Income Tax


Thursday, 13 April 2017

Important points related to Direct Taxes A.Y. 2018-19

1. Domestic companies turnover upto 50 Crore Rupees, for Financial year 2016-17 to be considered for tax @25% in AY 2018-19

2.  TDS on rent 194IB required to be deducted only once in a year in Last month of the year and TAN not required . Further TDS cannot be more than Last month's Rent. Applicable for individual or HUF not liable for tax audit w.e.f 1 June 2017.

3. Sec. 45(5A) In case of joint development agreement between land owner individual or HUF and builder, tax to land owner for transfer of land in year completion certificate issued by builder.
Further, TDS under Section 194IC @10% w.e.f 1-4-17 in case any monetary consideration payable under specified agreement.

4. Section 54EC scope expanded so as to provide that investment in any bond redeemable after 3 years which has been notified by CG.

5. No cash donation w.e.f 1-4-17 exceeding 2000. Existing limit was 10000.

6.  40A Section limit reduced to 10000 from existing 20000 w.e.f 1-4-17. Further depreciation also to be disallowed if capital asset purchased in cash exceeding 10000 w.e.f 1-4-17 effectively A.Y. 2018-19.

7.  44AD concessional   rate 6% on digital/cheque receipts  applicable to A.y 2017-18 also. Time limit for receipts from debtors before due date under Section 139(1).

8.  Restrictions on cash receipt of 3 Lakh or more applicable if
      a. Received in Aggregate from a person in a day
      b. In respect of single transaction 
      c. In respect of transactions relating to one event or occasion from a person.
9. Enabling 15G and 15 H on insurance commission w.e.f  1-Jun-17.
10. 44AA books maintenance turnover revised to 25 Lacs and income to 2.5 Lacs from AY18-19. However Professional mentioned in sub sec. 1 such as legal medical etc. Gross income limit is still 1.50 Lacs. for books maintenance.

11. From A.Y 17-18 payment of expenditures to relatives will not be considered for limit of 20 Crore for domestic transfer pricing.

12. Time for filling revised return shall be upto the end of relevant assessment year or before completion of assessment which ever is earlier, w.e.f.  A.Y 18-19 
13. Set off of losses under Income from House Property against any other head shall be restricted to 2 lakh rupees,w.e.f. A.Y. 18-19.

14. TCS in case of no PAN 5% or twice the TCS rate which ever is heigher. w.e.f. 1-Apr-17.

15. Limitation of interest to associates restricted to 30% of earnings before interest tax depreciation. 
Excess interest can be carried forward to 8 assessment years. Provisions applicable of interest exceed 1 crore.

16.  Non deductions of tds on expenses against  other sources income also subject to disallowance of expenditure..

17.  50CA introduced to provide that where consideration for transfer of unquoted shares  is less than fair market value , the fair market value shall be deemed to be full value of consideration, w.e.f. A.Y. 18-19.
18.  Base Year for Capital Gain shifted to 2001 from 1981.
19.  MAT credit can be carried forward to 15 yrs.

20. To levy surcharge of 10% on income between Rs 50 lakh-1 crore.

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