Income Tax
1. Rates of Income Tax
(A)
I.The rates of income-tax
in the case of individual (other than those covered in part (II) or (III) below) or Hindu undivided family or AOP/BOI (other than a
co-operative society) whether incorporated or not, or every artificial judicial
person shall be
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Upto Rs.2,50,000
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Nil
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Rs.2,50,001 to Rs. 5,00,000
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5%
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Rs.5,00,001 to Rs. 10,00,000
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20%
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Above Rs.10,00,000
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30%
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II. In the case of every individual, being
a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous
year
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Upto Rs.3,00,000
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Nil
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Rs.3,00,001 to Rs. 5,00,000
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5%
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Rs.5,00,001 to Rs. 10,00,000
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20%
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Above Rs.10,00,000
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30%
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III. In the case of every individual, being
a resident in India, who is of the age of 80 years or more at any time during the previous year.
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Upto Rs.5,00,000
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Nil
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Rs.5,00,001 to Rs.10,00,000
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20%
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Above Rs.10,00,000
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30%
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Surcharge: The amount of Income-tax computed in
accordance with the above rates shall be increased
by a surcharge at the rate of
(i) 10% of such income-tax in case of a
person having a total income exceeding fifty lakh rupees but not exceeding one
crore rupees; and
(ii)
15% of such income-tax in case of a person
having a total income exceeding one crore rupees.
Marginal Relief:
The
total amount payable as income-tax and surcharge on total income exceeding
fifty
lakh rupees but not exceeding one crore rupees, the total amount payable as
income-tax and surcharge on such income shall not exceed the total amount
payable as income-tax on a total income of fifty lakh rupees by more than the
amount of income that exceeds fifty lakh rupees
Further,
the total amount payable as income-tax and surcharge on total income exceeding
one crore rupees shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds
one crore rupees.
Cess:
Education cess @ 2%
and S.H.E.C @1%.
The rate of income-tax and cess will
be the same as those specified for F.Y 2016-17 i.e 30%.
Surcharge: The amount of income-tax shall be
increased by a surcharge at the rate of 12% of such income-tax when total income exceeds
one crore rupees.
Marginal relief: The total amount payable as income-tax
and surcharge on total income exceeding
one crore rupees
shall not exceed the total amount payable as income-tax on a total income of
one crore rupees by more than the amount of income that exceeds one crore
rupees.
(C) In case of a
company
(i) For Domestic companies:
25%: if the total turnover or gross
receipts of the previous year 2015-16 does not exceed fifty crore rupees.
30%: in all other cases
Surcharge: Surcharge for domestic
Companies will continue to be 7% if total income exceeds Rs 1 crore but does
not increase Rs.10 crore and 12% if total income exceeds Rs. 10 Crore.
Marginal Relief :The total amount
payable as income tax and surcharge on total income exceeding Rs.1 crore but
not exceeding Rs. 10 crore, shall not exceeds the amount payable as income tax
on a total income of Rs. 1 crore, by more than the amount of income that
exceeds Rs 1 crore . The total amount payable as income tax and surcharge on
total income exceeding Rs. 10 crore, shall not exceed the amount payable as
income tax and surcharge on a total income of Rs. 10 cr. , by more than the
amount of income that exceeds
Rs. 10 cr.
Cess: EC @ 2% & SHEC @1%
(ii) For Foreign company:
The rates of tax are the same as those
specified for the financial year 2016-17 that is 40%
Surcharge: The surcharge will continue
to be 2% if the total income exceeds Rs.1 crore but does not exceeds Rs.10
crore. & 5% if total income exceeds 10 crore.
Marginal relief: However, the total
amount payable as income-tax and surcharge on total income exceeding Rs. 1 cr
but not exceeding Rs 10 cr, shall not exceed the total amount payable as
income-tax on total income of Rs 1 cr, by more than the amount of income that
exceeds Rs 1 cr. The total amount payable as income-tax and surcharge on a
total income of Rs. 10 cr, by more than the amount of income that exceeds Rs.10
cr
Cess: EC @ 2% & SHEC @1%
2.
