Union Budget 2017 : Main Highlights & Key Points

Union Budget 2017 : Main Highlights & Key Points

Dear Friends,

Today on 1st February 2017, Shri Arun Jaitley, the Hon’ble Finance Minister of India presented Union Budget 2017, to set out the government’s policies for the next year. This follows the Economic Survey presented on 31st January in the Budget Session of the parliament. Here are the key-points from India’s Union Budget 2017. This Union Budget will also include this year’s Railway Budget.

The budget was broadly focused on 10 issues farming sector, rural population, youth, poor and health care for the underprivileged, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest.

• Agenda of this year’s budget is: “Transform, energize and clean India.”
• Allocation for infrastructure stands at a record Rs.3,96,135 crore.

Aadhar Pay & Transaction Related Info in Union Budget 2017

• Aadhaar enabled payment service will be launched soon.
• Banks have targeted to introduce additional 10 lakh Point-of-Sale terminals by March of 2017. This number is set to hit 20 lakh by September 2017.
• Two new schemes will be launched to boost the adoption of BHIM (Bharat Interface for Money) digital payment app. These will be a referral bonus and a cash back scheme for merchants.
• Nearly 1.25 crore people have already adopted the BHIM app.
• Black money SIT has suggested no cash transaction above Rs.3 lakh. The government has accepted this recommendation.

Demonetization

• Demonetization is expected to have a transient impact on the economy.
• It will have a great impact on the economy and lives of people .
• Demonetization is a bold and decisive measure that will lead to higher GDP growth.
• The effects of demonetization will not spillover to the next fiscal.

Transportation & Infrastructure in Union Budget 2017

• Transport sector allocated Rs.2.41 lakh crore.
• Bharat Net Project allocated Rs.10,000 crore.
• Allocation for infrastructure stands at a record Rs.3,96,135 crore.

Roads & Highways

• Rs. 64,000 crore will be allocated for the development of National Highways.
• 133 kms of road will be constructed per day under Pradhan Mantri Gram Sadak Yojana. Compare this against 73 kms of road per day in the period from 2011-14.

Railways in Union Budget 2017

•  Total capital and developmental expenditure of Rs.1.31 lakh crore have been allocated for Railways in 2017-18, including Rs.55,000 crore to be provided by the government.
• 3500 kms of railway lines will be constructed.
• Service charge on rail tickets booked through IRCTC will be withdrawn.
• A rail safety fund with corpus of Rs.100,000 crore will be created over a period of 5 years.
• 500 rail stations to be made friendly to the differently abled by providing lifts and escalators.
• A new metro rail policy will be announced.

• Proportion of direct tax to indirect tax is not optimal.
• 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
• Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.
• Only 1.72 lakh people showed income of more than Rs 50 lakh a year.
• Between Nov 8 to Dec 30: Deposits between Rs 2 lakh and Rs 80 lakh was made in 1.09 crore accounts.
• Net tax revenue of 2013-14 was Rs 11.38 lakh crore.
• Out of 76 lakh individual assesses declaring income more than Rs 5 lakh, 56 lakh are salaried.
• 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.
• Rate of growth of advance tax in Personal I-T is 34.8% in last three quarters of this financial year.
• Holding period for long term capital gain lowered to 2 years
• Propose to have carry-forward of MAT for 15 years.
• Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Telangana.
• Corporate tax: In order to make MSME companies more viable, propose to reduce tax for small companies of turnover of up to 16. Rs 50 crore to 25%. About 67 lakh companies fall in this category. 96% of companies to get this benefit.
• Propose to reduce basic customs duty for LNG to 2.5% from 5%
• SIT on black money suggested no cash transactions of more than Rs 3 lakh. Govt has accepted this proposal.
• Income Tax Act to be amended.  No transaction above Rs 3 lakh to be permitted in cash.
• Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000.
• Net revenue loss in direct tax could be Rs. 20,000 crore.
• India’s tax to GDP ratio is not favourable.
• Out of 13.14 lakh registered companies, only 5.97 lakh companies have filed returns for 2016-17.

• Existing rate of tax for individuals between Rs.  2.5- Rs 5 lakh reduced to 5% from 10%
• All other categories of tax payers in subsequent brackets will get benefit of Rs 12,500.
• Simple one page return for people with annual income of Rs. 5 lakh other than business income.
• People filing I-T returns for the first time will not come under govt. scrutiny 5.
• 10% surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore loss due to  cut in personal I-T rate. 15 surcharge on individual income above Rs. 1 crore to remain.

• Rs. 500 crore allocated for Mahila Shakthi Kendras.
• Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.
• A sum of Rs. 1,84,632  crore allocated for women and children.
• Affordable housing will be given infrastructure status.
• Owing to surplus liquidity, banks have started reducing lending rates for housing.
• Elimination of tuberculosis by 2025 targeted.
• Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres.
• Two AIIMS will be set up in Jharkhand and Gujarat.
• Will undertake structural transformation of the regulator framework for medical education.
• Allocation for Scheduled Castes  is Rs. 52,393  crore
• Aadhaar-based smartcards will be issued to senior citizens to monitor health.