Highlights of Union Budget 2016-2017
About INMACS
INMACS Management Services Limited (INMACS, India) is a member of “INMACS Global, Hong Kong” an international network of Chartered Accountants, Company Secretaries, Lawyers and Management Consultants. INMACS Management Services Ltd. (INMACS) was started by a Group of highly qualified and experienced professionals in April, 1984, to offer a full range of services that embrace in its
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.
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.
Our Team
INMACS team members, selected by Mr. Jain, while sharing a common vision, belong to diverse technical, business and legal backgrounds. The company, in the direction of Mr. Jain, deploys specialized and multidisciplinary teams to serve assignments requiring specific skills. This enables it 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.
Direct Taxes
Personal & Corporate Taxation
The Income Declaration Scheme 2016
Direct Tax Dispute Resolution Scheme 2016
Miscellaneous Provisions
Indirect Taxes
Service Tax
Central Excise
Customs
FCRA
Foreign Contribution Regulation Act, 2010
Direct Taxes
Tax Rates
a. Corporate Tax Rate
- 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
Amendment in Section 6 Residential Status on the basis of Place of Effective Management (POEM) has been deferred by 1 year.
Rationalisation of Tax Treatment of Recognised Provident Funds, Pension Funds and National Pension Scheme
a. CONTRIBUTION: The lower of employer’s contribution to Provident fund in excess of 12% of the salary of the employee or `150,000 p.a. will be subject to tax. b. Exemption limit for employer’s contribution to Approved superannuation has been enhanced from `100,000 to `150,000 p.a.
Withdrawal
- 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
Rationalization of the formula in Rule 8D governing quantification of disallowance of expenditure relatable to exempt income in terms of Section 14A of the Income tax Act. The said Rule is being amended to provide that disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed.
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
Section
Section 32
Nature
Accelerated Depreciation
Quantum of Deduction
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
Revised Quantum of deduction
Maximum accelerated depreciation of 40% allowed w.e.f. AY 2018-19
Section 35(1) (ii)
Payment to notified/approved research
association/university/college or other institution to be used for such scientific research
175% of the sum paid.
150% of the sum paid
Sum paid w.e.f. 1 April,2021
Section 35(1) (ii)
Scientific Research :
Payment to an approved company registered in India, with the object of scientific research and development
125% of the sum paid
100% of the sum paid