latest changes in incometax ay 2017-18 & 2018-19
This query is : Resolved
14 May 2017
sir,
please explain the major changes in incometax AY 2017-18 and 2018-19
14 May 2017
Changes for AY 2018-2019 are many but a few that affects almost everyone:-
1) Penalty for late filing of returns
2) LTCG Exemption withdrawn on sale of shares that were purchased without paying STT since the time STT was introduced.
3) Indexation on sale of immovable property (land / building) is now taken with the base year of 2001 instead of earlier 1981.
4) Holding period of land / building for LTCG is now 2 years instead of 3.
5) Aadhar is compulsory for filing Returns from July 1, 2017 onwards.
6) The first tax slab rate reduced to 5% from previous 10% on income above 2.5L but below 5L. Consequentional rebate reduced to Rs.2,500 instead of Rs.5,000. Rebate will be allowed only to those assessees having income upto 3.5 L.
Eventually it depends whose point of view you are looking at. I am leaving status open so others may add more.
1) Penalty for late filing of returns
2) LTCG Exemption withdrawn on sale of shares that were purchased without paying STT since the time STT was introduced.
3) Indexation on sale of immovable property (land / building) is now taken with the base year of 2001 instead of earlier 1981.
4) Holding period of land / building for LTCG is now 2 years instead of 3.
5) Aadhar is compulsory for filing Returns from July 1, 2017 onwards.
6) The first tax slab rate reduced to 5% from previous 10% on income above 2.5L but below 5L. Consequentional rebate reduced to Rs.2,500 instead of Rs.5,000. Rebate will be allowed only to those assessees having income upto 3.5 L.
Eventually it depends whose point of view you are looking at. I am leaving status open so others may add more.
02 August 2024
Certainly! Major changes in income tax regulations between Assessment Year (AY) 2017-18 and AY 2018-19 involve several key aspects. Here’s a summary of the significant changes:
### Major Changes in Income Tax AY 2017-18 vs AY 2018-19
#### 1. **Income Tax Slabs and Rates**:
- **AY 2017-18**:
- **Individual taxpayers**:
- Income up to ₹2.5 lakh: Nil
- Income from ₹2.5 lakh to ₹5 lakh: 10%
- Income from ₹5 lakh to ₹10 lakh: 20%
- Income above ₹10 lakh: 30%
- **Senior Citizens (60 years and above)**:
- Income up to ₹3 lakh: Nil
- Income from ₹3 lakh to ₹5 lakh: 10%
- Income above ₹5 lakh: 30%
- **Super Senior Citizens (80 years and above)**:
- Income up to ₹5 lakh: Nil
- Income above ₹5 lakh: 30%
- **AY 2018-19**:
- Income slabs and rates for individuals and senior citizens remained largely unchanged from AY 2017-18. However, there were updates in terms of exemptions and deductions.
#### 2. **Tax Deducted at Source (TDS)**:
- **AY 2017-18**:
- TDS provisions applicable on various income categories, including salaries, interest, rent, etc.
- **AY 2018-19**:
- Introduction of stricter TDS compliance requirements. For example, TDS provisions on certain payments were revised, and compliance burdens were increased.
#### 3. **Tax Benefits and Deductions**:
- **AY 2017-18**:
- **Section 80C**: Deduction of up to ₹1.5 lakh for investments in specified savings schemes.
- **Section 80D**: Deduction for health insurance premiums up to ₹25,000 for self, spouse, and children (₹50,000 for senior citizens).
- **AY 2018-19**:
- **Section 80C**: Introduction of an additional deduction for the investment in National Pension System (NPS) up to ₹50,000, over and above the ₹1.5 lakh limit.
- **Section 80D**: Increase in deduction limits for health insurance premiums, particularly for senior citizens.
#### 4. **Housing Loan Interest**:
- **AY 2017-18**:
- Deduction of interest on housing loans up to ₹2 lakh under Section 24(b).
- **AY 2018-19**:
- No significant change in the deduction limit, but clarity on eligibility and additional benefits for first-time homebuyers was provided.
#### 5. **Salary and Perquisites**:
- **AY 2017-18**:
- Rules related to the taxation of salaries and perquisites were applicable as per previous norms.
- **AY 2018-19**:
- Introduction of stricter reporting requirements for perquisites and allowances, and changes in the taxation of certain benefits.
#### 6. **Digital Transactions**:
- **AY 2017-18**:
- Limited incentives for digital transactions.
- **AY 2018-19**:
- Promotion of digital transactions with various incentives and penalties for non-compliance.
#### 7. **Section 44ADA**:
- **AY 2017-18**:
- Section 44ADA provided for presumptive taxation for small professionals.
- **AY 2018-19**:
- No significant change; however, there was increased emphasis on compliance and documentation.
#### 8. **Reporting of Foreign Assets**:
- **AY 2017-18**:
- Requirement to report foreign assets and income under Schedule FA.
- **AY 2018-19**:
- Stricter reporting requirements for foreign assets and income with increased penalties for non-disclosure.
