Japan 0.60% Germany 1.50% France 1.20% U. K. 2.50% U. S. A. 2.60% Source :

Year Units: USD/BBL Source: (As on 1 st Jan) Source: Year Units: USD/MT (As on 1 st Jan)

Year2013 – – – 16 % Change * * Adv Estimate

Year2013 – – – 16 % Change * * Apr. – Jan. ‘15

Year2013 – – – 16 % of GDP * * Budget Estimate

Year2013 – – – 16 FII74, , , DII- 54, , , Amount in Cr. Source :

Year2013 – – – 16 US$ Million36,04644,29140,823 * * Till December Source :

Year2013 – – – 16 $ bn * *Till Jan. 2016

Year2013 – – – 16 As a % of GDP * * Apr – Dec, 2015

,,

SectionExistingProposed Section 32 read with rule 5 of Income-tax Rules, 1962-Accelerated Depreciation. Accelerated depreciation is provided to certain Industrial sectors in order to give impetus for investment. The depreciation under the Income-tax Act is available up to 100% in respect of certain block of assets. To amend the new Appendix IA read with rule 5 of Income-tax Rules, 1962 to provide that highest rate of depreciation under the Income-tax Act shall be restricted to 40% w.e.f (i.e from previous year and subsequent years). The new rate is proposed to be made applicable to all the assets (whether old or new) falling in the relevant block of assets.

Present Section Heads Existing Threshold Limit Rs. Proposed Threshold Limit Rs. 192A Payment of accumulated balance of Provident Fund due to an employee. 30,00050, CPayments to Contractors. Aggregate annual limit of 75,000 Aggregate annual limit of 1,00, DInsurance commission.20,00015, HCommission or brokerage.5,00015,000

Present Section Heads Existing Rate of TDS (%) Proposed Rate of TDS (%) 194DA Payment in respect of Life Insurance Policy. 2%1% 194D Insurance commission. 10%5% 194H Commission or brokerage. 10%5%

From BusinessExistingProposedPresumptive Rates of Income Turnover / ReceiptsRs. 1 CrRs. 2 Crs8% Income from ProfessionNewRs. 50 Lac50%

Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable. In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from Limit for contribution of employer in recognized Provident Fund of Rs. 1.5 Lacs per annum, anything beyond that shall be treated as perquisite.

InstalmentDue Date% of Estimated Tax Liability 1 st Instalment15 th June15% 2 nd Instalment15 th September45% 3 rd Instalment15 th December75% 4 th Instalment15 th March100% New Advance Tax payment schedule for all assessees wef Asst. Year : 2017 – 18

Sec 270A – Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts. The above provisions replaces penal provision U/s 271(1)(c), where the AO had the discretion to impose penalty ranging from 100% to 300% of tax. Disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed under rule 8D of Section 14A of Income Tax Act.

Real Investment Trusts (REITS) & Infrastructure Investment Trusts (INVITS) shall now become operational SPV Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax, in respect of dividend distributed after the specified date. INVIT

Gold Bonds redemption – Tax Free. Indexation allowable on transfer of Gold Bonds. Consolidation of “Plans” within a “scheme” of a Mutual Fund exempted from Capital Gains. Investment in Gold Monetisation Scheme exempt from capital gains. Interest on scheme exempted.

From No. 15 G / 15 H can be given in respect of even Rental Income. Concession of Company to LLP – Present condition Turnover / Receipts below Rs. 60 Lac. Conditions added assets of the company should be below Rs. 5 Crs in preceding 3 years. Time limit to complete assessments, reassessments, assessments of search cases – reduced by 3 months from present limits. Immunity from penalty U/s 270A, if taxes and interest paid, no appeal filed and certain conditions met.

Tax to be deducted at source at the rate of 1% on purchase of luxury cars exceeding value of Rs. 10 Lac and purchase of goods and services in cash exceeding Rs. 2 Lac. Equalization levy of 6% of gross amount for payment made to non residents exceeding Rs. 1 Lac a year in case of B2B transactions. These provisions shall apply to payments made for digital advertising to non residents, not having any permanent establishment (PE) in India. Securities Transaction tax in case of ‘Options’ is proposed to be increased from 0.017% to 0.05%.