RATIONALISATION OF TAXATION OF INCOME BY WAY OF DIVIDEND
Under the existing provision of the
act, income by way of dividend in excess of Rs. 10 lakh is chargeable to tax at
the rate of 10% on gross basis in case of a resident individual, Hindu
undivided family or firm, it is proposed to amend that the above provision will
be applicable to all resident assessees except domestic company and certain
funds, trusts, institutions, etc.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
In order to widen the scope of tax deduction
at source, it is proposed to insert a new section 194-IB in the Act to provide
that Individuals or a HUF (other than those covered under 44AB of the Act),
responsible for paying to a resident any income by way of rent exceeding fifty
thousand rupees for a month or part of month during the previous year, shall
deduct an amount equal to five per cent. of such income as income-tax thereon.
This amendment will take effect from
1st June, 2017.
4.
INCENTIVES FOR PROMOTING INVESTMENT IN IMMOVABLE PROPERTY
With a view to promote the real-estate
sector and to make it more attractive for investment, it is proposed to reduce
the period of holding from the existing 36 months to 24 months in case of
immovable property, being land or building or both, to qualify as long term
capital asset.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
5. RATIONALISATION OF
PROVISIONS OF SECTION 80-IBA TO PROMOTE
AFFORDABLE HOUSING
In order to promote the development of
affordable housing sector, it is proposed to amend section 80-IBA so as to
provide the following relaxations:—
(i) The size of residential unit shall
be measured by taking into account the "carpet area" as defined in
Real Estate (Regulation and Development) Act, 2016 and not the "built-up
area".
(ii) The
restriction of 30 square meters on the size of residential units shall not
apply to the place located within a distance of 25 kms from the municipal
limits of the Chennai, Delhi, Kolkata or Mumbai.
(iii) The condition of period of
completion of project for claiming deduction under this section shall be
increased from existing three years to five years.
These amendments will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessment year
2018-19 and subsequent years.
6. TAX
INCENTIVE FOR THE DEVELOPMENT OF CAPITAL OF ANDHRA PRADESH
With
a view to provide relief to an individual or Hindu undivided family who was the
owner of such land as on 2nd June, 2014, and has transferred such land under
the land pooling scheme notified under the provisions of Andhra Pradesh Capital
Region Development Authority Act, 2014, it is proposed to insert a new clause
(37A) in section 10 to provide that in respect of said persons, capital gains
arising from following transfer shall not be chargeable to tax under the Act:
(i)
Transfer of capital asset being land or building or both, under land pooling
scheme.
(ii) Sale of LPOCs by the said persons
received in lieu of land transferred under the scheme.
(iii)
Sale
of reconstituted plot or land by said persons within two years from the end of
the financial year in which the possession of such plot or land was handed over
to the said persons.
This
amendment will take effect retrospectively, from 1st April, 2015 and will,
accordingly, apply in relation to the assessment year 2015-16 and subsequent
years.
7. SPECIAL PROVISIONS FOR COMPUTATION OF CAPITAL GAINS IN CASE
OF JOINT DEVELOPMENT AGREEMENT
It is
provided that in case of an assessee being individual or Hindu undivided
family, who enters into a specified agreement for development of a project, the
capital gains shall be chargeable to income-tax as income of the previous year
in which the certificate of completion for the whole or part of the project is
issued by the competent authority.
It is further proposed to provide that
the stamp duty value of his share, being land or building or both, in the
project on the date of issuing of said certificate of completion as increased
by any monetary consideration received, if any, shall be deemed to be the full
value of the consideration received or accruing as a result of the transfer of
the capital asset.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
8. SHIFTING BASE YEAR FROM 1981
TO 2001 FOR COMPUTATION OF CAPITAL GAINS
It is
proposed to amend the base year for computation of capital gains so as to
provide that the cost of acquisition of an asset acquired before 01.04.2001
shall be allowed to be taken as fair market value as on 1st April, 2001 and the
cost of improvement shall include only those capital expenses which are
incurred after 01.04.2001. Consequential amendment is also proposed in section
48 so as to align the provisions relating to cost inflation index to the
proposed base year.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
9.
EXPANDING THE SCOPE OF LONG TERM BONDS UNDER 54EC
Under the existing provisions,
investment in bond issued by the National Highways Authority of India or by the
Rural Electrification Corporation Limited is eligible for exemption under this
section.
