Wednesday, 1 February 2017

The Budget Pitara-From Finance and Statutory Compliance Prospective only

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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