Highlights of Union Budget 2017 – 2018
GST – No changes in service tax & excise duty as GST draft will be launching soon
Fiscal Deficit – Seen at 3.2% (17-18) & 3% (18-19)
Current Account Deficit – 0.3% (16-17) 1st Half
FDI Investments – 1.45 Lakh Crores (16-17) 1st Half
Direct Tax – Tax to GDP Ratio is very low
Income upto 2.5 Lakhs – Nil Tax
Income above 2.51 Lakhs to 5 Lakhs – Reduces to 5% Tax from 10%
Income above 50 Lakhs to 1 Crore – 10% surcharge
Farmer – Double their income in 5 years
Agriculture – 10 Lac Crores credit
MNREGA – Allocation 48,000 Crores
PM Gram Sadak Yojna – Allocation 19,000 Crores
Sr. Citizen – 8% guaranteed pension for 10yrs by LIC of India scheme
Rail Budget – 1.31 Lakh Crores, New Railway Line of 3500 kms, No service charge on IRCTC Ticket booking
Highway – 67,000 Crores for National Highways
Disinvestment – Continue through ETF’s and timely disinvestments of PSU’s,
Target 72500 Crores
Banking – 10,000 Crores to PSU banks for Recapitalisation, Double landing targets to Bank 2.44 Lac Crores, 2.44 Lac Crores under mudra scheme
Total Expenditure – Estimated at 21.47 Lac Crores
Defence Expenditure – 2.74 Lakh Crores excluding Pension
Long Term Capital Gain – For immovable property reduced to 2yrs from 3yrs
Income Tax – Companies turnover less than 50 Crores will pay 5% less tax, Effective rate 25%
Cash Transaction – No transaction over 3 lakes will be permitted in cash
Infra – Insurance company has to invest 25% in Infra bonds
2nd Home – The Union budget 2017 has severely curbed the tax benefit on the interest paid on housing loans in case of properties that are rented out or are ‘deemed let-out’. The budget proposes to restrict the loss on house property that can be deducted from ‘other heads of income’ such as ‘salary income’ to Rs 2 lakh only
New slab rate for income tax 2017-18 income:
Till 2.5L – NIL
2.5L – 5L – 5%
5L – 10L – 20%
Over 10L – 30%
Rebate of 87A reduced to 2.5K from 5K