Posted on by Teena Gera Budget, Tax

Union Budget 2017

Major Highlights of Union Budget 2017:

  1. IMF estimates world GDP will grow by 3.4 per cent in 2017.
  1. Oil prices, rising dollar and volatile commodity prices seen as risks to Indian economy.
  1. India is seen as engine of global growth, have witnessed historic reform in last one year.
  1. Total Budget of ₹ 21.47 Lakhs crores for 2017-2018.
  1. Agriculture sector is expected to grow at 4.6%, agriculture expenditure targeted at ₹ 10 lakh crore.
  1. 36% increase in FDI flow; forex reserves at $361 billion in January, which is enough to cover 12 months needs.
  1. Allocation under MNREGA increased to ₹ 48,000 crore from ₹ 38,500 crore. This is highest ever allocation
  1. Total allocation for rural, agricultural and allied sectors for 2017-18 is ₹ 187223 crore, which is 24% higher than last year.
  1. One crore houses for poor by 2019.
  1. Safe drinking water to cover 28,000 arsenic and Fluoride-affected habitations in the next four years.
  1. 133-km road per day constructed under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14.
  1. For senior citizens, Aadhar cards giving their health condition will be introduced.
  1. 3500km railway lines to be put up.
  1. Service charge on rail tickets booked through IRCTC to be withdrawn.
  1. Rail safety fund with corpus of ₹ 100,000 crore will be created over a period of five years.
  1. Foreign investment promotion board (FIPB) to be abolished.
  1. Allocation for infrastructure stands at a record ₹ 3,96,135 crore.
  1. 25 crore people have already adopted Bhim App for digital payments.
  1. Aadhaar Pay- an app for merchants- to be launched; 20 lakh aadhaar-based POS by September 2017.
  1. Government is considering introduction of new law to confiscate assets of offenders who escape the country.
  1. Defence expenditure excluding pension at ₹ 2.74 lakh crore.
  1. Fiscal deficit for 2017-18 pegged at 3.2 percent of GDP.
  1. Fiscal deficit target for next three years pegged at 3 percent.
  1. India’s tax-to GDP ratio is very low. We are largely a tax non-compliance society, when too many people evade taxes burden falls on those who are honest.
  1. Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above ₹ 10 lakh.
  1. Of 76 lakh individuals who reported income of over ₹ 5 lakh, 56 lakh are salaried.
  1. Increase in Direct Tax collection by 34% after demonetisation.
  1. Holding period for LTCG for Land & Building reduced to 2 years.
  1. Small firms with turnover up to ₹ 50 crore to pay 25% tax now, instead of 30%.
  1. Carried forward of MAT Credit for 15 years instead of 10 years.
  1. 6% presumptive tax for turnover upto ₹ 2 crores.
  1. Change in period of limitation for scrutiny assessment.
  1. Black money SIT has suggested no cash transaction above ₹ 3 lakh. The government has accepted this recommendation.
  1. Jaitley reduces income tax rate from 10% to 5% for tax slab of ₹ 250,000 to ₹ 500,000.
  1. Surcharge of 10% for those whose annual income is ₹ 50 lakh to 1 crore.
  1. 15% surcharge on incomes above ₹ 1 crore to continue.
  1. One page Income Tax return proposed.
  1. No major changes for Indirect taxes due to GST implementation.
  1. Base year for indexation now 2001 instead of 1981 for long term capital gains.
  1. Maximum cash donation any party can receive will be ₹ 2000 from one source.
  1. Political parties will be entitled to receive donations by cheques or digital modes.
  1. An amendment being proposed to RBI Act to enable the issuance of electoral bonds for political funding.