02/02/2017
INDIAN UNION BUDGET 2017:-
# # # # Taxation Proposals # # # # #
-> No. of individuals filing returns is 1.74 cr against 4.2 cr individuals employed in organised sector
-> No. of individuals filing returns is 1.81 cr against 5.6 cr individuals employed in unorganised sector (including proproietorships)
-> Out of 13.94 Lacs Companies, only 5.97 Lacs returns filed for AY 2016-17
-> 2.76 Lacs Companies show Nil Income / losses in AY 2016-17
-> Only 7781 Companies have shown Profits before Tax of 10 cr+
-> Out of 76 Lacs individual tax payers with income between 5 Lacs to 10 Lacs, 56 Lacs are salaried individuals
-> Largely a tax non compliant society and large scale tax evasion is rampant as indicated by 1.2 cr cars bought and 2 cr abroad visits taken for tourism /business trips
-> Growth in Advance Income Tax on Personal Income in 2016-17 of 34.8 % over last year
-> Holding period for identifying long term capital asset in case of immovable property reduced to 2 years from 3 years
-> Base year for indexation to be changed from 1.4.81 to 1.4.2001
-> Basket of instruments through which Capital gains can be exempted to be extended
-> Builders to be charged tax on notional rent on flats remaining unsold for more than 1 year from the date of completion certificate
-> Income tax exemption for start-ups: Tax exempted for any 3 years out of 7 years (instead of the total window of 5 earlier)
-> Carry forward of losses in case of Change in Management by more than 51 % limit allowed relaxed as long as the promoters remain same
-> MAT Carry forward to be allowed for 15 years instead of 10 years
-> Corporate Tax for Companies up to Turnover of up to 50 cr to be reduced to 25 %
-> Basic Customs duty reduced to 2.5 % from 5 %
-> NPA to be increased from provisioning from 7.5 % to 8.5% for financial sector
-> Presumptive taxation u/s 44AD for Business Income: Rate reduced to 6 % from 8 % for turnover realised in non cash transaction
-> Cash expenditure limit to be reduced to Rs. 10,000 for revenue as well as capital expenditure
-> Cash receipts by Charitable organisations reduced from 10,000 to 2,000
-> No transaction above Rs. 3 Lacs to be permitted in cash
-> Maximum cash that a political party can receive is Rs. 2,000 from anyone source; Any amount can be received by cheque or through digital payment.
-> Electoral bonds to be issued by RBI for political party funding; Donors can fund political parties by purchasing these bonds and donating these bonds to the parties. Parties can get the bonds redeemed from RBI within the prescribed time frame.
-> BCD, Excise duty, SAD, CVD on manufacture of equipment supporting digital transactions like card readers, scanners etc.
-> Thresholds increased for maintaining books of accounts u/s44AA from Rs. 10 Lacs to 25 Lacs
-> TDS exempt for income of Insurance agents upon their self declaration
-> Time period of revising return reduced to 12 months from the closure of financial year (as opposed to 12 months from the close of AY earlier)
-> Time period of scrutiny assessment reduced to 18 months from AY 18-19 and 12 months for AY 19-20
-> No scrutiny for first time return filers unless in case of suspicious transactions
-> Income tax rate slabs for Individuals
Income 2.5 Lacs to 5 Lacs: 5 % (instead of 10 % earlier)
Other slabs remain same
-> Rebate u/s 87A reduced to Rs. 2,500 (from Rs. 5000) for assessees with taxable income up to 3.5 Lacs (from Rs. 5 Lacs earlier)
-> New Surcharge of 10 % for Income from Rs. 50 Lacs to 1 cr
-> Existing Surcharge for income above 1 cr continues @ 15 %
-> Simple 1 page form for Individual with income up to 5 Lacs other than business income
-> Maximisation of efforts for E-Assessments
-> Data mining to be done extensively to track tax evasion cases
