Tax Incentive to Farmer Producer Companies: Farmer Producer Companies and having annual turnover up to `100 crores in respect of their profit derived from such activities for a period of five years from financial year 2018-19.

Employment Generation – Deduction U/s. 80JJA: minimum period of employment is relaxed to 150 days in the case of apparel industry extended to footwear and leather industry. To rationalise this deduction of 30% by allowing the benefit for a new employee who is employed for less than the minimum period during the first year but continues to remain employed for the minimum period in subsequent year.

Real Estate: No adjustment shall be made in a case where the circle rate value does not exceed 5% of the consideration.

MSME: 25% corporate tax rate for Companies having less than Rs.250 crore for Financial Year 2016-17

Personal Income Tax: No change in personal income tax.

Salary Tax Payers: A standard deduction of Rs.40000/- in lieu of transportation and miscellaneous medical allowance. Benefit for pensioners also. The transport allowance at enhanced rate shall continue to be available to differently abled persons. Also other medical reimbursement benefits in case of hospitalization etc., for all employees shall continue.

Senior Citizens: Interest income on Fixsed Deposit and Post Office deposits exempted up-to Rs.50000/-. Relief from  TDS on deposits

Senior Citizens – Medical Insurance – 80D: icreased to Rs.50000/- for Senior Citizens

Senior Citizens – Deduction for medical expenses for critical ailments increased to Rs,100000/-

Long Term Capital Gains: Proposed to tax LTCG from listed securities exceeding Rs.100000/- without indexation. However, all gains up to 31st January, 2018 will be grandfathered. For example, if an equity share is purchased six months before 31st January, 2018 at `100/- and the highest price quoted on 31st January, 2018 in respect of this share is `120/-, there will be no tax on the gain of `20/- if this share is sold after one year from the date of purchase. However, any gain in excess of `20 earned after 31st January, 2018 will be taxed at 10% if this share is sold after 31st July, 2018.

Mutual Funds: Tax on distributed Income of equity oriented Mututal Funds @ 10%.

Restriction on trust and other institutions whose income is exempt: Payments exceeding 10,000/- in cash made by such entities shall be disallowed and the same shall be subject to tax. Payments exceeding `10,000/- in cash made by such entities shall be disallowed and the same shall be subject to tax.

Health & Education Cess:  The existing 3% education cess will be replaced by4% Health and Education Cess.

E-assesment: Income-tax Act to be amended to notify a new scheme for assessment where the assessment will be done in electronic mode.

 

Conversion of stock-in-trade is converted into capital asset:  The fair market value of the same on the date of conversion shall be taken into account for computing business income

Capital Gain Bonds: Exemption shall be available only in respect of long-term capital gains arising out of sale of immoveable property and investment in the bond shall be for a minimum period of 5 year from the existing 3 years.

Compensation Taxability: Compensation received in connection with termination or modification of business contract and employment contract shall be taxable.

Presumptive Taxation – Section 44AE: Heavy goods vehicles (more than 12 tonnes), the presumptive income under section 44AE of the Act shall be computed at the rate of `1000 per tonne per month.

Statutory backing to ICDS: To amend the provisions of Chapter IV-D of the Act relating to computation of business income and Chapter XIV of the Act.

TDS: Applicable on newly  introduced 7.75% GOI Savings (Taxable) Bonds, 2018.

DDT on deemed dividend: Deemed dividend under section 2(22)(e) [a company in which public are NOT substantially interested) of the Act shall be subject to dividend distribution tax at the rate of 30% without grossing up.

Undisclosed Income: No expenditure or allowance or set off of any loss shall be allowed in respect of undisclosed income determined by the Assessing Officer under section 115BBE of the Act.