MAIN TAX UPDATES
- Limit for the payment of cash expenses (capital and income expenses) reduced from RS. 20,000 to RS. 10,000 per day in total per person.
- No Person will receive an amount of two lakh rupees or more, in cash (Sec 269ST).
- Below Rs. Billing cases of 2 million rupees – For non-cash sales (through digital media, online, checks, banks, etc.): the net profit will be taken as 6% of gross billing/receipt. It is 8% for cash sales.
- The tax exemption limit is Rs.2,50,000 / – (as before) After that, up to 5 Lakh, the tax rate is 5% (previously it was 10%).
- The tax refund is reduced to Rs.2500 from Rs.5000 per year for taxpayers with incomes up to Rs.3.50,000 (formerly Rs.5.00,000).
- Surcharge to 10 percent of the tax applied to rich taxpayers with incomes between Rs.50 Lakh and Rs.1 Crore. The surcharge rate for the super rich, with incomes above Rs.1 Crore, will remain at 15%.
- Rent payment – 50.00 rupees per month for an individual or HUF (not subject to tax audit requirement) – Deduct TDS @ 5%.
- The capital gain with respect to the Land and Construction period was reduced from 3 years to 2 years and the base year was modified from 04/01/1981 to 04/01/2001.
The corporate tax rate for the 2017-18 accounting year for companies with an annual turnover of up to Rs.50 crores (in the 2015-16 accounting year) is reduced to 25%. No change in the firm tax rate of 30%.
Donation made in excess of Rs.2000 will not be eligible for the deduction under section 80G.
Shares of unquoted shares are taxed at fair value (estimated).
- The deduction for first-time investors in listed shares or listed units of equity-oriented funds under the Rajiv Gandhi Capital Savings Scheme under section 80CCG of the IT laws of 1961 is withdrawn from the 2017-18 fiscal year. If an individual has already claimed the deduction under this scheme before April 1, 2017, they will be allowed to obtain a deduction during the next two years.
- No tax is applied for partial withdrawals from the National Pension System. NPS subscribers may withdraw 25% of their contribution to the corpus for emergencies before retirement. The 40% withdrawal of the corpus is tax-free before retirement.
- In the absence of PAN of the buyer of specified products, the TCS rate will be double the extension rate or 5%, whichever is higher.
- From the 2017-18 fiscal year, if the Refund is not presented within the due date, the arrears rate of Rs.5,000 will be delayed until December 31 and Rs.10,000 thereafter. Said fee will be restricted to Rs.1,000 for small taxpayers with incomes of up to Rs.5 lakh.
- A simple one-page tax return form must be submitted for Individuals with taxable income of up to Rs. 5 lakh (excluding commercial income). Those who file returns for the first time in this category will generally not be subject to scrutiny.
- The time period for the review of the tax return is reduced to one year (from 2 years) from the end of the relevant financial year or before the end of the evaluation, whichever occurs first.
When the registered trusts of Section 12AA modify their object clause, they must submit their request within 30 days to CIT for approval.
- It is mandatory to disclose the Aadhar number while the IT Return is recorded. Previously it was optional to reveal the Aadhar number. In general, the last filing date for the IT declaration is July 31. Therefore, it is advisable that the taxpayer obtain their Aadhar number as soon as possible.
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