Important Amendments and Tax Changes You Need to Know before Filing ITR for FY 17-18 and FY 18-19.

Finance Minister Arun Jaitely presented the Union Budget on 1ST Feb for 2018-19. There he made no significant changes to tax policy , as the budget was merely focused on lifting new business ventures and making employment spaces in country .

As reported by FM, it has been observed that – the number of taxpayers in the country is increasing at an alarming rate which can be taken as a resulting effect of the new tax reform -GST or some minor policy exemptions allowed to people to file their ITR well on time. During the budget speech, Finance Minister not only appraised the response of taxpayers towards simplified tax motives of government but also lighted a need for changes required in the present tax reforms of the country.

Every taxpayer should be given a simplified environment to pay taxes too without any hustle and delay in long filing procedures ,he added.

If you have not yet considered for your tax documents and are getting confused with numerous regulatory changes made by CBDT in tax rules , then in this post we have simplified all your tax queries and have short listed all major amendments made by govt. in last few months below. This will surely help you file your ITR with amended ITR forms for FY 17-18 at earliest and too without any policy error.

Note : These amendments have been made applicable on every taxpayer since they’ve announced in the Union Budget.

Income Tax Slabs for Financial Year 2017-18 and Financial Year 2018-19

For Financial Year 2017-18

General categorySenior citizensSuper senior citizens
(Up to 60 years of age)(60-80 years)(Above 80 years)
IncomeTaxIncomeTaxIncomeTax
Up to Rs.2.5 lakhNilUp to Rs. 3 lakhNilUp to Rs. 5 lakhNil
Rs.2,50,001-Rs.5 lakh5%Rs. 3,00,001-Rs. 5 lakh5%Rs. 5,00,001-Rs. 10 lakh20%
Rs.500,001-Rs.10 lakh20%Rs. 5,00,001-Rs. 10 lakh20%Above Rs. 10 lakh30%
Above Rs.10 lakh30%Above Rs. 10 lakh30%
Surcharge of 10% for income between Rs. 50 lakh and Rs. 1 crore with marginal relief
Surcharge of 15% for income above Rs. 1 crore with marginal relief
# Rebate of up to Rs. 2,500 for taxable salary up to Rs. 3.5 lakh
# Education and higher education cess of 3%

For Financial Year 2018-19

General categorySenior citizensSuper senior citizens
(Up to 60 years of age)(60-80 years)(Above 80 years)
IncomeTaxIncomeTaxIncomeTax
Up to Rs.2.5 lakhNilUp to Rs. 3 lakhNilUp to Rs. 5 lakhNil
Rs.2,50,001-Rs.5 lakh5%Rs. 3,00,001-Rs. 5 lakh5%Rs. 5,00,001-Rs. 10 lakh20%
Rs.500,001-Rs.10 lakh20%Rs. 5,00,001-Rs. 10 lakh20%Above Rs. 10 lakh30%
Above Rs.10 lakh30%Above Rs. 10 lakh30%
Surcharge of 10% for income between Rs. 50 lakh and Rs. 1 crore with marginal relief
Surcharge of 15% for income above Rs. 1 crore with marginal relief
# Rebate of up to Rs. 2,500 for taxable salary up to Rs. 3.5 lakh
# Cess of 4%

Some Significant Amendments made by CBDT and government In Tax Rules

  • As per latest notification of CBDT , filing of ITR will now be done with amended ITR forms. For help required on amended ITR Forms view our detailed post here.
  • While Filing ITR Form 1 for AY 2018-19 , the taxpayer has to specify a complete breakup of his salary income under heads of exemptions, perquisities etc which was earlier at part of form 16 .
  • For filing of a business return with amended ITR forms for ITR 3 or ITR 4, it is required to furnish details of GST number, invoices, & returns filed till date.
  • For financial year 2018-19 , taxpayers have to pay to pay a higher cess amount of 4% instead of 3% as earlier .
  • From April 1 2018, a new long term capital gain tax on sale of equity shares and related mutual funds over 1 lakh would be levied at 10% without benefit of indexation, while for benefit of taxpayer for now such gains have been made taxable only after 31stJan 2018.
  • A defined tax rate of 10% would be levied on dividend distributed by equity oriented mutual funds.
  • For FY 19, a standard deduction of Rs 40,000 has been proposed in place of existing deductions of transport allowance (Rs 19,200) and medical reimbursement (Rs 15,000) to benefit 2.5 crore salaried employees and pensioners.
  • Some additional benefits has also been proposed for senior citizens for FY 19, as they will get an income exemption limit on their receipt of interest income of deposits made in banks and post offices including recurring deposits. (Section 80TTB).
  • No further deductions would be allowed under section 80TTA for senior citizens .
  • While for FY 19, senior citizens would also enjoy a higher deduction threshold for receipt on their interest income over Rs 50,000 which was earlier limited to Rs 10,000.

Now you can e-file your ITR for AY 2018-19 with our Tax Expert online !

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