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