Year 2017: The Pandora’s Box of Demonetization!
(Last Updated On: June 1, 2017)
- Implementation of Goods and Service Tax (GST)
- Tax-Relief to the financially overburdened taxpayers by increasing:
- Basic exemption limit of Rs 2,50,000.
- Limit of house loan interest deduction of Rs 2,00,000.
- Limit of section 80C deductions of Rs 1,50,000
- Amendments in Income Tax sections which giving more benefits to taxpayers if they do transactions through banks. For example, The Finance Ministry has reduced the existing rate of deemed profit under section 44AD to 6% in respect of the amount of total turnover or gross receipts received through banking channel / digital means. This amendment will be carried out through the Finance Bill, 2017.
- Notices by Income Tax Department for deposits over Rs 50,000 in Jan Dhan bank accounts Rs 2,50,000 in other bank accounts asking for the source of such income.
- Notices under The Prohibition of Benami Property Transactions Act, 1988 or the Benami Law.
- Increase in the cases of prosecution by the Income Tax Department.
- More disclosures under the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) (link of our blog)
- New Schemes for disclosure of property and gold held by a taxpayer.