Lok Sabha Passes Taxation Laws (Amendment) Bill, 2016 [ Current Affairs - Policies & Governance ]

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Lok Sabha passes Taxation Law (Amendment) Bill 2016, to provide tax incentives in certain commercial sectors. This bill seeks to amend Income Tax act, 1961 and Customs Tariff Act, 1975.

Image shows the Lok Sabha of the India

Image shows the Lok Sabha of the India

Showing image of the Lok Sabha of the India

Features:

  • The bill provides tax incentive to employers in the textile sector and also provided additional employment to the employee which has worked for 150 days and 240 days not mandated earlier.
  • Bills also concern with the various issues of demerger of companies and related matters, customs duty and employment.

Amendments Customs Tariff Act, 1975:

  • Customs duty on marble and granite blocks and slabs:

    • The bill proposed to increase custom duty on imports of granite and marble to 40%.  Earlier it was  10%.

Amendments to IT Act, 1961:

  • Demerger of public sector companies:

    • Under The Companies Act, 1956, Public sector company splitting or reconstruction into multiple companies the resultant company will be no longer a public sector company.
  •    Deduction in respect of employment of new employees:

    • In the previous year employing employee limit for 240 days to get the deduction on taxable income has been reduced to 150 days for a textile sector.

- Published on: August 11, 2016