Union Budget 2016: 14 New Changes On Tax, Excise, STT And DDT

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Union Finance Minister Shri Arun Jaitley proposed several changes in rates. Here is a look at new charges on different things.

1. Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs 10 lakh per annum.

2. Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above s 1 crore.

Union Budget 2016: 14 New Changes On Tax, Excise, STT And DDT

3. Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs ten lakh and purchase of goods and services in cash exceeding Rs two lakh. 

4. Securities Transaction tax(STT) in case of 'Options' is proposed to be increased from .017% to .05%. 

5. Equalization levy of 6% of gross amount for payment made to non- residents exceeding 1 lakh a year in case of B2B transactions. 

6. Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016. Proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers.

7. Input tax credit of this cess will be available for payment of this cess. 

8. Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles 13 and SUVs.

9. No credit of this cess will be available nor credit of any other tax or duty be utilized for paying this cess. 

10. Excise duty of '1% without input tax credit or 12.5% with input tax credit' on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits of Rs 6 crores and Rs 12 crores respectively. 

11. Excise on readymade garments with retail price of Rs 1000 or more raised to 2% without input tax credit or 12.5% with input tax credit. 

12. 'Clean Energy Cess' levied on coal, lignite and peat renamed to 'Clean Environment Cess' and rate increased from 200 per tonne to 400 per tonne.

13. Excise duties on various tobacco products other than beedi raised by about 10 to 15%. 

14. Assignment of right to use the spectrum and its transfers has been deducted as a service leviable to service tax and not sale of intangible goods.

Goodreturns.in

Read more about: union budget 2016, stt, taxes, excise
Story first published: Monday, February 29, 2016, 15:43 [IST]
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