Amendments in several government income tax rules and regulations have come to force on 1 April 2017, the start of the new financial year. The Finance Bill 2017 was passed with some sweeping changes to country’s existing tax system. While GST remains the star of this year, the ITR 2, 2A and 3 mergers is no less important. Here are a few things that you must know while filing your income tax returns:
- It is now mandatory to disclose the Aadhaar number while filing I-T returns. This is the most important amendment in the rules for filing I-T.
- The new financial year comes with the provision of penalty in case the return is filed late. According to this provision, if the return is not filed till 31 December, the taxpayer has to pay the penalty of Rs 5,000. If the taxpayer files the return after 31 December, a penalty of Rs 10,000 will be imposed. However, the penalty has been restricted to Rs 1,000 for income of up to Rs 5 lakh.
- The tax rate is fixed at 5% for the income group 2.5 lakhs to 5 lakhs. Those below 2.5 lakhs still enjoy substantial tax rebate, whereas the ones in this 2.5 to 5 lakhs bracket have the rates slashed to half. Even the ones above 5 lakhs are benefitted.
- Under section 80GG, the tax deduction limit for people who live in rented housed has been increased to Rs 60000. Additional Tax interest of Rs 50,000/annum has been announced individuals who are buying house for the first time, with buying limit of Rs. 50 Lakh or below.
- The government has decided a 10 per cent surcharge for an income of Rs 50 lakh to Rs 1 crore. According to NDTV, there will be no change in present surcharge of 15 per cent for individuals whose income is more than Rs 1 crore.
- Central Board of Direct Taxes (CBDT) has come up with new seven income tax return forms. Besides, the CBDT has further simplified ITR-1 form SAHAJ for individual taxpayers and Hindu Undivided Families.