While presenting the
General Budget 2017-18 in Lok Sabha here today, the Union Finance
Minister, Shri Arun Jaitley announced a slew of reliefs in the
Government’s continuing policy towards providing an environment of “Ease
of Doing Business”.
The Finance Minister Shri Jaitley raised the threshold limit for audit
of business entities that opt for presumptive income scheme from Rs. 1
crore to Rs. 2 crore. Similarly, the threshold for the maintenance of
books for individuals and HUF is proposed to be increased from turnover
of Rs. 10 lakhs to Rs. 25 lakhs or income from Rs. 1.2 lakhs to Rs. 2.5
The Finance Minister Shri Jaitley further said that the Foreign
Portfolio Investor (FPI) Category I & II will be exempt from indirect
transfer provision under the IT Act. Besides, indirect transfer
provision shall not apply in case of redemption of shares or interests
outside India as a result of or arising out of redemption or sale of
investment in India which is chargeable to tax in India. This will
remove apprehensions over taxation upon transfer of stake of investors
of India-based funds located abroad but investing in India-based
companies, he added.
Bringing relief to individual insurance agents, Shri Jaitley said they
will be exempted from the TDS provision of 5% being deducted from
commission payable after filing a self-declaration that their income is
below taxable limit. Professionals with receipt upto Rs. 50 lakhs p.a.
can pay advance tax towards presumptive taxation in one installment
instead of four.
In order to allow the people to claim the refund expeditiously, the
Finance Minister Shri Jaitley said that the time period for revising a
tax return is being reduced to 12 months from completion of financial
year, at par with the time period for filing of return. Also the time
for completion of scrutiny assessments is being compressed further from
21 months to 18 months for Assessment Year 2018-19 and further to 12
months for Assessment Year 2019-20 and thereafter, he added.
The Finance Minister proposed to restrict the scope of domestic transfer
pricing only if one of the entities involved in related party
transaction enjoys specified profit-linked deduction. Shri Jaitley said
this will reduce the compliance burden for domestic companies since the
number of entities being covered under domestic pricing had gone up
substantially resulting in longer scrutiny.