Expert Committee Report: Debt to GDP proposed at 60 % by 2023; 3 % fiscal deficit recommended for the next 3 years with a deviation of 0.5 %.
Fiscal deficit for 2017-18 pegged at 3.2 % of the GDP and 3 % for next year
Tax Administration
of individuals filing returns is 1.74 cr against 4.2 cr individuals employed in organised sector
of individuals filing returns is 1.81 cr against 5.6 cr individuals employed in unorganised sector (including proproietorships)
Out of 13.94 Lacs Companies, only 5.97 Lacs returns filed for AY 2016-17
76 Lacs Companies show Nil Income / losses in AY 2016-17
Only 7781 Companies have shown Profits before Tax of 10 cr+
Out of 76 Lacs individual tax payers with income between 5 Lacs to 10 Lacs, 56 Lacs are salaried individuals
Largely a tax non compliant society and large scale tax evasion is rampant as indicated by 1.2 cr cars bought and 2 cr abroad visits taken for tourism /business trips
Growth in Advance Income Tax on Personal Income in 2016-17 of 34.8 % over last year
Holding period for identifying long term capital asset in case of immovable property reduced to 2 years from 3 years
Base year for indexation to be changed from 1.4.81 to 1.4.2001
Basket of instruments through which Capital gains can be exempted to be extended
Builders to be charged tax on notional rent on flats remaining unsold for more than 1 year from the date of completion certificate
Income tax exemption for start-ups: Tax exempted for any 3 years out of 7 years (instead of the total window of 5 earlier)
Carry forward of losses in case of Change in Management by more than 51 % limit allowed relaxed as long as the promoters remain same
MAT Carry forward to be allowed for 15 years instead of 10 years
Corporate Tax for Companies up to Turnover of up to 50 cr to be reduced to 25 %
Basic Customs duty reduced to 2.5 % from 5 %
NPA to be increased from provisioning from 7.5 % to 8.5% for financial sector
Presumptive taxation u/s 44AD for Business Income: Rate reduced to 6 % from 8 % for turnover realised in non cash transaction
Cash expenditure limit to be reduced to Rs. 10,000 for revenue as well as capital expenditure
Cash receipts by Charitable organisations reduced from 10,000 to 2,000
No transaction above Rs. 3 Lacs to be permitted in cash
Maximum cash that a political party can receive is Rs. 2,000 from anyone source; Any amount can be received by cheque or through digital payment.
Electoral bonds to be issued by RBI for political party funding; Donors can fund political parties by purchasing these bonds and donating these bonds to the parties. Parties can get the bonds redeemed from RBI within the prescribed time frame.
BCD, Excise duty, SAD, CVD on manufacture of equipment supporting digital transactions like card readers, scanners etc.
Thresholds increased for maintaining books of accounts u/s44AA from Rs. 10 Lacs to 25 Lacs
TDS exempt for income of Insurance agents upon their self declaration
Time period of revising return reduced to 12 months from the closure of financial year (as opposed to 12 months from the close of AY earlier)
Time period of scrutiny assessment reduced to 18 months from AY 18-19 and 12 months for AY 19-20
No scrutiny for first time return filers unless in case of suspicious transactions
Income tax rate slabs for Individuals
Income 2.5 Lacs to 5 Lacs: 5 % (instead of 10 % earlier)
Other slabs remain same
Rebate u/s 87A reduced to Rs. 2,500 (from Rs. 5000) for assessees with taxable income up to 3.5 Lacs (from Rs. 5 Lacs earlier)
New Surcharge of 10 % for Income from Rs. 50 Lacs to 1 cr
Existing Surcharge for income above 1 cr continues @ 15 %
Simple 1 page form for Individual with income up to 5 Lacs other than business income
Maximisation of efforts for E-Assessments
Data mining to be done extensively to track tax evasion cases
