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Managerial Economics - Fiscal Policy

Tax Proposals On Direct Taxes - Fiscal Policy

   Posted On :  30.05.2018 12:08 am

Exemption limit for the general category of individual taxpayers proposed to be enhanced from 1,80,000 to 2,00,000 giving tax relief of 2,000.

Tax Proposals On Direct Taxes:
 
1.      Exemption limit for the general category of individual taxpayers proposed to be enhanced from 1,80,000 to 2,00,000 giving tax relief of 2,000.
 
2.      The upper limit of 20 per cent tax slab proposed to be raised from `8 lakh to `10 lakh.
 
3.      Proposal to allow individual tax payers, a deduction of upto `10,000 for interest from Savings bank accounts and upto 5,000 for preventive health check up.
 
4.      Senior citizens not having income from business, proposed to be exempted from payment of advance tax.
 
5.      Restriction on Venture Capital Funds to invest only in 9 specified sectors proposed to be removed.
 
6.      Proposal to continue to allow repatriation of dividends from foreign subsidiaries of Indian companies at a lower tax rate of 15 per cent upto 31.3.2013.
 
7.      Investment link deduction of capital expenditure for certain businesses proposed to be provided at the enhanced rate of 150 per cent.
 
8.      New sectors to be added for the purposes of investment linked deduction.
 
9.      Proposal to extend weighted deduction of 200 per cent for R&D expenditure in an in house facility for a further period of 5 years beyond March 31, 2012.
 
10.  Proposal to provide weighted deduction of 150 per cent on expenditure incurred for Agri-extension services.

11.  Proposal to extend the sunset date for setting up power sector undertakings by one year for claiming 100 per cent deduction of profits for 10 years.
 
12.  Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs to be raised from `60 lakhs to `1 crore.
 
13.  Exemption from Capital Gains tax on sale of residential property, if sale consideration is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery.
 
14.  Proposal to provide weighted deduction at 150 per cent of expenditure incurred on skill development in manufacturing sector.
 
15.  Reduction in securities transaction tax by 20 per cent on cash delivery transactions.
 
16.  Proposal to extend the levy of Alternate Minimum Tax to all persons, other than Companies, claiming profit linked deductions.
 
17.  Proposal to introduce General Anti Avoidance Rule to counter aggressive tax avoidance scheme.
 
18.  Measures proposed to deter the generation and use of unaccounted money.
 
19.  A net revenue loss of `4,500 crore estimated as a result of Direct Tax proposals.

 

Tags : Managerial Economics - Fiscal Policy
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