Income tax Updates

The Lok Sabha passed the Finance Bill, Starting from April 1, 2017:

A) The tax rate on income between Rs. 2.5-5 lakh will be 5 per cent from 10 per cent.

B) A 10 per cent surcharge for individuals having income from Rs. 50 lakh to 1 crore.

C) A simple one-page ITR form for individuals having a taxable income up to Rs. 5 lakh other than business income.

D) No deduction will be allowed for investment in Rajiv Gandhi Equity Saving Scheme from Assessment Year 2018-19.

E) Income tax officials can reopen tax cases for up to 10 years if search operations reveal undisclosed income over Rs. 50 lakh.

F)Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from AY 2018-19.

F) The holding period of a property for qualifying as long-term gains will be reduced to two years, from three years.

G) The government has cut down tax benefits borrowers enjoyed on properties let out on rent up to Rs. 2 lakh.

H) Individuals will be required to deduct a 5 per cent TDS for rental payments above Rs. 50,000 per month fromJune 1, 2017.

I) Partial withdrawals from National Pension System (NPS) will not attract tax.

J) Aadhaar number will be a must while applying for PAN as well as filing of income tax returns from 1 July .

K)limit on cash transactions has been set at Rs. 2 lakh from proposed Rs. 3 lakh.

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