| AMENDMENT | APPLICABLE FROM | EXPLANATION |
| Tax slab for individuals | FY 2017-18 | Income Tax Rate reduced from 10% to 5% for tax slab of Rs 2,50,000/- to Rs 5,00,000/- |
| 194-IB : TDS on Rent | 01st June 2017 | -Applicable to Individuals or a HUF (other than those covered under 44AB of the Act i.e Tax Audit), -Paying rent exceeding fifty thousand rupees for a month or part of month during the previous year to a resident, -Shall deduct 5% TDS on such amount paid as rent -TDS shall be deducted only once in previous year -TAN is not mandatory for deductor. (TDS shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.) |
| Corporate Tax Rate | FY 2016-17 | -Income Tax for Domestic companies reduced to 25% where the total turnover or gross receipts of the previous year 2015-16 does not exceed fifty crore rupees |
| Section 2(42A) | 01st April 2018 | -Holding period for LTCG for Land & Building reduced to 2 years |
| Section 48 & 55 | 01st April 2018 | -Shifting base year from 1981 to 2001 for computation of capital gains |
| Section 54EC (for Exemption of Long Term Capital Gain upto 50 lacs) | 01st April 2018 | Investment in any bond redeemable after three years which has been notified by the Central Government in this behalf shall also be eligible for exemption (Currently, investment in bond issued by the National Highways Authority of India or by the Rural Electrification Corporation Limited is eligible for exemption under this section) |
| Section 23 | 01st April 2018 | No notional income for house property held as stock-in-trade |
| Section 80G (Donations) | 01st April 2018 | No deduction shall be allowed under the section 80G in respect of donation of any sum exceeding two thousand rupees unless such sum is paid by any mode other than cash. |
| Section 13A (Exemption to political parties) | 01st April 2018 | Addition conditions incorporated in section 13A for Political Parties for Availing income tax exemption: -No donations of Rs.2000/- or more is received otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account or through electoral bonds -Political party furnishes a return of income for the previous year in accordance with the provisions of sub-section (4B) of section 139 on or before the due date under section 139. |
| Section 40A(3) & 35AD | 01st April 2018 | -Threshold of cash payment to a person from twenty thousand rupees reduced to ten thousand rupees in a single day. -Where an assessee incurs any expenditure for acquisition of any asset in respect which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost of such asset. |
| Section 44AD (Presumptive Income) | 01st April 2017 | -Option to Declare income at 6% in respect of the amount of such total turnover or gross receipts received by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year. -For Others 8% shall continue to apply in respect of total turnover or gross receipts received in any other mode. |
| Section 269TT (Cash Transactions above 3 Lakhs) | 01st April 2017 | No person shall receive an amount of three lakh rupees or more in cash,— (a) in aggregate from a person in a day; (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. |
| Section 194D (TDS on Commission) | 01st June 2017 | -TDS @5% where commission exceeds Rs 15000 per financial year. -No TDS to be deducted where a declaration is filed in Form 15G/H by the receiptient of such payment declaring that the tax on his estimated total income of the relevant previous year would be nil. |
| Section 44AA (Maintenance of Books of Accounts) | 01st April 2018 | -Monetary limits of income and total sales or turn over or gross receipts, etc specified in said clauses for maintenance of books of accounts increased from one lakh twenty thousand rupees to two lakh fifty thousand rupees and from ten lakh rupees to twenty-five lakh rupees, respectively in the case of Individuals and Hindu undivided family carrying on business or profession. |
| Section 194J | 01st June 2017 | -TDS Rate under 194J reduced to 2% in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center |
| Section 87A | 01st April 2018 | -Rebate of Rs 5000 reduced to Rs 2500 -Rebate shall be available to only resident individuals whose total income does not exceed Rs. 3,50,000 |
| Section 71(3A) (Restriction on set-off of loss from House property) | 01st April 2018 | -Restriction on set-off of loss from House property against any other head of income up-to two lakh rupees for any assessment year. -The unabsorbed loss shall be allowed to be carried forward for set-off in subsequent years in accordance with the existing provisions of the Act. |
| Section 80CCD (NPS Deduction) | 01st April 2018 | -In case of Self Employed individuals deduction allowed upto 20% of the gross total income. |