New Income Tax Rules Come Into Effect.

The Finance Bill 2017 was approved by Parliament on March 30. Two days after a green signal from the Lower House, President Pranab Mukherjee gave his ‘historical’ assent to the bill thus turning it into a law.

The government tagged along the Finance Bill 2017 some 40 amendments in different acts and passed them under the "cover" of Money Bill to get a speedy clearance.

The Parliament on Thursday approved the Finance Bill 2017. Starting April 1, 2017, some income tax laws will change. Finance Minister Arun Jaitley had announced a number of income tax changes in Budget 2017.

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The Finance Bill 2017 was passed with some sweeping changes to country’s existing tax system. Here are a few things that you must know what you have to do when you file your tax returns and apply for important documents like PAN and Aadhaar cards.

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Some amendments were also introduced in the Finance Bill. Aadhaar number will be a must while applying for PAN as well as filing of income tax returns. To curb black money, the limit on cash transactions has been set at Rs. 2 lakh

• Instead of raising income tax limit, the government opted for a reduction in income tax rate. This for the first time in recent years, the minimum valid rate of income tax was reduced from 10 per cent to 5 per cent. There will be only 5 per cent tax on an income from Rs 2.5 lakh to Rs 5 lakh. However, rebate under Section 87A gets reduced from Rs. 5,000 to Rs. 2,500. And no rebate will be applicable for taxpayers having income above Rs. 3.5 lakh. This means tax savings of up to Rs. 7,700 for those with a taxable income between Rs. 3 lakh and Rs. 5 lakh

• The government has decided a 10 per cent surcharge for an income of Rs 50 lakh to Rs 1 crore Existing surcharge of 15 per cent will remain the same for individuals having income above Rs.1 crore.

• Aadhaar, a unique identity handed out to all Indians, has been made compulsory for applying for a Permanent Account Number (PAN) card as well as filing for income tax returns. This has been introduced to avoid duplicity in filing of income tax.

• The Central Board of Direct Taxes (CBDT) launched a new simple one-page form - ITR-1 'Sahaj' - on Friday for taxpayers who have income from salary, a house property or earn interest income totalling up to Rs. 50 lakh. Part-E of the ITR-1 form seeks information on cash deposits made by the assessee between November 9, 2016 and December 30, 2016 if the "aggregate cash deposits" during this period were Rs. 2 lakh or more.

• The government has put a limit on cash transactions to prevent occurrence and recurrence of incidents of black money. From now on, a cap of Rs 2 lakh for cash transaction has been brought under amended rules in Finance Bill 2017. The Finance Bill had originally proposed the cap at Rs. 3 lakh. If a person receives any sum in contravention of the tax law, he/she will be liable to pay, by way of penalty, a sum equal to the amount.