|• For Individual (non-senior)/HUF/senior)/HUF/AOP/BOI/PDT/AJP/Trust, tax rate reduced|
from 10% to 5% for income slab 2.5 – 5 lakh.
• For Individual Resident Senior Citizen (60 years), tax rate reduced from 10%
to 5% for income slab 3 – 5 lakh.
• For Domestic company, tax rate changeschanges:
25%, If Turnover in FY 15-1616 is <=50 crore or eligible u/s 115BBA
30%, for other cases.
|For Individual, HUF, AOP, BOI and AJP, surcharge rate changes:|
• 10%, if income is above Rs. 50 lakh but <= Rs. 1 crore
• 15%, if income is above Rs. 1 crore
|Rebate u/s 87A||Limited to Rs. 2,500 on net income up to Rs. 3,50,000|
|In ‘Depreciation as per IT Act’ subsub-table maximum rateate of depreciation is|
restricted to 40% for all status.
Maintain Books of accounts
|In case of Individual or HUF, for Section 44AA applicabilityapplicability:|
• Business/Profession income limit increased from Rs. 1.2 lakh to Rs. 2.5 lakh
• Turnover/Gross receipts limit increased from Rs. 10 lakh to Rs.25 lakh
|‘Transactions without adequate consideration’ sub-table is now applicable for all|
status except trust in certain cases.
|Chapter VI-A deductions||• No deduction is available on donation in cash exceeding Rs.2,000. Necessary|
|changes are made in ‘80G – Donations’ sub-table.|
• 80CCG deduction can be claimed only if investment is done in AY 16-17 or
• Limit for Deduction u/s 80CCD(1) is increased from 10% to 20% of Gross
total income in cases of income other than Salary
|Deduction u/s 10AA||Deductions u/s 10AA is now allowed from Total income|
Fee u/s 234F
|For returns not filed within due date, ‘Fee u/s 234F’ is payable as follows :|
• Where Total income is below basic exemption limit = Nil
• Where Total income does not exceed Rs. 5 lakh = Rs. 1,000
• Where Total income exceeds Rs. 5 lakh,
If return filed on or before 31 December = Rs. 5,000
If return filed after 31 December = Rs. 10,000
Income exempt u/s 10
|For Trust, in ‘Taxable Income u/s 11 to 13’ sub-table → under ‘Less: Incomes|
exempt u/s 10’, following exemption sections are provided:
• 10(23AAA): Employee Welfare Fund
• 10(23EC): Contributions of Investor Protection Fund from Commodity
• 10(23ED): Contribution of Investor Protection Fund from Depository
• 10(23EE): Core Settlement Guarantee Fund
• 10(29A): Income of certain Commodity Boards/Authorities
|• MAT credit can be carried forward up to 15 years|
• In ’35 to 35E, 32AC, 32AD, 33AB, 33ABA deductions’ sub-table, changes in
eligible rate of deduction of various items
• House property loss can be set off from any income only to the extent of Rs. 2
lakh in the current AY.
• Dividends in excess of Rs.10 lakhs is now taxable u/s 115BBDA for all status
except Company & Trust in certain cases.
• New item – ‘115BBG- Income from transfer of carbon credits’ taxable at 10%
is given in ‘Income taxable at special rates’ table.
• In ‘40A disallowance’ sub-table, limit of cash expenses u/s 40A(3) is reduced
• And many other improvements