Quick brief of today’s budget speech by our FM Arun Jaitley
*Personal Taxation*
Tax for Income 2.5 lakh to 5 lakh reduced to 5% instead of 10%
Rebate u/s 87A restricted to ₹ 2,500
Surcharge of 10% on assessees having income greater than ₹ 50 lakhs but less than ₹ 1 crores
No other changes in individual tax rates
*Capital Gains *
Immovable properties to be long term after 2 years (instead of 3 years now)
Base year for indexation moved to 1.4.2001 instead of 1.4.1981
*Business*
Income to be presumed at 6% of non-cash turnover for assessees having turnover upto ₹ 2 crores.
Lower corporate tax rate of 25% for COMPANIES having annual turnover less than 50 Crores
Carry forward of losses allowed to startups even on change of shareholdings
Profits of startups exempted for 3 years out of 7 years (instead of 3 out of 5 earlier)
C/f of MAT Credit allowed for 15 years from 10 years earlier.
TDS on commission to insurance agents exempt
Banks allowed NPA provision upto 8.5% from 7.5%.
Non-scheduled banks allowed to tax interest from NPAs on receipt basis on accrual basis.
Builders of immovable properties to be allowed breathing period of 1 year for payment of income on notional value of rent.
Lower tax rates on interest payable to foreign entities to continue till 2020.
*Cash Transactions *
Cash transactions above ₹ 3 lakhs prohibited. Provisions to be introduced in Income Tax Act
Cash limit under 40A(3) reduced to ₹ 10,000
Charitable donation to be limited to ₹ 2000. Also applicable for political parties.
*Returns and asstt*
1 page return form for assessees having income upto ₹ 5 lakhs
No scrutiny for first time tax return filers (subject to no adverse report)
Time period for scrutiny to 18 months from 21 months for AY 18-19. To be further reduced to 12 months from AY 19-20.
*Indirect Taxes*
No changes proposed in Excise and Service tax considering imminent repealing of the same.
Customs duty on LNG reduced.
Duties on POS, finger print scanner, etc. removed to encourage digital participation.
