With the onset of the new financial year, some tax rules for individuals are also going to change. These changes were proposed by Finance Minister Arun Jaitley in the Budget 2017, and with the passage of the Finance Bill in Lok Sabha recently, these tax proposals have now become law.
Here we are taking a look at 5 important income tax rules for individuals which will change from the new financial year:
Reduction in tax rate
The rate of taxation for individual assesses between income of Rs 2.5 lakh and Rs 5 lakh will from the next financial year get reduced to 5% from the present 10%. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50% of their existing liability, while all the other categories of tax payers in the subsequent slabs will get a uniform benefit of Rs 12,500 per person.
Reduction in tax rebate
With a view to avoid duplication of benefits, Finance Minister Arun Jaitley in the Budget 2017 proposed to reduce the benefit of tax rebate from the existing 5000 to Rs 2500 for assesses with total income up to Rs 3.5 lakh. This means that there will be zero tax liability for individuals with income up to Rs 3 lakh per annum, while the tax liability will be Rs 2500 for those with income between Rs 3 and Rs 3.5 lakh.
With a view to avoid duplication of benefits, Finance Minister Arun Jaitley in the Budget 2017 proposed to reduce the benefit of tax rebate from the existing 5000 to Rs 2500 for assesses with total income up to Rs 3.5 lakh. This means that there will be zero tax liability for individuals with income up to Rs 3 lakh per annum, while the tax liability will be Rs 2500 for those with income between Rs 3 and Rs 3.5 lakh.
Surcharge on tax payable
One page I-T Return form
For filing income tax return, the Income Tax Department will be introducing a one page form for those having taxable income of up to Rs 5 lakh, other than business income. Also, a person filing I-T return for the first time under this category would not be subjected to any scrutiny in the first year unless there is specific information available with the I-T Department regarding his high value transactions.
Tax sops on NPS
In a bid to give a boost to the National Pension System (NPS), Finance Minister Arun Jaitley in the Budget 2017 offered tax sops on the partial withdrawal of the contribution made by a salaried person. According to the proposal, partial withdrawals to the extent of 25 per cent of the contributions will not be taxed, which is in addition to the exemption of 40% of the corpus at the time of withdrawal.
Tax benefits under Section 80CCG withdrawn
From the new financial year, no deduction will be granted through any fresh investment made by an individual in the Rajiv Gandhi Equity Savings Scheme (RGESS). Earlier, the deduction was granted under Section 80CCG of the I-T Act which was over and above the limit of Section 80C of the I-T Act. However, if an investor has claimed for tax deduction in the current financial year, then he will get the benefit for the next two years.
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One page I-T Return form
For filing income tax return, the Income Tax Department will be introducing a one page form for those having taxable income of up to Rs 5 lakh, other than business income. Also, a person filing I-T return for the first time under this category would not be subjected to any scrutiny in the first year unless there is specific information available with the I-T Department regarding his high value transactions.
Tax sops on NPS
In a bid to give a boost to the National Pension System (NPS), Finance Minister Arun Jaitley in the Budget 2017 offered tax sops on the partial withdrawal of the contribution made by a salaried person. According to the proposal, partial withdrawals to the extent of 25 per cent of the contributions will not be taxed, which is in addition to the exemption of 40% of the corpus at the time of withdrawal.
Tax benefits under Section 80CCG withdrawn
From the new financial year, no deduction will be granted through any fresh investment made by an individual in the Rajiv Gandhi Equity Savings Scheme (RGESS). Earlier, the deduction was granted under Section 80CCG of the I-T Act which was over and above the limit of Section 80C of the I-T Act. However, if an investor has claimed for tax deduction in the current financial year, then he will get the benefit for the next two years.
All the posts are written with lots of love for our readers.. We would love to see you sharing our posts. We never spam with wrong content.. You can happily depend on our content. With lots of love @Editor, Swapnamithra. Copyright reserved .
keywords:
new income tax changes for 2014,new income tax changes for 2015,new income tax changes for 2013,income tax new changes,new income tax changes for 2014,new income tax changes for 2015,new income tax changes for 2013,income tax new changes,new income tax changes for 2014,new income tax changes for 2015,new income tax changes for 2013,income tax changes april 2015,income tax changes april 2014,income tax changes australia,income tax changes april 2013,income tax changes as per budget 2015,income tax changes autumn statement,income tax changes at age 65,income tax changes as per budget 2014,income tax changes after budget 2014,new changes in income tax act,income tax new changes,income tax changes budget 2015,income tax changes budget 2014,income tax changes by modi,income tax changes budget,income tax changes budget 2013,income tax changes in new budget,new brunswick income tax changes,income tax changes canada,income tax changes calculator,income tax changes canada 2015,new income tax changes for 2014 canada,new changes regarding income tax in current budget,new york corporate income tax changes,income tax changes expected,income tax changes eliminate refunds for many ontario residents,income tax changes for 2014,income tax changes for 2015,income tax changes for 2013,income tax changes for ay 2015-16,new income tax changes for 2014,income tax changes for 2014-15,income tax changes for 2014 australia,income tax changes for 2014 canada,income tax changes for fy 2014-15,income tax changes for ay 2014-15,income tax changes history,income tax changes in new budget,income tax changes in budget 2015,income tax changes in budget 2014 15,income tax changes in budget 2015 16,income tax changes in budget 2014,income tax changes in budget,income tax changes in 2014,income tax changes in 2015,income tax changes in budget 2013,income tax changes in 2013,income tax new changes,income tax changes july 2014,income tax changes july 2013,income tax changes july 1 2014,new mexico income tax changes,income tax changes nc,income tax changes october 2014,income tax changes over the years,new changes on income tax,income tax new changes,new changes regarding income tax in current budget,describe new changes regarding income tax in current budget,new york state income tax rate changes,income tax changes singapore,new york state income tax changes,new york state income tax changes 2014,income tax changes this year,new changes to income tax,new changes to income tax 2013,new changes to income tax 2014,new changes regarding to income tax in current budget,income tax changes uk,income tax changes under obama,income tax changes uk 2015,income tax changes uk 2013,income tax changes uk 2014,income tax changes when married,new york state income tax changes,new york corporate income tax changes,new york state income tax changes 2014,income tax changes 1 july 2014,income tax changes 1st april 2014,new changes in income tax 2014 15,new changes in income tax 2013-14,new changes in income tax 2015-16,income tax changes 2014,income tax changes 2015,income tax changes 2013,income tax changes 2014/15,income tax changes 2015 uk,income tax changes 2015/16,income tax changes 2014 uk,income tax changes 2014 canada,income tax changes 2015 india,income tax changes 2015 budget,income tax new changes
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