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Wednesday, June 1, 2016

10 things you need to know about the changes being implemented in the tax arena from today Wednesday June 01,2016

1.Increase in service tax to make activities like eating out costlier.
The Krishi Kalyan cess, which stands at half a percentage point, will kick off on Wednesday. It will increase the service tax burden to 15% and make eating out, travelling, paying through credit card more expensive.

4.No TDS for PF withdrawals up to Rs 50,000.

5.Equalization Levy
This applies to payments for online or digital ads to companies like Google or Facebook which exceed Rs 1 lakh. Those making the payment will have to withhold 6% of the amount and a failure to do so will result in the tax department disallowing 30% of the ad spend.

7.Black money disclosure window commences from Wednesday June 01,201645% of the undisclosed income will be taken away by the government. This percentage includes tax at 30%, Krishi Kalyan cess of 7.5% and penalty of 7.5% Income and assets in India can be disclosed but no disclosures related to assets or income where notices have been issued, search has been conducted or prosecution has been launched will be accepted.

8.Most black money assets - bullion, jewellery, shares, property - will be valued at the acquisition price or the market value, whichever is higher. A different formula will be followed for interest in a partnership firm.

9.Disclosures can be made from June 1 to September 30 and the tax and penalty can be paid by November 30,2016
They can be made to the designated Principal or Commissioner of income tax, through Form No. 1 either in physical form or online. The I-T dept will subsequently issue an acknowledgement, which will have to be followed by payment of tax and penalty. Finally, the government will issue a certificate for the same.

10.The government has announced immunity from the penalty and prosecution under the I-T and Wealth Tax laws. Further, declarations will not be scrutinised.


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