Every year, the financial year starts from 1st april. And at the end of the financial year we all have to pay all the taxes as well. So here are some things we should all know about the income tax changes….
1. The rate of taxes are reduced for individuals whose income is between Rs. 2.5 lakh and 5 lakh. And it will reduce from 5% to 10% from next financial year.
2. The finance minister Arun Jaitley’s budget is quite empowering the youth of the country but not everyone is satisfied with it. This is because there will be zero tax liability for individuals whose income is up to Rs 3 lakh per annum, while tax liability will be Rs 2500 for those with income between Rs 3 and Rs 3.5 lakh.
3. From 1 June, 2017, individuals will be required to deduct a 5% TDS (Tax Deducted at Source) for the rental payments above Rs. 50,000 per month. To get the recipients of the rental income, this has to be done.
4. If you are going to invest individually then no deduction will be charged,from new financial year, under the Rajiv Gandhi Equity Saving Scheme (RGESS).
5. You will be charged extra, if you get fail to pay your tax returns or pay it after deadline, from this year ahead. Those who are earning less than 5,00,000 per annum will be charged 1,000 and those who are earning more than 5,00,000 per annum will be charged 5,000 or can be 10,000.
6. The Aadhar card is compulsory for the payments or filing taxes or applications of your PAN card (A rule by Finance Minister Arun Jaitley).
7. Now the time period of your tax returns are reduced into 12 months instead of 24 months(which is the periodic time earlier for pay return tax). 12 months with completion of financial year.