Finance Act 2016 Amendments in Income Tax Laws - A Y 2017-18
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Transcript of Finance Act 2016 Amendments in Income Tax Laws - A Y 2017-18
Individuals Rate of surcharge in case of individual, HUF, AOP
or BOI, increased from 12% to 15% if the total income exceeds Rs. 1 crores.
Increase in the rebate from tax u/s 87A from existing Rs.2,000/- to Rs.5,000/- from the amount of income tax payable by resident individual whose total income does not exceed Rs. 5 lacs.
Other Assessees
Corporate tax rate in case of domestic company whose turnover or gross receipts in the previous year 14-15 does not exceed Rs.5 crores is reduced from 30% to 29%.
Increase in threshold limit for audit for persons having income from profession:
Presently, every person carrying on a profession is required to get its accounts audited if the gross receipts in a previous year exceed Rs. 25 lacs. Now It is enhanced to limit of Rs. 50 lacs.
Other Assessees Other Assessees Contd..
115BA is inserted from A.Y. 17-18 to tax domestic companies at 25%, at their option, if following conditions are satisfied:-
company has been registered on or after 01.03.2016 engaged in the business of manufacture or production of
article or thing it has not claimed any benefit u/s 10AA, benefit of
accelerated / additional depreciation, investment allowance, expenditure on scientific research and any deduction in respect of certain income under Part-C of Chapter-VI-A other than the provisions of section 80JJAA; and
option is furnished in the prescribed manner before the due date of furnishing of return of income.
TDS ProvisionsTDS Provisions Changes in the threshold limit
Section Existing limit (Rs.)
Revised Limit (Rs.)
192A 30,000 50,000194BB 5,000 10,000194C 75,000 1,00,000194LA 2,00,000 2,50,000194D 20,000 15,000194G 1,000 15,000194H 5,000 15,000
TDS ProvisionsTDS Provisions contd..
Revision in the rates of deduction of tax at source
Section
Head Existing rate
Revisedrate
194DA Payment of Life Insurance Policy
2% 1%
194EE Payment in respect of NSS Deposits
20% 10%
194D Insurance commission 10% 5%194G Commission on sale of
lottery tickets10% 5%
194H Commission or brokerage
10% 5%
TCS on sale of vehicles, goods or services
206C amended to provide that seller shall collect tax @1% on
(a)sale of motor vehicle of the value exceeding Rs.10 lacs
(b)sale of any goods (other than bullion & jewellery) or providing of any service in cash exceeding Rs. 2 lacs.
Presumptive taxation for professionals
New Section 44ADA Assessee is not be required to maintain books of
accounts u/s 44AA and gets the accounts audited u/s 44AB unless it claims that the profit and gains from the profession is lower than the deemed profit and gains
Conditions: Total Gross receipts should not exceed Rs. 50 lacs. Income shall be estimated @ 50% of the total gross
receipts. Deductions u/s 30 to 38 deemed to have been allowed
(Including interest and remuneration to partners in case of partnership firm).
Other Amendments
Presumptive taxation for persons having income from business :
•Increase in the threshold limit from Rs.1 crores to Rs.2 crores • expenditure in the nature of salary, remuneration, interest
paid to partners shall no longer be allowed • where an eligible assessee declares profit for any previous
year in accordance with provisions of this section and he declares profit for any of the 5 consecutive A.Y.s succeeding such P.Y. not in accordance with provisions of this section, he shall not be eligible to claim the benefit of provisions of this section for 5 A.Y.s subsequent to A.Y. in which profit has not been declared in accordance with provisions of this section.
Installment of advance tax and due datesSection 211(1) is amended to provide that
advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15th June, 15th September, 15th December and 15th March, respectively in case of all assesses.
Assessees covered u/s 44AD are to pay advance tax of the whole amount in one installment on or before the 15th March of the financial year consequent upon raising of the turnover limit from Rs.1 crore to rs.2 crore.
