New Income Tax Rules in India : Things To Know

So, the India Govt. recently passed its budget for 2017 and there are new rules galore. For the fiscal year 2017 - 18, there have been many amendments made (good and bad). Here's everything you need to know.

1. If your annual income is between 2.5 lakhs and 5 lakhs then your income tax is now reduced to 5%. [Good]
2. After rebates, zero tax liability for people with income of 3 lakhs annually. [Good]
3. All other categories will get uniform benefit of Rs 12,500.
4. If you annual taxable income is between 50 lakhs and 1 crore, there shall be a surcharge of 10% of income tax [Bad]
5. If you annual taxable income is above 1 crore, you will be charged 15 percent surcharge. [Bad]
6. For persons having Taxable income up to 5 lakhs other than income from Profits and Gains from Business or profession(PGBP), you can file your taxes with just a one page Income tax return.
7. Maximum limit for audit of specified assesses who opt for presumptive income (Section 44AD of Income Tax Act) scheme is now increased from 1 crore to 2 crores.
8. Transactions above 3 lakh Rupees will not be permitted via cash. (with some exceptions). [Good]
9. Maximum donation of 2000 rupees in cash per person for political parties.
10. Foreign Investment Promotion Board (FIPB) will be abolished.
11. Rs 23,000 crore is now allocated to the Pradhan Mantri Gramin Awas Yojana.
12. Foreign direct investment increased from 1,07,000 crores in the first half of last year to 1,45,000 crores in the first half of 2016-17.

Overall, it's been a great budget for all spectrums with the exception of those with income above 1 Crore annually. For most of the lower and middle class, the changes are welcome and should help to build a better economy. References 1, 2, 3.