taxation budget

8/7/2019 taxation budget

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TAX is a fee charged by agovernment on a product ,income , or a activity.


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Hybrid Vehicles Going fuel-efficient

way!

Mobile Phones KeepChatting!

Housing Loans Livingwith the Society!

WHATSCHEAP


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Air Travel The journey getsfarther!

Stationery Need to sharpenthe ink!

Crude Oil Changeundesired!

Branded Clothes Dont getprovogued!

Hotels & Restaurants Skipgood food and life!


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These are taxes that are implied directly onindividuals or customers.

There is no change in the tax rates or

number of slabs, personal income tax slabshas been modified.

An increase in MAT rates will have an impacton companies.


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Exemption limit for the general category ofindividual taxpayers enhanced from `1,60,000 to ` 1,80,000.

Exemption limit for the category of womanassesses (below the age of 65 years)

taxpayers has been unchanged and kept at` 1,90,000

Exemption limit enhanced for the categoryof senior citizens taxpayers from `2,40,000to ` 2,50,000.

The qualifying age for senior citizensreduced from 65 years to 60 years.

Exemption limit for the category of verysenior citizens(80 years & above) taxpayersis `5,00,000


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Currentslabs(INR)

Proposed Slabs(INR)

Basic rate of tax

Upto160,000 Upto160,000 NIL

160,001 to300,000

160,001 to500,000

10%

300,001 to500,000

500,001 to800,000

20%

Above 500,000 Above 800,000 30%


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No change in tax rate but surchargefor domestic companies reduced from7.5% to 5%

Surcharge on corporate tax forforeign companies has been reducedfrom 2.5% to 2%.

MAT increased from 18% to 18.5%.

No change in corporate tax withrespect to foreign companies which is41.20% but if income exceeds beyondI cr. Tax will be 42.23%.


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The threshold limit for accounts audited, incase of business- from Rs.40 lacs toRs. 60lacs & in case of professionals- Rs 10 lacs to

Rs 15 lacs. In case of failure to get account audited

would attract penalty of Rs 1.5 lacs in placeof Rs 1 lacs


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A tax, such as a sales tax or value-added tax,

that is levied on goods or services rather thanindividuals and is ultimately paid by consumersin the form of higher prices.


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The peak rate for central excise

duty will continue to be 10% ad valorem component of excise

duty on large cars, multi-utilityvehicles and sports-utilityvehicles increased by 2percentage points to 22 percent.

Central Excise duty on petroland diesel enhanced by Re.1 per

litre each. Rate of tax on services retained

at 10 per cent to pave the wayforward for GST


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Excise duty of 4 percent levied on all electricallyoperated vehicles and battery operatedcars(including electric motor assisted cycle

rickshaws driven by rechargeable solar batteries). Excise duty of 4percent levied on specified IT

products like microprocessors other thanmotherboards, floppy disk drives, harddisk drives,

CDROM drives,etc.meant for external use withcomputer/laptop as a plug-in device.


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Basic customs duty on agriculturalmachinery reduced to 4.5 per centfrom 5 per cent

Basic customs duty on raw silkreduced from 30 to 5 per cent.

Basic customs duty on bambooused for manufacturing ofagarbattis is being reduced from30% to 10%


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Broadening of tax base

The annual practice of adding newservices to the tax net has beencontinued by introducing two newservices and expanding the scope

a. New services

Services provided by air -conditioned restaurants licensed

for serving alcohol beverages. Accommodation provided by the

hotel etc. for duration of less thanthree months

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Today tax planning has become a major part inevery taxpayers life where the individual usesvarious methods to reduce his tax liability andenhance his growth.


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AgricultureThis sector has got a number of favorable tax benefits from theFinance Minister's proposed budget.Conveyors used for cold storage, mandis and warehouses go taxfree.

Specified agricultural machineries for which the tax rate wasreduced to 5% in the last budget are reduced to 2.55% in theproposed budget.


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Imports of certain raw materialsare going to cost lesser, with aview to create value addition inIndia by manufacturing finishedproducts from these raw materials.Some of them are:

Raw materials used for Textiles,chemicals, Ferro-alloys and papermanufacturing

Stainless steel scrap Components and parts for

manufacturing mobile phones,electronic components, ink-jet andlaser-jet printers.


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The one take away from theUnion Budget for thecommon man is definitely

the tax relief. Pay less tax but save nothing

On the surface, increasingservicing tax to 5% from 3% doesn't

seem high. But given that need-based spending has increasedsteadily over the last few years, weare now burdened with moreindirect taxes than the direct tax we

pay.


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A net revenue loss of ` 11,500 croreestimated as a result of proposals inrespect of Direct Taxes.

Proposals relating to Indirect Taxesestimated to result in a net revenue gainof Rs.46,500 crore for the year. Takinginto account the concessions being givenin the tax proposals and measures takento mobilise additional resources, the netrevenue gain is estimated to be Rs.20,500 crore for the year.


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Through taxes the government is able to support a lot ofinstitutions and agencies that operates and works for

the welfare of a lot of people particularly about thecitizens of a certain country. Such as orphanages, publichospitals, and public law firms

Taxes are used for the construction and repairing ofcommercial buildings, roads, schools, hospitals, homes

for the less fortunate people.

Taxes are also used for supporting the wages andbenefits of several and various government employees.These employees are like the police, teacher, public

doctors and nurses, firemen


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Documents

taxation budget