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2017
  • For the Financial year 2017-18 department has revised TDS rates.
  • Please find the attached file of revised TDS rates.

2017
  • The Government of India is speeding up on the road to curbing tax evasion. So, it is leaving no stone unturned in achieving this target. As you know black money was one of the major electoral promises of the NDA (National Democratic Alliance) government in 2014, so it is taking all the coordinated efforts in this direction one after another.
  • With respect to the recent amendments proposed by our Finance Minister, Arun Jaitley in the Finance Bill, GOI on Tuesday proposed to make Aadhaar card mandatory for PAN application and filing income tax returns as well. This move will come into effect from 1st July. Earlier, the Aadhaar Card was optional for both.
  • According to the amendment, existing taxpayers will have to link their PAN cards with Aadhaar numbers by a certain date to be specified later. And the new PAN applicant will be required to declare their Aadhaar numbers in the PAN application itself. Those, who fail to disclose their Aadhaar number, their PAN and income tax return will be deemed invalid. For the existing taxpayers who don’t have Aadhaar allotted in their name will have to enrol themselves immediately and they can file their tax returns using this enrolment number.

2017
  • Under the existing tax provisions, you can file your tax return without any penalty till the end of the assessment year.
  • If you delay tax filing beyond assessment year, tax officer can impose the penalty up to Rs. 5,000, which is done very rarely and fails to create any impact on taxpayers.
  • To tighten the noose around stubborn non-filers, in budget 2017 the government has introduced a new section 234F which levies mandatory late filing fees for non-filing the tax returns within allowed time.

2017
  • If you feel that Income Tax Return filing is a taxing task, you are not alone. For a layman, just the name is enough to induce shivers. The tax return filing season for F.Y. 2016-17 is on the horizon & the government has come up with a good news at the right time.
  • Do you remember that our Finance Minister had promised to introduce a simple one-page ITR form for tax filers? The form was expected to offer huge relief to taxpayers with income below Rs. 5 lakh. The recent news is even better than that. Now this one-page ITR form will make tax return filing simpler for a bigger chunk of taxpayers. Salaried individuals with income up to Rs. 50 lakh & having rental income from one house only will also be able to file their tax return easily with this one-page ITR.

Why has this step been taken?

  • There are several reasons why people find filing taxes daunting & boring. For most people, this is a once in a year activity. Income Tax rules also change every year. So, people tend to forget how they filed their taxes in the previous year. As a result, they have to learn everything all over again. This further leads to poor tax planning, unclaimed refunds & defective IT returns. A large number of people often skip this essential activity.

2017
As per the Finance Bill, 2017 a new section 269ST is introduced. The provisions of the section are as follows:

Provisions:

  • No Person shall receive an amount of three lakh rupees or more,
    1. in aggregate from a person in a day;
    2. in respect of a single transaction; or
    3. in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.

2017
  • The government made a very important announcement for people living in metropolitan cities. Now people staying in rented accommodation paying more than Rs. 50,000 per month as rent are required to deduct tax on behalf of their landlord. Government has taken this step to widen its tax net. However, this has put additional tax compliance burden on the rent payers.
  • It has proposed to introduce a new section, 194-IB in the Income Tax Act to provide that an individual or a HUF (other than those covered under 44AB of the Act), responsible for paying rent to a resident exceeding Rs. 50,000 for a month or part of month during the previous year, shall deduct an amount equal to 5% of such payment as income-tax thereon. The following amendment will take effect from the date budget gets the final approval from the President of India.
  • Further, a proposal has been made in the Act that tax shall be deducted on such payment at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. It is also proposed to provide that tax so deducted shall be deposited only once in a financial year through a challan-cum-statement to be notified soon.

Financial Management