Finance Act changes w.e.f 1.6.16

Finance Act Changes applicable/effective from 1st june 2016

A QUICK SUMMARY

1. Electronic Hearing under Income Tax law enabled
2. Document required to be issued by an Income Tax Authority can be issued in paper form or communicated in electronic form
3. Equalization Levy @ 6% on _online digital advertisement and incidental services_ or provision of digital advertising space
4. TCS @ 1% on luxury vehicles and cash sale of goods or provision of services
5. Exit Tax for Charitable Institutions
6. Non resident not having PAN shall not be subjected to 20% TDS
7. Jurisdiction of Assessing Officer not to questioned in serach cases after one month from notice u/s 153A
8. Non Corporate assessee also to pay advance tax , _15% by 15th June . 45% by 15th Sep, 75% by 15th Dec and 100% by 15th March_
9. In case of presumptive Income 100% advance tax to be paid by 15th March_
10. Application for Waiver of Interest u/s 220(2A) to be disposed off with in one year
11. Interest under section 234C shall not be chargeable in case of an assessee having income under the head “Profits and gains of business or profession” for the first time,
12. Interest on Refund for timely filed return to be allowed from 1st April but interest on refund for belated return to be allowed from date of furnishing of return
13.  Interest on refund of self assessment tax to be allowed from date of filing of return or payment of tax, whichever is later.
14. No Interest to be allowed if refund is lesser than 10% of determined tax_
15. Additional 3% Interest for Appeal Effect delayed beyond 3 months
16. In ITAT post of Sr Vice President abolished
17. Rectification period of ITAT orders limited from 4 years to 6 months
18. Monetary limit for Hearing of appeal by SMC in ITAT raised from 15 lacs to 50 lacs u/s 255(3)
19. Time Limit for completion of assessments reduced from 24 months to 21 months . Assessments to be complted by 31st December.
20. Order for appeal effect to be passed with in 3 months from the end of month in which appeal order is received
21. Limit of Rs. 5000/- for Winnings from Horse Races enhanced to Rs. 10,000/-
22. For TDS on payment to Contractors Aggregate Annual Limit of Rs. 75000/- increased to Rs 100000/-_
23. Monetary Limit of Rs. 20,000/- for TDS on Insurance Commission u/s 194D reduced to Rs. 15000
24. Monetary Limit for TDS on Commission u/s 194H enhanced from Rs. 5000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance Commission._
25. Monetary Limit for TDS on Commission on Lottery Tickets u/s 194G enhanced from Rs. 1000/- to Rs. 15000/- and rate reduced from 10% to 5% to bring parity with Insurance and other Commission
26. TDS rate on withdrawl of NSS Deposits reduced from 20% to 10% u/s 194EE
27. TDS on LIC Maturities exceeding Rs. 1,00,000/- not exempt u/s 10(10D) was charged @2% by Finance Act 2014 wef 01-10-2014 . TDS rate lowered to 1%.
28. TDS @10% for compulsory acquisition of immovable property other than agriculture land where aggregate payments during financial year exceed Rs. 2 lacs now enhanced to Rs 2.50 lacs.
29. Form 15G/15H enabled for rental payments also
30. The Direct Tax Dispute Resolution Scheme for immunity from post assessment interest, penalty and prosecution for cases pending before CITA on 29-02-2016 [Scheme Available up to 31st December]
31. The Income Declaration Scheme 2016. Tax, Surcharge and Penalty @ 45% of Undisclosed Income. Declaration to be filed till 30th September. Tax etc to be paid till 30th November.