The major financial policies implemented in 2017
Posted on: 26/Dec/2017 10:01:37 AM
While making the personal budget for the future, it is better to remember and consider the 2 major financial policies implemented in 2017 - Penalty will be imposed on delayed filing of income tax returns. It is mandatory to link Aadhar card data with all financial services.
With the birth of the New Year close on hand, it is imperative to analyse the financial targets already set and consider whether changes are required in the budget planned. While reviewing the budget, it is better to consider all the major financial policies implemented in the year 2017 and their impacts.
Points to note while filing IT returns
During the current financial year budget, the income tax ratio for those with annual incomes in the range Rs. 2.5 Lakhs to Rs. 3.5 Lakhs has been reduced from 10% to 5%. Earlier, this ratio was valid for those with annual incomes up to Rs. 5 Lakhs. For those with annual income between Rs. 50 Lakhs and Rs. 1 Crore, the Income Tax to be paid is up by 10% additional tax.
If IT filing is delayed, a penalty of up to a maximum of Rs. 10000 will be charged. This is will be effective from April 2018.
Mutual funds
SEBI has insisted the finances of the Mutual Funds should be brought under the regulations. So far, there has been no clear-cut system for categorising the mutual funds. SEBI has now classified them – Mutual Fund Schemes, Equity share funds, loan-related funds, judgment-based funds, and other funds. SEBI has announced that a company must have only one of the above categories of mutual funds.
The interest ratio for the Kisan Vikas Patras, PPF, etc., were reduced by a small margin. Presently, the PPF interest rate is 7.8%. For Kisan Vikas Patras, it is 7.5%.
GST Implementation
Though the interest rates have been reduced, when compared with the provident fund interest rates, the interest rates offered for small saving still continues to be higher. The individuals who are interested in loan-based investments can preferably continue this.
GST (Goods and Services Tax) was implemented after categorsing the various tax formats into 4 slabs.
The service charges for the bank and insurance services were increased from 15% to 18%. Though this regulation is applicable to mutual funds as well, it is related only to the expense ratio and so the impact will be far less.
The linking of Aadhar card has been made mandatory with PAN card, Bank Savings Account, Mutual Fund, and Insurance related financial services. The deadline to link has been extended till 31st March 2018.
