Assurance | Advisory | Consultancy

BUDGET AMENDMENTS

  • No change in exemption slab. However rate of tax between Rs.2.5 lakh to Rs.5 lakh will be reduced from 10% to 5%
  • Rebate under Section 87A will be available only if taxable income of a resident individual does not exceed Rs.3.5 lakh. Rebate is restricted to Rs.2,500/-
  • Tax rate for domestic company will be @25% if total turnover of the company is Rs.50 crore or less for the FY 15-16. w.e.f. 01.04.2017
  • Limit for payment of expenses by cash or bearer cheque(both capital & revenue exp)is reduced from Rs.20,000 to Rs.10,000
  • No person shall be eligible to accept cash receipt of Rs.2,00,000 or more, otherwise equal amount of penalty would be levied.
  • Minimum Alternate Tax(MAT) credit can be carried forward for 15 years instead of earlier 10 years.
  • Under presumptive tax scheme 44AD , business income will be calculated @6% if gross turnover/receipt received through cheque or electronic mode.
  • An individual or HUF(not covered under taxaudit case) shall be liable to deduct TDS @5% if monthly payment of rent exceeds Rs.50,000/-
  • Period of holding in case of immovable property has been reduced from 3 years to 2 years for calculating Long Term Capital Gain
  • For Long Term Capital Gain, the base year is shifted from 1981 to 2001.
  • Fair market value as on 01.04.2001 can be adopted as cost of acquisition if capital asset acquired prior to 01.04.2001 for capital gain tax.
  • A cash donation exceeding Rs.2,000 will not be eligible for deduction u/s 80G.
  • A fees (ranging from Rs.1,000 to Rs.10,000) will be levied for late filing of income tax return.
  • Every individual who is eligible to obtain Aadhaar number, should quote such number in the income tax return.
  • Every individual who has been allotted PAN as on July 1, 2017 must intimate Aadhaar to the tax authority, failing which PAN shall be deemed to be invalid.