The Finance Bill, 2016 (the Bill) was introduced by the Finance Minister on 29 February 2016 in the Lok Sabha. On 5 May 2016, the amendments to the Bill have been proposed by notice of amendments.
The Bill has proposes following amendments:
-The Bill has proposed to insert a new Section 115BA to provide the benefit of the concessional tax rate of 25% to certain domestic companies engaged in the business of manufacturing or production of any article or thing, provided such company has been setup and registered on or after 1 March 2016.
-Unlisted shares held for 24 months or less would be treated as the short-term capital asset.
– An additional tax of 10% if the amount of dividend received by a taxpayer exceeds INR10 lakh.
-A new penalty provisions for under-reporting of income wants to introduced.
-It also proposed to insert a new Section 115BBF to tax royalty income in respect of a patent developed and registered in India at the rate of 10%.
