Some Income Tax amendments come into effect from 1 April 2017

(1) Cash Expenses Limit (capital or revenue) reduced from Rs.20K to Rs.10K per day in aggregate per person.

(2) No person shall receive an amount of 2 Lac or more, by cash (Sec. 269ST) in aggregate from a person in a day; or in respect of a single transaction; or in respect of transactions relating to one event or occasion. Penalty equal to the amount of such receipt.

(2A) No TCS on cash sales exceeding Rs.2 Lac.

(3) In case of turnover below Rs.2 Crores, for Non Cash Sales (through Digital, Online, cheque, Bank etc.) – Net Profit equal to 6% of Turnover / Gross Receipt, otherwise 8%.

(4) 5% Tax Rate Slab for Income from Rs.2.50 upto Rs.5 Lac. Tax Rebate U/s 87A – Rs.2500. for total income upto Rs.3.50 Lac. Surcharge @ 10% for Individuals with total income between 50Lac to 100 Lac. Surcharge @ 15%, when total income exceeds Rs. 1 crore.

(5) Payment of Rent – Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirements) – deduct TDS @ 5%.

(6) Periodicity for long term Capital Gain is reduced from 3 years to 2 years. Base year shifted from 01.04.1981 to 01.04.2001 for all assets.

(7) 25% Corporate Tax Rate with annual turnover upto Rs. 50 crores (in FY 2015-16). No change for firm tax rate of 30%.

(8) No 80G for Donations made exceeding Rs.2000 in cash.

(9) Sale of unquoted shares to be taxed at (deemed) fair value.

(10) In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.

(11) From financial year 2017-18, if Return is not filed within due date, late fee of Rs.5000 for delay up to 31st December, and Rs. 10000 thereafter.

(12) Aadhar Number is MUST in the Return of income w.e.f. 1 JUL 2017. Furthermore, every person who has been allotted PAN as on 1st July 2017 must intimate the AADHAR number to the Tax Authority, failing which, PAN allotted to such person shall be deemed to be invalid. Kindly note that linking of AADHAR with PAN is not possible, unless name as per AADHAR and PAN match perfectly. Hence, please take steps to rectify your name as per AADHAR to match as per PAN.

(13) Where Sec.12AA registered trusts modify their objects clause, they need to apply within 30 days to CIT for approval of the modified clauses.

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