The document summarizes key changes to India's income tax rates and policies introduced in the 2017 Union Budget. Some highlights include: - Income tax slab rates were reduced for individual taxpayers with annual income up to Rs. 250,000 taxed at 5% instead of 10%. - Corporate tax rates were lowered to 25% for domestic companies from 29% previously. - Cash transaction limits for tax deductibility were set at Rs. 10,000 and tax rebates were increased for individual taxpayers. - Presumptive income rates were reduced to 6% for small businesses with annual turnover up to Rs. 2 crore. - Tax audit limits were increased to Rs. 2 crore annual turnover.

1. UNION BUDGET 2017-18
Highlights
&
Analysis

3. • New Income Tax Rates for A.Y. 2017-18 are below
For Individual/ HUF/ AOP/BOI/ Every Artificial Judicial person upto Age
60 Years
Income Slab Limit Income Tax Rate Surcharge
Rate
Education
Cess and
SHEC
Upto Rs. 2,50,000 NIL NIL 3 %
Rs. 2,50,001 to Rs.
5,00,000
5 % NIL 3 %
Rs. 5,00,001 to
Rs.10,00,000
Rs. 12500 +20% NIL 3 %
Rs.10,00,00 to
Rs.50,00,000
Rs.112500+30% NIL 3%
Rs. 50,00,001 to Rs.
1,00,00,000
30% 10% of Income
tax
3%
Above Rs.1,00,00,000 30%
15% of Income
tax 3%

4. • New Income Tax Rates for A.Y. 2017-18 are below
For Individual/ HUF/ AOP/BOI/ Every Artificial Judicial person Above
Age 60 Years to 80 Years
Income Slab Limit Income Tax Rate Surcharge
Rate
Education Cess and
SHEC
Upto Rs. 3,00,000 NIL NIL 3 %
Rs. 3,00,001 to Rs.
5,00,000
5 % NIL 3 %
Rs. 5,00,001 to
Rs.10,00,000
Rs. 12500 +20% NIL 3 %
Rs.10,00,00 to
Rs.50,00,000
Rs.112500+30% NIL 3%
Rs. 50,00,001 to Rs.
1,00,00,000
30% 10% of
Income tax
3%
Above Rs.1,00,00,000 30%
15% of
Income tax 3%

5. • New Income Tax Rates for A.Y. 2017-18 are below
For Individual/ HUF/ AOP/BOI/ Every Artificial Judicial person Above
Age 80 Years
Income Slab Limit Income Tax Rate Surcharge
Rate
Education Cess and
SHEC
Upto Rs. 5,00,000 NIL NIL 3 %
Rs. 5,00,001 to
Rs.10,00,000
20% NIL 3 %
Rs.10,00,00 to
Rs.50,00,000
Rs.112500+30% NIL 3 %
Rs. 50,00,001 to Rs.
1,00,00,000
30% 10% of
Income tax
3%
Above Rs.1,00,00,000 30%
15% of
Income tax 3%

6. New Income Tax Rates for A.Y. 2017-18 are below
For Partnership Firms and LLP
Nature of Entity Income Slab
Limit
Income Tax
Rate
Surcharge
Rate*
Education Cess
and SHEC
Partnership Firm Upto
Rs.1,00,00,000
30% NIL 3 %
Above
Rs.1,00,00,000
30% 12% of
Income
tax
3 %
Limited Liability
Partnership
Upto
Rs.1,00,00,000
30% NIL 3 %
Above
Rs.1,00,00,000
30% 12% of
Income
tax
3%
* Subject To Maximum Marginal Relief Rate

7. New Income Tax Rates for A.Y. 2017-18 are below
For Co-Operative Societies
Income Slab Limit Income Tax Rate Surcharge
Rate
Education Cess and
SHEC
Upto Rs. 10,000 10% NIL 3 %
Rs. 10,001 to
Rs.20,000
Rs.1000+20% NIL 3 %
Rs. 20,001 to
Rs.1,00,00,000
Rs.3000+30% NIL 3 %
Above Rs.1,00,00,000 30%
12% of
Income tax 3%

8. New Income Tax Rates for A.Y. 2017-18 are below
For Domestic Companies
Turnover Slab Limit Income Tax
Rate
Surcharge Rate Education Cess and
SHEC
Turnover Upto Rs.50
Crore of Previous year
2015-16
25% Note : 1 3 %
Above Rs. 50 Crore 30% Note: 1 3 %
Note : 1 Surcharge Rate for Domestic Comapnies
Income Slab Limit Surcharge Rate*
Total Income upto Rs. 1 Crore NIL
From Rs. 1 Crore to Rs. 10 Crore 7%
Above Rs. 10 Crore 12%
* Subject to Maximum Marginal Relief Rate

