Union Budget 2017–18 Keypoints:
1. Tax reduced from 10 percent to 5 percent: People with taxable income in between 3 to 5 Lakh will now have to pay only half of the taxes they used to pay earlier. Below 3 lakhs, tax is exempted.
2. However, the tax rate for Rs 5 – 10 lakh income category remains the same. i.e. 20 percent.
3. Income of more than 10 lakh and less than 50 lakh will have to pay 30 percent tax.
4. Individuals with income in the bracket of 50 lakh to 1 Crore will have to pay additional 10 percent surcharge beside 30 percent tax.
5. Individuals with income with more than 1 Crore will have to pay additional 15 percent surcharge beside 30 percent tax.
6. No Cash Transaction above 3 lakh – You are not allowed to transact more than 3 lakh INR in Cash.
7. No service tax will be charged from now onward, if you book a railway ticket through IRCTC.
8. Cash donation to political parties had been reduced from 20,000 INR to 2,000 INR – You are not allowed to donate more than 2,000 INR to any political party in cash. This is a welcome move, and will help curb political funding in the form of black money.
9. Foreign Investment Promotion Board has been abolished.
10. Government to promote cleanliness of Indian Railways through Swach Railway Abhiyan.
11. Holding period for LTCG for Land and building has been reduced to 2 years.
12. 100 Percent electrification to be achieved in villages by 1st May, 2019
13. 100 Skill centres to be established with courses in foreign languages.
Now let’s talk some numbers.
Total allocation – 21.47 Trillion INR.
Allocation towards MNREGA- 48000 Crore Inr compared to last years 35000 INR
Allocation towards Indian Railways – 55,000 Crores INR. – 3500 Km railway lines to be laid. New metro rail policy has been introduced. 500 stations to be made differently abled friendly.
Allocation towards Highways- 64,000 Crore Inr. Under Pradma Mantri Gramin Sarak Yojana, 133 km per day road to be constructed compared to 73 km per day in 2011–14.
Allocation towards PMAwas Yojana- Rs.23,000 Crore INR – 1 Crore Houses to be built for homeless citizens by 2018.
Allocation towards defence – Rs.86,400 Crore
Allocation towards Agriculture credit – Rs.10 lakh Crore.
Allocation towards transport sector – Rs.2 Trillion.
Union Budget 2017–18 – Effect on Business/Corporates
Small firms with earning less than 50 crores will now have to pay 25 percent tax instead of 30 percent tax.
Let’s look at some stats from the past year presented in Budget 2017
1. 24 lakh Indians are earning above 10 lakhs per year
2. 1.72 lakh Indians are earning above 50 lakh per year
3. 1.25 Crore Cars were sold last year and more than 2 Crore Indians travelled abroad in the year 2016–17.