1. In cash (both Capital and Revenue Expenditure) the Expenditure Payments for one person has been decreased from Rs. 20,000 per day to Rs 10,000 per day. Cash payments made above than the listed amount for Capital Expenditure will not benefit in the depreciation purposes. But in case of Laurie Freight, the cash transaction limit is Rs. 35,000.

2. According to Section 269ST, No person shall receive an amount of two lakh rupees or more;
• 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 from a person.
(Penalty for the above violations is equal to the amount obtained)
Examples for the above:
I. If an assessee in one day sells the goods of Rs. 3 lakh and makes three bills of 1 lakh each, accepting the whole amount in one day, this will be a violation of Section 269ST (a).
II. If an assessee with the help of a single bill, sells goods of 3 lakh to another person and accepts the payment in two day basis by taking Rs 1,50,000 per day, this will be violation of Section 269ST (b) as this is related to the single transaction.
III. If a person on the sale of Rs 2,00,000, for sale accepts Rs 1,80,000 and for freight charges accepts Rs 20,000, this will be a violation to Section 269ST (c), though the cash is accepted in different ways, but still this is the case of single sale.
IV. If a person sells his car in Rs 3,00,000 and accepts the same in cash, he/she will bear the penalty of Rs 3,00,000 only.
Keeping in mind the above mentioned new beginnings about cash sales related provisions, the current provision (prevailing since 1.6.2016), TCS collection is being removed on 1% cash sale on more than Rs 2,00,000 (Rs 5,00,00 in terms of jewelry)
3. In case of Business of Rs 2 crore, (started from FY 2016-17) for non-cash sale (digital, online, cheque, bank etc) the net profit will be taken as 6% of the turnover. In case of cash sales, net profit will be taken as 8% of the turnover.

4. Tax exemption limit Rs 2,50,000 (as before)-
• For Rs 5,00,000, tax rate of 5% (earlier was 10%), for total earning of Rs 3.5 lakh, the permission granted for reduction is of Rs 2,500.
• People with total earning of more than Rs 50 lakh and less than Rs 1 crore, the surcharge will be 10% of the total tax to be paid by them. People earning more than Rs 1 crore, have to pay the surcharge of 15% of the total tax to be paid by them.

5. If any person or HUF (who doesn’t do audits) pays Rs 50,000 as rent, a cut of 5% TDS has to be done.

6. Capital benefits on land and building :
• Long capital benefits have reduced from 3 years to 2 years.
• Foundation year for property like immovable property is changed from 01.04.1981 to 01.04.2001.

7. The companies with the turnover of less than Rs 50 crore for the Accounting Year 2015-16, the corporate tax rate is made 25% for the Tax Assessment Year 2017-18.
• In case of partnership firm, the corporate tax rate is still 30%.

8. According to Section 80G, donation made in cash of more than Rs 2,000 for the deduction will not be accepted until and unless done by something other than cash. Consequently, 80G donation accepting trust recommend the donors to donate more than Rs 2,000 in form of cheque / RTGS or by any other digital mode.

9. On the sale of unlisted share, the tax will be payable on its deemed fair value.

Also Read : 10 Major Changes From 1st April In The Country, List Is Here

10. From the FY 2017-18, if the return will not be paid before the fixed date, late fees Rs 5,000 will be imposed till 31st December and Rs 10,000 for later late time.

11. Aadhaar (UID) qualified every single person has to show his aadhaar (UID) in tax return from 1st July 2017.

Apart from this, every person from 1st July 2017 who is assigned with PAN has to update his/her aadhaar (UID) number to the tax authorities, or else the PAN will be considered illegal. Please note that the PAN and Aadhar card number cannot be linked until and unless the Aadhar name and PAN name are same as each other. So please get the Aadhaar name changed as per the name listed on your PAN.

12. The Revised Object Clause of Registered Trusts In Section 12AA have to apply in CIT in 30 days to get their revised sections updated.

Tags: Income Tax ReturnSection 12AASection 269STSection 80Gunion budget 2017