Finance Act 2017 has made several significant changes in the law relating to income-tax. The Highlights of changes are :
#1 No change in basic exemption limit. However, tax rate for income slab of Rs. 2,50,000 to Rs. 5,00,000 has been reduced to 5% (In A.Y. 2017-18 it was 10%).
#2 In case of individuals, HUFs, AOP and BOI, surcharge shall be levied @ 10% if total income exceeds Rs. 50 Mich but does not exceed Rs. 1 crore and @ 15% if total income exceeds Rs. 1 crore. No change in surcharge for other assessees.
#3 Tax rebate (u/s 87A) to be allowed to resident individuals having total income up to 3.5 lakh, up to a maximum of Rs. 2,500.
#4 Withdrawal from NPS account up to 25% of own contribution by an employee to be exempt.
#5 Deduction for contribution to NPS [u/s 80CC13(1)] allowable to an individual (other than employee) up to 20% of his gross total
#6 Limit for cash donations u/s 80G reduced to Rs. 2,000.
#7 An individual/H.U.F. shall be required to maintain account books if his income exceeds Rs. 2,50,000 or turnover/gross receipts exceeds Rs. 25 lakh.
#8 Income under estimated income scheme .(u/s 44AD) to be computed C 6% of turnover received by account payee cheque/ bank draft or
#9 Professional assessees declaring income under estimated income scheme (u/s 44ADA) to deposit entire advance tax by 15th
#10 Failure to furnish return by the due date to attract a fee ranging from Rs. 1000 to Rs. 10,000.
#11 Immovable property (i.e. land, building or both) held for 24 months or more shall be treated as long-term.
#12 Base for indexation of cost of acquisition/improvement shifted to 4.2001 (i.e. year 2001-02).
#13 Gifts received e.f. 1.4.2017, in form of money or immovable/ movable property, exceeding Rs. 50,000 in each case, to be taxable as income in case of all persons.
#14 Set off of house property loss against any other income to be allowed up to a maximum of Rs. 2,00,000.
#15 Payment for a capital expenditure made otherwise than by anaccount payee cheque/draft or ECS, exceeding Rs. 10,000 shall neither be deductible u/s 35AD nor eligible for depreciation u/s 32.
#16 Limit for making cash payment of ‘any revenue expenditure reduced to Rs. 10,000.
#17 Restriction imposed on receipt of Rs. 2 lakh or more from a person in a day, or in respect of a single transaction, or in respect of transactions relating to one event, otherwise than by an account payee chequerdraft or ECS, w.e.f. 1.4-2017. Violation to attract a penalty equal to the amount accepted.
#18 Individuals/HUFs required to deduct TDS @5% on payment of rent exceeding Rs.50,000 for a month.
#19 TCS on sale of bullion, jewellery or any other goods or rendering of service in cash, discontinued w.e.f. 1-4-2017.
#20 Furnishing of PAN mandatory for the purposes of TCS and also in declaration for no TCS (in form 27C). Otherwise TCS shall be collected at twice the specified rate or @5% whichever is higher.
#21 Quoting of Aadhar number mandatory w.e.f. 1-7-2017 in application for PAN and return of income.