In General Budget Govt of India started various proposals and also did a lot of changes in the Policies. If we talk about the Income-tax there are also a lot of proposals projected in the Budget for the society. Many times Govt did changes in tax only due to the benefit of society, to increase consumption, to balance the economy etc. According to budget scenario Govt. changed some norms of taxpayers. Here we are talking about the ten amendments taken through the Budget. 10 rules of tax changed by Ministry of Finance and it will be started from 1st April with immediate effect.
- To balance the economy
- Help in managing the consumption
- Reduce inflation
- Balance in the fuel prices
- Improve wealth
- To improve Direct and indirect taxation system.
10 New Rules of Taxation Policy
- 5% tax on Income between Rs 2.5- 5 lakh.
- A tax rebate is decreased from 5,000 per year to Rs 2,500 against income up to Rs 3.5 lakh.
- 10% surcharge will be imposed on the taxpayer having income between 50 lakh-1 crores and fore above it same like 15%
- To hold the immovable property period is reduces from three to two years and tax will be of 20% on reducing rate
- Long-term capital gains will give less profit and low income according to a new policy.
- Tax exemption will continue on capital gain investment or Bonds.
- Normal one-page return filling form is to be ok for the business having income up to 5 lakh and there is no need of scrutiny for them.
- 8. There is a provision of penalty in filling of return after the due date. A penalty of rupees 5000 to the taxpayer filling return by 31st December and also 10000 rupees after December.
- If anyone claim for the deduction under Rajiv Gandhi equity saving scheme then it will be valid for continue two-year deduction.
In the new change in the tax rules give more benefits to the employees as well to the businessman.