Moving away from the tradition of presenting the budget on the last day of February, Finance Minister Arun Jaitley presented the Union and Railway budget for 2017 today, on 1st February. Whether you are a businessman, salaried or self-employed professional, here are some key takeaways from this year’s budget that you should be aware of.
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This was the one major aspect of Budget 2017 that we were all waiting for. So, what has changed this year?
- The basic personal income tax slab for income between 2.5 lakhs and 5 lakhs has been reduced from 10% to5 %. People with higher incomes will also benefit proportionately – with regard to the computation of their taxes
- People earning yearly incomes between 50 lakhs and 1 crore will have to pay a surcharge of 10%
- People earning yearly incomes of Rs. 1 crore and above will pay a surcharge of 15%
- Corporate tax has been reduced to 25% for SME companies with turnover of up to Rs. 50 crores
- Eligible start-ups can now avail their 3-year tax holiday in a block of 7 years instead of 5 years
- Holding period for land and buildings has been reduced from 3 years to 2 years
- Unsold houses with developers to be taxed at rental rates
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- Although the Finance Minister has announced the biggest outlay for the infrastructure sector ever- Rs. 3,96,135 Crores- there were no announcements on easing hurdles and starting stalled projects.
- There will be a revised mechanism for listing of PSUs (Public Sector Undertaking). Among the PSUs to be listed are IRCTC, IRCON and IRFC.
3) Other Highlights
- Limit on Cash transaction set at Rs. 3 lakhs.
- Capital offenders, who flee the law, will have their assets confiscated under a new law that will be introduced.
- Bio-toilets to be fitted in all railway coaches by 2019.
- Aadhar enabled payment system to be launched.
- Senior citizen Aadhar based health card will be introduced.
- Extension of tenure of loans under the Credit Linked Subsidy Scheme (CLSS) of Pradhan Mantri AwasYojana (PMAY) from 15 to 20 years.
- 1 crore houses by 2019 for the houseless and those living in ‘kaccha’ houses.
- There will be an amendment of the drugs and cosmetic rules for use of generic drugs. Medical devices will also be included under price control.
- To bring transparency in political funding, the cash limit for donations to political parties has been reduced to 2,000 from the existing 20,000.
- Electoral bonds will be introduced which can be purchased through banks or online and redeemed only by political parties.
Stay tuned to know more!