It is proposed that investment in any
bond redeemable after three years which has been notified by the Central
Government in this behalf shall also be eligible for exemption.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
10. NO
NOTIONAL INCOME FOR HOUSE PROPERTY HELD AS STOCK-IN-TRADE
The house property consisting of any
building and land appurtenant thereto is held as stock-in-trade and the
property or any part of the property is not let during the whole or any part of
the previous year, the annual value of such property or part of the property,
for the period upto one year from the end of the financial year in which the
certificate of completion of construction of the property is obtained from the
competent authority, shall be taken to be nil.
This amendment
will take effect from 1st April, 2018 and, will accordingly, apply in relation
to assessment year 2018-19 and subsequent years.
11.CARRY
FORWARD AND SET OFF OF LOSS IN CASE OF CERTAIN COMPANIES.
If all the shareholders of a company
not being a company in which the public are substantially interested and being an
eligible start-up which held shares carrying voting power on the last day of
the year or years in which the loss was incurred, being the loss incurred
during the period of seven years beginning from the year in which such company
is incorporated, continue to hold those shares on the last day of such previous
year.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
12.
EXTENDING THE PERIOD FOR CLAIMING DEDUCTION BY START-UPS.
It is proposed to provide that
deduction under section 80-IAC can be claimed by an eligible start-up for any
three consecutive assessment years out of seven years beginning from the year
in which such eligible start-up is incorporated.
This
amendment will take effect from 1st April, 2018 and will accordingly, apply in
relation to assessment year 2018-19 and subsequent years.
13. RATIONALISATION OF
PROVISIONS RELATING TO TAX CREDIT FOR MINIMUM ALTERNATE TAX AND ALTERNATE
MINIMUM TAX
It is proposed to amend section 115JAA
to provide that the tax credit determined under this section can be carried
forward up to fifteenth assessment years immediately succeeding the assessment
years in which such tax credit becomes allowable which was earlier till tenth
year.
Further, similar amendment is proposed
in section 115JD so as to allow carry forward of Alternate Minimum Tax (AMT)
paid under section 115JC upto 15th assessment years in case of non corporate
assessee.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
14.
RESTRICTING CASH DONATIONS
No
deduction shall be allowed under the section 80G in respect of donation of any
sum exceeding two thousand rupees unless such sum is paid by any mode other
than cash.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
15. DISALLOWANCE OF
DEPRECIATION UNDER SECTION 32 AND CAPITAL
EXPENDITURE UNDER SECTION 35AD ON
CASH PAYMENT
It
is proposed to amend the provisions of section 43 of the Act to provide that
where an assessee incurs any expenditure for acquisition of any asset in
respect which a payment or aggregate of payments made to a person in a day,
otherwise than by an account payee cheque drawn on a bank
or account payee
bank draft or use of electronic clearing system through a bank account, exceeds
ten thousand rupees, such expenditure shall be ignored for the purposes of
determination of actual cost of such asset.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
16.
MEASURES TO DISCOURAGE CASH TRANSACTIONS
To reduce the existing
threshold of cash payment to a person from Rs. 20,000 to Rs 10,000 in a single
day; i.e any payment in cash above ten thousand rupees to a person in a day,
shall not be allowed as deduction in computation of Income from "Profits
and gains of business or profession";
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
17. MEASURES FOR PROMOTING
DIGITAL PAYMENTS IN CASE OF SMALL UNORGANIZED BUSINESSES
It is proposed to amend the existing
threshold limit of deemed total income of 8% to 6% in respect of the amount of
such total turnover or gross receipts received by an account payee cheque or
account payee bank draft or use of electronic clearing system through a bank
account and for any other mode rate will be same i.e. 8%.
This amendment will take effect from
1st April, 2017.
18.
RESTRICTION ON CASH TRANSACTIONS
No person shall receive an amount of
Rs. 3,00,000 or more, in aggregate from a person in a day, in respect of a
single transaction; or in respect of transactions relating to one event or
occasion from a person in cash.
The above
restriction shall not apply to Government, any banking company, post office
savings bank or co-operative bank.
The penalty is proposed to be a sum
equal to the amount of such receipt.
These amendments will take effect from
1st April, 2017.
19. INCREASING THE THRESHOLD
LIMIT FOR MAINTENANCE OF BOOKS OF ACCOUNTS IN CASE OF INDIVIDUALS AND HINDU
UNDIVIDED FAMILY
It is proposed to amend the provisions
of section 44AA to increase monetary limits of income from Rs. 1,20,000 to Rs.
