PERSONAL FINANCE SPECIAL (BUDGET 2017-2018)


Hello Readers,

Here, I able to collected short note about personal financial budget 2017-2018 year.

1) Income Tax rate cut to 5 % in the income slab between Rs 2.5 lakh and Rs 5 lakh from 10%

Effect on Tax Payer: Positive. This will reduce the tax liability of all tax payers across slabs. The percentage reduction of tax liability will be greater for tax payers in the lower slabs.


2) Rebate under Section 87A reduced from Rs.5,000 to Rs.2,500 and the applicable limit has been reduced from taxable income of Rs.5 lakh to Rs.3.50 lakh.

Please refer below illustration to understand the effect of both the above changes:



3) 10% surcharge on individual income above Rs 50 lakh and upto Rs 1 crore to make up for Rs 15,000 cr loss of due to cut in personal I-T rate. The existing surcharge of 15% for total income above Rs 1 crore remains unchanged.

Effect on Tax Payer:Negative. This will increase the tax liability of tax payers with total income more than Rs.50 lakh and upto Rs.1 crore. The percentage reduction of tax liability will be greater for tax payers in the lower slabs.

4) First time income tax returns filing will not come under government scrutiny.

Effect on Tax Payer: Positive. This will encourage more income earners to file income tax returns.

5) The holding period for computing long term capital gains (LTCG) on land & building reduced from 3 years to 2 years

Effect on Tax Payer: Positive. Investors can now sell their investments into property quicker than before.

6) For the purpose of computation of capital gains, the Indexation base date has been changed from April 1, 1981 to April 1, 2001.

Effect on Tax Payer: Positive. As the general price increase in capital assets has been more than the cost of inflation index in the last 15 years, this move would benefit all investors who have bought properties between 1981 and 2001 by increasing their indexed cost of acquisition, thereby reducing the capital gains on which tax has to be paid.

6) For the purpose of computation of capital gains, the Indexation base date has been changed from April 1, 1981 to April 1, 2001.

Effect on Tax Payer: Positive. As the general price increase in capital assets has been more than the cost of inflation index in the last 15 years, this move would benefit all investors who have bought properties between 1981 and 2001 by increasing their indexed cost of acquisition, thereby reducing the capital gains on which tax has to be paid.


7) Set-off amount for loss from house property, against other heads of income, capped at Rs. 2 lakh. Any unabsorbed loss can be carried forward for next 8 assessment years and set off against future income from house property. Currently there is no upper limit for let out properties; however, there is a maximum limit of Rs.2 lakh for self-occupied properties.

Effect on Tax Payer:Negative. Hitherto, investors have been using this provision of no upper limit for let out properties to a great extent to save more tax. These investors will now have to shell out more tax. The carry forward provision might not be of use in the initial years of the loan, as there might not be any income from house property to set off, in these years

8) Partial withdrawal from NPS tax - exempt up to 25% of employee's contribution

Effect on Tax Payer: Positive. Till now, only at maturity, 40% of the withdrawals were exempt from tax. This move will help investors to fund any emergencies without getting much of a bite.

9) Exemption on Long-term capital gains tax on sale of equity investments will now be available, only if Securities Transaction Tax (STT) is paid both at the time of sale & purchase. Earlier, the requirement of STT was only at the time of sale of the shares.

10) The time limit for filing your income tax return and revising the return filed has been reduced and has to be done before end of the respective assessment year. The budget also provides for levy of mandatory fee if you delay filing of your income tax return beyond the due date.

thanks to icicidirect,copyright noted.

Comments

Post a Comment

Popular posts from this blog

Step by step guide on how to pay Income Tax that is due

Image
1. Select Challan 280 Go to the tax information network of the Income Tax Department and select Challan 280. Click here to go to the government website and pay your tax 2.Enter Personal Info For individuals paying tax, select  . Please choose the Assessment Year correctly  . Choose   if you are paying taxes after the Financial Year has ended. View mandatory fields to be filled in Note:  Choose "(100) ADVANCE TAX" if you are paying taxes during the financial year. Choose "(400) TAX ON REGULAR ASSESSMENT" if you get a demand notice from the Tax Department. 3.Double check info You will be redirected to the net banking page. Double check the information entered here and enter the income tax amount to be paid in the income tax field. Tip:  You can leave surcharge, education cess, interest and penalty blank. 4. Check Receipt (Challan 280) This is your Challan 280. You will be able to see details about your payment on taxpayer
Read more

Simple way producer–consumer problem's implementation in NodeJs

Problem Name :  Producer-Consumer Problem (Also Known as Bounded Buffer Problem ) Goal :  It's explain you "multi-process resource synchronization problem". Problem Statement :  there are many producers and many consumers, the work of producer is to generate/produce things/jobs/items any things and the work of consumer is to consume things/jobs/items/any things produced/generated by producer. What is the NodeJs ?                   Node.js is a platform built on  Chrome's JavaScript runtime  for easily building fast, scalable network applications. Node.js uses an event-driven, non-blocking I/O model that makes it lightweight and efficient, perfect for data-intensive real-time applications that run across distributed devices. Code : var express = require('express'); var app = express(); var queue = []; //Default Handler app.get('/',function(req,res){ res.send('Producer/Consumer Server'); }); //Producer Handler app
Read more

Rajiv Gandhi Equity Savings Scheme

    (I) Introduction to Rajiv Gandhi Equity Savings Scheme, 2012 1) What is Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS)? With an objective to encourage flow of savings of the small investors in domestic capital market, the Government of India announced a scheme named Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS). 2) Does RGESS offer any tax benefits? A new section 80CCG under the Income Tax Act, 1961 on ‘Deduction in respect of investment under an equity savings scheme’ has been introduced to give tax benefits to ‘New Retail Investors’ who invest up to `50,000 in ‘Eligible Securities’ and have gross total annual income less than or equal to Rs.10 Lakhs. 3) Who is a ‘New Retail Investor’? A ‘New Retail Investor’ is any resident Individual  ü who has not opened a demat account and has not made any transactions in the equity or derivative segment as on the date of notification of the scheme i.e., November 23, 2012. OR ü who has  opene
Read more