Key Features of Budget 2017 applicable for
FY 2017-18
I have try to list down key features of
Union Budget from Statutory and Finance prospective:
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 234
Also the time for completion of
scrutiny assessments is being compressed further from 21 months to 18 months
for Assessment Year 2018-19 and further to 12 months for Assessment Year
2019-20 and thereafter
Reduction in the holding period
for computing long term capital gains from transfer of immovable property from
3 years to 2 years. Also, the base year for indexation is proposed to be
shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable
property
For Joint Development Agreement
signed for development of property, the liability to pay capital gain tax will
arise in the year the project is completed
Capital gain on shares will be
exempt only if STT was paid while purchasing the shares.
House Property 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.
Indl and HUF to deduct tds even
if unaudited @ 5% if rent is paid 50000
Tds in 194J amended, now 2
percent tds instead of 10
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
Deemed sale value for sale of
unquoted shares introduced. To be taxed at fair value. Sec 50CA
In absence of PAN,the rate of
TCS will be twice of the extent rate or 5%, whichever is higher. Sec.206CC.
New Section 269ST introduced
whereby Rs three lakh in cash cannot be received on a single day or inrespect
of single transaction.
MAT credit is allowed to be
carried forward up to a period of 15 years instead of 10 years at present
In order to make MSME companies
more viable, income tax for companies with annual turnover upto Rs. 50 crore is
reduced to 25%
Under scheme of presumptive
income for small and medium tax payers whose turnover is upto 2 crores, the
present, 8% of their turnover which is counted as presumptive income is reduced
to 6% in respect of turnover which is by non-cash means
No transaction above Rs. 3 lakh
would be permitted in cash subject to certain exceptions
Scope of domestic transfer
pricing restricted to only if one of the entities involved in related party
transaction enjoys specified profit-linked deduction
Threshold limit for audit of
business entities who opt for presumptive income scheme increased from Rs. 1
crore to Rs. 2 crores. Similarly, the threshold for maintenance of books for
individuals and HUF increased from turnover of 10 lakhs to 25 lakhs or income
from 1.2 lakhs to 2.5 lakhs
Under scheme for presumptive
taxation for professionals with receipt up to Rs. 50 lakhs p.a. advance tax can
be paid in one instalment instead of four Time period for revising a tax return
is being reduced to 12 months from completion of financial year, at par with
the time period for filing of return.
After reading this, I hope it
will give you some unnoticed budget insight.
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other. Happy reading..!!!
