The finance bill 2017 was approved by parliament on March 30.
The finance bill 2017 was passed with some sweeping changes to country’s existing tax system. All the provisions related to taxation and government spending Finance minister Arun Jaitley proposed in Union Budget 2017 have come into effect from April 1.
Here are few things to know when you will file your income tax returns and apply for important documents like PAN and Aadhaar Cards.
- Instead of raising income tax limit the government opted for a reduction in income tax rate. There will be only 5 percent tax on an income from Rs.2.5 lakh to Rs.5 lakh.
- The government has decided a 10 percent surcharge for an income Rs.50 lakh to Rs.1 Crore. There will be no change in present surcharge of 15 percent for individuals whose income is more than Rs.1 Crore.
- Aadhaar, a unique identity has been made compulsory for applying for a PAN card and filing for income tax returns. This has been mooted to avoid duplicity in filing of income tax.
- The government has put a limit on cash transactions to prevent occurrence and recurrence of incidents of black money.
- CBDT has come up with new seven income tax returns form.
- Under the amended rules, Tax commissioners have been enabled with sweeping powers.
- The amended tax rules grant immense powers to tax authorities retrospectively.
- An individual taxpayer will have to minus a tax deducted at source (TDS) of 5 percent on rental payment of more than 50,000.
- Under amended tax rules, there will be no tax on partial withdrawal of money from National Pension System funds. Those who put savings in NPS can withdraw 25 percent of their total savings before retirement.
- According to the new rules property will come under the purview of long-term gains only if the holding period for that property was two years. Earlier, the holding period was three years.