HP Ranina, Corporate Tax Lawyer,
Each individual will get a benefit of Rs 1,000 (on personal taxes) and I don’t see that as a very substantial amount. But those who are earning more than Rs 10 lakh, yes the removal of the surcharge will make a substantial relief as far as they are concerned.
The removal of FBT means that companies will not be liable to pay the Fringe Benefit Tax. They have once again restored the capital gains provision so that when the employee sells, if it is short-term, he will have to pay the capital gains tax.
The other relief for the small businessmen, the presumptive taxation which was introduced upto Rs 40 lakh; only 8% of the turnover will be treated as a taxable profit. That is something which will help to widen the tax base.