Fiscal Year 2016
The first day of the Fiscal Year 2016 starts from 1st April and last day of Fiscal Year 2016-2017 ends on 31st March. British was ruled India for approximately one fifty years, who pursue the accountancy term of April to March subsequent to the acceptance of Gregorian calendar-system of accountancy so that why the financial year starts from April. There are many new amendments or Finance Changes that have been planned for the next Fiscal Year 2016-2017.
In the below section of this page we’re discussing about some of the major Personal Finance changes that you need to know and some of these new proposals might affect most of our personal finances. You can collect detailed information regarding Fiscal Year 2016-2017 through this page which is well structured by team of recruitmentresult.com.
Why Financial Year Starts From April
It is just because of Inheritance from British Rule, British was ruled India for approximately one fifty years, who pursue the accountancy term of April to March subsequent to the acceptance of Gregorian calendar-system of accountancy. The East India Corporation which first came to rule India is examined to have well done their foundation before entering the host country, India.
So 1st April, granted with the Hindi festival of Vaisakha that is the Hindi New Year, therefore the corporation thoughtfully determined to match it is financial year with the Hindi-calendar to relieve out fiscal dealings. Again the ceremony and the effort of the British Government in tandem through spiritual traditions can be seen throughout this point and in many countries, it has been observed that it retailers who use the non-calendar year as their fiscal year.
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Since nearly all of their taxes were from the crops, the rule government organized its yearly budget keeping these crop patterns in mind, also, end of the year is the time of high activity for retailers in many countries considering the festive season, levels of inventory, receivables and payables will be higher than at other month ends and consequently more complex and time-consuming to measure accurately.
Fiscal Year 2016
Finance Changes For Fiscal Year 2016-2017
1. Home Loans
The Reserve Bank of India has released new plans for setting loan rate (on loans) by profit-making banks under the name as MCLR which is acronym to Marginal Cost of Funds based Lending Rate. It’ll change the presented base rate scheme from 1st April, 2016 onwards, as per the Reserve Bank of India’s new strategy, it is obligatory for the banks to think about the repo rate while calculating Marginal Cost of Funds based Lending Rate with effectual from 1st April, 2016.
2. Taxation Proposals
This will covers the following points as described below:
- The Service tax will be augmented from the presented 14.5% to 15%.
- Budget 2016 offers to charge 10% Dividend Distribution Tax (DDT) in the hands of the sponsor who get dividend of Rs 10 Lakh or more in a financial year.
- The Cash acquires of supplies & services which are value over Rs two Lakh & purchases of luxury cars worth in excess of Rs ten Lakh will be subject to Tax Collection at Source (TCS).
- Central Board of Direct Taxes (CBDT) has well-versed that the interest profits earned on deposits should be exposed in the return of profits even in cases where Form 15G/15H has been filed and the interest income has to be shown in ITR if the earning is not exempt under Section 10 of the Income-tax Act and the total income of the person exceeds the maximum amount not chargeable to tax.
- According to the Budget 2016 schemes, self-governing gold bonds will be excused from capital gains (LTCG) tax at the time of salvation So, if you hold the gold bonds till the development date and if you make any long term capital gains when redeeming your gold bonds, there will not be any capital gain taxes on the profit you make.
For Detailed list of TDS rates for FY 2016-17, you may go through below stated images.
Highlights of Union Budget:- Check Here
3. NPS Withdrawal
The forty percent of amount withdrawal at the time of sequestration will be tax excepted and sixty percent of the corpus will be issue to tax if you remove it. To keep away from taxes, you have to spend this 60% corpus total in an allowance product and death claim (if any) established under NPS scheme is tax exempt and One-time portability from EPF to NPS will be provided and this will not be subject to any taxes.
4. Inoperative EPF Accounts
The workers Provident Fund Org has determined to offer Interest on out of action Accounts from 1st April, 2016 and this move will profit over nine crore such account-holders having total deposits of over Rs 32,000 crore.
5. Motor Vehicle Insurance
The arbitrator coast insurance premiums to charge more from April as premiums will be hiked by up to 40%.
6. Post Office Saving Schemes
Now the govt has determined to modify diminutive Saving Schemes interest rates on a periodical basis starting from 1st April, 2016.
7. High Value Financial Transactions
Through an aim to restrain black money mess and to trail high value cash transactions, the govt has determined to implement new reporting strategy from 1st April, 2016 as listed below:
- Immovable Property: The Registrar of properties will have to account buy & retailing of all fixed possessions in excess of Rs 30 Lakh to the Income Tax authorities.
- Professionals: The experts will be necessary to notify the tax department of receiving of cash payment exceeding Rs 2 lakh for sale of any goods or services.
- Cash Deposits in Banks: Banks will have to report currency deposit combined Rs 10 lakh or more in a fiscal year in one or more financial records of a human being.
- Deposits in Current Accounts: Cash deposits or removal collective to Rs 50 lakh or more in a fiscal year in one or more present Account of a human being will have to be accounted by the bank to the I-T authorities.
- Investments in Financial Securities: A corporation has to account acceptance of Rs ten lakh or additional from a human being/an shareholder in a fiscal year for obtaining bonds, debentures, shares or mutual funds.
8. Bank Savings Account
RBI that is Reserve Bank of India has asked Banks to reimburse interest on savings banks financial credit on periodical basis or shorter gap from subsequently fiscal Year. Though the interest rate on investments account is considered on a every day basis, presently the interest quantity is accredited in savings bank account on half-yearly basis (every 6 months) only.
9. Real Estate Bill
The real estate bill is that bill which has been waiting before the assembly since August 2013 has lastly established the parliament’s nod. This bill is predictable to be useful to home buyers and can magnetize the much desirable capital flows into the realty sector.
10. ECS (Electronic Clearing Service)
ECS will be changed NACH (National Automated Clearing House) from 1st April, 2016 and it is a federal system which will merge multiple ECS systems that are currently available in the country. All banks have to control to this new stage by 1st May, 2016 so, from May 2016 onwards you have to use this facility instead of ECS.
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To keep away from the crash of both so as each of the activity gets proficient time and interest, December is not favored as the month of closure of the financial year and filing returns is one of the areas where the fiscal and calendar year be different to coincide; other areas include finalization of accounts, the government also presents its budget for April to March.
India is not the only country who follows this trend, countries like Canada, United Kingdom (UK), New Zealand, Hong Kong and Japan also follow a similar trend, while the exact reason remains unidentified like the mystery of development of mankind, there is no denying the fact that most countries’ financial year differ from the calendar year.
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