The Finance Ministry in a statement said that tax collection of Rs 17.10 lakh crore in 2016-17 is a growth of around 18 per cent compared to last year.
The tax department is understood to have introduced a new column for obtaining details of all deposits made by an individual or entity between November 8 and December 30 last year.
As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income.
Income tax authorities have set up an e-platform through which banks and other institutions can report the transactions to them.
This year's rally is a reversal of sentiment witnessed in the afterward of demonetisation, when Nifty had plunged below 8,000 levels.
There are many exemptions available in the Income Tax Act, which can substantially reduce your tax liability.
The concept of marginal relief is designed to provide some relief in levy of surcharge to a taxpayer.
Using Big Data analytics, the Income Tax Department has segregated different kinds of deposits and large ones like more than Rs 1 crore that do not match with income tax returns filed in previous years will be taken for "layer enforcement".
The amendments will be applicable from next financial year, which starts on April 1, 2017 (assessment year 2018-19).
Individuals will be now required to deduct 5 per cent TDS or tax deducted at source for rental payments above Rs. 50,000 per month.
The Revenue Secretary said the Budget proposes to levy penalty on a person who receives Rs 3 lakh and above.
If the income exceeds Rs 5 lakh, a fee of Rs 5,000 shall be payable if the return is filed after July but on or before December 31 of the Assessment Year (AY). A fee of Rs 10,000 shall be payable if ITR is filed after December.
The memorandum said the decision was being taken "in view of the non-intrusive information-driven approach for improving tax compliance and effective utilisation of information in tax administration it is important that the returns are filed within the due dates."
Under the existing norms relating to survey, tax officials can enter any place, where business or profession is carried on, or at which any books of account or other documents or any part of cash or stock or other valuable article or thing relating to the business or profession are kept.
In the Budget for 2017-18, the government has sought to lower the tax burden on small tax payers with income in the lowest slab of Rs 2.5-5 lakh by halving their tax rate to 5 per cent.
A further deduction to an employee in respect of contribution made by his or her employer is allowed up to 10 per cent of the employee's salary.
According to the memorandum to the Finance Bill 2017, the amendment to the Income Tax Act will take effect from April 1, 2017. This means that the books of accounts of an assessee can be reopened by taxmen back till 2007.
While welcoming reduction in income tax for smaller firms to 25 per cent, a section of India Inc ruled that larger firms did not get relief in the form of lower corporate tax.
Finance Minister Arun Jaitley also proposed to reduce the time for completion of scrutiny assessments from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter.
According to the current tax norms, if a property is sold within three years of buying, the profit from the transaction is treated as short-term capital gains and is taxed according to the slab rate applicable to him/her.