Interest Deduction for Self-occupied Properties [Sec 24]
Deduction for interest on Self-occupied Property upto Rs 2 lacs, only if construction is completed in 5 years from end of F.Y. in which capital is borrowed
Presumptive Profit @8% u/s 44AD
Limit increased to Rs 2 crores In case of firms, 8% net profit shall be taken after partner's salary and interest. If once opted out of presumptive taxation ie 8%, then cannot avail benefit for next 5 years.
Presumptive Professional Income u/s 44ADA
Applicable for receipts upto Rs 50 lacs and declaring net profit more than 50%
Audit/Accounts for Professionals
Professionals opting for Sec. 44ADA not required to maintain Books or get Audit done
Amendment in Sec 50C
Stamp duty value as on date of agreement shall be applicable similar to proviso u/s 44CA
Advance tax
Now all assesses have to pay advance tax in 4 instalments starting 15 June
Adjustment u/s 143(1)
Now ITR filed shall be adjusted automatically by CPC, Bangalore on basis of incomes reflected in Form 26AS.
Capital Gains on sale of Residential House or Residential plot of land and net consideration invested in eligible start-up company, shall be exempt
Deduction for rent paid [Sec 80GG]
Deduction of rent upto Rs 5,000 pm / 25% of total income / rent paid in excess of 10% of total income is allowed for rent paid for residence if no HRA received.
Start-up - Exemption [Sec 80IAC]
Profits of start-up exempt for 3 years out of first 5 years, if conditions fulfilled.
Affordable Housing [Sec 80IBA]
Profits of affordable housing project are exempt, if project completed in 3 years of approval, if conditions fulfilled.
Rebate [Sec 87A]
If income upto Rs 5 lacs of resident individual, rebate upto Rs 5000 is available.
Declaration in Form 60 to be taken and retained for 6 years from end of F.Y.
E-filing of Declaration received in Form 60
Form 61 to be e-filed to Income Tax Department (Intelligence and Criminal Investigation Wing) for all Form 60 Declaration received upto 30th Sep by 31st Oct and Declaration received upto 31st Mar by 30th Apr [ie. first Form 61 to be e-filed by 30.04.2016]
AIR Information now covers many transactions extensively wef. 1.4.2016 and details to be e-filed to Income Tax Department (Intelligence & Criminal Investigation Wing).
Company to file AIR in Form 61A
For receipts of Rs 10 lacs or more in a F.Y. for issuance of shares
Tax Audit Cases also to file Form 61A
For cash receipts above Rs 2 lacs towards Sales of any Goods/Services
e-Filing Deadline
Form 61A is to be filed on or before 31st May after end of each F.Y. [ie. first Form 61A to be e-filed by 31.05.2017]
Service Tax effective rate shall be 15% wef 01.06.2016 and KKC is to be charged separately [ie. 14% + 0.5% SB Cess + 0.5% KCC, all three separately in bills]
Income Disclosure Scheme, 2016
Income Disclosure Scheme has been introduced @ 45% total tax wef 1.6.2016 to 30.9.2016
Dispute Resolution Scheme
Dispute Resolution Schemes has been introduced wef 1.6.2016 for both direct and indirect taxes for disputes as on 1.3.2016
