Lok Sabha passes Taxation Laws (Amendment) Bill, 2016

The Lok Sabha has passed the Taxation Laws (Amendment) Bill 2016 to pave the way for employers in the textile sector to avail of the income tax benefit.
The Bill seeks to amends the Income Tax Act (IT), 1961 and the Customs Tariff Act, 1975.  These changes are explained below.
It will provide income tax benefit to employers in the textile sector on additional employment provided the employee has worked for 150 days and not 240 days as mandated earlier.
Key Features
Amendments to IT Act, 1961

• Demerger of public sector companies: In case a public sector company demerges (split) into multiple companies under The Companies Act, 1956 the resultant company will be no longer a public sector company.
• Deduction in respect of employment of new employees: The limit of employing employee for minimum of 240 days in the previous year to obtain a deduction on taxable income has been reduced to 150 days for businesses which manufacture apparel.

Amendments Customs Tariff Act, 1975

• Customs duty on marble and granite blocks and slabs: Proposes to increase in customs duty on imports of granite and marble to 40% from earlier 10%.

Month: Current Affairs - August, 2016