The budget affects every aspect of your financial zones including your pension, protection, taxes and investments. The following pointers will give you an idea about what to and what not to expect in Budget 2016.
Easy on Startups
According to Union Finance Minister Arun Jaitley, the Government is going to introduce a tax regime specially catered towards startups to encourage innovation and create many more entrepreneurs in the country. This tax-friendly procedure for startups falls under the ‘Startup India, Standup India’ campaign initiated by Prime Minister Narendra Modi.
Jaitley assured minimum interference from the Government and that it will play the role of a ‘Facilitator’ to startups. He further mentioned that startups will have the ultimate break from ‘License Raj’ encouraging all those ambitious entrepreneurs.
Make in India
To support the ‘Make in India’ campaign, the upcoming budget will likely allow 100% credit for taxes paid on inputs. This policy is being discussed and is likely to be announced in budget 2016, this can give a great boost to the ‘Make in India’ campaign initiated by Prime Minister Narendra Modi.
An easier credit mechanism will go a long way where manufacturing is concerned. The existing policy allows companies only to claim credit for tax paid on services used in the outflow of the capital goods utilized in the process of manufacturing. Smooth credit flow is required to make output services cheaper, directly resulting in increase of manufacturing.
Double Income Tax payers
The Finance minister Arun Jaitley needs to find a way on how to double income tax payers in the upcoming government budget 2016. India has a population of more than 125 crore people and only about 3.5 crore are in the income tax bracket. Currently, Rs 2.5-5 lakh income is taxed at 10%, 5-10 lakh income is taxed at 20% and above 10 lakhs is taxed at 30%. According to calculations there should be at least 6 crore tax payers in our country. Increase in tax payers relate directly to a successive government. So as the Union Finance Minister, Arun Jaitley has a tough task to meet this requirement.
With all these predictions the reality will come into light on February 29th when the Budget 2016 will be announced. So as soon as it’s announced, get in the zone and initiate your tax planning procedure to save on a lot of money.
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