The Finance Act 2017 had made several changes last year in Income Tax Act and rules which became applicable from FY 2016-17 ( AY 2017-18). Compilation of some of the amendments are given below for your reference.
- Limit for payment of expenses by cash (Both capital and revenue expenditure) reduced from RS. 20,000 to RS. 10,000 per day in aggregate per person.
- No Person shall receive an amount of two lakh rupees or more, by cash (Sec 269ST).
- For below Rs. 2 crores turnover cases - For Non cash sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/ Gross Receipt. It is 8% For Cash Sales.
- Tax Exemption limit is Rs.2,50,000/- (same as earlier) After that, up to 5 Lakh, Tax rate is 5% (earlier it was 10%).