 crores

Discussions to this article

[Mathurthi RamKumar]

What is Transport Allowance exemption increased to 1600 pm?

[CA. Surender Gupta]

Yes it is proposed to be increased from ₹ 800/- to ₹ 1600/- pm

[CS Swati Dodhi]

Transport Allowance Exemption - Allowance to salaried personnel

The hike in the tax-free transport allowance limit from ₹ 800 to ₹ 1,600 a month will cut tax by ₹ 2,966 in the highest 30% tax bracket. The tax cut will be lower at ₹ 1,978 in the 20% tax bracket. In the lowest 10% bracket (those earning up to ₹ 5 lakh), the tax cut will be limited to ₹ 989, or just ₹ 82 per month.