2017-Budget Major
Changes in
Income Tax and TDS
Income Tax's
Changes
Change in Income Tax Slab Rate for Individuals
EXISTING SLAB RATE
INCOME
|
TAX
|
UPTO 2,50,000
|
Nil
|
2,50,000 – 5,00,000
|
10% of Income Greater than 2,50,000
|
5,00,000 – 10,00,000
|
20% of Income Greater
than 5,00,000
+ 25,000
|
> 10,00,000
|
30% of Income Greater than 5,00,000
+ 1,25,000
|
Applicable for ITR of Financial Year 2016-17
(AY 2017-18) Applicable for Payroll till 31 March 2017
NEW SLAB RATES
INCOME
|
TAX
|
UPTO 2,50,000
|
Nil
|
2,50,000 – 5,00,000
|
5% of Income Greater than 250000
|
5,00,000 – 10,00,000
|
20% of Income Greater than 5,00,000
+ 12,500
|
> 10,00,000
|
30% of Income Greater than 5,00,000
+ 1,12,500
|
Applicable for ITR of
Financial Year 2017-18 (AY 2018-19) Also applicable for Payroll from 1 April 2017
Change in Rebates
Existing
Rebate of Max 5000 if Income between 250000 – 500000
New
Rebate of 2500 if Income between 250000 – 350000
Changes in Surcharge
Existing
If Income More than 1 Crores,
then 15% Surcharge
New
If Income between 50 lacs to 1 Crores,
then 10% Surcharge
If Income More than 1 Crores,
then 15% Surcharge
Income Tax Slab Rate for Companies
Existing Income Tax
Rate (Financial Year 2016-17 or AY 2017-18)
Income
|
Tax %
|
Normal Cases
|
30%
|
Small Company if FY 2014-15 turnover upto
5 cr
|
29%
|
Surcharge Rate
Income upto
|
Surcharge rate
|
Upto 1 Cr
|
0%
|
1 - 10 Cr
|
7%
|
>10 Cr
|
12%
|
Education Cess Rate 3%
New Income Tax
Rate (Financial Year 2017-18
or AY 2018-19)
Income
|
Tax %
|
Normal Cases
|
30%
|
Small Company if last year turnover upto
50 cr
|
25%
|
Surcharge Rate
Income upto
|
Surcharge rate
|
Upto 1 Cr
|
0%
|
1 - 10 Cr
|
7%
|
>10 Cr
|
12%
|
Education Cess Rate 3%
Change in Long Term Capital Gain
If Asset held for more than 3years 2 years, it
is a Long Term Capital Asset and Long Term
Capital Gain will be charged on it.
New (Financial Year 2017-18
or AY 2018-19)
On Long Term Capital Gain, Indexation will be applicable on Asset
Base Year
is 2001
For Assets held before 1/4/1981, FMV as on 1/4/2001 is applicable
Financial Year
|
CII
|
Financial Year
|
CII
|
2001-02
|
100
|
2009-10
|
148
|
2002-03
|
105
|
2010-11
|
167
|
2003-04
|
109
|
2011-12
|
184
|
2004-05
|
113
|
2012-13
|
200
|
2005-06
|
117
|
2013-14
|
220
|
2006-07
|
122
|
2014-15
|
240
|
2007-08
|
129
|
2015-16
|
254
|
2008-09
|
137
|
2016-17
|
264
|
Cash Payment Greater than 10000
Disallowed
Cash Payments > 10000 are disallowed under Section 40(a)
In case of fixed assets (CAPEX) purchased in
cash more than 10000, depreciation will not be charge on it.
Section 44AD Scheme
For FY 2016-17
(AY 2017-18)
If Turnover of Business upto 2 Crore,then
8 % of Turnover is Profit for Cash Transactions
6% of Turnover is Profit for Other Transactions
No need to
make books
of accounts
No need to
do Audit
While other
changes are applicable from
FY 2017-18
(AY 2018-19), this budget change is applicable from
FY 2016-17 (AY 2017-18) onwards
Section 44ADA Presumptive Income of
Professionals
Applicable
for Financial
Year 2016-17
(AY 2017-18)
IF Gross Receipts upto 50 lacs
50% of Receipts will be Profit
No need for Audit
No need to
maintain books of accounts
If Professional says that his profit less than
50%,then compulsory books
of accounts and compulsory audit
Due Dates of Advance Tax
In Case of All Business except Section 44AD Business and
Section 44ADA Business
Due Date
|
% of Tax
|
15 - Jun
|
15%
|
15 - Sep
|
45%
|
15 - Dec
|
75%
|
15 - Mar
|
100%
|
For Section 44AD Business and Section 44ADA Professionals
Due Date
|
% of Tax
|
15 - Jun
|
Nil
|
15 - Sep
|
Nil
|
15 - Dec
|
Nil
|
15 - Mar
|
100%
|
Cash Donations Trust and Political Parties
Political Parties can take Cash Donations of upto 2000
Trust can take cash
Donations upto 2000
Donation under 80G in Cash
If Donation amount is more than 2000, it cant
be made in
Cash
If made in
cash, then deduction not allowed
Cash Receipt more than 3 Lacs not allowed
Section 269ST No person can receive cash
more than 3 lacs in following cases
1. Total
Cash Transactions
per day to per party can’t be more than 3
lacs
2. Single Transaction can’t be more than 3 lacs (even if paid in parts)
3. Different transactions relating
to single event can’t be more than 3
lacs
Penalty
It is equal to amount of
contravention (Section
271DA)
Example:-
If 4 Lacs received in cash, then 4 lacs will be penalty
Exception
Government, Banks and
Other Notified persons can receive amount more than 3
lacs
Loss under House Property Setoff of 2 lacs for even
Rented Property
In case
of Self Occupied Property, Maximum 200000
is allowed as Deduction for Interest on housing loan
In case of Rented Property, Deduction for Interest on
housing loan is allowed without any limit
Loss if any can be setoff
with any other Income without any limit only upto 2
lacs
Remaining loss can be carry forward for 8 years and adjusted against loss from House
Property
Changes in ITR Dues Dates (AY 2016-17
to 2018-19)
FY 2015-16
(AY 2016-17)
Due Date of ITR is normally 31-July-2016
(30 Sept 2016 in case
of Audit)
However, Return can be filed late also till
1. 31-March-2017 (Without
penalty)
2. 31-March-2018 (With Penalty of Rs 5000)
Hence, Return can be filed till one year
from end
of Assessment Year)
If return filed on time,
then only it can be revised under Section
139(5)
FY 2016-17(AY 2017-18)
Due Date of ITR is normally 31-July-2017 (30-Sept-2017 in
case of Audit)
However, Return can be filed late also till 31-March-2018 (Without penalty)
(Now It cannot be filed after 31-March-2018)
Hence
Return can be filed till end of Assessment Year (and not one year from end of assessment year)
Both Original and Revised Return can be revised
However, Revised Return can be filed till 31-March-2019 (till one year from
end of assessment year)
FY 2017-18 (AY 2018-19)
Due Date of ITR is normally 31 July 2018 (30 Sept 2018 in case of Audit)
However, Return can be filed late also till
1. 31 Dec 2018 (With Penalty of 5000)
2. 1 Jan 2019 to 31 Mar 2019 (With Penalty of 10000)
(Note If Total income is upto 5 lacs, then Penalty is reduced to 10000)
Penalty to be taken into account while determining demand and
refund.
