Budget 2017 key and major highlights
Major Highlights of Union Budget 2017:
1. Total Budget of ? 21.47 Lakhs crores for 2017-2018.
2. Increase in Direct Tax collection by 34% after demonetisation.
3. Holding period for LTCG for Land & Building reduced to 2 years.
4. Carried forward of MAT Credit for 15 years instead of 10 years.
5. 5% tax exemption for companies having turnover below ? 50 crores.
6. 6% presumptive tax for turnover upto ? 2 crores.
7. No cash transaction above ? 3 Lakhs will be permitted.
8. Maximum Donation receivable from unknown source by pol party will be ? 2k.
9. Change in period of limitation for scrutiny assessment.
10. 5 % tax for income below ? 5 Lakhs.
11. No tax for income upto ? 3 Lakhs.
12. 10% surcharge for assesse income between ? 50 Lakhs to ? 1 crores.
13. One page Income Tax return proposed.
14. No major changes for Indirect taxes due to GST implementation.
Amendments which was not the part of FM Budget Speech 2017
1) Deemed sale value for sale of unquoted shares introduced. To be taxed at fair value. Sec 50CA
2) In absence of PAN,the rate of TCS will be twice of the extent rate or 5%, whichever is higher. Sec.206CC.
3) New Section 269ST introduced whereby Rs three lakh in cash cannot be received on a single day or inrespect of single transaction.
4) 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 234F
5) CA issuing wrong certificate would be penalised with Rs. 10000
6) Capital gain on shares will be exempt only if STT was paid while purchasing the shares.
7) HP 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.
8) Indl and HUF to deduct tds even if unaudited @ 5% if rent is paid 50000
9) Tds in 194J amended, now 2 percent tds instead of 10
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
11) MAT book profit calculation aslo ammended
12) Disallowance of expenditure from income from other sources if tds is not deducted
13) Self employed can also claim 20% contribution to NPS as deduction.