In a big relief for vast Indian middle class, union finance minister Arun Jaitley has revised tax limits for individual assesses in the Union Budget 2017.
The USP of the first budget after demonetisation (note ban) move, was taking from the rich and giving it to the poor.
In his budget announcement, the finance minister also made sure that it was not perceived as pro-rich, so imposed a tax surcharge of 10 per cent on individuals who earn above Rs 50 lakh to 1 crore and proposed a legislation to sell assets of those who flee the country.
With main focus on infrastructure and rural development, the finance minister in his budget raised the Rail Budget allocation, MNREGA allocation and limited donations to political parties and NGOs.
Here is what the FM announced:
* Tax liability for individuals earning between Rs 2.5-5 lakh reduced to 5% from 10%.
* No tax for people earning up to Rs 3 lakh per annum.
* Surcharge of 10% for individuals earning between Rs 50 lakh to Rs 1 crore.
* Companies with annual turnover of Rs 50 lakh get a 5% reduction in corporate tax.
* Surcharge on individual annual income of Rs 1 crore or more remains unchanged.
* A single-page income tax return filing form for taxable income under Rs 5 lakh.
Benefits for the common man:
* Taxpayers to get benefit of Rs 12,500 for all classes above Rs 5 lakh
* No scrutiny for first time tax payers over high value transactions
Other major highlights of Budget 2017:
* Time period of revising tax return to be reduced to 12 months
* Amendment to RBI Act proposed to enable electoral bonds
* Political parties will be entitled to receive donations in cheque or digital payment, every political party to file IT returns.
* Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now.
* Maximum amount of cash donation a political party can receive to be Rs 2000 from any one source.
* Computer emergency response team to be established Cyber security.
* Rate of growth in advance tax in personal income tax in last 3 quarters of this financial year is as high as 34.8%
* Basic customs duty on LNG to be reduced from 5% to 2.5%.
* Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector.
* To make MSMEs more viable, income tax for smaller companies to be reduced.
* Profit linked deduction available to Startups for 3 years out of 5 years will be available for 3 years out of 7 years
* Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Telangana.
* Thrust in budget are affordable housing, promote digital economy, bringing transparency in political funding.
* Only 1.72 lakh people show income above Rs 50 lakh.
* 1.5 crore people show income between Rs 2.5-5 lakh; 52 lakh people between between Rs 5-10 lakh; 24 lakh above Rs 10 lakh.
* 5 special tourism zones, anchored on SPV, to be set up; Incredible India II campaign to be launched across the world.
* Revenue Deficit target at 1.9% of GDP:.
* Fiscal deficit pegged at 3.2 percent of GDP
* Aadhar-enabled payment system AadharPay to be launched.
* Defence allocation of Rs 2.74 lakh crore.
* Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country.
* Total allocation for infrastructure in Budget for Better India stands at a record level Rs 3,96,135 crore in 2017-18.
PM Modi hails the Budget:
* The budget with strengthen the hands of the poor.
* Aimed at the well-being of the villagers and farmers and will double the income of the farmers.
* The budget has been focused on rural areas, infrastructure and poverty alleviation. It maintains the best standards of fiscal prudence.
* Railway budget has focused on railway safety fund.
* The housing sector will also gain immensely from this budget.
* The budget also focuses on the elimination of corruption and black money.
* It will help small businesses to become competitive in the global market.