increased imposition of taxes for the richer

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.

 For More Details about imposition of Taxes

Get in touch with an AdroitCorporation.in Tax Expert, if you have any questions related to imposition of Taxes. AdroitCorporation.in can also help you file your Income Tax Returns. We will be happy to assist you !

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