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.
- 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