- Disallowance under Sec.14A to be limited to 1 percent of average monthly investment yielding exempt income subject to actual expenditure claim.
- E-filing of tax return mandatory, if income except minimum chargeable to tax, without considering exempted income from capital gain under sec. 10 ( 38 ).
- ·Time barring - 9 months from end of assessment year in which return is required to be filed.
- Appeal effect to be given in 3 months. Reassessment within 12 months
- Penalty under section 271(1)(c) replaced by Section 270A. Penalty @50% for under reporting of income and 200% in case of wrong reporting of income.
- No penalty if tax and interest as per assessment order is paid in time and no appeal is preferred except in case of misreporting of income (Application to be made)
- Witholding tax (TDS) limits increased and rates of TDS rationalised
- PAN not mandatory for non- residents, can give alternative prescribed
- Mandatory "E-Assessment" in 7 metros without any assessee and department interface except in special cases/ circumstances.