9. New Income Tax Rates for A.Y. 2017-18 are below
For Foreign Companies (Other than Domestic Co.)
Income Nature Income Tax
Rate
Surcharge
Rate Education Cess and
SHEC
(a) royalties received from Government or
an Indian concern in pursuance of an
agreement made by it with the Government
or the Indian concern after the 31st day of
March, 1961 but before the 1st day of
April, 1976
50%
2% if
Income>1
Crore.
5% if
Income
>10 Crore
3 %
(b) fees for rendering technical services
received from Government or an Indian
concern in pursuance of an agreement
made by it with the Government or the
Indian concern after the 29th day of
February, 1964 but before the 1st day of
April, 1976, and where such agreement
has, in either case, been approved by the
Central Government.
50%
2% if
Income>1
Crore.
5% if
Income
>10 Crore
3 %
( c ) Other Income 40% As Above 3%

10. An Analysis of Income Tax Rates Proposed in
Union Budget 2017-18
• For Individual Income tax slab rate is reduced from 10% to 5% that
will reduce tax burden of Rs. 12500/-
• For Domestic Companies Income tax rates is reduced from 29% to
25% for all companies while Income tax rate is still 30% for
Partnership Firm and LLP.
TAX REBATE U/S 87A :
Assessment Year Income Limit Tax Rebate
Amount
A. Y. 2016-17 5,00,000 Rs. 2000/-
A.Y. 2017-18 5,00,000 Rs. 5000/-
A.Y. 2018-19 3,50,000 Rs. 2500/-

11. W.e.f. 1st April 2018, i.e. from A.Y. 2018-19,
where the assessee incurs any expenditure in
respect of which a payment or aggregate of
payments made to a person in a day, otherwise
than by an account payee cheque drawn on a bank
or account payee bank draft, exceeds Rs. 10000/-
no deduction shall be allowed in respect of such
expenditure.

12.  W.e.f.1st April 2018, Cash expenses
exceeding Rs.10000/- shall not be
considered for deduction under section
35AD.
 Any cash paid for purchase of assests worth
Rs.10000/- shall not be considered for
Depreciation as well. So Please do not pay
cash exceeding Rs.10000/- for any assets
also otherwise Depreciation shall not be
allowed on these expenditure.

13.  W.e.f. 1st June 2017 every Individual or HUF
(other than those covered in section 44AB) is
required to deduct TDS @ 5% on payment of
rent if rent exceeds Rs.50000/- per month.
 Tenant is required to deduct TDS from last
month of previous year payment.
 Tenant is not required to obtain TAN.
 Tenant is required to deduct TDS only once in
a year and to be deposited to central
government.

14. W.e.f. 1st April 2017 Section 269ST introduced
Provides that :
 No person shall receive an amount of three
lakh rupees or more in cash –
 in aggregate from a person in a day.
 In respect of a single transaction or
 In respect of transaction relating to one event
or occasion from a person.

15.  W.e.f. 1st April 2017 from A.Y. 2017-18, For
Small business having turnover upto Rs. 2
Crore Presumptive Income rate has been
reduced to 6% from 8% of Gross receipts or
Turnover.
 6% Income rate will be applicable for amount
received through digital transaction mode.
 6% Income rate will be applicable on amount
received in bank before due date of filing
Income tax return.

16.  W.e.f. A.Y. 2017-18, Tax audit limit under
section 44AB has been increased to Rs.2
Crore.
 If assessee having gross receipts or turnover
upto Rs.2 Crore declares income under
section 44AD, then he is not required to get
Tax Audit under section 44AB.
 Section 44AD prescribe to declare income
@6% on turnover or gross receipts if
payments received through digital transaction
mode.

17.  W.e.f. A.Y. 2018-19, MAT (Minimum
Alternate Tax for Corporate Assessee) and
AMT (Alternate Minimum Tax for Non
Corporate Assessee) Credit carry forward
limit has been increased to 15 years from 10
years i.e. Credit can be carry forward for 15
years succeeding the year in which credit
become allowable.

18. CA Lukesh Sethi
M. No. 08800849054
Lukesh Sethi & Associates
Chartered Accountants
4/27, Madanpuri Road
Opp. Laxmi Bazar,
Partap nagar, sector-8
Gurgaon-122001
www.calukeshsethi.com