Union Budget 2017 Amendments

Union Budget 2017 Amendments


1) Deemed sale value for sale of unquoted shares introduced. To be taxed at fair value section 50 CA.


2) In absence of Pan, the rate of Tax Collected at Source (TCS) will be twice of the extent rate or 5 % whichever higher section 206 CC.

The existing provision of sub-section (1F) of section 206C of the Act, inter-alia provides that the seller who receives consideration for sale of a motor vehicle exceeding Rs 10,00,000, shall collect 1% of the sale consideration as tax from the buyer. In order to reduce compliance burden in certain cases, it is proposed to amend section 206C, to exempt the following class of buyers such as the Central Government, a State Government, an embassy,a High Commission, legation, commission, consulate and the trade representation of a foreign State; local authority as defined in explanation to clause (20) of Section 10; a public sector company which is engaged in the business of carrying passengers, from the applicability of the provision of subsection (1F) of section 206C of the Act. This amendment will take effect from 1st April, 2017.

3) New section 269ST is introduced whereby Rs 3,00,000 in cash cannot be received in single day or in respect of single transaction.

4) If return is not filed u/s 139(1) of Income Tax Act, concept of late fee is introduced Rs 5,000 for delay up to 31 st dec and Rs 10,000 thereafter. Late fee to be paid before filing of return u/s 234F.

“Penalty is levied by the tax officer in cases where the taxpayer fails to file his return before the due date. Under Section 271F, the tax officer may levy a penalty of Rs 5,000 for failure to furnish return of income".

5) Chartered Accountant issuing wrong certificate would be penalized with Rs 10,000.

6) Capital Gain on shares will be exempt only if securities transaction tax(STT) was paid while purchasing the shares.

7) House property loss can be set off against other head of income only to the extent of Rs 2,00,000 in same year.

8) Individual and Hindu undivided family(HUF) to deduct Tax Deducted at Source (TDS) even if unaudited @ 5% if rent is paid Rs 50,000.

9) Tax Deducted at Source(TDS) in 194J amended now to 2% instead of 10%.

10) The scope of section 56 is widened and will also cover any kind of gifts in cash or kind or for no consideration with few exemptions and exceptions.

11) Minimum Alternate Tax(MAT) book profit calculation also amended.

12) Disallowance of expenditure from income from other sources if Tax is not deducted.

13) Self employed can also claim 20% contribution to National Pension Scheme(NPS) as deduction.

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