#### 9. **Amendments Related to Demonetization**:
- **AY 2017-18**:
- Introduction of provisions to handle the impact of demonetization, including tax on unexplained deposits.
- **AY 2018-19**:
- Continued focus on anti-black money measures and stricter reporting requirements.
#### 10. **Changes in Form and Filing Procedures**:
- **AY 2017-18**:
- Utilization of older forms for tax filing.
- **AY 2018-19**:
- Introduction of new forms and changes in filing procedures, with additional disclosures required.
### Summary
The AY 2018-19 saw continuity in tax slabs but introduced several updates related to deductions, compliance, and reporting requirements. The focus on digital transactions and anti-black money measures was reinforced. There was no major overhaul of tax slabs, but procedural and compliance changes aimed to enhance transparency and efficiency in the tax system.
For the most accurate and up-to-date information, always refer to the latest Finance Act and notifications issued by the Income Tax Department.
### Major Changes in Income Tax AY 2017-18 vs AY 2018-19
#### 1. **Income Tax Slabs and Rates**:
- **AY 2017-18**:
- **Individual taxpayers**:
- Income up to ₹2.5 lakh: Nil
- Income from ₹2.5 lakh to ₹5 lakh: 10%
- Income from ₹5 lakh to ₹10 lakh: 20%
- Income above ₹10 lakh: 30%
- **Senior Citizens (60 years and above)**:
- Income up to ₹3 lakh: Nil
- Income from ₹3 lakh to ₹5 lakh: 10%
- Income above ₹5 lakh: 30%
- **Super Senior Citizens (80 years and above)**:
- Income up to ₹5 lakh: Nil
- Income above ₹5 lakh: 30%
- **AY 2018-19**:
- Income slabs and rates for individuals and senior citizens remained largely unchanged from AY 2017-18. However, there were updates in terms of exemptions and deductions.
#### 2. **Tax Deducted at Source (TDS)**:
- **AY 2017-18**:
- TDS provisions applicable on various income categories, including salaries, interest, rent, etc.
- **AY 2018-19**:
- Introduction of stricter TDS compliance requirements. For example, TDS provisions on certain payments were revised, and compliance burdens were increased.
#### 3. **Tax Benefits and Deductions**:
- **AY 2017-18**:
- **Section 80C**: Deduction of up to ₹1.5 lakh for investments in specified savings schemes.
- **Section 80D**: Deduction for health insurance premiums up to ₹25,000 for self, spouse, and children (₹50,000 for senior citizens).
- **AY 2018-19**:
- **Section 80C**: Introduction of an additional deduction for the investment in National Pension System (NPS) up to ₹50,000, over and above the ₹1.5 lakh limit.
- **Section 80D**: Increase in deduction limits for health insurance premiums, particularly for senior citizens.
#### 4. **Housing Loan Interest**:
- **AY 2017-18**:
- Deduction of interest on housing loans up to ₹2 lakh under Section 24(b).
- **AY 2018-19**:
- No significant change in the deduction limit, but clarity on eligibility and additional benefits for first-time homebuyers was provided.
#### 5. **Salary and Perquisites**:
- **AY 2017-18**:
- Rules related to the taxation of salaries and perquisites were applicable as per previous norms.
- **AY 2018-19**:
- Introduction of stricter reporting requirements for perquisites and allowances, and changes in the taxation of certain benefits.
#### 6. **Digital Transactions**:
- **AY 2017-18**:
- Limited incentives for digital transactions.
- **AY 2018-19**:
- Promotion of digital transactions with various incentives and penalties for non-compliance.
#### 7. **Section 44ADA**:
- **AY 2017-18**:
- Section 44ADA provided for presumptive taxation for small professionals.
- **AY 2018-19**:
- No significant change; however, there was increased emphasis on compliance and documentation.
#### 8. **Reporting of Foreign Assets**:
- **AY 2017-18**:
- Requirement to report foreign assets and income under Schedule FA.
- **AY 2018-19**:
- Stricter reporting requirements for foreign assets and income with increased penalties for non-disclosure.
#### 9. **Amendments Related to Demonetization**:
- **AY 2017-18**:
- Introduction of provisions to handle the impact of demonetization, including tax on unexplained deposits.
- **AY 2018-19**:
- Continued focus on anti-black money measures and stricter reporting requirements.
#### 10. **Changes in Form and Filing Procedures**:
- **AY 2017-18**:
- Utilization of older forms for tax filing.
- **AY 2018-19**:
- Introduction of new forms and changes in filing procedures, with additional disclosures required.
### Summary
The AY 2018-19 saw continuity in tax slabs but introduced several updates related to deductions, compliance, and reporting requirements. The focus on digital transactions and anti-black money measures was reinforced. There was no major overhaul of tax slabs, but procedural and compliance changes aimed to enhance transparency and efficiency in the tax system.
For the most accurate and up-to-date information, always refer to the latest Finance Act and notifications issued by the Income Tax Department.
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