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SUTARIA ASSOCIATES © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77 F.Y -15-16 A.Y.

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Presentation on theme: "SUTARIA ASSOCIATES © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77 F.Y -15-16 A.Y."— Presentation transcript:

1 SUTARIA ASSOCIATES © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77 F.Y A.Y

2 INCOME TAX SLAB RATES FOR INDIVIDUALS BELOW 6O YRS &HUF INCOME SLABSTAX RATES Where the taxable income does not exceed Rs. 2,50,000/-. NIL Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the taxable income exceeds Rs. 2,50,000/-. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-. Where the taxable income exceeds Rs. 10,00,000/-. 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

3 INCOME TAX SLAB RATES FOR SENIOR CITIZENS ABOVE 6O YRS INCOME SLABSTAX RATES Where the taxable income does not exceed Rs. 3,00,000/-. NIL Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the taxable income exceeds Rs. 3,00,000/-. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. 20% of the amount by which the taxable income exceeds Rs.5,00,000/-. Where the taxable income exceeds Rs. 10,00,000/-. 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

4 INCOME TAX SLAB RATES FOR SENIOR CITIZENS ABOVE 8O YRS INCOME SLABSTAX RATES Where the taxable income does not exceed Rs. 5,00,000/-. NIL Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. 20% of the amount by which the taxable income exceeds Rs.5,00,000/-. Where the taxable income exceeds Rs. 10,00,000/-. 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

5 For Registered Firm and LLP Flat rate of 30 % + Edu. 3 % of tax For Indian/Domestic Companies (including on MAT & Dividend Distribution Tax etc.) Flat rate of 30 % + 5 % + Edu. 3 % of tax For Foreign Company (other than Royalty and Technical Fees Income) Flat rate of 40 % + 2 % + Edu. 3 % of tax In all the cases marginal relief will be provided for application of surcharge. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

6 SURCHARGE It is further proposed to levy a on individuals, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities having income exceeding Rs 1 crore. Surcharge in the case of domestic companies having income exceeding Rs 1 crore and up to Rs 10 crore is proposed to be 7% and 12% is proposed to be levied on domestic companies having income exceeding Rs 10 crore. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

7 AMENDMENTS FOR INDIVIDUAL TAX PAYERS 1. Individual tax payers can get income tax benefit of Rs 4,44,200 in a year DEDUCTIONLAST YEARCURRENT YEAR Deduction u/s 8OC Deduction u/s 8OCCD NIL50000 Deduction on account of interest on house property loan(SOP) Deduction u/s 8OD Transport allowance TOTAL

8 2. Transport allowance exemption increased from Rs 800 to Rs 1, Increase in health insurance premium tax from Rs 15,000 to Rs 25,000 and for Sr citizens Rs 30, Abolish wealth tax and replace it an additional 2% surcharge on the super rich with above Rs 1 cr annual income. 5. Clean Ganga Fund (by resident) shall be eligible for 100% deduction under section 80G of the Income-tax Act. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

9 6. It is proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction u/s 80C and any Interest on sukanya samriddhi account from the scheme shall not be liable to tax. 7. It is proposed to increase the limit of deduction in case of very senior citizens u/s 80DDB of the Income-tax Act on expenditure on account of specified diseases from Rs 60,000 to Rs 80, It is proposed to increase the limit of deduction u/s 80DD and u/s 80U of the Income-tax Act in respect of maintenance, including medical treatment of a dependant who is a person with disability, from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

10 9. It is proposed to increase the limit of deduction u/s 80CCC of the Income-tax Act on account of contribution to a pension fund of LIC or IRDA approved insurer from Rs 1 lakh to Rs 1.5 lakh. 10. Additional deduction of Rs 50,000 for contribution in National pension scheme. 11. Tax free Infrastructure bonds for projects in railways and roads. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

11 AMENDMENTS FOR CORPORATE TAX PAYERS 1. Income Tax reduction from 25 per cent to 10 per cent on royalty for providing technical services. 2. Corp tax rate to be reduced from 30% to 25% in next 4 years. 3. PAN quoting to be mandatory for sale over Rs 1 lakh % tax exemption in CSR activities for Clean Ganga Fund and Swachh Bharat Kosh. 5. It is also proposed to levy a as against current rate of 10% on additional income-tax payable by companies on distribution of dividends and buyback of shares, or by mutual funds and securitization trusts on distribution of income. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

12 6. It is proposed to amend the provisions of section 194LD (Income by way of interest on certain bonds and Government securities.)of the Income-tax Act so as to extend the period of applicability of reduced rate of tax at 5% in respect of income of foreign investors (FIIs and QFIs) from corporate bonds and government securities, from to © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

13 7. Additional 20% is allowed on new plant and machinery installed by a manufacturing unit or a unit engaged in generation and distribution of power. However, if the asset is installed after 30th September of the previous year only 10% of the additional depreciation is allowed. It is proposed to allow the remaining 10% of the additional depreciation in the subsequent previous year. For investment in the state of Andhra Pradesh and Telangana additional 15% is allowed. 8. It is proposed to amend the provisions of section 92BA of the Income-tax Act so as to increase the threshold limit for applicability of transfer pricing regulations to specified domestic transactions from Rs 5 crore to Rs 20 crore. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

14 9. Form 10 for accumulation of income by charity trust should be filed before the due date of return, which was earlier allowed to be filed on or before completion of assessment. 10. Income of Investment fund other than profit from business exempt from tax. 11. The government will issue sovereign gold bonds as an alternative to purchasing physical gold. The bond will carry a fixed rate of interest, and also be redeemable in terms of the face value of the gold at the time of redemption by the holder of the bond. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

15 BLACK MONEY Concealment of income will be prosecutable with rigorous imprisonment up to 10 years. In search cases, it is proposed to allow seized cash to be adjusted towards the assessee’s tax liability under his settlement application. With a view to curbing the generation of black money in real estate, it is proposed to amend the provisions of section 269SS and 269T of the Income-tax Act so as to prohibit acceptance or re-payment of advance in cash of Rs 20,000 or more for any transaction in immovable property. It is also proposed to provide a penalty of an equal amount in case of contravention of such provisions. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

16 Non-filing or wrong filing of tax returns related to foreign assets will lead to prosecution. © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

17 WEALTH TAX Wealth Tax has been abolished. Instead of that additional 2% surcharge has been levied on super rich person (i.e person having income above 1 crore) © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77

18 Thank-You © SUTARIA ASSOCIATES, CHARTERED ACCOUNTANTS C23, Satyam Shopping Centre, 2nd Floor, M.G Road, Ghatkopar (E), Mumbai-77


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