Read how income tax rules will change from today

New Delhi: Here we are listing some of the key changes in rules that will be effective from the new financial year 2017-18.

Income Tax rules

Personal income tax: Personal income tax for people with income in the slab of 2.5 lakh to 5 lakh to be reduced to 5 percent instead of 10 percent. This will reduce their tax 

liability to half while all other tax payers above this slab will also be benefited in terms of lesser tax of Rs 12,500 per individual.

Surcharge of 10 percent to be levied on individuals with income between Rs 50 lakhs to Rs 1 crore.

Retail Investors: The Finance Minister has proposed to phase out tax benefits under Rajiv Gandhi Equity Savings Scheme (RGESS), which was introduced with much fanfare by the previous UPA regime.

Under the scheme, deduction for three consecutive assessment years is allowed up to Rs 25,000 to a resident individual for investment made in listed equity shares or listed units of an equity oriented fund subject to fulfillment of certain conditions.

Affordable Housing: Holding period to be Areduced for computation of long term capital gain from three years to two years

Digital push: Cash transaction of above Rs 2 lakh not to be permitted.

ITR filing: The government has notified a simpler, one-page form for filing income tax returns while making it mandatory to quote Aadhaar number and disclose bank deposits of more than Rs 2 lakh post demonetisation.

The Income Tax Return Form-1 (Sahaj) will replace the 7-page form, removing a plethora of columns on deductions from income claimed.