Key Highlights of Union Budget 2017-2018 in Simple Terms
Key Highlights of Union Budget 2017-2018 in Simple Terms
Today, finance ministry, Arun Jaitley has announced Union budget for 2017-2018. Finance minister has focused on several sectors and tried to incorporate someof asks from industry leaders. Government focuss mainly on poor, rural population, farming, Infra and financial sector. What are the key Budget Highlights of 2017-2018. As an individual or investor, what is that you would get benefitted out of this budget? Here is the budget analysis in simple terms.
Also Read: Top Stocks recommended by Experts for 2017
Key Highlights of Union Budget 2017-2018 in Simple Terms
- Governments expects to have demonetization impact to go away by Mar-2017. Does not expect any impact to be carried to new financial year 2017-2018.
- Existing tax rates for Individuals having taxable income of Rs 2.5 Lakhs to Rs 5 Lakhs is reduced from 10% to 5%. Means your tax is reduced by 50%. All other categories of tax payers in higher tax bracket, Rs 12,500 per annum would get benefitted. Best way is to reduce income tax by investingin various tax saving options.
- Simplified 1 pager ITR can be filed if your income is upto Rs 5 Lakhs. This does not include business income.
- Individuals filing ITR for first time would not come under Govt.Scrutiny.
- If your income is exceeding Rs 50 Lakhs, but less than 1 Crore, additional 10% surcharge needs to be paid. Beyond Rs 1 Crore, existing 15% surcharge would continue.
Sector wise Key Highlights of Union Budget 2017-2018 in Simple Terms
Budget impact on Agriculture Sector
- 60 Days interest waiver to farmers. Rs 10 lakhs allocated to Farmers
- Funding to NABARD would be increased to Rs 40,000 Crores.
Poor and Rural Development
- Rs 3 Lakhs Crores would be spent to development of Rural India. MGNREGA would double Farmers income.
- Govt plans to complete 1 Crore houses for those without homes.
- Allocation of Rs 19,000 Crores for Gram Sadak Yojana
- 100% rural electrification by March-2018.
- Rs 500 Crores for Mahila Shakti Kendras
- Under national wide scheme for pregnant women, Rs 6,000 per person will be transferred.
- Affordable housing will be given infra status. This would boost Real Estate stocks. You can check these benefits from Pradhan Mantri Awas Yojana Scheme.
- Due to surplus liquidity, Banks would need to reduce lending rates. On other side, Bank FD rates may still fall.
- Aadhaar based smart cards would be issued to Sr. Citizens to monitor health.
Infrastructure Sector
- Allocation of Rs 39.61 Lakhs Crores for Infra sector.
- Allocation of Rs 1.31 Lakh Crores to Railways
- Zero service tax for tickets booked thru IRCTC.
Financial Services Sector
- Railways PSE and IRCTC to go IPO and list on stock exchanges.
- Pradhan Mantri Mudra Yojana targets for Rs 2.44 Lakhs Crores for FY2017-2018.
- BHIM Application to be promoted with 2 schemes. Referal bonus to users and cash back for traders.
Tax Proposals
- Holding period for long term capital gains reduced to 2 years.
- Proposal to carry forward MAT to 15 years compared to earlier 10 years.
- SME companies having turnover upto Rs 50 Crores, tax would be reduced to 25%.
- No cash transaction above Rs 3 Lakhs. IT act to be amended.
- Cash donation to charitable trust reduced from Rs 10,000 to Rs 2,000.
Readers, what do you feel about this budget ? Do you feel that this would really help you as an individual?
Suresh
Key Highlights of Union Budget 2017-2018 in Simple Terms
- New Debt Mutual Funds Taxation Rules from 1-Apr-2023 - March 24, 2023
- Quant Dynamic Asset Allocation Fund NFO – Issue Details, Risk Factors and Review - March 22, 2023
- Axis S&P 500 ETF Fund of Fund NFO – Should you invest? - March 18, 2023
Great article about Union Budget 2017-18.You defined all key highlights of this Budget are very well.
Thanks..!!!