Changes in Budget 2017 as Compared to Budget 2016

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1-Turnover of companies upto 50 crore - tax will be 25% instead of 30%

2-MAT credit carry forward for 15 instead of 10 years

3-Long term capital gains on Property period reduced from 3 to 2 years

4- Base Year for indexation now 2001 instead of 1981

5- Presumptive tax for small traders with turnover upto 2 crore under 44Ad now 6% instead of 8 % for full non cash turnover

6- Cash expenditure now allowed only 10000 instead of 20000 per transaction

7- No transaction above 3 lac will be allowed in cash

8- Trust cash donations max allowed only 2000 instead of 10000

9- Political parties - max cash donations from 1 person Rs 2000.

10- Domestic transfer pricing - only if 1 party enjoys tax benefits

11- 44AD - turnover limit increased to 2 crores for business.

12- Professionals can pay advance tax in 1 installments if below 50 lac

13-Time for revising income tax return now reduced.

14- Scrutiny time limit reduced to 18 months

15- Individual tax reduced for income 2.5 to 5 lac tax rate now reduced to 5%

16- Surcharge of 10% on those who earn income from 50 lac to 1 crore

17- TDS - no Tds on insurance agents if 15 h filed

18- Simple 1 page income tax return for persons having non business income .

19- Deemed sale value for sale of unquoted shares introduced. To be taxed at fair value. Sec 50CA

20- In absence of PAN,the rate of TCS will be twice of the extent rate or 5%, whichever is higher. Sec.206CC.

21- If Return not filed as per Sec. 139 (1), concept of late fee introduced. Rs. 5000 for delay up to 31st Dec. and Rs. 10000 thereafter. Late fee to be paid before filing the Return. Sec 234F

22- CA issuing wrong certificate would be penalised with Rs. 10000

23- Capital gain on shares will be exempt only if STT was paid while purchasing the shares.

24- HP loss can be setoff against other head of income only to the extent of 200000 in same year. Balance loss can be c/f to 8 A.Ys.

25- Indl and HUF to deduct tds even if unaudited @ 5% if rent is paid 50000 pm

26- Tds in 194J amended, now 2 percent tds instead of 10

27- The scope of section 56 will be widened and will also cover any kind of gifts in cash or kind or for no consideration with few exemptions and exception

28- Disallowance of expenditure from income from other sources if tds is not deducted

29- Self employed can also claim 20% contribution to NPS as deduction.

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ALSO SEE:
HIGHLIGHTS OF FINANCE BUDGET 2017 IN SIMPLE LANGUAGE

Regards
SOURAV BAGARIA