Union Budget 2016-17: few negatives...!

Union Budget 2016-17: few negatives...!

Here are a few negatives...

1. Tax on Dividend Income

In an attempt to bridge income inequality a rationale has been formed that persons with higher income can bear higher tax cost.

Thus, it is proposed that in addition to Dividend Distribution Tax (DDT) paid by the companies, tax at the rate of 10% of gross amount of dividend will be payable by the recipients i.e. individuals, HUFs and firms receiving dividend in excess of Rs 10 lakh per annum.

    

2. Services to get more expensive

   

Also, the CENTRAL government has imposed a Krishi Kalyan Cess AT 0.5% on all taxable services.

Hence while you may like to dine out or travel for leisure, don’t over indulge, as you will end up paying money out of your pocket as tax.

    

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