Union Budget 2016-17 Ergo

DIRECT TAX

Some of the major proposals in the Finance Bill, 2016 (Bill) are discussed below:

TAX RATES

In line with the phased reduction in corporate tax rate, as announced by the Finance Minister (FM) last year, the Bill proposes to reduce the corporate tax rate from 30% to 29% for certain small domestic companies.

The corporate tax rate and rates of surcharge are proposed to be changed as follows:

The revised rates are proposed to be effective for FY 2016-17.

There are no changes with respect to the following:

• slab rates for resident individuals;
• corporate tax rate applicable to foreign companies;
• the rate of surcharge applicable to domestic companies and foreign companies;