10 Tax changes in Financial Year 2017-18 that will impact your Taxes
(Last Updated On: June 3, 2017)
So here we are with the lists of all the things that will seriously impact your taxes financial year 2017-18. Let’s begin :-
1. Change In Tax Slab:
Since the union budget released for financial year 2017-18, it has been the most discussed topic and you probably are aware of the tax slab rate that has been revised. If you are having an income ranging from 2.5-5 Lakh rupees, tax slab has been made 5 % from the earlier 10%. While 10% surcharge has been increased if you are having an income above 50 lakhs. Know more
2. Reduction in Tax Rebate
3. Penalty for not filing of returns
Well this is going to be bad news for the lazy taxpayers because from this F.Y. onward the tax department is going impose penalties for non-filers and late filers. If you don’t file up to 31st December , penalty imposed for late fees would be Rs.5000 and thereafter Rs. 10,000.
However, there is lesser penalty i.e. Rs. 1,000/- for the persons having income upto Rs. 5 lakh.
4. Reduction in cash expenses
5. TDS on Rent
YES! Unfortunately If you are a salaried person ( Individual/HUF) paying Rent of Rs.50,000 per month or above, then you have to deduct TDS @ 5% & deposit in government treasury. Earlier exemption was from the deduction of any TDS on rent. It will be effective from June 2017.
6. Change in Capital Gain calculations
- Base year required for indexation has been shifted from 01.04.1981 to 01.04.2001 for all assets.
- Periodicity for long term Capital Gain reduced from 3 years to 2 years.