Budget Expectations - 29th Feb, 2016

By Research Team

• Raising Personal Income Tax limit to Rs. 3 lakhs
• Rejig of Income Tax slabs for Personal Income Tax -
  • Rs.3 to Rs.6 lakhs - 10%
  • Rs.6 to Rs.12 lakhs - 20%
  • Rs.12 lakhs and above - 30%
• Reduce Corporate Tax by 1%
• Wealth Tax unlikely to get restored
• DDT may shift from Company to Shareholder, with some threshold exemption
• LT Capital Gain Tax exemption unlikely to get tinkered
• STT unlikely to get changed
• Bank Re-capitalisation may be below Rs. 25,000 crores
• Fiscal Deficit FY16 seen meeting target of 3.90%
• Fiscal Deficit FY17 may be kept at 3.50%
• Excise Duty may be raised to 14%
• No change in Service Tax rate is seen
• Pollution Tax may be imposed on Diesel vehicles with engine capacity of 2,000cc & above.
• CVs may be capped with life of 15 years, need to abandon after 15 years, for vehicles, with engine capacity of 2,000 cc and above.
• To raise 80C limits from Rs.1.50 lakhs to Rs.2 lakhs.
• To raise interest on Housing Loan deduction, from Rs.2 lakh to Rs. 2.50 lakh.
• To Remove Housing Loan repayment deduction from section 80C and may peg it at Rs.1 lakh seprately.
• Crude Cess to be reduced from Rs. 4,500 PMT to Rs. 2,500 PMT plus 7.5% ad valurem.
• To impose 5% custom duty on Crude.
• To raise SB interest deduction from Rs.10,000 to Rs.25,000.
• To reduce MAT to 10% and to exempt Infra, Core Sector and LTCG of Bodies Corporates from MAT.
• Raise Medical Allowance from Rs. 15,000 to Rs. 24,000 to individuals.
• GAAR provisions u/s 95, may be deferred for 2 years, with investments made till March 2019, to be exempted, when it is implemented.
• Remove / slash CTT on commodity.
• Permanent Establishment norms to be made more friendly, to encourage Fund Managers to relocate to India, as last year’s move was seen a  non starter.
• Transfer Pricing Provisions threshold may be raised to from Rs. 20 crores to Rs.50 crores, with disclosures to be made broad-based.
• Liberalise Section 54 and 54F for use of LTCG for purchase of residential house.
• No change in time line to be seen on sunset clauses.
• Increase in gold import duty