New Delhi, May 8 (IANS) The government on Sunday listed the steps taken by the revenue department to boost growth and employment generation by providing relief to businesses, small taxpayers and professionals.
“The revenue department has taken various steps to give relief to small taxpayers and small businesses and professionals,” a finance ministry statement here said.
Listing out various related measures announced in the 2015-16 and 2016-17 budgets, it said corporate tax rates have been lowered to 25 percent for new manufacturing companies.
The limit of deduction under Section 80C of the Income Tax Act has been doubled to Rs.2 lakh per annum, subject to an additional Rs.50,000 being contributed to the National Pension Scheme.
Moreover, the scope of presumptive taxation regime for small businesses has been extended by increasing the turnover up to Rs.2 crore, while this benefit is now available for professionals with turnover up to Rs.50,00,000, it added.
Further, tax benefit for the housing sector has been extended to promote construction industry.
The rate of tax on royalty and fees for technical services has also been reduced from 25 percent to 10 percent, the ministry said.
Besides, the revenue department has announced various tax incentives for Start-up India, including 100 percent tax exemption for three years, it added.