Points to Ponder for AY 2018-19 return filling.

2018-19 return filling.


In Finance Act 2017 following changes have been made which need to be considered for filling return of assessment year 2018-19

Tax rates for Individual/ HUF (resident/non-resident)

0-300000 Nil
300000-500000 5%
500000-1000000 20%
Above 1000000 30%


Tax rate for senior citizen(above 60 years of age)being resident

0-300000 Nil
300000-500000 5%
500000-1000000 20%
Above 1000000 30%


Tax rate for super senior citizen (above 80 years of age) being resident

0-500000 Nil
500000-1000000 20%
Above 1000000 30%


Rebate under section 87A

Rebate is available at Rs 2500 for individual resident whose income does not exceed Rs 350000.

Surcharge for individual/ HUF

  1. Above Rs 50 lakhs to 1 crore @ 10%
  2. Above Rs 1 crore @ 15%

Surcharge for Domestic Companies   

  1. Above Rs 50 lakhs to 1 crore @ 10%
  2. Above Rs 1 crore @ 15%

Section 45(5A)

New section 45(5A) has been inserted for Joint Development Agreement. Under this section benefit is given to tax the capital gain on transfer of property under joint development agreement at the time of receipt of completion certificate

Change in base year to 01-04-2001

Sl. No. Financial Year Cost Inflation Index
1 2001-02 100
2 2002-03 105
3 2003-04 109
4 2004-05 113
5 2005-06 117
6 2006-07 122
7 2007-08 129
8 2008-09 137
9 2009-10 148
10 2010-11 167
11 2011-12 184
12 2012-13 200
13 2013-14 220
14 2014-15 240
15 2015-16 254
16 2016-17 264
17 2017-18 272


Exemption on sale of equity shares is available under

section10 (38)

  1. Shares acquired before 01-10-2004 in any manner.
  2. Shares acquired after 01-10-2004 after paying Securities Transaction Tax (STT)

Section 56(2)(X)

Where any person receives income from following, it is taxable under the head Income from Other Sources

S.No. Assets Gifted/Purchased Mode Taxability as Gift
1. Money Without any Consideration Amount exceeds Rs 50000.
2. Immovable property Without any Consideration Stamp duty value of property exceeds Rs. 50000.
With Consideration Taxable value = Stamp duty value – Purchase price paid

Exceeds Rs 50000.

3 Specified assets being

Securities, Jewellery, Archaeological collections, Drawings, paintings, Sculptures, or any art of work, Bullion.

Without any Consideration Aggregate of Fair Market value Rs.50000
With Consideration Taxable value = Aggregate of Fair Market

Value – Purchase price paid.

Exceeds Rs 50000.


Section 40A (3)

Where any expenditure made of which payment is made exceeding Rs 10000 in single day otherwise through account payee cheque or account payee draft or use of electronic clearing system will not be allowed as deduction.

Section 194-IB

As defined under section 194-IB

“Rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or building or both.


Every individual & HUF other than covered under section 44AB is required to be deduct TDS on rent paid to resident for amount exceeding Rs 50000 per month.

The TDS shall be deducted at the last month of the year or the month in which the property is vacated whichever is earlier.

Further the provision of section 203A is not applicable to person required to deduct TDS under this section i.e. there is no requirement to have Tax deduction Account Number (TAN)

Where the tax is required to be deducted as per the provisions of section 206AA, such deduction shall not exceed the amount of rent payable for the last month of the previous year or the last month of the tenancy.