Tax rate | • For Individual (non-senior)/HUF/senior)/HUF/AOP/BOI/PDT/AJP/Trust, tax rate reduced from 10% to 5% for income slab 2.5 – 5 lakh. • For Individual Resident Senior Citizen (60 years), tax rate reduced from 10% to 5% for income slab 3 – 5 lakh. • For Domestic company, tax rate changeschanges: 25%, If Turnover in FY 15-1616 is <=50 crore or eligible u/s 115BBA 30%, for other cases. |
Surcharge | For Individual, HUF, AOP, BOI and AJP, surcharge rate changes: • 10%, if income is above Rs. 50 lakh but <= Rs. 1 crore • 15%, if income is above Rs. 1 crore |
Rebate u/s 87A | Limited to Rs. 2,500 on net income up to Rs. 3,50,000 |
Depreciation | In ‘Depreciation as per IT Act’ subsub-table maximum rateate of depreciation is restricted to 40% for all status. |
Maintain Books of accounts | In case of Individual or HUF, for Section 44AA applicabilityapplicability: • Business/Profession income limit increased from Rs. 1.2 lakh to Rs. 2.5 lakh • Turnover/Gross receipts limit increased from Rs. 10 lakh to Rs.25 lakh |
Transactions without adequate consideration | ‘Transactions without adequate consideration’ sub-table is now applicable for all status except trust in certain cases. |
Chapter VI-A deductions | • No deduction is available on donation in cash exceeding Rs.2,000. Necessary |
changes are made in ‘80G – Donations’ sub-table. • 80CCG deduction can be claimed only if investment is done in AY 16-17 or 17-18 • Limit for Deduction u/s 80CCD(1) is increased from 10% to 20% of Gross total income in cases of income other than Salary | |
Deduction u/s 10AA | Deductions u/s 10AA is now allowed from Total income |
Fee u/s 234F | For returns not filed within due date, ‘Fee u/s 234F’ is payable as follows : • Where Total income is below basic exemption limit = Nil • Where Total income does not exceed Rs. 5 lakh = Rs. 1,000 • Where Total income exceeds Rs. 5 lakh, st If return filed on or before 31 December = Rs. 5,000 st If return filed after 31 December = Rs. 10,000 |
Income exempt u/s 10 | For Trust, in ‘Taxable Income u/s 11 to 13’ sub-table → under ‘Less: Incomes exempt u/s 10’, following exemption sections are provided: • 10(23AAA): Employee Welfare Fund • 10(23EC): Contributions of Investor Protection Fund from Commodity exchanges • 10(23ED): Contribution of Investor Protection Fund from Depository • 10(23EE): Core Settlement Guarantee Fund • 10(29A): Income of certain Commodity Boards/Authorities |
Other Changes | • MAT credit can be carried forward up to 15 years • In ’35 to 35E, 32AC, 32AD, 33AB, 33ABA deductions’ sub-table, changes in eligible rate of deduction of various items • House property loss can be set off from any income only to the extent of Rs. 2 lakh in the current AY. • Dividends in excess of Rs.10 lakhs is now taxable u/s 115BBDA for all status except Company & Trust in certain cases. • New item – ‘115BBG- Income from transfer of carbon credits’ taxable at 10% is given in ‘Income taxable at special rates’ table. • In ‘40A disallowance’ sub-table, limit of cash expenses u/s 40A(3) is reduced to Rs.10,000. • And many other improvements |