India Budget 2016 – Highlights
Understanding the business impact
- Rebate of income tax for resident individuals with total income not exceeding 5 lakh enhanced from 2,000 to 5,000
- The lower of employer’s contribution to Provident fund in excess of 12% of the salary of the employee or `150,000 p.a. will be subject to tax.
- Tax rate on newly setup domestic companies engaged solely in manufacture or production of any article or thing proposed to be reduced to 25%, at the option of the company, subject to not claiming certain specified deductions/claims.
- The Memorandum to the Finance Bill provides that rules for the requirement for maintenance of master file would be prescribed which would be as mandated under OECD BEPS Action 13.
- Government to continue with the ongoing reform program and ensure passage of GST Bill.