With the aim of pushing growth, encouraging digital economy and bring transparency in political system, here is Union Budget 2017 as per the latest amendments in it. Arun Jaitley makes every effort to lead India towards the path of progress and development by adding new and innovating schemes. Major tax reliefs in Income Tax Slabs are probably going to benefit the nation in long run. As World Bank expects India GDP growth rate at 7.6% in FY18 and 7.8% in FY19, these major changes are going to boost the tradition of colonial-era. Government acts as a trusted custodian of public money with major banks in the country.
Union Budget 2017
Union Budget: Tax Reliefs and Major Updates
For Farmers & Underprivileged Sector
- Rs 400 crore allocated for Training of youth in India
- Main effort is made to develop rural areas of economy
- In order to pay sugarcane arrears, around Rs9,000 crore amount is allocated.
- Rs 1.84 lakh crore allocated for women and children welfare
- In Micro Units Development and Refinance Agency (MUDRA), lending target is doubled up to Rs 2.44 lakh crore
- Poverty Alleviation by improving Infrastructure
- With a purpose to bring a growth rate at 4.1% in agricultural sector, strict policies are to be made.
- For homeless people, target is made to shelter one crore houses. A fixed amount of Rs27,000 crore is to be spend on Pradhan Mantri Gram Sadak Yojana(PMGSY).
- Rs 20,000 crore provided for home loans by National housing bank
- Instead of 3 years, now Long-term capital gains tax on immovable property is imposed for 2 years
- To make the sticks more costly, Excise duty is hiked on cigarettes
- Now, Low cost housing to be given infrastructure status, with the motto to help companies especially in steel and cements.
- On LNG, Custom Duty to be reduced from 5% to 2.5% as per latest announcements
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For Tax Payers
- Good news for Middle Class, earning less than Rs 3 lakh per year, no tax levied now.
- For the ones earning between Rs 2.5-5 lakh, now Tax slab just reduced to 5% from 10%
- Major Changes in Income Tax Slabs, going to benefit the economy in long run
- Just reduced to 25% in income tax, for medium and small enterprises with annual proceeds up to Rs 50 crore
- As per the last three quarters, Rate of growth in personal income tax is reached to a height of 34.8%.
- In order to make MSMEs (micro, small and medium enterprises) more viable, income tax for smaller firms to be reduced.
- For the ones earning between Rs 50 lakh to Rs 1 crore, an additional surcharge of 10% is to be levied.
- For those having taxable income under Rs5 lakh, here is a single-page income tax return filing form
- As per the latest reports, around 24 lakh people show income above Rs10 lakh in 2016. From 4.2 crore salaried people, only 1.7 crore people file income tax returns.
- Every attempt is made to make taxation rates reasonable in the country.
- Total Allocation made for infrastructure at record Rs 3.96 lakh crore as per the Trade Infrastructure Export Scheme.
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For Voters & Political Parties
- Reduction of Rs 2,000 from Rs 20,000 in case of individual cash donation to political parties
- In order to enable electoral bonds for political funding, RBI Act is to be amended
- Now, Political Parties necessitate to file income tax returns
- Entitled to receive donation by cheque or in digital mode, made for political parties
Want To Know, What Items Become Cheaper
- Solar panels
- Micro ATMs
- LED lamps
- Iris scanners
- Finger-print machines
- Printed circuit boards for mobiles
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Ban cash transactions over Rs3 lakh, Delay the recovery of sales in gems and jewellery sector
As per the latest reports, with a ban on cash transactions over Rs3 lakh, finally it puts delay on sales of gems, jewellery, high-end housing, consumer durables as well as Luxurious products.
Reactions of Crucial Members
Prime Minister, Modi
“The FM has presented an ‘Uttam’ Budget, devoted to strengthening the hands of the poor.”
Hemal Mehta, Partner, Deloitte Haskins
“Affordable housing is a priority for this government and it was expected to get infrastructure status. With infrastructure status, developers can access foreign funds at a cheaper cost by way of debt and it will be a priority lending for banks as well. This should result into a progress in the sector. The fine print shall provide higher clarity.”
Power minister Piyush Goyal
“Congratulate @arunjaitley ji on reform oriented budget with concessions to middle class & SMEs while maintaining taxes through compliance.”
“The bullish tone of FM and rosy picture of economy is not borne out by the modest picture painted by economic survey yesterday. Reducing cash limit for political funding from Rs 20K to Rs 2K is meaningless. Because there is no limit in number of persons”
This is all about Union Budget 2017. Major Tax Reliefs in the Income tax slab is going to aid the citizens of India. For getting more upcoming updates related to Union Budget, stay on with us only at coolexample.in