CHANGES IN INCOME TAX FROM FINANCIAL YEAR 2017-18

CHANGES IN INCOME TAX FROM FINANCIAL YEAR 2017-18

Ø Limit for payment of expenses by Cash (Both Capital & Revenue Expenditure) reduced from Rs.20,000 to Rs.10,000 per day in aggregate per person.

Ø As per Section 269ST, no person shall receive an amount of Rs.2,00,000 or more by cash.

Ø Payment of Rent upto Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirement) has to deduct TDS @ 5%

Ø Capital Gain with respect to Land & Building period reduced from 3 Years to 2 Years. Base Year shifted from 1981 to 2001.

Ø Donation made in excess of Rs.2000 will not be eligible for deduction under Section 80G.

Ø Time period for revision of Income Tax return cut to 1 Year (Earlier 2 Years) from the end of relevant Financial Year or before completion of assessment, whichever is earlier.

Ø It is mandatory to disclose Aadhar Number while filing Income Tax Return. Earlier it was optional to disclose Aadhar number.

Ø In absence of PAN of the buyer of specified goods, rate of TCS will be Twice of the extent rate or 5%, whichever is higher.

Ø From FY 2017-18 if IT Return is not filed within Due Date, late fee of Rs.5000 upto 31 December & RS.10,000 thereafter shall be levied. It is to be noted that such fee shall be restricted to Rs.1000 for small taxpayers with income upto Rs.5 Lakh.