Key Changes in Income Tax law (India) w.e.f 1-4-2017

By | March 31, 2017
(Last Updated On: March 31, 2017)

Changes in Income Tax law wef 1-4-2017

(A) Limit for payment of expenses by cash  (both, capital and revenue expenditure) reduced from Rs.20000 to Rs.10000 per day in aggregate per person.

(B) No person shall receive an amount of 2 lakh rupees or more, by cash (Sec. 269ST).

(C) For below Rs.2 crores turnover cases – For Non Cash Sales (through Digital, Online, cheque, Bank etc.)  : Net Profit will be taken as 6% of Turnover/Gross Receipt. For Cash Sales it’s 8%.

(D) Tax Exemption limit is Rs.2,50,000/- (same as earlier) After that, upto Rs.5 lakh, Tax Rate is 5% (earlier it was 10%).

(E) Payment of Rent – Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) – deduct TDS @ 5%.

(F) Capital Gain in respect of Land & Buildings period reduced from 3 years to 2 years and Base year shifted from 01.04.1981 to 01.04.2001.

(G) Corporate tax rate for the account year 2017-18 for companies with annual turnover upto Rs. 50 crores (in the account year 2015-16) is reduced to 25%.  No change in firm tax rate of 30%.

(H) Donations made exceeding Rs.2000 in cash will be not be eligible for deduction under section 80G.

(I) Sale of unquoted shares to be taxed at (deemed) fair value.

(J) In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.

(K)  From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.

(L) Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval.

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