Salient features of Finance Bill, 2018

Important Features of Budget 2018

    •  No change in the tax rate. All people, including people, HUF, companies, and companies, must pay the same tax. However, access to education is increasing from 3 to 4%, which is known as “education and health“.

 

    •  However, for national companies that have a total turnover or gross receipts that do not exceed Rs 250 crores in the fiscal year 2016-17, they will be required to pay taxes at 25% compared to the current maximum limit of Rs 50 crore in the fiscal year 2015-16.

 

    • Exemption from the long-term capital gain exemption under section 10 (38) with respect to paid STT shares.

 

    • However, the capital gain until 31.1.2018 will not be taxed since the acquisition cost will be taken as the fair market value as of 31.1.2018.

 

 

    • Tax on long-term paid capital STT The gain will be 10% under Section 112A. In addition, said the tax will be responsible for TDS.

 

    • The standard deduction of 40,000 rupees for salaried employees. However, the benefit of the transport subsidy of Rs 19,200 and the medical rebate of Rs 15,000 under section 17 (2) are being taken off. Therefore, the net benefit for class wages of only Rs 5,800.

 

    • Provision of Section 43CA, 50C and 56 (2) (x) modified to allow for a consideration of 5% of the sale in the variation with respect to the value of stamp duty. Because of the location, the disadvantage, etc.

 

    • The provision of section 40 (ia) and 40A (3) and 40A (3A) is being applied to the Charitable Foundation. Therefore, expenses incurred without tax deduction and in cash will not be eligible for income application under section 10 (23C) and section 11 (1) (a).

 

    •  The income/loss derived from the products derived from agriculture should not be considered as speculative in section 43 (5).

 

    • The Information and Computing Income Standards (ICDS) receive legal backing in light of the decision of the Delhi Supreme Court decision.

 

    •  Marked by the market loss calculated according to the ICDS to be allowed in section 36.

 

    • Gain or loss in foreign currency according to ICDS to be allowed under new section 43AA.

 

    • Income from the construction contract that will be calculated in the percentage of completion method according to ICDS.

 

    • Valuation of Inventory Values according to ICDS.

 

    • Interest for compensation improved compensation. Claim or subsidy of claim or improvement, incentives to tax in the year of receipt only according to the new Section 145B.

 

    • Conversion of shares in the trade to the capital asset that will be charged as commercial income in the year of conversion to fair market value on the date of conversion.

 

    • 54EC benefit of the investment in Bonds that will be limited to the capital gain on land and construction only. The additional period of tenure was increased from 3 years to 5 years.

 

    • The NAP must be obtained by all entities including HUF that are not individuals in case the financial transaction aggregate in a year is Rs 2,50,000 or more. All directors, partners, members of these entities also to obtain PAN.

 

    •  All companies, regardless of the income to submit the declaration and in case it has not been submitted, these companies will be responsible for prosecution, regardless of whether it has the tax liability of Rs. 3,000 or not.

 

    • Evaluations to be evaluated electronically according to the new section 143 (3A)

 

    • There is no adjustment under section 143 (1) while processing due to the mismatch with 26AS and 16A.

 

    • The attributed dividend will be taxed in the hands of the company itself as Dividend Tax distribution @ 30%.

 

    • The fine for undocumented financial return as required in section 285BA is increased to Rs 500 per day.

 

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

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Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.