Tax
on Royalty Down to 10%
[PIB (MoF) Press Release
dated 8th May 2016]
The Revenue Department of the
Ministry of Finance takes several steps for boosting-up growth and employment
generation:
(a) Lowering the Corporate tax rates to 25% for new
manufacturing companies
(b) Extending tax benefits for housing sector so as to promote
construction industry
(c) Rate of tax on royalty and fees for technical services
reduced from 25% to 10%
(d) Tax incentives for Start-up India
Similarly, it has taken
various steps to give relief to the small tax payers and to the small business
and professionals:
The limit of deduction that
can be claimed under section 80C of Income tax Act 1961 has been enhanced from Rs.
1 lakh per annum to Rs. 2 lakh per annum, subject to the additional
Rs. 50,000/- being contributed to NPS. Further, the scope of presumptive
taxation regime for small businesses has been extended by increasing the
turnover up to Rs. 2 crores. The presumptive taxation benefit is now
available for professionals having turnover upto Rs. 50,00,000/-.