{"id":3924,"date":"2018-04-05T12:13:55","date_gmt":"2018-04-05T06:43:55","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=3924"},"modified":"2021-11-09T12:48:43","modified_gmt":"2021-11-09T07:18:43","slug":"important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/","title":{"rendered":"Analysis of all major amendments in income tax"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d27eaf93198\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d27eaf93198\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/#Maintenance_of_Books_of_Accounts\" title=\"Maintenance of Books of Accounts\">Maintenance of Books of Accounts<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/#Income_tax_Returns\" title=\"Income tax Returns\">Income tax Returns<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/#Tax_deducted_at_source\" title=\"Tax deducted at source\">Tax deducted at source<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/#Changes_in_capital_gain\" title=\"Changes in capital gain\">Changes in capital gain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/#Deduction_under_chapter_VI_A\" title=\"Deduction under chapter VI A\">Deduction under chapter VI A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/important-analysis-of-all-major-amendments-in-income-tax-applicable-for-a-y-2018-19\/#Tax_slab_rate\" title=\"Tax slab rate\">Tax slab rate<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<figure id=\"attachment_8746\" aria-describedby=\"caption-attachment-8746\" style=\"width: 945px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Income-Tax.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8746\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Income-Tax.jpg\" alt=\"www.carajput.com; Income-Tax\" width=\"945\" height=\"630\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Income-Tax.jpg 945w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Income-Tax-300x200.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/04\/Income-Tax-768x512.jpg 768w\" sizes=\"(max-width: 945px) 100vw, 945px\" \/><\/a><figcaption id=\"caption-attachment-8746\" class=\"wp-caption-text\">www.carajput.com; Income-Tax<\/figcaption><\/figure>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Maintenance_of_Books_of_Accounts\"><\/span><strong><em><span style=\"text-decoration: underline;\">Maintenance of Books of Accounts<\/span><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<ul style=\"text-align: justify;\">\n<li>Change in limits for Maintenance of Books of Accounts (Section 44AA): If your net income* from Business or Profession in the financial year 2017-18 is more than Rs 2,50,000.<\/li>\n<li>if your total sales from <a href=\"https:\/\/carajput.com\/blog\/tag\/business-support-service\/\">Business<\/a> or Profession in the financial year is more than 25,00,000, then you need to maintain the books of accounts.<\/li>\n<li>Earlier these limits were Rs 1,25,000 and Rs 10,00,000 respectively. *Net Income means Gross receipts less all expenses<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Income_tax_Returns\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/file-your-income-tax-return-itr\/\"><strong><em><span style=\"text-decoration: underline;\">Income tax Returns<\/span><\/em><\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Important changes relating to Filing of Income tax Returns:\u00a0\u00a0Can be filed till\u00a0<strong>one year <\/strong>from the end of the financial year. <strong>YES<\/strong>, a belated return can be revised till one year from the end of financial year.<\/li>\n<li>Fees for late filing of the income tax return (Section 234F): The due date of return filing is generally 31st July.<\/li>\n<li>If the return is filed upto 31st December of relevant Assessment Year, then late filing fees of Rs 5000 will be mandatorily levied and Rs 10000 will be levied if the return is filed after 31st December of the relevant Assessment Year.<\/li>\n<li>A simple one page tax return form is to be introduced for Individual with taxable income up to Rs. 5 lakh (excluding Business Income).<\/li>\n<li>Those filing returns for the first time in this category will generally not be subject to scrutiny.<\/li>\n<li>Time period for revision of tax return cut to one year (from 2 years) from the end of relevant financial year or before completion of assessment, whichever is earlier.<\/li>\n<\/ul>\n<p>Read more for related blogs are ;<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/how-to-file-tds-return-online\/\">How to file a return of TDS online<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/new-revise-tds-tcs-return-filing-due-date-payment-due-date\/\">New revise TDS\/TCS due date for filing Return and Payment for the year 2020<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/key-features-of-tcs-on-goods-sale-section-206c-1h-applicable-from-1-october-2020.html\">key features of TCS on goods sale section-206c<\/a><\/li>\n<\/ul>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Tax_deducted_at_source\"><\/span><strong><em><span style=\"text-decoration: underline;\">Tax deducted at source<\/span><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<ul style=\"text-align: justify;\">\n<li>Section 194-IB is inserted for Individuals and <a href=\"https:\/\/carajput.com\/blog\/tag\/hindu-undivided-family-huf\/\">HUF<\/a> who pay rent exceeding Rs 50,000\/- per month<br \/>\nIndividuals and HUF who pay rent to a resident exceeding Rs 50,000\/- per month or part of the month.