<h1>2016 India Budget: Reduced Taxes for Small Companies, New Manufacturing Firms; Dividend Income Over INR 10 Lacs Taxed at 10.</h1> The 2016 budget introduced several changes to direct taxes in India. Corporate tax rates remained unchanged for companies with turnovers above INR 5 crores, while those below saw a reduction from 30% to 29%. New manufacturing companies set up after March 1, 2016, will be taxed at 25%, provided they don't avail certain tax-linked investments. Dividend income exceeding INR 10 lacs will be taxed at 10%. A 6% equalization levy on digital transactions was proposed. Amendments to the buyback of shares and patent income taxation were introduced. The budget also proposed changes to various tax provisions, including exemptions, reporting requirements, and penalties, to streamline processes and encourage compliance.