Analysis of Direct Tax Amendments in Finance Act 2016 passed on 14-05-2016 (including changes made in Finance Bill)

Finance Bill 2016 comprised 12 Chapters, 238 Clauses and 15 Schedules spread over 221 pages. It brought in Krishi Kalyan Cess, Infrastructure Cess, Equalization Levy, The Income Declaration Scheme, Direct and Indirect Tax Dispute Resolution Schemes and amendments previous Finance Acts ranging from Finance Act 2001 to 2015 . The Journey of Change did not end here and In Lok Sabha 47 further amendments were brought in Finance Bill on 29-04-2016 including insertion of 3 more clauses there by increasing total clauses to 241.

Out of this first 115 clauses, Introduction of Equalization Levy under

Chapter VIII, The Income Declaration Scheme under Chapter IX and Direct Tax Dispute Resolution Scheme under Chapter X and Schedule I on  tax rates deal with the Changes made in Direct Taxes.

Summary of Changes Made in Income Tax by Finance Act 2016 passed on 14-05-2016

Changes Effective from 01-06-2016

1	Electronic Hearing under Income Tax law enabled
2	Document required to be issued by an Income Tax Authority can be issued in paper form or communicated in electronic form
3	Equalization Levy @ 6% on online digital advertisement and incidental services or provision of digital advertizing space
4	TCS @ 1% on luxury vehicles and cash sale of goods or provision of services
5	Exit Tax for Charitable Institutions