03/02/2017

AMENDMENTS IN INCOME TAX FOR A.Y 2018-19 ( Author - HIMANSHU TIWARI )

  1. Turnover of companies  up to 50 crore - tax will be 25 percent instead of 30percent.
  2. MAT credit carry forward for 15 instead of 10 years.
  3. Long term capital gains period reduced from 3 to 2 years.
  4. Base Year for indexation now 2001 instead of 1981.
  5. Presumptive tax for small traders with turnover up to 2 crore under 44AD now 6% instead of 8 % for full non cash turnover.
  6. Cash expenditure now allowed only 10000 instead of 20000 per transaction.
  7. No transaction above 3 lac will be allowed in cash.
  8. Trust cash donations max allowed only 2000 instead of 10000.
  9. Political parties - max cash donations from 1 person Rs 2000.
  10. Domestic transfer pricing - only if 1 party enjoys tax benefits.
  11. 44AD - turnover limit increased to 2 crores for business and profession. 
  12. Professionals can pay advance tax in 1 installment if below 50 lac.
  13. Time for revising income tax return now reduced.
  14. Scrutiny time limit reduced to 18 months.
  15. Individual tax reduced for income 2.5 to 5 lac tax rate now reduced to 5%.
  16. Surcharge of 10% on those who earn income from 50 lac to 1 crore.
  17. TDS - no Tds on insurance agents if 15 h filed.
  18. Simple 1 page income tax return for persons having non business income up to 5 lac.

About the author

HIMANSHU TIWARI

CHARTERED ACCOUNTANT
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