Budget Highlights for F.Y. 2017-18

Provisions applicable for Business Entity:

  • In case of companies with turnover up to 50 crores – income tax rate is reduced from present rate at 30% to 25% 
  • Cash expenditure now allowed only up to amount of Rs.10000/- per transaction instead of Rs.20000/- per transaction 
  • MAT credit is allowed to be carried forward for 15 years as against 10 years permitted presently

Provisions applicable to Individual Assesse:

  • Existing rate of taxation for individual assesses between income of Rs. 2.5 lakhs to 5 lakhs is reduced to 5% from the present rate of 10%
  • Surcharge at 10% of tax payable is applicable in case of individuals whose annual taxable income is between Rs. 50 lakhs and Rs. 1 crore
  • Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto Rs. 5 lakhs other than business income 

Other Provisions:

  • Immovable property held for 2 years or more is to be considered as Long Term Capital Asset
  • Base year for indexation used in capital gains computation is changed from 1981 to 2001
  • Time period for revising a tax return is reduced from 24 months to 12 months from completion of financial year
  • The time for completion of scrutiny assessments is being compressed from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter

Leave a Reply