Budget 2017 Highlights

Budget 2017

Softening the demonetisation drive, the Budget for 2017-18 on Wednesday halved the tax to 5 per cent on incomes up to Rs 500,000 but proposed a fresh surcharge of 10 per cent on incomes between Rs 50 lakh and Rs 1 crore and increased duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors.

Following are few of the highlights of Union Budget 2017-18,

Tax rates reduced by 50% to 5% for income of Rs 2.5-5 lakh, tax slabs unchanged
10% surcharge on people earning income between Rs 50 lakh-1 cr
15% surcharge on yearly income above Rs 1 cr to continue
Cash transactions over Rs 3 lakh to banned
Corporate tax for SMEs with a turnover up to Rs 50 cr cut to 25%; 96% companies to benefit from it.
Customs duty of LNG reduced by 50% to 2.5%
Fiscal deficit pegged at 3.2% subsequent year, 3% in FY’19
Political parties banned from accepting cash donation beyond Rs 2,000 per individual
They can receive donations only via cheques, electronic mode; electoral bonds to be issued by RBI
Aadhaar-based health cards for senior citizens; a scheme for senior citizens to ensure 8 pc guaranteed returns
FIPB to be removed; further FDI policy liberalisation
Government to have time-bound process for CPSE listing
Railway PSUs — IRCTC, IRFC, IRCON listed
Payment Regulatory Board to set up within RBI to regulate the digital payments
Negotiable instruments Act to amended in order to deal with cheque bounce cases
Legislative change to confiscate of assets of economic offenders who flee the country
Demonetisation bold, decisive measure; to aid GDP growth, taxes mop up to increase
Effect of demonetisation not to drop over to next year
GST, demonetisation ‘tectonic changes’ for the economy
Service charges on e-tickets booked through IRCTC waived
Capital expenditure of the Railway fixed at Rs 1.31 lakh cr
Rail safety fund of Rs 1 lakh cr over 5 years, unmanned level crossing to be removed by 2020
Budget based on 3 agendas — Transform, Energise & Clean India.
3-year period for long-term capital gains tax on immovable property condensed to 2 years; base year indexation shifted from April 1, 1981 to April 1, 2001
Divestment goal at Rs 72,500 cr, up from 56,500 cr
Gross market borrowing peg at Rs 6.05 lakh cr
Duty exempt on POS machines and Iris readers for encouraging digital payments
Tax benefits to Start ups to be for 3 out of 7 yrs
FPI to be excused from indirect transfer provision
Integrated public sector oil major to be produced to match global giants
Direct Tax collection increase 15.8%, indirect tax 8.3%
Total expenditure peg at Rs 21.47 lakh crore
Capital expenditure up 24%; to have multiplier result
Allocation to states hiked Rs 4.11 cr
FRBM Committee suggest that Debt-GDP ratio of 60% by 2020
Retail inflation to stay within 2-6 pc
2 new AIIMS to come up in Jharkhand and Gujarat
maximum ever allocation of Rs 48,000 cr to MNREGA
Farm sector to raise at 4.1% this fiscal, to double farm income in five years
Farm credit target for subsequent fiscal at Rs 10 lakh crore
Fasal Bima yojana amplified to 40% of crop area; raised to Rs 1.41 lakh crore in Kharif 2017 season
Infrastructure investment to peg at Rs 3.96 lakh cr
To twice irrigation fund corpus to Rs 40,000 cr
Infrastructure status to be accorded affordable housing
Dairy processing fund with Rs 2000cr corpus to be established
Rs 1.84 lakh cr allocated for women and child initiatives
Rs 1.87 lakh cr allocated to the rural, agriculture, allied sectors, 1 crore houses by 2019 for the homeless
PM Awas Yojana allocation up from Rs 15,000 cr till Rs 23,000 cr
100% village electrification to achieve by May 2018
Rs 31,920 cr allocated for the Scheduled Tribes, Rs 4,195 cr minority affairs, the outcome based budgeting to start
Road sector allocation hiked up to Rs 64,000 cr
Innovation Fund to be generated for Secondary Education
Allocate Rs 2.41 lakh crore rail, road, shipping to create jobs, spur economic activity
Announcement of New metro rail policy
New crude oil reserves proposed in the state of Odisha and Rajasthan; to take strategic reserve capacity to 15.33 mmt
India on cusp of digital revolution
FDI increased 35 pc to Rs 1.45 lakh crore in H1 Financial Year 2017.
2 new schemes — Referral Bonus for individuals, cashback for merchants — under BHIM app as early as possible
Aadhaar enabled payment system for merchants in a short time
Bill on curtailing menace of illicit deposit schemes in the offing
Fiscal deficit for this fiscal at 3.2%, down from budget estimation of 3.5%
FRBM Committee suggests 3% fiscal deficit for 3 years
Rs 10,000 cr to be given to banks for recapitalisation
Trade Infrastructure for Export Scheme (TIES) to be launched subsequent fiscal
Simple 1 page form to filled by individuals having taxable income of Rs 5 lakh
Excise duty on cigars, cheroots increased to 12.5% or Rs 4006 per thousand
Excise duty on pan masala raised to 9% from 6%; on raw tobacco raised to 8.3% from 4%
Parts utilised for manufacture of LED lights to attract basic customs duty of 5% and CVD of 6%
Solar tempered glass utilised for manufacture of solar cells/panels exempted from customs duty
Customs duty on printed circuit board for the purpose of manufacture of mobile phones hiked to 2% from nil
Threshold for audit of businesses opting for the presumptive income doubled to Rs 2 cr
Under the presumptive taxation for professionals up to Rs 50 lakhs advance tax can be paid in one instalment
Scope of the domestic transfer pricing limited to entities availing profit linked deduction