Highlights of the Union Budget 2017 – 2018

  1. FIRSTS
  • This was the first time The Budget was declared on 1st February
  • First joint budget Railway and Union Budget
  • First Paperless budget
  • First budget that does away with Plan and non-planned expenditure
  1. DIRECT TAX
  • Individuals:
    • Income upto 2.5 Lakhs – Nil Tax
    • Income above 2.5 Lakhs to 5 Lakhs – tax reduced to 5% from 10%
    • Income above 50 Lakhs – 10% surcharge
  • Corporates:
    • Companies with annual turnover of upto Rs 50 crore – 25% Tax
    • MAT credit allowed for a period of 15 years instead of 10 years
  • MIS on Tax Returns Filed:
    • Total number of people filing tax returns – 3.7 crore
    • Income below 2.5 lakhs – 99 lakhs
    • Income between 2.5 lakhs to 5 lakhs – 1.95 crore
    • Income between 5 lakhs to 10 lakhs – 52 lakhs
    • Income above 10 lakhs – 24 lakhs
    • Out of the 76 lakh people with income above 5 lakh, 56 lakhs are salaried class
  1. ACTIONS POST DEMONITIZTION
  • From 8th November to 30th December 2016

Deposits between Rs 2 lakhs to Rs 80 lakhs – 1.09 crore accounts; Average Deposit – Rs 5.03 lakhs

Deposits above Rs 80 lakhs – 1.48 lakh accounts; Average Deposit – Rs 3.31 crore

  • Banks have targeted to introduce 10 lakh new PoS terminals by March 2017 and 20 lakh Aadhar based PoS by September 2017
  • 125 lakh people have adopted the BHIM app so far.
  • A Mission will be set up 2,500 crore digital transactions for 2017-18
  1. EASE OF DOING BUSINESS
  • Foreign Investment Promotion Board to be abolished in 2017-18
  • Foreign Portfolio Investor (FPI) Category I & II exempted from indirect transfer provision.
  • Assesses with receipts upto Rs 50 lakh are given a benefit of paying advance tax in one instalment instead of four under the presumptive taxation scheme
  1. Political Funding
  • Maximum donation of Rs 2000 in cash from one person
  • A donor could purchase electoral bonds from authorised banks against cheque and digital payments only which are redeemable only in the designated account of a registered political party.
  1. Disinvestment
  • The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges.
  • The government will continue to use ETF as a vehicle for further disinvestment of shares.
  • Divestment of PSUs target – Rs 72500 crores
  1. Industry Specific
  • Low Cost Housing given the status of Infrastructure
  • 100% village electrification by 1st May 2017..
  • To make India a global hub for electronics manufacturing a provision of Rs 745 crores
  • Proposed to set up strategic crude oil reserves at 2 more locations
  • Rs 10,000 crore for recapitalisation of banks
  1. Expenditure
  • Total Expenditure – Rs 21.47 lakh crores
  • MMREGA – Allocated Rs 48,000 crores
  • PMGSY – Allocated Rs 19,000 crores
  • Railway Budget – Rs 1.31 lakh crores
  • Highways – Rs 67,000 crores
  • Defence – Rs 2.74 lakh crores excluding pension
  1. ECONOMIC INDICATORS
  • Fiscal Deficit – Seen at 3.2% (17-18) & 3% (18-19)
  • Current Account Deficit – 0.3% (16-17) 1st Half

 

 

 

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