Highlights of Union Budget 2016-2017
ambit management consulting, corporate finance, audit:- statutory, management, internal, taxation and legal advisory services, risk management, re engineering. Each step in its corporate association has taken it a step closer to the fulfillment of its goal. In the last 31 years, INMACS’ capabilities and performances have won the utmost trust and confidence of a richly varied and strong client base ranging through small & medium enterprises and big league corporate and multinational Business Houses, both in India and abroad. INMACS team members, while sharing a common vision, belong to diverse technical, business and legal backgrounds.
We deploy specialized and multidisciplinary teams to serve assignments requiring specific skills. This enables us to work proactively and closely with clients and respond effectively to their needs in a highly focused manner, which in today’s fast changing business environment is quite crucial to a client’s success.
INMACS has a dedicated team of 100+ professionals which includes Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants and Bankers to provide comprehensive services to its Clients.
- The tax rate shall be 29% of the total income, if turnover or gross receipts for the FY 2014-15 do not exceed 5 crores. The tax rate shall continue to be 30% of the total income for other assesses.
- The new manufacturing companies incorporated on or after 1 March, 2016 has
been given an option to be taxed at the rate of 25% plus cess and surcharge provided they do not claim any profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.
b. No Change has been made in Slab Rates of Income tax for Individuals, HUF, AOP,
BOI and firms.
c. Surcharge has been amended for Individuals, HUF, AOP, BOI and AJP – in case total
income exceeds Rs. 1 Crore, surcharge increased from 12% to 15%
Section 6 Place of Effective Management
Rationalisation of Tax Treatment of Recognised Provident Funds, Pension Funds and National Pension Scheme
- The exemption on withdrawal of accumulated balance from a recognized PF is reduced from 100% to 40% to the extent it relates to contributions made by the employee (other than excluded employee) after 1 April 2016. Excluded employee is an employee whose monthly salary does not exceed an amount prescribed for this purpose.
- 40% of the amount withdrawn from New Pension Scheme (NPS) on retirement will be tax exempt. Currently the entire withdrawal is being taxed. In order to bring parity between NPS and Superannuation funds, the exemption available on withdrawal from superannuation funds would be restricted to 40%. However, the amounts received by a nominee from NPS on death of the tax payer would be exempt from tax.
Disallowance Under Section 14A
Section 24: Income From House Property
- The period for completion of construction has been increased from 3 years to 5 years from the end of financial year in which such capital is borrowed in case of self – occupied property Or where the owner has to reside at other place due to his employment or business/profession. (w.e.f. AY 2017-18)
- Deduction of 30% of the arrears of rent received or unrealised rent received shall be allowed. (w.e.f. AY 2017-18)
Phasing Out Weighted Deduction
association/university/college or other institution to be used for such scientific research
Sum paid w.e.f. 1 April,2021
Payment to an approved company registered in India, with the object of scientific research and development