Both Original and
Revised Return
can be revised
However, Revised Return can be filed till 31.3.2019 till end
of assessment year and (not one year from
end of AY)
Compulsory Maintenance of Books
Limit Increased
(Section 44AA)
It is compulsory to maintain books of accounts if
Turnover > 1000000 25,00,000
or
PGBP Income > 120000
2,50,000
or both
in any of last 3 years
(In case of new business,
where turnover is likely to exceed 25,00,000 or
Total income
Likely to Exceed 2,50,000
during Current Year)
Section 80CCD (1)
Contribution by Employee to National Pension
Scheme
FY 2016-17
Maximum amount which can be contributed was
1. In case of employee:- 10% of Salary+10% of Salary by employer
2. In Case of Self Employed/Business-10% of GTI
FY 2017-18
Maximum amount which can be contributed is
1. In case of employee:- 10% of Salary+10% of Salary by employer
2. In Case of Self Employed/Business-20% of GTI
Changes in TDS
Form 15H for TDS on
Insurance Agent
15H Form now applicable to insurance commission agents
Existing
(Financial Year 2016 - 2017 or AY 2017-18)
Insurance Agent get Commission from Insurance Companies.
Currently Insurance Companies deducts TDS at 10% on Commission if Commission made is more than 15000 p.a.
New
(Financial Year 2017 - 2018 or AY 2018-19)
Rates of TDS and Commission are
same.
Insurance Agents can give Form 15H Self Declaration to
Insuarance Company if their
total income is less than Income Tax
slab Rate.
If this form is given, Insurance Company will not deduct TDS.
Section 194J TDS on Call Centers Now 2%
Existing Rate (Financial Year 2016 - 2017 or AY 2017-18)
Section
|
Description
|
Cutoff
|
Rate of TDS
|
194J
|
Professional/Technical/Royalty/Non
Compete
Fees
|
30000
|
10%
|
New
Rate of TDS (Applicable from
1 June 2017)
Section
|
Description
|
Cutoff
|
Rate of TDS
|
194J
|
Professional/Technical/Royalty/Non Compete Fees
|
||
Paid to Business Exclusively in Call Center Business
|
30000
|
2%
|
|
Other Persons
|
30000
|
10%
|
Example
Suppose
a Mobile Company Vodafone
hires the services of A Ltd. where A Ltd will operate call center of Airtel at a cost of 1 lacs
Vodafone will deduct 10% TDS in this case and pay A ltd 90000 (Till 31 May 2017)
From 1 June 2017, 2% TDS will be applicable. Vodafone will deduct 2% TDS in this case and pay A Ltd 98000
TDS Section 194 - IB TDS on
Personal Rent @ 5%
In case
of any person
Any Person
liabile to pay rent for more than 50000
p.m are to deduct TDS @ 5%
Section
|
Description
|
Cutoff
|
Rate of TDS
|
194-IB
|
Rent Paid
|
50000 PM
|
10%
|
Note:-
This section
is not applicable to those Rent which are covered
under Section 194I
Difference
between Section 194I and Section 194 - IB
Implication of Section 194-IB on Payroll
Many Employees who are claiming
HRA through fake Rent Receipts
Those employees who are showing Rent receipts of
more than 50000
p.m have now to deduct 5% TDS
TCS Rate if No Pan No Given
It is Higher of
Double of TCS Rate
5%
Example
If TCS Rate is 1%, then in case
of no Pan number, TCS Rate is 2% or 5% whichever is higher i.e. 5%
If TCS Rate is 2%, then in case
of no Pan number, TCS Rate is 4% or 5% whichever is
higher i.e. 5%
If TCS Rate is 5%, then in case
of no Pan number, TCS Rate is 10% or 5% whichever is
higher i.e. 10%
No TCS in
Following Cases
From 1 April 2017 onwards
1. Cash Sale of Jewellery more than 500000
2. No TCS on
Purchase of Motor vehicles by
Central Govt
State Govt
Embassy/Consulte/Trade Representative of Foreigh
Business
Local Authority
Public Sector
Company in Passenger Transport Business
*****************************
Thank You!*****************************
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