On this Wednesday, (22 March 2017) Lok Sabha finally passed the financial bill 2017-2018. In this bill, the finance minister (Arun Jaitley) amended around 40 things that was announced at the time of budget speech. These amendment inserted by Arun Jaitley, just before the voting in the lower house of the parliament. After this bill passed in Lok Sahba, Aadhaar will be mandatory for many things specially to fill the Income tax of 2017 – 2018. In this speech Arun Jaitley also show the light on the cashless economy, he said that we have to move according the time but some of the people still seeing the virtues of cash transactions. He also says that there will be no tax scheme to regarding the farmers & we are not adding the special power to the tax department for self willing.
10 Things That Will Change In Income Tax From 1 April 2017 in India
As there are more than 10 changers in the budget that Arun Jaitley announced at the time of budget & most of the changes is on the income tax structure. So check out how these changes would effect from April 1 2017.
# The tax rates become 5% from 10% for those whose yearly income become ₹ 2.5 lakh to ₹ 5 lakh. In this the middle class have a chance to save ₹ 12,500 per year and ₹ 14,806 for those people whose income higher than ₹ 1 crore.
# Now those whose taxable income is ₹ 3.5 lakh, earlier they had to pay the ₹ 5,150, but now they have to pay just 2575 as a tax. It is because of the tax rebate become half for the income of ₹ 2.5 lakh to ₹ 5 lakh so the tax rebate revised & became ₹ 2,500 from ₹ 5,000.
# For those whose taxable income in between ₹ 50 lakh to ₹ 1 crore, Government put little burden on them with the surcharge of 10% & those whose taxable income is higher than ₹ 1 crore, the surcharge will be the same as last year i.e. 15%.
# Now, single page form for the tax return for those who yearly taxable income in between ₹ 2.5 lakh to ₹ 5 lakh (not for those who business who include their business income). The one more thing that, who are filling the income tax return first time are not come under the categories of scrutiny.
# Those who fill the income tax return after date, they will face the penalty of ₹ 5,000 (but before 31 December 2017), after it the penalty become ₹ 10,000. This is for those whose taxable income become more than ₹ 5 lakh. The ₹ 1000 penalty for those who taxable income upto ₹ 5 lakh.
# The holding period of the immovable property will be reduced, now it become just 2 years, previously it was 3 year. To hold the immovable property more than two year will be taxed 20%.
# The time period of two year for the revision of tax return now become one year, the one year is based on the end of the financial year or the end of the assessment, which one come first.
# For the financial year of 2017-2018, under the scheme of Rajiv Gandhi Equity saving,. The tax payer can avail a deduction for the upcoming two years, if s/he already claimed deduction under that scheme before April 1, 2017.
# The base year was 1 April 1981, to adjust price for inflation but now the government changed it & it become 1 April 2001. This will be bad result in the sale i.e. low profit on the sale.
# The availability of tax exemption on the reinvestment of capital gains in notified redeemable bonds as well as National Highway Authority of India (NHAI) and Rural Electrification Corporation (REC) bonds.
From April 1 2017, the price of the Car, Motorcycle & Health insurance will be increase. It will increase around 5%
This time there are lots of changes in the tax slabs as compare to the last year. Middle class people will be in benefit for this but the upper middle class will have to face 10% surcharge. In the nation like India the population around 130 plus crore & those who pay the taxes are few crore i.e. 3.7 crore, in which also 2.94 crore people come under the categories of first slab i.e. ₹ 2.5 lakh to ₹ 5 lakh. This is just above than 2% people & our GDP is around 7% plus form this so we must thing that if more than 10% or 20% people fill their tax return properly. At what rate India will grow.
Those who are earning taxable income less than ₹ 2.5 lakh, there hand are tied but who are earning more than that they have to pay the tax properly so that each and every people play its role to make a Incredible India. One of the report says that more than 30% India people earning above than taxable income but just only 2% are filling their taxes & in these most of the people are government employ because their salary directly come to their account from government and those who are earning by other mean (as a government employ), it will not come under the tax.
If we have to make a India a beautiful nation we have to give our 100% as well as we have to change our mentality. Whenever the mentality of the people will not change nothing will be change in the nation, Even we cannot hope to get a good future. The work of the government is just to implement the scheme or to make a laws but we are the people who have to follow, like Prime Minister, Narindra Modi, come out with Swatch Bharat Mission, So whenever we cannot support him, we cannot hope that India will be properly Swatch one day.
There are lots of people in India who can fill their taxes but they don’t, Lets see how many people will fill the tax in the year 2017-18