5 KEY CHANGES TO REMEMBER WHILE FILING INCOME TAX RETURN (ITR) |
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The Financial Year 2017-18 has come to an end, and now it’s time to file Income Tax Return. But before doing so, it is important to remember five key changes while filing ITR. These changes are as follows:
- Tax Slab Rate: With effect from FY 2017-18, the tax slab has been reduced from 10% to 5% in case of Individuals and HUF. There is no change in other slab rates. The tax slab after change is as follows:
| Tax Rate | Residents below 60 years of age | Residents 60 years and above but below 80 years of ages | Residents 80 years and above |
| NIL | Up to 2.5 Lakhs | Up to 3 Lakhs | Up to 5 Lakhs |
| 5% | 2,50,001-5,00,000 | 3,00,001 – 5,00,000 | Not Applicable |
| 20% | 5,00,001-10,00,000 | 5,00,001-10,00,000 | 5,00,001-10,00,000 |
| 30% | Above 10 Lakhs | Above 10 Lakhs | Above 10 Lakhs |
- Rebate under Section 87A: An individual with taxable income up to Rs 3.5 lakhs is entitled was entitled to a tax rebate of Rs 2,500/-. Earlier such limit was Rs 5 lakhs and tax rebate was Rs 5,000/-
- Additional surcharge:A surcharge will be applicable at the rate of 10% for individuals with income in the range of Rs 50 lakhs to Rs 1 crore. Surcharge at the rate of 15% continues in respect of individuals with income more than Rs 1 crore.
- New limit for setting off of house property loss against Other Income in the same Financial Year:With effect from F.Y.2017-18, the maximum amount of loss (arising due to interest on loan) from house property (whether let-out property or self occupied property) that can be set-off against any other income in the same financial year is now restricted to Rs 2 lakhs. And the balance loss if any can be carried forward for set-off against house property income in future for the next eight years.
- Fee for late filing of tax return:The due date of filing return of income for assessee’s who are not required to get audited is 31st July from the end of the financial year. If the return is not filed within the due date, a fee would be levied as under:
(i) Rs 5,000 in case returns are filed after the due date but before December 31, 2018 or
(ii) Rs 10,000 in case it is filed after December 31, 2018.
However, as a relief to the taxpayers earning not more than Rs 5 lakhs, the maximum fee will be Rs 1000.
For any queries/clarification you may contact
Bharat Poplani
B.Com, FCA, LLB
+91-9646380245