2,50,000 and turnover from Rs. 10,00,000 to Rs. 25,00,000 in the case of
Individuals and Hindu undivided family carrying on business or profession.
This
amendment will take effect from 1st April, 2018 and will, accordingly, apply in
relation to the assessment year 2018-19 and subsequent years.
It is proposed to amend the section
44AB to exclude the eligible person, whose turnover does not exceed two crore
rupees in such previous year, from requirement of audit of books of accounts
under section 44AB.
This amendment will take effect from
1st April, 2017.
21. SIMPLIFICATION OF THE
PROVISIONS OF TAX DEDUCTION AT SOURCE IN CASE FEES FOR PROFESSIONAL OR
TECHNICAL SERVICES UNDER SECTION 194J
It is proposed to amend section 194J
to reduce the rate of deduction of tax at source to 2% from 10% in case of
payments received or credited to a payee, being a person engaged only in the
business of operation of call center.
This
amendment will take effect from the 1st day of June, 2017.
22. SCOPE OF SECTION 92BA OF
THE INCOME-TAX ACT RELATING TO SPECIFIED DOMESTIC TRANSACTIONS
The
expenditure in respect of which payment has been made by the assessee to a
person referred to in under section 40A(2)(b) are to be excluded from the scope
of section 92BA of the Act.
These amendments will take effect from
1st April, 2017.
23. TAX
NEUTRAL CONVERSION OF PREFERENCE SHARES TO EQUITY SHARES
The conversion of preference share of
a company into its equity share shall not be regarded as transfer.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
24.
INCOME FROM TRANSFER OF CARBON CREDITS
It is proposed to insert a new section
115BBG to provide that where the total income of the assessee includes any
income from transfer of carbon credit, such income shall be taxable at the
concessional rate of 10%( plus applicable surcharge and cess) on the gross
amount of such income. No expenditure or allowance in respect of such income
shall be allowed under the Act.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
25. PROCESSING OF RETURN WITHIN
THE PRESCRIBED TIME AND ENABLE WITHHOLDING OF REFUND IN CERTAIN CASES
It is proposed to insert a new section
241A to provide that, for the returns furnished for assessment year commencing
on or after 1st April, 2017, where refund of any amount becomes due to the
assessee under section 143(1) and the Assessing Officer is of the opinion that
grant of refund may adversely affect the recovery of revenue, he may, for the
reasons recorded in writing and with the previous approval of the Principal
Commissioner or Commissioner, withhold the refund upto the date on which the
assessment is made.
26. RATIONALISATION OF SECTION
211 AND SECTION 234C RELATING TO ADVANCE TAX
It is proposed to provide that that if
shortfall in payment of advance tax is on account of under-estimation or
failure in estimation of income of the nature referred to in section 115BBDA,
the interest under section 234C shall not be levied.
Vide Finance Act 2016, presumptive
taxation regime has been extended to professionals also. Hence it is proposed
to amend the said clause (b) to provide that the assesse who declares proft and
gain in accordance with presumptive taxation regime provided under section
44ADA shall also be liable to pay advance tax in one instalment on or before
the 15th
March.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
27. RATIONALISATION OF TIME
LIMITS FOR COMPLETION OF ASSESSMENT, REASSESSMENT AND RE-COMPUTATION AND
REDUCING THE TIME FOR FILING REVISED RETURN
It is proposed to provide that for the
assessment year 2018-19, the time limit for making an assessment order under
sections 143 or 144 shall be reduced from existing 21 months to 18 months from
the end of the assessment year, and for the assessment year 2019-20 and onwards
, the said time limit shall be 12 months from the end of the assessment year in
which the income was first assessable.
In order to expedite assessments of
the Department as proposed above, it is critical that the returns for an
assessment year also freeze by the end of the assessment year. It is hence
proposed to amend the provisions of the section (5) of the section 139 to
provide that the time for furnishing of revised return shall be available upto
the end of the relevant assessment year or before the completion of assessment,
whichever is earlier.
This amendment will take effect from
1st April, 2018 and will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
28. RATIONALISATION OF THE
PROVISIONS IN RESPECT OF TIME LIMITS FOR COMPLETION OF SEARCH ASSESSMENT
The search and seizure cases conducted
in the financial year 2018-19, the time limit for making an assessment order
under section 153A shall be reduced from existing 21 months to 18 months from
the end of the financial year.
