Income Tax: Get Notified with the changes
With the tax proposals in the Budget 2017 turning into law, we are all set to file our income tax returns . Below are 10 most important income-tax changes affecting you; thereby lets plan to save more!
- With a deviation in tax rate from 10 per cent to 5 per cent for total income between Rs 2.5 lakh and Rs 5 lakh, there is tax saving of up to Rs 12,500 per year and Rs 14,806 (including surcharge and cess) for those with income above Rs 1 crore.
- 2. Tax rebate is descreased to Rs 2,500 from Rs 5,000 per year for tax payers with income up to Rs 3.5 lakh (earlier Rs 5 lakh). Due to the combined effect of change in tax rate and rebate, an individual with taxable income of Rs 3.5 lakh will now pay tax of 2,575 instead of 5,150 earlier.
- Extra charge at 10 for each penny of expense collected on rich citizens, with pay between Rs 50 lakh and Rs 1 crore. The rate of surcharge for the super rich, with income above Rs 1 crore, will remain 15 per cent.
- Having period for immovable property to be considered “long term” decreased to 2 years from 3. This will ensure immovable property held beyond 2 years is taxed at reduced rate of 20 per cent and eligible for various exemptions on reinvestment.
- Long haul capital increases expense will bring about a lower payout attributable to valuable corrections. The base year for indexation of cost (adjustment of inflation) has been shifted to April 1, 2001, from April 1, 1981. This means lower profits on sale.
- Further, charge exception will be accessible on reinvestment of capital picks up in told redeemable bonds (notwithstanding interest in NHAI and REC bonds).
- A simple one-page tax return form is to be introduced for individuals with taxable income up to Rs 5 lakh (excluding business income).
Delay in documenting expense form for 2017-18 will draw in punishment of Rs 5,000 if recorded by Dec 31, 2018 and Rs 10,000 if recorded later.Such charge will be restricted to Rs 1,000 for little nationals with wage up to Rs 5 lakh.
Deduction for first-time investors in listed equity shares or listed units of equity oriented fund under the Rajiv Gandhi Equity Savings Scheme is withdrawn from 2017-18. On the off chance that an individual has as of now guaranteed derivation under this plan before April 1, 2017, he/she should be permitted to profit a conclusion for the following two years.
Day and age for modification of government form sliced to one year (from 2 years) from the finish of the pertinent FY or before fruition of evaluation, whichever is prior.[vfb id = “1”]