Key Features of Budget 2017-2018

 Concessional withholding rate of 5% charged on interest earned by foreign entities in external commercial borrowings or in bonds and Government securities is extended to 30.6.2020. This benefit is also extended to Rupee Denominated (Masala) Bonds

 For the purpose of carry forward of losses in respect of start-ups, the
condition of continuous holding of 51% of voting rights has been relaxed subject to the condition that the holding of the original
promoter/promoters continues. Also the profit (linked deduction)
exemption available to the start-ups for 3 years out of 5 years is changed to 3 years out of 7 years

 MAT credit is allowed to be carried forward up to a period of 15 years
instead of 10 years at present
 

 In order to make MSME companies more viable, income tax for companies with annual turnover upto ` 50 crore is reduced to 25%
 

 Allowable provision for Non-Performing Asset of Banks increased from 7.5% to 8.5%. Interest taxable on actual receipt instead of accrual basis in respect of NPA accounts of all non-scheduled cooperative banks also to be treated at par with scheduled banks

 Basic customs duty on LNG reduced from 5% to 2.5% PROMOTING DIGITAL ECONOMY

 Under scheme of presumptive income for small and medium tax payers whose turnover is upto 2 crores, the present, 8% of their turnover which is counted as presumptive income is reduced to 6% in respect of turnover which is by non-cash means
 

 No transaction above ` 3 lakh would be permitted in cash subject to
certain exceptions
 

 Miniaturised POS card reader for m-POS (other than mobile phones or tablet computers), micro ATM standards version 1.5.1, Finger Print Readers / Scanners and Iris Scanners and on their parts and components for manufacture of such devices to be exempt from BCD, Excise/CV duty and SAD

 Maximum amount of cash donation, a political party can receive, will be ` 2000/- from one person.
 

 Political parties will be entitled to receive donations by cheque or digital mode from their donors.
 

 Amendment to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the Government of India would frame in this regard.

 Every political party would have to file its return within the time prescribed in accordance with the provision of the Income-tax Act
 

 Existing exemption to the political parties from payment of income-tax would be available only subject to the fulfilment of these conditions
 

 Scope of domestic transfer pricing restricted to only if one of the entities involved in related party transaction enjoys specified profit-linked deduction
 

 Threshold limit for audit of business entities who opt for presumptive income scheme increased from ` 1 crore to ` 2 crores. Similarly, the threshold for maintenance of books for individuals and HUF increased from turnover of 10 lakhs to 25 lakhs or income from 1.2 lakhs to 2.5 lakhs

 Foreign Portfolio Investor (FPI) Category I & II exempted from indirect transfer provision. Indirect transfer provision shall not apply in case of redemption of shares or interests outside India as a result of or arising out of redemption or sale of investment in India which is chargeable to tax in India

 Commission payable to individual insurance agents exempt from the requirement of TDS subject to their filing a self-declaration that their income is below taxable limit
 

 Under scheme for presumptive taxation for professionals with receipt upto ` 50 lakhs p.a. advance tax can be paid in one instalment instead of four

 Time period for revising a tax return is being reduced to 12 months from completion of financial year, at par with the time period for filing of return. Also the time for completion of scrutiny assessments is being compressed further from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter

 Existing rate of taxation for individual assesses between income of
`2.5 lakhs to 5 lakhs reduced to 5% from the present rate of 10%
 

 Surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between `50 lakhs and ` 1 crore
 

 Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto ` 5 lakhs other than business income

 Appeal to all citizens of India to contribute to Nation Building by making a small payment of 5% tax if their income is falling in the lowest slab of 2.5 lakhs to 5 lakhs.

 The GST Council has finalised its recommendations on almost all the issues based on consensus on the basis of 9 meetings held

 Preparation of IT system for GST is also on schedule.

 The extensive reach-out efforts to trade and industry for GST will start from 1st April, 2017 to make them aware of the new taxation system.

 Maximise efforts for e-assessment in the coming year

 Enforcing greater accountability of officers of Tax Department for specific act of commission and omission