<\/li>\n<li>TDS at the rate of 5% is to be deducted on the total rent amount paid during the tenancy period only in the last month of the financial year or last month of the tenancy, whichever is earlier.<\/li>\n<li>Also, PAN of the landlord is required to be furnished while making the payment of said tax. If the PAN is not been furnished to tenant, then <a href=\"https:\/\/carajput.com\/blog\/tag\/tds-tcs-changes-to-covid19\/\">TDS<\/a> at the rate of 20% will be deducted.<\/li>\n<li>Such higher TDS deducted cannot exceed the amount of rent paid in the last month.<\/li>\n<li>Deductor is not required to file the TDS returns and also not required to obtain the TAX Deduction Number (TAN).<\/li>\n<li>In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.<\/li>\n<li>Payment of Rent &#8211; Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirement) &#8211; Deduct TDS @ 5%.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Changes_in_capital_gain\"><\/span><strong><em>Changes in capital gain<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Change in period for considering Capital Gain as Long Term: Till financial year 2016-17, immovable property, being land and building or both were considered as Long Term Capital asset after holding it for more than 36 months.<\/li>\n<li>Now from financial year 2017-18 immovable property, being land and building or both will be classified as Long term Capital Asset after holding it for more than 24 months. Thus, Indexation benefit will be available after completion of 24 months.<\/li>\n<li>Tax exemption will be available on reinvestment of capital gains in notified redeemable bonds (In addition to investment in NHAI and REC bonds).<\/li>\n<li>Shares of unquoted shares to be taxed at (deemed) fair value.<\/li>\n<li>Capital gain in respect of Land and Building period reduced from 3 Years to 2 Years and Base year shifted from 01\/04\/1981 to 01\/04\/2001.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Deduction_under_chapter_VI_A\"><\/span><strong><em>Deduction under chapter VI A<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Deduction for first time investors in listed equity shares or listed units of equity oriented funds under the Rajiv Gandhi Equity Savings Scheme under section 80CCG of IT act 1961 is withdrawn from FY 2017-18.<\/li>\n<li>If an individual has already claimed deduction under this scheme before April 1, 2017, They shall be allowed to avail a deduction for the next two years.<\/li>\n<li>No tax is applicable for partial withdrawals from National Pension System. NPS subscribers will be able to withdraw 25% of their contribution to the corpus for emergencies before retirement.<\/li>\n<li>Withdrawal of 40% of the corpus is tax free before retirement.<\/li>\n<li>Donation made exceeding Rs.2000 will be not be eligible for deduction under section 80G.<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Tax_slab_rate\"><\/span><strong><em><span style=\"text-decoration: underline;\">Tax slab rate<\/span><\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Tax Exemption limit is Rs.2,50,000\/- (same as earlier) After that, up to 5 Lakh, Tax rate is 5% (earlier it was 10%).<\/li>\n<li>Corporate tax rate for the account year 2017-18 for companies with annual turnover up to Rs.50 crores (in account year 2015-16) is reduced to 25%. No change in firm tax rate of 30%.<\/li>\n<li>Tax rebate is reduced to Rs.2500 from Rs.5000 per year for taxpayers with income up to Rs.3,50,000 (earlier Rs.5,00,000).<\/li>\n<li>Surcharge at 10 percent of tax levied on rich taxpayers with income between Rs.50 Lakh and Rs.1 Crore. The rate for surcharge for the super-rich, with income above Rs.1 Crore will remain 15%.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>The\u00a0 tax rates for the \u00a0financial year 2018-19<\/strong><\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td colspan=\"5\"><strong>Tax Rate* for an individual for the A.Y. 2019-20<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" rowspan=\"2\">Income<\/td>\n<td colspan=\"3\">Rates of Income-tax<\/td>\n<\/tr>\n<tr>\n<td>Individual (Age less than 60 Years)<\/td>\n<td>Senior Citizen (Age above 60 Years)<\/td>\n<td>Super Senior Citizen (Age above 80 Years)<\/td>\n<\/tr>\n<tr>\n<td>1<\/td>\n<td>Up to Rs. 2,50,000<\/td>\n<td>Nil<\/td>\n<td>Nil<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Rs. 2,50,000 to Rs. 3,00,000<\/td>\n<td>5%<\/td>\n<td>Nil<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Rs. 3,00,000 to Rs. 5,00,000<\/td>\n<td>5%<\/td>\n<td>5%<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>4<\/td>\n<td>Rs. 5,00,000 to Rs. 10,00,000<\/td>\n<td>20%<\/td>\n<td>20%<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>5<\/td>\n<td>Above Rs. 10,00,000<\/td>\n<td>30%<\/td>\n<td>30%<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong>*<\/strong><em>The above rates are exclusive of surcharge and cess.