Salient
Feature of Finance Bill 2017
Ø TAX
RATES
Change in Income Tax Rates
Individual & HUF, AOP & BOI
2, 50,000 – 5, 00,000 – Reduced from 10%
to 5%
In case of 50, 00,000 to 1 Crore – S.C.
@ 10%
Exceeding 1 Crore – S.C. @ 15%
Companies having turnover of < 50Cr –
25%
Ø TDS
PROVISION
TDS on Rent w.e.f 01/06/2017
Individual & HUF other than those
covered u/s 44AB to deduct TDS @ 5% in payment of rent exceed Rs. 50,000/- for
a month or a part thereof.
Only once & is not requested to
obtain TAN.
Any consideration paid to Individual or
HUF under Joint Development Agreement apart from stamp value shall be subject
to 10 % TDS.
No TDS on Insurance Commission if
15G/15H is submitted.
TDS on payment to resident u/s 40 (a) (ia) for
expense under other sources
Ø CASH
TRANSACTION
Cash
payment exceeding Rs. 10000/- in a day
i.
Disallowable u/s 40 A (3), earlier
Rs. 20000/-.
ii.
Even such cash payment shall not
form part of cost for allowance of depreciation.
269ST
No
person shall received an amount of Rs. 3 lakhs or more-
a) In
aggregate from a person in a day.
b) In
respect of a single transaction, or
c) In
respect of transactions relating on event or occasion from a person otherwise
then banking channel.
d) Penalty
equal to that amount is proposed in the absence of good & sufficient reason
for such contravention.
Ø INCOME
FROM HOUSE PROPERTY
Set
Off of Loss from House Property
Against any other head
of income shall not exceed Rs.2 Lac, and the balance shall be carried forward
for set off in subsequent years.
Notional Rent
In case of real estate developer after
one year from the end of the Financial
Year in which certificate of completion of construction of the property is
obtained, Notional Rent shall be included in income.
Ø CAPITAL
GAIN
i.
Definition of Long Term Capital
Asset has been amended in case of immovable property from 36 months to 24
months.
ii. Shifting base year from 1981 to 2001 for
indexation.
iii.
54EC to include more bonds
redeemable after 3 years as may be notified.
iv.
Coverage of Preference Shares into Equity
share shall not be regarded as transfer.
v.
Exemption of LTCG on shares u/s 10
(38) only if STT has been paid on acquisition of shares if acquired after
01/10/2014, except for the specified cases.
vi.
In case of unquoted shares FMV
shall be deemed to be the full value of consideration
vii.
Joint Development Agreement in case
of Individual & HUF
Liability to pay Capital Gain Tax shall
arise in the Previous Year in which
certificate of completion is issued by CA. Consideration shall be stamp value
plus additional consideration received.
Ø 44AD
PRESUMPTION TAX SCHEME
In respect of such Turnover out of Total
Turnover of Rs. 2 Crore or less, the payment of which has been realized through
banking system either during the Financial Year or before the due date for
filing return u/s 139 (1), the existing rate of deemed total income of 8% shall
be reduced to 6%.
i.
New provision provides for monetary
limits of Rs. 2, 50,000/- for income & Rs. 25 Lakhs for turnover.
ii.
Tax Audit u/s 44 AB in respect of
eligible person u/s 44 AD there is no requirement if turnover does not exceed
Rs. 2 crore.
Ø Electoral Funding
Apart from other provision, limit of can donation of
Rs. 20,000/- has been reduced to Rs. 2000/-.
Ø
TCS
u/s 206 CC
i.
If PAN is not submitted by the collectee,
then twice the amount as required or 5 % whichever is higher shall be
collected.
ii.
A declaration to be filed u/s 206
(1) (C) shall also contain PAN, otherwise it would be invalid.
iii.
All correspondence, Bill/Voucher
exchanged between collector & collectee shall contain Pan.
iv.
If PAN is wrong, it shall have same
consequence as if there is no PAN.
v.
Non-residents who does not have PAN
are exempt.
Ø ADMINISTRATIVE
Delay in Filing Return
i.
Penalty for furnishing incorrect
information in a report or certificate Rs. 10000/-.
ii.
87 A is amended to reduce the
deduction upto Rs. 2500/- whose total income does not exceed Rs. 3,50,000/-
Ø DELETION
OF SEC 197C
Ø TIME
LIMIT FOR FILING OF RETURN
Before the end of the relevant
Assessment Year Fine for late filing.
Ø A
fee of Rs. 5000/- if it is filed on or before 31st December of
Assessment Year.
Ø Rs.
10000/- in any other case if income does not Rs. 5 Lac Rs. 1000/- fee to be
deposited along with Tax.
Ø TIME
LIMIT FOR REVISE OF RETURN
Return can be revised upto the end of
the relevant Assessment Year or before the completion Assessment.
Ø TIME
LIMIT FOR COMPLETION OF ASSESSMENT
Time limit for completion of assessment
u/s 143 or 144
i.
For Assessment Year 2018-19 within
18 months from the end of the Assessment Year.
ii.
For Assessment Year 2019-20 &
onwards within 12 months & accordingly on or after 01-04-2019, reassessment
shall be completed within 12 months from the end of the Financial Year in which
notice u/s 148 is served.
Return can be revised upto the end of
the relevant Assessment Year or before the completion Assessment.
Ø WITH
HOLDING OF REFUND UNDER SCRUITINY ASSESSMENT
Withholding of refund in case of
Scrutiny Cases with the approval of Pr. Commissioner.
Ø MAT
CARRY FORWARD
MAT carry forward has
been extended from 10 years to 15 years.
Ø START
UP
i.
Exemption of 3 Consecution
Assessment Year out 5 years from of its incorporation has been changed to 7
years.
ii.
Carry forward & set off of
losses
Condition of holding of 51 % shareholding has been
changed to “all shareholders continue to hold those shares.”
