A new financial year started on April 1. The rules of last year are not applicable now. The new financial regulations announced by Arun Jaitley in Budget 2017 will be valid from April 1, 2017. The Finance Bill was passed by the Lok Sabha on Wednesday, completing the budgetary exercise for 2017-18. Make a note of the following changes in Tax law that come into effect from 1-4-2017:
Limit for payment by cash Limit for payment of expenses by cash (both, capital and revenue expenditure) reduced from Rs 20,000 to Rs 10,000 per day in aggregate per person. Capital expenses paid in cash beyond the said limit will not be taken into account for depreciation purposes. However, the cash payment limit for lorry freight etc. remains the same at Rs 35,000.
Conditions No person shall receive an amount of two lakh rupees or more, by cash (Sec. 269ST) - in aggregate from a person in a day; or in respect of a single transaction; or in respect of transactions relating to one event or occasion. The penalty for violation of above is to be a sum equal to the amount of such receipt.
Tax exemption limit Tax Exemption limit is Rs2,50,000/- (same as earlier). After that, up to Rs 5 lakh, Tax Rate is 5% (earlier it was 10%). A tax rebate of maximum Rs 2,500 will be allowed, for total income up to Rs 3.50 lakhs.
Surcharge Individuals having total income exceeding Rs 50 lakhs but below Rs.1 crore, are to pay surcharge @ 10% of the tax. Those having total income exceeding Rs 1 crore shall continue to pay surcharge @ 15%.
Payment of Rent Rs 50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) - deduct TDS @ 5%
Donations made exceeding Rs 2,000 will not be eligible for deduction under section 80G unless these are made using modes other than cash. Consequently, trusts accepting 80G donations may advise their donors to give donations exceeding Rs 2,000 vide cheque / RTGS / digital modes.
Late fee From the financial year 2017-18, if Return is not filed within due date, the late fee of Rs 5000 for delay up to 31st December, and Rs 10000 after that.
Aadhaar mandatory Every person who is eligible to obtain AADHAR number should quote such number, on or after 1 July 2017, in the Return of income. Furthermore, every person who has been allotted PAN as on 1st July 2017 must intimate the AADHAR number to the Tax Authority, failing which, PAN allotted to such person shall be deemed to be invalid. Kindly note that linking of AADHAR with PAN is not possible unless name as per AADHAR and PAN match perfectly. Hence, please take steps to rectify your name as per AADHAR to match as per PAN. Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval of the modified clauses.
Source from Goodreturns.in
