Budget 2017-18 changes from taxation point of view

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http://fkrt.it/87DGMTuuuN

All of you must be aware of Union Budget 2017-18 ……

 

Let me simplify it from taxation point of view:

 

For a SALARIED CLASS

 

  • Earlier for an individual who earns more than Rs. 2.5 lakhs a year but less than Rs. 5 lakhs a year, the rate of income tax was 10% but in this budget Govt has reduced rate of 10 % to 5 %. Thus reducing taxation burden.
  • Surcharge @ 10% would be payable by individuals whose taxable income falls between Rs. 50 Lakhs to Rs 1 Crore.
  • Income tax return will be simplified for an individual whose taxable income is below Rs. 5 Lakhs and having no business income.

 

For Businessmen

 

  • Earlier only presumptive taxation limit was increased to rs 2 crores from Rs. 1 Crore. It means, earlier persons having turnover of Rs. 2 crore or more cannot opt for presumptive taxation scheme.
  • But in Budget 2017-18, relief has been given to small tax payers by increasing the threshold limit to Rs 2 crore for tax Audit u/s 44AB of Income Tax Act.
  • MAT credit forward period extended from 10 years to 15 years period.
  • Presumptiive taxation scheme, rate of 8 % of turnover is reduced to 6 % of turnover (this turnover must be by non cash means).
  • No cash transaction above Rs. 3 Lakhs would be allowed in cash

For Political Parties

  • A political party can accept cash donation upto Rs. 2000/- from one person. This is maximum limit for cash donation.
  • There is no limit for donation by cheque or digtal mode.
  • From now, it is compulsory for every political party to file income tax return.

For latest and snapshot of taxation updates, please keep following below linked blog also

Thanks you

https://letscutmytax.blogspot.in/

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