- Has budget lowered down tax rates for individual?
Yes, they have, the slabs and the tax rates have been lowered.
| Upto Rs. 2.5 Lakhs |
Rs 2.5 to 5 Lakhs
Rs. 5 to 7.5 Lakhs
Rs. 7.5 to 10 Lakhs
Rs. 10 to 12.5 Lakhs
Rs. 12.5 to 15 Lakhs
Rs. 15 Lakhs & Above
However, this is optional only if you don’t claim the exemptions (including HRA, interest on housing loan, standard deduction) and deductions.
2. What if I opt for lower personal tax rates, can I withdraw it later?
If you have business income, you can withdraw once. But once withdrawn, you cannot subsequently claim this deduction unless your business is discontinued. If you have no business income, you can choose on year on year basis
3. By when I need to intimate to opt for this scheme?
You need to intimate before due date of filing ITR on year on year basis, if you do not have business income. If you have business income, once the option is exercised for any A.Y, you can withdraw only once.
4. What if I do not opt in this scheme?
Then the old slabs and rates will apply.
Upto Rs. 2.5 Lakhs – Nil
Rs.2.5 Lakhs – 5 Lakhs – 5%
Rs. 5 Lakhs – 10 Lakhs – 20%
Above Rs. 10 Lakhs – 30%
5. We are co-operative society, has the tax rates lowered for us?
Yes the tax rates are lowered to 22% only if you forgo the deductions and exemptions including deduction u/s 80-P.
Otherwise, the old slab rates shall apply.
6. I am an Indian citizen and working abroad since many years. However, I do visit my parents during vacations for less than 180 days. Do I need to reconsider the days?
Yes, now an Indian citizen or person of Indian origin, who has gone out for employment, can visit India for less than 120 days. If you visit for more than 120 days you will become resident in India
7. I am Indian citizen, working abroad. During last many years I have been just visiting my parents and now I am permanently intending to shift to India. Will the residency rules affect me?
If you become resident in India, then you may be resident and not ordinarily resident in India if you have been non-resident in 7 out of 10 P.Y.
8. I am an Indian citizen working in UAE and I do not pay any taxes in UAE. I have UAE residency card. I visit my parents in India for few days of year. Will the new residency rules affect me?
No, if you produce your tax residency certificate of UAE, then you will not be Indian resident.
9. I am an individual resident in India receiving dividend from various companies. What will be tax implications
The dividend will be taxable in your hands at the slab rates. The company will deduct tax @ 10% u/s 194.
10. I am an individual non-resident in India receiving dividend from various companies. What will be tax implications
The dividend will be taxable in your hands at the rate applicable under DTAA – Article 10 and the company will deduct tax at the same rate.
11. I am working partner of firm and I usually used to file return by September 30 with return of my firm whose accounts are audited. Are the return filing required changed for me?
Yes, now distinction between working and non-working partners is removed. Therefore, you will have to file by 31st July.
12. I have turnover of 2 Cr. What are the new tax audit requirements?
At present, every person carrying on business is required to get his accounts audited, if his total sales, turnover or gross receipts, in business exceed or exceeds Rs. 1 Cr. Now the the threshold limit for a person carrying on business is increased from Rs. 1 Cr. To Rs. 5 Cr. where,-
(i) aggregate of all receipts in cash during the previous year does not exceed 5% of such receipt; and
(ii) aggregate of all payments in cash during the previous year does not exceed 5% of such payment.
Further, to enable pre-filling of returns in case of persons having income from business or profession, it is required that the tax audit report may be furnished by the said assessees at least 1 month prior to the due date of filing of return of income
13. I pay every year for my daughters education abroad in Euros. What are the TCS requirements applicable to me?
An authorised dealer receiving an amount or an aggregate of amounts of Rs.7 lakh or more in a financial year for remittance out of India under the LRS of RBI, shall be liable to collect TCS, if he receives sum in excess of said amount from a buyer being a person remitting such amount out of India, at the rate of 5%.