1.
No Change in Tax Slab for Individual.
2.
40% of the amount payable from NATIONAL PENSION SCHEME (NPS) at a time of its
closure will be exempt from tax & Tax will be levied on balance 60%
accumulated balance on NPS. Similarly 60% of accumulated interest of EPF
contributed on & after 01.04.2016 will be taxable at a time of its
withdrawal. Only Investment in PPF remain Tax-free.(EEE)
3.
Exemption Limit for Employer Contribution of SAF increases from Rs 100000/- to
Rs 150000/- wef 01.04.2017.
4.
Time Limit for completion of property acquired or constructed with the borrowed
capital increase from 3 year to 5 years for getting exemption u/s 24(b) in
respect of Self Occupied House Property.
5.
New section 25A substituted the section 25A,25AA,25B w.e.f. 01.04.2017 As per
Section 25A.
Sec
25A(1)
The
amount of arrears of rent received from a tenant or the unrealized rent
realized subsequently from a tenant, as the case may be, by an assessee shall
be deemed to be the income from house property in respect of the financial year
in which such rent is received or realized, and shall be included in the total
income of the assessee under the head “Income from house property” whether the
assessee is the owner of the property or not in that financial year.
Sec
25A(2)
A
sum equal to thirty per cent. of the arrears of rent or the unrealized rent
referred to in sub-section (1) shall be allowed as deduction.’.
6.
Rebate u/s 87A increase from Rs. 2000 to Rs 5000/-
7.
Deduction limit u/s 80GG increases from Rs 2000/- to Rs. 5000/- This deduction
is not available for the assessee who are getting HRA.
8.
Additional surcharge 3% (12% to 15%) on individual having total income exceeds
Rs. 1 crore.
9.
Threshold Limit for presumptive taxation u/s 44AD increase from RS.1 crore to 2
Crore- Presumptive Taxation Limit extended to all small tax prayers having
income from profession upto Rs 50 lacs under new Section 44ADA Similarly Tax
Audit Limit U/S 44AB increase from Rs 1 Crore to 2 Crore for companies &
Rs.25 Lacs to Rs 50 Lacs for Professional Taxpayer obtain the benefit u/s 44AD
now requires to pay Advance Tax else liable to interest u/s 234B & 234C.
10.
R & D exemption limit u/s 35 reduced from 200% to 150% from 01.04.2017 to
31.03.2020 & 100% from 01.04.2020.
11.
Companies incorporated after 01.03.2016 are to be given an option to use
Corporate Tax Rate 25% plus surcharge & cess provided they do not claim the
benefit of accelerated depreciation & investment linked deduction.
Corporate tax rate for companies having turnover upto 5 Crore in the financial
year ending March 2015 reduced from 30% to 29% plus surcharge & Cess as
applicable.
12.
With a view to encourage “HOUSING FOR ALL” project it is proposed to provide 100%
tax exemption limit for the assessee engaged in developing & building
affordable housing provided if such project is approved by competent authority
before 31.03.2019 & completed within 3 years from the date of approval
under new inserted section 80IABA.
13.
Addition deduction of Rs 50000/- under new section 80EE on account of Interest
on home loan for “First Home Buyers” provided amount of Loan & Value of
property does not exceeds Rs 35 Lacs & 50 Lacs respectivelly.This benefit
is over & above benefit specified u/s 24(b).
14.
Gross dividend received by Individuals , HUF & a Firm resident in India is
taxable @10% if amount of such dividend exceeds Rs.10 Lacs.
15.
In order to provide relief to Non resident it is proposed that Sec 206AA is not
applicable for Non Resident on furnishing the alternative documents.
16.
Non Corporate Taxprayer are requires to Pay Advance Tax at par with Corporate
Tax prayer. In other Words Non Corporate Tax Prayer shall be require to pay
advance tax in 4 instalments, viz; 15%,45%,75% & 100% on or before 15th
June,15th Sept,15th Dec & 15th March Respectively.
17.
Any sum paid to Indian Railways for use of railway assets are covered u/s 43B.
18.
Royalty earned from Patent developed in INDIA will taxable at a Concessional
Rate of 10% plus surcharge & Cess as applicable under new section 115BBF
which is applicable only to a person resident in India. Section 115BBF is
applicable both for existing as well as new patents.
19.
Deduction u/s 80JJAA is proposed applicable to all the assessees who required
to get their accounts audited & 30% of total emoluments paid to employees
would be allowed as deduction provided emolument paid to each employee is less
than equal to Rs 25000/- PM. Further total number days of emolument proposed to
be reduced from 300 to 240 days & condition of 10% increase in total number
of employees proposed to be withdrawn.
20.
Belated Return u/s 139(5) must be filled before the end of relevant AY &
completion of assessment whichever is earlier & belated return can also be
revised. Time limit for completion of assessment u/s 143 & u/s 147 reduced
from 2 years to 21 months.
- See more at:
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