Key Features of the Finance Act 2017
The last decade has seen the Union making significant efforts towards the economic improvement of the nation.
Therefore, it has been the pleasure of the citizens to watch their own nation develop and begin to make its place in the global economy, and survive with a strong heartbeat, as compared to the failing heartbeats of many other economies.
The Lok Sabha has approved the Finance Act 2017 on the 22nd of March 2017. The act, passed among protests and walkouts by BJD and Congress members was passed by the Lok Sabha and is now pending in the Rajya Sabha.
Some key features of the Finance Act 2017 are given below:
- Mandatory requirement of Adhaar Card while filing Income Tax Returns and PAN card by 1st July. All PAN cards now need to be linked to the UID assigned with the Adhaar Cards. This will help to curb tax evasion.
- Relaxations on contributions made to political parties by corporate identities. Previously companies could donate up to 7.5 %, but this no longer exists. Further, incentives have been provided for donations to political funds to be made via digital payments and cheques, along with the implementation of a Rs. 2,000 cap on cash donations.
- Capping of cash transactions at Rs. 2 lakh as opposed to the previously proposed Rs. 3 lakh. Violation would invite monetary penalty/fine.
- Tax exemptions to real estate developers upon completion of projects within 5 years.
- Exemption from payment of income tax for startups for 3 consecutive years out of 7 initial years following incorporation.
- Permission to Income Tax Department to conduct raids without explanation.
- Merging of Administrative Tribunals. For e.g. The Railway Rates Tribunals has been proposed to be replaced and its functions overtaken by the Railway Claims Tribunal.
- Some ammedments have been passed to the Companies Act, Information Technology Act, the Employees Provident Fund Act, the TRAI Act and the Smuggling and Foreign Exchange Act.