In Union Budget 2015-16, there were hardly any tax benefits for individuals. On the other hand, a lot of your income will be wiped away with a hike in the Service Tax.
Finance Minister Arun Jaitley in his Budget speech for 2015-16 have some changes in tax. Here is how you are likely to be affected.
1) TDS on Recurring Deposit
Recurring deposits is a deposit where a monthly sum is paid each month to enable savings in a systematic manner.
Earlier, TDS was only deducted on fixed deposits if the interest exceeded Rs 10,000, the same would now be applicable to recurring deposits.
Now, there will be an immediate TDS on recurring deposits unless you submit for 15G/H.
Also read: TDS On Interest On Recurring Deposits
2) Interest Income will be clubbed with other branches
TDS was earlier deducted if the Interest income exceeds Rs 10,000 per branch. It wil now be calculated adding interest income of all the branches of the bank.
However, for individuals whose income is below Rs 2,50,000 this year don't have to pay tax. If such individuals submit Form 15G or Form 15H which is applicable TDS will not be deducted.
Know more on Form 15G or Form 15H
3) TDS on EPF
Any withdrawal of EPF amount before the completion of 5 years will attract a TDS at 10 per cent. However, if the amount is below Rs 30,000 it will not attract TDS.
Also, tax is exempted if EPF withdrawal before completion of 5 years of service.
During withdrawal, quoting of PAN is mandatory. Cases, where Pan is not mentioned TDS, will be applicable at highest slab rate of 30 per cent.
4) Service Tax Rate of 14%
Service tax has been hiked with effect from June 1, 2015. Here are things that have now got expensive from June 1, 105.