These amendments will take effect from
1st April, 2017
The
exemption under this section for income arising on transfer of equity share
acquired or on after 1st day of October, 2004 shall be available only if the
acquisition of share is chargeable to Securities Transactions Tax. However, to
protect the exemption for genuine cases where the Securities Transactions Tax
could not have been paid like acquisition of share in IPO, FPO, bonus or right
issue by a listed company acquisition by non-resident in accordance with FDI
policy of the Government etc., it is also proposed to notify transfers for
which the condition of chargeability to Securities Transactions Tax on acquisition
shall not be applicable.
This amendment will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessee.
30. FAIR MARKET VALUE TO BE
FULL VALUE OF CONSIDERATION IN CERTAIN CASES
It is proposed to insert a new section
50CA to provide that where consideration for transfer of share of a company
(other than quoted share) is less than the Fair Market Value of such share
determined in accordance with the prescribed manner, the FMV shall be deemed to
be the full value of consideration for the purposes of computing income under
the head "Capital gains".
This amendment will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessee.
31.WIDENING
SCOPE OF INCOME FROM OTHER SOURCES
Receipt of the sum of money or the
property by any person without consideration or for inadequate consideration in
excess of Rs. 50,000 shall be chargeable to tax in the hands of the recipient
under the head "Income from other sources".
This amendment will take effect from
1st April, 2017
32.DISALLOWANCE FOR
NON-DEDUCTION OF TAX FROM PAYMENT TO RESIDENT
For computing income under the head
"Profits and gains of business or profession", a disallowance is made
for non-deduction of tax from payment to resident also. With a view to improve
compliance of provision relating to TDS it is proposed to amend the said
section so as to provide that provisions of section 40(a)(ia) shall, so far as
they may be, apply in computing income chareable under the head “income from other
sources”.
This amendment will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessee.
33.RESTRICTION ON EXEMPTION IN
CASE OF CORPUS DONATION BY EXEMPT ENTITIES TO OTHER EXEMPT ENTITIES
Donation given by one exempt entities
to another exempt entity under section 12AA, with specific direction shall not
be treated as application of income.
This amendment will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessee.
Certain entities which enjoy exemption
under section 10 shall also be mandatorily required to furnish a return of
income.
This amendment will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessee.
35.FEE
FOR DELAYED FILING OF RETURN
It
is proposed to insert a new section 234F in the Act to provide that a fee for
delay in furnishing of return shall be levied for assessment year 2018-19 and
onwards in a case where the return is not filed within the due dates specified
for filing of return. The proposed fee structure is as follows:—
(i) a fee of Rs.5000 shall be payable, if
the return is furnished after the due date but on or before the 31st day of
December of the assessment year;
(ii) a fee of Rs. 10000 shall be payable in
any other case.
However, in a case where the total
income does not exceed Rs.5,00,000 it is proposed that the fee amount shall not
exceed Rs.1000.
This amendment will take effect from
1st April, 2018 and will, accordingly, apply in relation to the assessee.
36.PENALTY ON PROFESSIONALS FOR FURNISHING INCORRECT INFORMATION
IN STATUTORY REPORT OR CERTIFICATE
If an accountant or a merchant banker
or a registered valuer, furnishes incorrect information in a report or
certificate under any provisions of the Act or the rules made thereunder, the
Assessing Officer or the Commissioner (Appeals) may direct him to pay a sum of
Rs. 10,000 for each such report or certificate by way of penalty.
This amendment will take effect from
1st April, 2017
37.STRENGTHENING
OF PAN QUOTING MECHANISM IN THE TCS REGIME
It is proposed to insert new section
206CC to provide the following:
I. any person paying any sum or amount, on which tax is
collectable at source shall furnish his Permanent Account Number to the person
responsible for collecting such tax, failing which tax shall be collected at
the twice the rate mentioned in the relevant section or 5% whichever is higher.
II. that
the declaration filed under section 206C shall not be valid unless the person
filing the declaration furnishes his Permanent Account Number in such declaration.
III. that
in case any declaration becomes invalid , the collector shall collect the tax
at source in accordance with the provisions of sub-section (1).
IV. no certificate under sub section
(9) of section 206C shall be granted unless it contains the Permanent Account
Number of the applicant.
V.
the collector knows about the correct PAN of the collectee it is also proposed
to provide for mandatory quoting of PAN of the collectee by both the collector
and the collectee in all correspondence, bills and vouchers exchanged between
them.
