The Budget 2016 proposes to make the richer class poor. This includes the following impositions-
- Surcharge on resident individual’s income has been hiked from12% to 15% on incomes over and above Rs 1 crore. i.e On income above Rs 1 crore a surcharge of 12% of income tax is additionally levied on the income tax computed and then the 3% cess is further levied on the total of tax plus surcharge.
- With the increased levy of VAT on pan masalas, even the excise duty leviable on tobacco products has been raised except on the tobacco product “beedi”.
- As per budget provisions, in addition to Dividend distribution Tax ( DDT) i.e the tax levied by the government on companies and mutual funds on the dividend distributed to their investors, tax at the rate of 10% of gross amount of dividend received will be payable by the recipients i.e individuals, HUFs and firms receiving dividend in excess of Rs 10 lakh per annum.
- It is proposed to levy tax at source at the rate of 1% on purchase of luxury cars exceeding value of Rs 10 lakh and purchase of goods and services in cash exceeding Rs 2 lakh. Farmers and notified class of persons will have an option of giving a form by which TCS will not be charged.
- It is also proposed to impose an 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 crore and Rs 12 crore respectively.
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