BUDGET EXPECTATIONS
Post-demonetization, Govt. is likely to increase the basic exemption limit of tax slabs for taxpayers.
POEM and GAAR are likely to be deferred by one year.
Standard deduction may make a comeback for salaried class taxpayers.
Rate of service tax likely to be increased to 18% to align it with proposed rates in GST.
No major changes expected in Indirect Tax regime as GST is likely to be introduced soon.
Corporate tax rate is likely to be reduced from 30% to 28%. Lower taxes may encourage people to show their real income and discourage generation of black money.
Rate of presumptive profit under Sec. 44AD shall be reduced to 6% for digital receipts to incentivize small traders or businesses.
Rate of presumptive profit is likely to be reduced for professionals covered under Sec. 44ADA.
Turnover limit of tax audit is likely to be increased to Rs 50 lakhs for professionals to align it with threshold given under Sec. 44ADA.
MAT is likely to be phased-out gradually with the phasing out of various incentives.
Amendments likely to be made on indirect transfer provisions to provide relief to FPIs.
Scope of TDS/TCS likely to be extended to include uncovered sectors where black money gets generated.
Source: Taxmann
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