Wednesday, February 1, 2017

Top 15 snippets from Budget, 2017

  1. Affordable Housing Project Schemes – Rationalized to give more benefit;
  2. Capital Gains – Immovable Property [Period of Holding reduced from 3 years to 2 years];
  3. Base Year for the purpose of capital gains moved from 1st April 1981 to 1st April 2001;
  4. Joint Development Agreements – Tax to be suffered based on Project Completion rather than at the time of entering into JDA and handing over the possession;
  5. Exemption to transfer of Immovable Properties in the case of the state of AP announced;
  6. MAT Credit – From 10 Years to 15 Years;
  7. Presumptive Tax Scheme – Reduced from 8% to 6% if the transactions are non-cash based;
  8. Cash donations to be only up to Rs 2,000 rather than Rs 10,000/- [Sec 80G / Charitable Purpose];
  9. Political Parties – Return is a must; Cash donations from any single source to be only up to Rs 2,000/-;
  10. Domestic TP provisions – Only for those who are claiming profit linked incentives and not to others;
  11. FPIs – Category 1 and 2 are exempted from Indirect Transfers;
  12. Professionals – Advance tax shall be by March 15th when opted for presumptive tax scheme;
  13. Personal Taxes – Relief given w.r.t those falling in Rs 2.5 lakhs to 5.00 lakhs: The rate of tax would be 5% but not 10%.
  14. Rate of taxes for SMEs would be 25% if the turnover is up to Rs 50 Crores;
  15. Time limits for scrutiny gradually reduced 21 months – to 18 months – 12 months.

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