Arun Jaitley announces Rs 10,000 penalty for late filing of income tax returns
Posted on: 03/Feb/2017 3:59:46 PM
It was announced in the union budget that people failing to file the income tax returns will be imposed with a penalty of Rs 10000. Day before yesterday, Finance Minister Arun Jaitley tabled the union budget for the year 2017-2018. It was expected that there will be an increase in personal income tax exemption limit from Rs 2.5 lakh but no such change took place. This was a disappointment to salaried people.
At the same time the existing rate of tax for individuals between Rs. 2.5- Rs 5 lakh was reduced to 5 percent from 10 percent. 20 percent income tax will be imposed on income range is between Rs 5 Lakhs and Rs 10 Lakhs. 30 percent income tax rate will be imposed on income which is above 10 lakhs.
For the senior citizens between the age of 60 and 80, there will be no tax upto Rs 3 Lakhs income. 5 percent tax will be levied for the income range between Rs 3 Lakhs to Rs 5 Lakhs. 20 percent tax will be levied in the income range of Rs 5 Lakhs-10 Lakhs and 30 percent tax will be levied for the income above Rs 10 Lakhs. For the senior citizens of age 80 years tax is exempted for the income upto 5 Lakhs and 20 percent tax for the income range of Rs 5 Lakhs to 10 Lakhs.
The finance minister announced a surcharge of 10 percent on individuals earning between Rs 50 lakh and Rs 1 crore while retaining the surcharge on those earning above Rs 1 crore at 15 percent.
Section 87A provides for a rebate up to Rs 5,000 from the income-tax payable to a resident individual if the total income does not exceed Rs 5 lakh. Now the income criterion has been lessened to Rs 3, 50,000 and reduced the maximum available rebate from Rs 5,000 to Rs 2,500.
People expected the finance minister to increase the deduction limit available under Section 80C and deduction available on interest payment on home loans, the finance minister left them untouched.
The finance minister has announced to introduce a simple one-page tax return Form for individuals with taxable income upto Rs 5 lakhs.
The budget reduced the holding period of long-term capital gains tax on immovable property to 2 years compared to 3 years.
For people paying rent above Rs 50000 a month will get a rebate of 5 percent. There will be no tax for withdrawing 25 percent of money from the National Pension Scheme.
Now the owner can set off of loss towards second home against other heads of income up to Rs.2 lakh under Section 71 of the Income Tax Act.
If the tax payer does not file his returns before the stipulated period, he will be fined Rs 10000. It has been announced in the budget that it will come into effect from 2 2018-19.
