NEW DELHI: Buyers of automobiles costing over Rs 10 lakh will have to shell out the 1 per cent tax which will be collected by the seller from now on.
This is part of the amendments moved by Finance Minister Arun Jaitley to the Finance Bill 2016 and approved by the Lok Sabha today which makes it clear about who will be liable for tax collection which was unclear in the budget.
“Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs 10 lakh, shall at the time of receipt of such amount, collect from the buyer a sum equal to 1 per cent of the sale consideration as income tax,” said the amendment.
Tweaking the provision relating to additional Dividend Tax, one of the amendments provides for 10 per cent levy becoming payable if the aggregate amount of receipt exceeds Rs 10 lakh.
This essentially means, tax payers whose dividend income crosses Rs 10 lakh would now have to pay an additional dividend tax besides the dividend distribution tax being paid by the company/companies declaring such dividends. (AGENCIES)
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