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CHANGES IN INCOME TAX POLICIES FROM APRIL 1

After the clearance of the Budget for the session 2017-18 in the parliament, there are certain changes introduced in order to lower down the tax rates. The first and the major reform is the low down in tax rate, where a person with the annual income lower than 1 crore can save upto ₹12,500 to ₹ 14,408 per year, including surcharge and cess. Also, the person with income lower than ₹3.5 lakhs per year will have to pay ₹2,500 instead of ₹5,150. This is a combined effect of rebate and lower tax rates. While the shrcharge will be 10 % for people with income above 50 lakhs and 15% for people having income of 1 crore annually. This is a result of the thought that higher income groups may not accumulate more of funds with themself. Also, the holding period of immovable property used to 3 years before, which is now 2 years. This means that a person holding property after 2 years will be charged 20% and will be exempted from further charges.
Also, the tax revision is now 1 years instead of 2 years. If a person is trying to avail the deduction while investing in equity shares is now abolished. And if someone get delay in filing income tax return, then this might attracts the penalty of ₹5,000 or ₹10,000 if filled after 31st December while for the small tax payers the fees will be restricted to ₹1,000.


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