CAPSULE OF CHANGES IN INCOME TAX LAW WITH EFFECT FROM 1ST APRIL 2017
1.
Limit for payment of capital and revenue
expenses by cash – Rupees 10,000 per day per person
2.
Capital expenses paid in cash beyond Rupees
10,000 will not be taken into account for depreciation purposes
3.
No person shall receive an amount of two lakhs
rupees or more, by cash
a.
in aggregate from a person in a day; or
b.
in respect of a single transaction; or
c.
in respect of transactions relating to one event
or occasion
The penalty for violation of above is to be a sum equal to the amount of
such receipt
4.
For below Rupees.2 crores turnover
a.
Cash sales - Net Profit will be taken as 6% of
Turnover/Gross Receipt
b.
Non Cash sales - Net Profit will be taken as 8%
of Turnover/Gross Receipt
5.
Tax exemption limit is Rupees. 2,50,000
6.
Tax rate for income up to Rupees 5 lacs is 5%
7.
Tax rebate of maximum Rupees.2500 will be
allowed for total income up to Rupees.3.50 lakhs
8.
Surcharge of 15% for total income exceeding
Rupees 1 crores
9.
TDS at 5% on rent payment of rupees 50,000 by
any Individual and HUF not subject to tax audit
10.
Capital Gain in respect of Land & Buildings
a.
Periodicity for long term Capital Gain is
reduced from 3 years to 2 years
b.
Base year shifted from 01.04.1981 to 01.04.2001
for all assets including Immovable property
11.
Corporate tax rate of companies for the
accounting year 2017-18 for companies with total turnover up to rupees 50
Crores (in the accounting year 2015-16)
reduced to 25%
12.
Cash donations exceeding rupees 2,000 will not
be eligible for Sec 80G exemption
13.
Sale of unquoted shares to be taxed at (deemed)
fair value
14.
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
15.
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.
16.
Every person who is eligible to obtain AADHAR
number, should quote such number, on or after 1 July 2017, in the Return of
income
17.
every person who has been allotted PAN as on 1st
July 2017 must intimate the AADHAR number to the Tax Authority, failing which,
PAN allotted to such person shall be deemed to be invalid
18.
Where Sec.12AA registered trusts modify their
objects clause, they need to apply within 30 days to CIT for approval of the
modified clauses
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