Round Up Of The Union Budget 2016

In addition to the highlights of the Budget-2016 in our previous issue of Newsletter Vol. IX, Issue III, another round-up of the same is briefed below:

A. Proposals under Direct Taxation laid for promoting Economic Growth:

1. It has been proposed to provide that the noncompete fee received/receivable in relation to not to carry out any profession will be chargeable to tax as an income from business or profession.

2. Where a trust or institution Registered u/s 12AA of the Income-tax Act ceases to be charitable organization, the amount of net asset as on date of such conversion which represents the income accreted to the trust over a period of time shall be charged to an additional income-tax at the maximum marginal rate. Similarly, if on dissolution a charitable trust or institution does not transfer all its assets within one year of dissolution to another charitable organization, the amount of accreted income to the extent not transferred shall be subject to