Important budget 2017 amendments everyone should know

  • Expenditure in cash cannot exceed Rs 10,000 ( earlier this limit was Rs 20,000 )
  • No cash receipts of Rs 2 lakhs or more per day, per transaction or per event.
  • Donations in cash allowed only upto Rs 2000 ( earlier this limit was Rs 10,000 )
  • Taxation of capital gain in the hands of the Landowner under Development Agreements only on completion of building and not at the time of entering into Agreement or executing General Power of Attorney.
  • For Long Term Capital Gain indexation, base year shifted from 1981 to 2001
  • Restriction on set off of loss under the head house property to Rs 2 Lakhs.
  • With a decrease in tax rate from 10 per cent to 5 per cent for total income between Rs 2.5 lakh and Rs 5 lakh, there is tax saving of up to Rs 12,500 per year for individuals.
  • Tax rebate is reduced to Rs 2,500 from Rs 5,000 per year for taxpayers with income up to Rs 3.5 lakh (earlier Rs 5 lakh).
  • Surcharge at 10 per cent of tax levied on rich taxpayers, with income between Rs 50 lakh and Rs 1 crore. The rate of surcharge for the super rich, with income above Rs 1 crore, will remain 15 per cent.
  • Holding period for immovable property to be considered “long term” reduced to 2 years from 3.