<\/em><\/p>\n<p style=\"text-align: justify;\">A resident individual, whose taxable income does not exceed Rs. 3, 50,000, can claim a tax rebate under section 87A. The amount of rebate shall be lower of 100% of income-tax or Rs. 2,500.<\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td colspan=\"3\"><strong>Tax Rates* for Corporate Assessee for the A.Y. 2019-20<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">Status of Taxpayer<\/td>\n<td>Rates of income-tax<\/td>\n<\/tr>\n<tr>\n<td>1<\/td>\n<td>Firms\/Local Authority<\/td>\n<td>30%<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Domestic Company<\/td>\n<td>30%\/25%<sup>#<\/sup><\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Foreign Company<\/td>\n<td>40%<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\"><sup>#<\/sup>\u00a0Tax rate is 25% if turnover or gross receipts of the domestic company in the previous year 2016-17 doesn\u2019t exceed Rs. 250 crore<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong>*<\/strong><em>The above rates are exclusive of surcharge and cess.<\/em><\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td colspan=\"3\"><strong>Tax Rates* for Co-operatives Societies for the A.Y. 2019-20<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\">Income<\/td>\n<td>Rates of income-tax<\/td>\n<\/tr>\n<tr>\n<td>1<\/td>\n<td>Up to Rs. 10,000<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>2<\/td>\n<td>Rs.10,000 \u2013 Rs.20,000<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>3<\/td>\n<td>Above Rs. 20,000<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong>*<\/strong><em>The above rates are exclusive of surcharge and cess.<\/em><\/p>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td colspan=\"4\"><strong>*Rates of Surcharge<\/strong><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"2\">Particulars<\/td>\n<td colspan=\"3\">Taxable Income<\/td>\n<\/tr>\n<tr>\n<td>50 Lacs to 1 Crore<\/td>\n<td>1 Crore to 10 Crores<\/td>\n<td>Exceeding 10 Crores<\/td>\n<\/tr>\n<tr>\n<td>Individuals\/HUF<\/td>\n<td>10%<\/td>\n<td>15%<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>Firm\/ Local Authority\/ Co-operative Society<\/td>\n<td>Nil<\/td>\n<td>12%<\/td>\n<td>12%<\/td>\n<\/tr>\n<tr>\n<td>Domestic Company<\/td>\n<td>Nil<\/td>\n<td>7%<\/td>\n<td>12%<\/td>\n<\/tr>\n<tr>\n<td>Foreign Company<\/td>\n<td>Nil<\/td>\n<td>2%<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>Co-operative Societies<\/td>\n<td>Nil<\/td>\n<td>12%<\/td>\n<td>12%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><em>*<strong>The health &amp;education cess\u00a0<\/strong>at the rate of\u00a0<strong>4%<\/strong>\u00a0shall be computed on aggregate of Income-Tax and Surcharge.<\/em><em>\u00a0<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><em>Other changes<\/em><\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>Limit for payment of expenses by cash (Both capital and revenue expenditure) reduced from RS. 20,000 to RS. 10,000 per day in aggregate per person.<\/li>\n<li>Where Section 12AA registered trusts modify their object clause, they need to apply\u00a0within 30 Days\u00a0to CIT for approval.<\/li>\n<li>For below Rs. 2 crores turnover cases &#8211; For Non cash sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover\/ Gross Receipt. It is 8% For Cash Sales.<\/li>\n<li>It is mandatory to disclose the Aadhar number while filing IT Return. Earlier it was optional to disclose Aadhar number.<\/li>\n<li>Generally the last date of filing IT return is\u00a031 July. Therefore, it is advisable for taxpayer to get their Aadhar number at the earliest.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Maintenance of Books of Accounts Change in limits for Maintenance of Books of Accounts (Section 44AA): If your net income* from Business or Profession in the financial year 2017-18 is more than Rs 2,50,000. if your total sales from Business or Profession in the financial year is more than 25,00,000, then you need to maintain &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,9],"tags":[1197,1203,1196,1200,1198,1195,1194,1193],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3924"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=3924"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3924\/revisions"}],"predecessor-version":[{"id":18527,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/3924\/revisions\/18527"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=3924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=3924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=3924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}