Compliance for certain transactions (other than bullion & jewellery) Transaction Type TCSPAN E – Reporting Sale of any goods / service by cash above Rs. 2 Lac, in aggregate during the year. Yes1%wef01/06/’16Yeswef01/01/’16Yeswef01/01/’16 If seller U/s 44AB Sale / Purchase of any goods / services by any mode other than cash above Rs. 2 Lac, per transaction. ----Yeswef01/01/’16----

Compliance for certain transactions (of bullion & jewellery) Transaction TypeTCSPANE – Reporting Purchase of bullion in cash above Rs. 2 Lacs or jewellery Rs. 5 Lacs. Yes 1% Yes wef 01/01/’16 If seller U/s 44AB Purchase of bullion, jewellery by any mode, other than cash, above Rs. Lacs per transaction Yes wef 01/01/’

Concessional tax treatment for transactions in International Financial Service Center from Capital Gains, MAT, DDT etc. Frame work to send notices for assessments receive submission from assessee in electronic mode. Income relating to Sec 68, 69, 69A, 69B, 69C, 69D liable to be taxed at 30% without any deduction for expenditure or allowance – no set-off of losses.

CBDT to issue instruction that the assessing officer to grant stay of demand once the assesses pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals). Unfortunately this can be altered with the permission with his superior. Sec 244(1A) – Interest at the rate of 9% p.a. against normal rate of 6% p. a. for delay in giving effect to Appellate order beyond 3 months + 6 months U/s 153(5). AO to be personally responsible for the delay.

Filing of return of Income SectionExistingProposal 139(1) Person not obligated to include income exempt u/s 10(38), to ascertain whether his income exceeds the maximum amount which is not chargeable to income tax. Specific exclusion to provide that effect of Section 10(38) shall not be considered to arrive at income, which shall be considered to arrive at whether a person is liable to file ITR. 139(4) Revised return can be filed at any time before : - One year from the end of the relevant assessment year or Completion of assessment, whichever is earlier. Revised return can be filed at any time before : - End of the relevant assessment year or Completion of assessment, whichever is earlier.

Filing of return of Income SectionExistingProposal 139(5) Revised return could not be filed for a belated return. Belated return can be revised. 139(9)(aa) Non payment of self- assessment tax together with interest, on or before the date of furnishing of return could result in the ROI being considered defective. It shall not be considered as defective.

Tax is in arrears. Appeal is pending against assessment order or a penalty order. Tax & Interest upto date of assessment has to be paid. For cases where disputed tax exceeds Rs. 10 Lac. Tax + Interest (till assessment date) + 25% of minimum penalty leviable. If penalty order pending in appeal, 25% of minimum penalty to be paid. Tax & Interest (till assessment date) due has also to be paid. The Direct Taxes Disputes Resolution Scheme

Income upto FY can be offered under this Scheme – Total tax rate of 45%. Certain specific cases outside purview of the scheme – Assessment notice issued, information received from foreign countries etc. Immunity from Wealth Tax, scrutiny, enquiry and prosecution for cases covered under the Scheme. Income Declaration Scheme, 2016

Declaration under the scheme through misrepresentation or suppression of facts - Declaration shall be treated as void. Amounts due under the scheme should be paid by a date specified by the Government failing which declaration shall be void. Income Declaration Scheme, 2016

If people are not laughing At your goals, your goals are too small

This Presentation aims to tell the summary of Union Budget and related aspects. This Presentation may contain references, website links, regulations or other policy materials. This Information provided is only intended to be a general summary. All information in this presentation, including charts, examples and other website references, may be used for any purpose only after Professional advice. This Presentation is the personal view of Speaker Mr. Daxesh D. Kothari on Union Budget , which should not be relied or acted upon without due Professional advice