VI. that the collectee shall furnish
his Permanent Account Number to the collector who shall indicate the same in
all its correspondence, bills, vouchers and other documents which are sent to
collectee.
VII. where the Permanent Account
Number provided by the collectee is invalid or it does not belong to the
collectee, then it shall be deemed that Permanent Account Number has not been
furnished to the collector.
VIII. to
exempt the non-resident who does not have permanent establishment in India from
the provisions of this proposed section 206CC of the Act.
This
amendment will take effect from 1st April, 2017.
38.
RATIONALIZATION OF DEDUCTION UNDER SECTION 80CCG.
No deduction under section 80CCG shall
be allowed from assessment year 2018-19. However, an assessee who has claimed
deduction under this section for assessment year 2017-18 and earlier assessment
years shall be allowed deduction under this section till the assessment year
2019-20 if he is otherwise eligible to claim the deduction as per the
provisions of this section.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
39.
RESTRICTION ON SET-OFF OF LOSS FROM HOUSE PROPERTY
The set-off
of loss under the head "Income from house property" against any other
head of income shall be restricted to Rs. 2,00,000 for any assessment year.
However, the unabsorbed loss shall be allowed to be carried forward for set-off
in subsequent years in accordance with the existing provisions of the Act.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
40. POWER OF PROVISIONAL ATTACHMENT
AND TO MAKE REFERENCE TO VALUATION OFFICER TO AUTHORISED OFFICER
This is to provide that during the
course of a search or seizure or within a period of sixty days from the date on
which the last of the authorisations for search was executed, the authorised
officer on being satisfied that for protecting the interest of revenue it is
necessary so to do, may attach provisionally any property belonging to the
assessee with the prior approval of Principal Director General or Director
General or Principal Director or Director. It has been proposed that such
provisional attachment shall cease to have effect after the expiry of six
months from the date of order of such attachment.
These amendments will take effect from
lst April, 2017
This is to provide that the power in
respect of inquiry or proceeding under the Act, may also be exercised by the
Joint Director, the Deputy Director and the Assistant Director.
It is further proposed that the Joint Director, the
Deputy Director or the Assistant Director may exercise the powers in respect of
such inquiry, without seeking prior approval of higher authorities.
These amendments will take effect from
lst April, 2017.
42.EXTENSION
OF THE POWER TO SURVEY
It is proposed to widen the scope of
the section 133A by amending sub-section (1) to include any place, at which an
activity for charitable purpose is carried on.
This amendment will take effect from
lst April, 2017.
43.RATIONALISATION OF
PROVISIONS OF THE INCOME DECLARATION SCHEME, 2016 AND CONSEQUENTIAL AMENDMENT
TO SECTION 153A AND 153C
The existing provisions of clause (c)
of the section 197 of the Finance Act, 2016 provide that where any income has accrued,
arisen or been received or any asset has been acquired out of such income prior
to commencement of the Income Declaration Scheme, 2016 , and no declaration in
respect of such income is made under the Scheme, then, such income shall be
deemed to have accrued, arisen or received, in the year in which a notice of
the Income-tax Act is issued by the Assessing Officer, and provisions of the
said Act shall apply accordingly.
It is
proposed to omit clause (c) of section 197 of the Finance Act, 2016. This
amendment will take effect retrospectively from lst June, 2016.
44.RATIONALISATION OF DEDUCTION UNDER SECTION 80CCD FOR
SELF-EMPLOYED INDIVIDUAL
It is proposed to amend section 80CCD
so as to increase the upper limit of 10% of gross total income for amount
deposited in National Pension System trusts (NPS) to 20% in case of individual
other than employee.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
In view of proposed
rationalization of tax rates for individuals in the income slab of a Rs.
2,50,000 to Rs. 5,00,000, it is proposed to amend section 87A so as to reduce
the maximum amount of rebate available under this section from existing Rs.
5000 to Rs. 2500. T is proposed to provide that this rebate shall be available
to only resident individuals whose total income does not exceeds Rs. 3,50,000.
This amendment will take effect from
1st April, 2018 and, will accordingly, apply in relation to assessment year
2018-19 and subsequent years.
Hope you will find the same
useful.
For any clarification or queries
please feel free to contact.
Neeraj Choudhary _ 9711155069
………………………………………………………..
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