I would like to know the Impact of Union Budget 2016-2017 on HR . Please share your information with examples
From India, Coimbatore
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From India, Coimbatore
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Hi Buddy,
The 2016-17 Budget added a provision in PF, which made 60% of PF withdrawals taxable whereas earlier it was tax-free.
HRA tax relief has been increased to ₹60,000 per annum from ₹24,000 per annum.
This is what I know.
With Regards,
Mr. Thumbs Up
From India, Chennai
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105The 2016-17 Budget added a provision in PF, which made 60% of PF withdrawals taxable whereas earlier it was tax-free.
HRA tax relief has been increased to ₹60,000 per annum from ₹24,000 per annum.
This is what I know.
With Regards,
Mr. Thumbs Up
From India, Chennai
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Impact on EPF interest:
All contributions and interest accrued to the Employee Provident Fund (EPF) before April 1, 2016, will not attract any tax on withdrawal. The withdrawal of the principal amount contributed to EPF after April 1 would also remain exempt from any tax. It is only the interest on contributions made after April 1, 2016, which will be taxed.
Impact on HRA
"Raised deduction limit for rent paid by an individual who doesn't have a house and isn't entitled to HRA from the employer to Rs 60,000 pa from Rs 24,000 pa.
Impact on TDS
Increase the threshold limit for TDS in the case of withdrawal of PF balances to Rs 50,000 from Rs 30,000.
Impact on NPS
IT marginal changes. Super-rich employees will pay higher tax. HR will have to take financial advice to make changes in procedures where the budget is impacting the functions of HR-Payrolls of salary, exits due to retirement, etc.
From India, Pune
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All contributions and interest accrued to the Employee Provident Fund (EPF) before April 1, 2016, will not attract any tax on withdrawal. The withdrawal of the principal amount contributed to EPF after April 1 would also remain exempt from any tax. It is only the interest on contributions made after April 1, 2016, which will be taxed.
Impact on HRA
"Raised deduction limit for rent paid by an individual who doesn't have a house and isn't entitled to HRA from the employer to Rs 60,000 pa from Rs 24,000 pa.
Impact on TDS
Increase the threshold limit for TDS in the case of withdrawal of PF balances to Rs 50,000 from Rs 30,000.
Impact on NPS
IT marginal changes. Super-rich employees will pay higher tax. HR will have to take financial advice to make changes in procedures where the budget is impacting the functions of HR-Payrolls of salary, exits due to retirement, etc.
From India, Pune
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Rebate Under 87A: Tax up to Rs. 5000/- will get a rebate under 87A. This is increased from Rs. 2000 in FY 2015-16. If taxable income is Rs. 3,00,000/-, tax will be 10% of Rs. 50,000/-, which is Rs. 5000/-. This tax gets a rebate under section 87A, and the net tax will be NIL.
HRA Impact: Is applicable in case of a deduction under Section 80GG (where the employee does not have an HRA component in CTC but is paying house rent).
The taxation on the interest of EPF has the most damaging impact on employees.
From India, Mumbai
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HRA Impact: Is applicable in case of a deduction under Section 80GG (where the employee does not have an HRA component in CTC but is paying house rent).
The taxation on the interest of EPF has the most damaging impact on employees.
From India, Mumbai
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Hi,
First, I thank all. All the above points are clear to me except HRA. I am not much aware of HRA rebate and all. Please clarify:
1. Are all employees eligible for HRA rebate? Because all have HRA 20%.
2. What is the HRA process? I thought it's simply a CTC component. How does it reflect on the budget and all.
From India, Coimbatore
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First, I thank all. All the above points are clear to me except HRA. I am not much aware of HRA rebate and all. Please clarify:
1. Are all employees eligible for HRA rebate? Because all have HRA 20%.
2. What is the HRA process? I thought it's simply a CTC component. How does it reflect on the budget and all.
From India, Coimbatore
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The answer to your Point 1 is NO.
Such an individual can claim an exemption for rent paid under section 80GG. Currently, the maximum limit for 80GG is Rs. 24,000 annually. The budget proposes to raise this limit to Rs. 60,000 annually. The individual can claim a deduction for rent paid by filling Form 10BA.
From India, Mumbai
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Such an individual can claim an exemption for rent paid under section 80GG. Currently, the maximum limit for 80GG is Rs. 24,000 annually. The budget proposes to raise this limit to Rs. 60,000 annually. The individual can claim a deduction for rent paid by filling Form 10BA.
From India, Mumbai
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Regarding this Budget announcement, In Coimbatore Regional PF Office not receive the PF Claim forms. But PF officials also Don’t the details regarding Budget.
From India, Chennai
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From India, Chennai
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All proposals in the budget will be applicable only from 01 April 2016 after the budget gets passed in the Parliament. So one has to wait until the PF office gets new forms, etc., but the taxation provision of EPF.
From India, Pune
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From India, Pune
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Hi,
The budget has affected the HR industry this year. As an HR manager myself, I was reading about the new EPF taxation and how they have revoked it as well because of public opposition. While doing so, I came across this very useful article that highlights all the points in the budget 2016 that are pertinent to the HR industry. Have a look and let me know if this helps: [8 Budget announcements all HR managers should know](http://quikchex.in/budget-2016-hr-managers/)
From India, Mumbai
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The budget has affected the HR industry this year. As an HR manager myself, I was reading about the new EPF taxation and how they have revoked it as well because of public opposition. While doing so, I came across this very useful article that highlights all the points in the budget 2016 that are pertinent to the HR industry. Have a look and let me know if this helps: [8 Budget announcements all HR managers should know](http://quikchex.in/budget-2016-hr-managers/)
From India, Mumbai
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