Budget FY 2017-18 -- Key Direct Tax Proposals:

01. Existing tax rate for individuals between Rs. 2.5- Rs 5 lakh is reduced to 5%
from existing 10%.
02. Rebate under Section 87A: The rebate is available to a resident individual if
total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100%
of income-tax or Rs. 2,500, whichever is less.
03. All other categories of tax payers in subsequent brackets will get a benefit of Rs
12,500.
04. New 10 % Surcharge on individual income above Rs. 50 lakh and up to Rs 1
crore. Further, 15 % Surcharge on individual income above Rs. 1 crore to remain.
05. With regard to Capital gain tax, holding period has been reduced from 3 years
to 2 years for transfer of immovable property in the budget. It has also been
proposed to shift the base year of indexation from 1 April 1981 to 1 April 2001 for
all classes of assets including immovable property.
06. For revision of return, time period has been reduced to twelve months from
completion of financial year at par with the time period of filing of return.
07. For scrutiny assessments, time period has been compressed from 21
months to 18 months for Assessment Year 2018-19 and further to 12 months for
Assessment Year 2019-20 and onwards.
08. Simple one page return for people with an annual income of Rs. 5 lakh other
than business income.
09. For professionals going for presumptive taxation with receipts upto Rs. 50
Lakhs, there is now an option to pay advance tax instalment in one go instead of
earlier paying 4 instalments.
10. There is a big and rewarding relief to the small and medium sized enterprises
which account for 96% of our industry. Income tax rate has been reduced from
30% to 25% with turnover upto Rs. 50 crores. Its a boost to SMEs & MSMEs
sector.
11. The Income Tax Act to be amended to ensure that no transaction above Rs 3
lakh is permitted in cash.
12. Expenditure by cash reduced from 20,000 to Rs.10,000 for claiming deduction in
books of account.
13. Base Year for Indexation changed from 01.04.1981 to 01.04.2001
14. Basket of Investments for Capital Gain to be extended by notification.
15. Sec.44AA Maintaining Books of Accounts limit increased from Rs.10 Lakh to
Rs. 25 Lakh.