The budget presented by Finance minister Arun Jetley, is not very populist as had been expected because of state elections due shortly. Neither is this a pro-rich budget as the opposition had complained. For the first time, the railway budget has been clubbed with the general budget.
Individual Income Tax:
- Income Tax rate reduced to 5% for individuals having income within range Rs 2.5 to Rs 5 lakh
- 10% surcharge on individual income above Rs 50 lakh and upto Rs 1Cr to make up for Rs 15,000 Crore revenue loss of due to cut in IT rates
- 15% surcharge on income above Rs 1 Crore
- Simple one page IT return to be introduced and citizens who file their return for the first time will not be subject to scrutiny.
- 25% Income tax for smaller companies with turnover below Rs. 50 Crore
- 96% of companies in India to be benefited from the move
Transparency in funding to political parties
- Maximum amount of political contribution a political party can receive in cash is Rs 2000 from any one source.
- Other contributions can only be received through cheque or digital mode and only in the registered bank accounts of political parties.
- Electoral bonds to be introduced
- Political parties to file returns
- Capital and development expenditure pegged at Rs 1.31 lakh Crores for Railways in 2017-18
- Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
- 500 stations will be differently-abled by providing lifts and escalators
- Service charge on e-tickets booked through IRCTC will be withdrawn
- The shares of railway CPSC’s like IRCTC and IRFC to be listed on various Stock Exchanges
Agricultural sector is expected to grow at 4.1 % this Fiscal,
- Target of agriculture credit fixed at Rs 10 lakh Crores in 2017-18
- The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 Crores, up 24% from last year
- Railways: Rs.1.3 Lakh Crores
- Defence Sector : Rs. 2.74 Lakh Crores
- Transport Sector: Rs. 2.4 Lakh Crores
- Agriculture/Rural: Rs. 1.87 Lakh Crores, up 24% from previous year
- Revenue deficit reduced to 2.1% from 2.3% for 2016-17
- Govt pegs fiscal deficit target at 3.2% for 2017-18 and 3% for next year.
- Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture
- Govt to further liberalise FDI policy
- 2 new AIIMS to come up in Jharkhand, Gujarat
- Customs duty on LNG halved to 2.5 %
- Monetary policy to be expansionary in major economies
- More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy
- Participation of women in MNREGA increased to 55% from 45% in past
- 1.25 crore people have already adopted Bhim App for digital payments
- Govt to introduce two new schemes to promote BHIM App referal bonus for users and cash back from traders
- Aadhaar Pay- an app for merchants- to be launched, 20 lakh aadhaar-based POS by September 2017.
- Government is considering introduction of new law to confiscate assets of offenders who escape the country
Finance Minister, Mr. Arun Jaitley pointed out how the direct tax collection was not in accordance with the income and expenditure pattern. He stated that, as per income tax returns filed in the previous year, there are only about 24 lakh Indians earning income above 10 lakhs per annum, and 1.72 lakh Indians above Rs 50 lakhs per annum, but 1.25crore cars were sold and more than 2 Crore Indians have traveled abroad in the same period. How is this possible if the tax returns are accurate.
Things which will get costly:
- LED lamp components
- Aluminum ores and concentrates
- Cars, Bikes, other vehicles
- Mechanical industry will get hit
- Printed circuit board
- Electronics items will be effected
- Cigarettes, pan masala, cigar, cheroots, bidis, chewing tobacco
- It happened every year
- Cashew nuts (roasted and salted)
- Polymer coated MS tapes used in manufacturing of optical fibres
Things which will get cheaper:
- Booking railway tickets online
- RO membrane elements for household usage
- Solar tempered glass used in solar panels
- Fuel cell based power generating systems
- Wind operated energy generator
- Vegetable tanning extracts used in making leather products
- POS machines card and fingerprint readers