Come April 1 and here is everything you should know about tax changes

Come April 1 and tax changes would be applicable. Here is all you should know.

On Wednesday the Lok Sabha passed the Finance Bill in which the tax proposals made by the finance minister in his budget were ratified. The bill made Aadhaar card mandatory for tax filing.

Starting April 1, there would be several changes to the income tax structure. Here is all you should know about the changes that would be in effect from April 1 onwards.

Those with a taxable income of Rs 3.5 lakh will have to pay Rs 2,575 as tax as opposed to the earlier amount of Rs 5,150.

Tax rates have come down from 10 to 5 per cent for income that would fall in the Rs 2.5 lakh and 5 lakh bracket. This would result in tax saving of up to Rs 12,500 per year. For those with an income of above Rs 1 crore the saving would be Rs 14,806.

Those with an income bracket of Rs 50 lakh to Rs 1 crore, a surcharge of 10 per cent of the tax levied would be charged.

Immovable property held for two years and above will be taxed at 20 per cent and the same would be eligible for exemptions on reinvestment.

For those with an income of up to Rs 5 lakh, a single tax return form will be introduced. This would not include business income and for those who file tax returns for the first time.

There would be further tax exemptions on reinvestment of capital gains in notified redeemable bonds. Exemptions would be there for investments in NHAI and REC bonds.

Penalty for filing tax returns for the year 2017-18 is Rs 5,000 if filed before December 31, 2018 and Rs 10,000 if filed later. For those with income of up to Rs 5 lakh, the penalty fee is restricted to Rs 1,000.

Time for the revision of tax return has been reduced from two to one year. This would be from the end of the relevant financial year or before the completion of assessment, whichever would be earlier.

OneIndia News