This article on Union Budget 2017, is written by CA. Ankit Gupta (Author), who is a founder member of www.eMunshe.com and has also contributed various articles for Dainik Jagran & India TV and can be reached at [email protected]

FM Arun Jaitley on Wednesday, February 1 has finally opened his much-awaited box for the business sector. In his fourth budget speech, he has shown us the clear intention of Government to overcome black money and promote electronic payment method in urban as well as rural areas by reducing rates of duty on POS card readers.

Tax Analyst CA. Ankit Gupta from emunshe.com has elaborated all such pointers from Union Budget 2017 which will bring a smile on every businessman’s face.

• More simplified single page Income Tax Return form will be made available for small taxpayers not having income from any business or profession.
• Income Tax returns of first timers will not be selected for scrutiny assessment under section 143.
• Income Tax rates are reduced from 10% to 5% for income between 2.5 Lac to 5.0 Lac.
• Income Tax rate of MSME companies having turnover upto Rs.50 Lakh will be reduced to 25% from 30%.
• Companies can carry forward their losses to 15 years rather than 10 years.
• Tax payers will now have more options to exempt their long term capital gain by making investments in the eligible bonds. Under which they can avail benefits upto Rs.50 Lakh u/s 54EC of Income Tax Act.
• Rate of TDS will be reduced to 2% from existing 10%, in case the payment is made to the person carrying on business of call centre.
• Rate of presumptive taxation has been reduced from 8% to 6% on receipts made through electronic mode (Account payee cheque or DD or ECS through bank) for small businessman having turnover upto Rs. 2 crore.
• Professionals are required to pay advance tax in one installment in March rather than making payment under 3 installments.
• Base rate of counting cost of property shifter from 01.04.1981 to 01.04.2001 which will surely reduce the Long Term Capital Gain and consequently reduce the tax liability.
  

Overall, budget was a bit fair for every sector of the society. More allocations were given to Rural sector.