Budget 2017: Time to
align with the changes in income tax rules
Finance Minister has opted to offer a small concession on income tax front. However, he has also capped the benefit on income from house property. Balwant Jain (more) Company Secretary, Bombay Oxygen | Capital Expertise: Tax ,Property Balwant Jain The budget of 2017 has many provisions which affect an individual tax payer. Let us discus these in detail. Reduced tax rates for initial tax slab and imposition of surcharge on higher taxable income Looking at the fact that the tax base of the tax payer is very narrow in the country as compared to other countries, the finance minister did not have the luxury of increasing the present limit exemption limit of Rs. 2.50 lakh. In order to increase the tax base, the Finance minister has proposed reduced tax rate for the initial tax slab of Rs. 2.50 lakh to Rs. 5 lakh from 10% to 5%. This will reduce tax liability almost all the tax payers.
The Finance minister has proposed to reduce both. Now the eligibility for this rebate has been reduced to Rs. 3.5 Lakh and the quantum of the tax rebate will also be restricted to Rs. 2500 only. So effectively individual with income less than Rs 3 lakh and senior citizens with income less than Rs 3.50 lakh will not have to pay any tax. Of course, they still have to file income tax returns. . Revision of income tax return and fee for delay in filing of income tax returns The time limit for filing of your income tax return was reduced by one year to the end of the assessment year by the previous budget. Meaning thereby, you can file income tax return of the year ending 31st March 2017 by 31st March 2018. Currently you are allowed to revise your return within one year from the end of the assessment year or before completion of the assessment whichever happens earlier. So the return for 31st March 2017 can be revised any time before the assessment is completed but by 31st March 2019.
This budget proposes to reduce this time limit and bring the time limit for filing of the return and revising the return filed to before end of assessment year. The budget also provides for levy of mandatory fee in case you delay filing of your income tax return beyond the due date of 31st July. In case delay is only upto 31st December the late fee is Rs. 5000 for delay upto 31 March is Rs. 10,000. However, in case of tax payers with income up to Rs. 5 Lakh the late fee shall be restricted to Rs. 1000 only.
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Finance Minister has opted to offer a small concession on income tax front. However, he has also capped the benefit on income from house property. Balwant Jain (more) Company Secretary, Bombay Oxygen | Capital Expertise: Tax ,Property Balwant Jain The budget of 2017 has many provisions which affect an individual tax payer. Let us discus these in detail. Reduced tax rates for initial tax slab and imposition of surcharge on higher taxable income Looking at the fact that the tax base of the tax payer is very narrow in the country as compared to other countries, the finance minister did not have the luxury of increasing the present limit exemption limit of Rs. 2.50 lakh. In order to increase the tax base, the Finance minister has proposed reduced tax rate for the initial tax slab of Rs. 2.50 lakh to Rs. 5 lakh from 10% to 5%. This will reduce tax liability almost all the tax payers.
The Finance minister has proposed to reduce both. Now the eligibility for this rebate has been reduced to Rs. 3.5 Lakh and the quantum of the tax rebate will also be restricted to Rs. 2500 only. So effectively individual with income less than Rs 3 lakh and senior citizens with income less than Rs 3.50 lakh will not have to pay any tax. Of course, they still have to file income tax returns. . Revision of income tax return and fee for delay in filing of income tax returns The time limit for filing of your income tax return was reduced by one year to the end of the assessment year by the previous budget. Meaning thereby, you can file income tax return of the year ending 31st March 2017 by 31st March 2018. Currently you are allowed to revise your return within one year from the end of the assessment year or before completion of the assessment whichever happens earlier. So the return for 31st March 2017 can be revised any time before the assessment is completed but by 31st March 2019.
This budget proposes to reduce this time limit and bring the time limit for filing of the return and revising the return filed to before end of assessment year. The budget also provides for levy of mandatory fee in case you delay filing of your income tax return beyond the due date of 31st July. In case delay is only upto 31st December the late fee is Rs. 5000 for delay upto 31 March is Rs. 10,000. However, in case of tax payers with income up to Rs. 5 Lakh the late fee shall be restricted to Rs. 1000 only.
Read more for HNI Stock Tips - http://bit.ly/ace_services
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