Budget 2017-18 Highlights-Income Tax . Union Budget Tax Proposals for AY 2018-19

Budget 2017-18 Highlights-Income Tax. Union Budget Tax Proposals for AY 2018-19 (FY 2017-18) 

Budget 2017-18 Highlights-Income Tax 

The following are the major Highlights for Income Tax-Proposals.

  1. Personal income tax-tax rate of 5% for income in the range of Rs. 2.5 lakhs to 5 lakhs
  2. Rebate u/s 87A restricted to Rs. 2500/- for income upto Rs. 3.5 lakhs
  3. New simplified ITR
  4. Long term capital gain holding perod for immovable property reduced to 2 years from 3 years.
  5. Indexation for LTCG to apply from 01-04-2001 instead of 01-04-1981
  6. No Notional income for House Property held as stock in trade
  7. TDS on Rent liability of assessees not covered under Tax audit
  8. Cash payment disallowance reduced to rs. 10000/- per person per day
  9. Deemed FMV u/s 50CA for capital gain on transfer of unquoted shares 
  10. MAT carry forward for 15 years allowed
  11. Tax rate of 25% for MSME companies with annual turnover up to 50%
  12. NPA provisions increased to 8.5%  from 7.5%
  13. Interest on NPA to be on receipt basis.
  14. Restrictions on cash transactions exceeding Rs. 3 Lakhs
  15. Presumptive tax @ 6% on digital sales
  16. No deduction u/s 80G for cash donations exceeding Rs. 2000/- 
  17. Political parties cash donations-maximum Rs. 2000/- from one source
  18. Electoral Bonds by RBI for political fundings
  19. Fee for delayed filing of return of income u/s 234F
  20. Threshold limit for audit in presumptive tax increased 
  21. Threshold limit for mainatining books for individual/HUF increased 
  22. Time period of revising return is revised
  23. Section 143(1D) not to apply to ITR for AY 2017-18 onwards
  24. time for completing income tax assessment and filing revised returns reduced
  25. TDS u/s 194J for payment to person engaged in the operation of call centre reduced to 2%
  26. Interest on refunds to deductots u/s 244(1B)
  27. CBDT empowered to waive TDS  default penalty for failure to deduct or collect tax at source to reduce the genuine hardship
  28. Section 56-2-vii property received without consideration extended to all assessee
  29. Corpus donation amongst exempt institutions not to be regarded application of income
  30. Penalty u/s271F for wrong report/certificate by CA or other professionals
  31. Fresh registration u/s 12AA by Institutions for change in objects which do not conform to the conditions of registration granted
  32. PAN quoting under TCS provisions made mandatory
  33. House property loss set-off against other income head limit of Rs. two lakh for any assessment year.
  34. Reason to believe to conduct search not to be disclosed to to any person or any authority or the Appellate Tribunal.
  35. Power to call information us 133(6) by Investigation authorities can be exercised by the Joint-Deputy and the Assistant Director.
  36. Power to survey to charitable institutions u/s 133A
  37. Tax exemption-Partial withdrawal from NPS


 

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