Budget 2019

Budget 2017-18 highlights

| Updated on January 12, 2018 Published on February 01, 2017
Following are the highlights of Union Budget 2017—18, presented by Finance Minister Arun Jaitley in Parliament today: <br /> Tax rates halved to 5% for income of Rs 2.5-5 lakh, tax slabs unchanged <br /> 10% surcharge on people earning between Rs 50 lakh-1 cr <br /> 15% surcharge on annual income above Rs 1 cr to continue <br /> Cash transactions above Rs 3 lakh banned <br /> Corporate tax for SMEs with turnover up to Rs 50 cr cut to 25%; 96% companies to benefit<br /> Customs duty of LNG halved to 2.5% <br /> Fiscal deficit pegged at 3.2% next year, 3% in FY’19 <br /> Political parties barred from accepting cash donation beyond Rs 2,000 per individual. They can receive donations via cheques, electronic mode; electoral bonds to be issued by RBI <br /> Aadhaar—based health cards for senior citizens; a scheme for them to ensure 8 per cent guaranteed returns <br /> FIPB to be abolished; further FDI policy liberalisation <br /> Government to have time-bound procedure for CPSE listing <br /> Railway PSUs —— IRCTC, IRFC, IRCON to be listed <br /> Payment Regulatory Board to be set up within RBI to regulate digital payments <br /> Negotiable instruments Act to be amended to deal with cheque bounce cases <br /> Legislative changes to confiscate of assets of economic offenders who flee country <br /> Demonetisation bold, decisive measure; to help GDP growth, taxes mop up to rise <br /> Effect of demonetisation not to spill over to next year <br /> GST, demonetisation ‘tectonic changes’ for economy <br /> Service charges on e—tickets booked via IRCTC waived <br /> Capital expenditure of Railway fixed at Rs 1.31 lakh cr <br /> Rail safety fund of Rs 1 lakh cr over 5 years, unmanned level crossing to be eliminated by 2020 <br /> Budget based on 3 agenda —— Transform, Energise, Clean India (TECIndia). <br /> 3 year period for long—term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from April 1, 1981 to April 1, 2001 <br /> Disinvestment target at Rs 72,500 cr, up from 56,500 crore <br /> Gross market borrowing pegged at Rs 6.05 lakh crore <br /> Duty exempted on POS machines and Iris readers for encouraging digital payments <br /> Tax benefits for Start ups to be for 3 out of 7 years <br /> FPI to be exempt from indirect transfer provision <br /> Integrated public sector oil major to be created to match global giants <br /> Direct Tax collection growth 15.8%, indirect tax 8.3% <br /> Total expenditure pegged at Rs 21.47 lakh crore <br /> Capital expenditure up 24%; to have multiplier effect <br /> Allocation to states hiked to Rs 4.11 cr <br /> FRBM Committee suggests Debt—GDP ratio of 60% by 2020 <br /> Retail inflation to remain within 2—6 pc <br /> 2 new AIIMS to come up in Jharkhand, Gujarat <br /> Highest ever allocation of Rs 48,000 cr to MNREGA <br /> Farm sector to grow at 4.1% this fiscal, to double farm income in five years <br /> Farm credit target for next fiscal at Rs 10 lakh crore <br /> Fasal Bima yojana increased to 40% of crop area; raised to Rs 1.41 lakh crore in Kharif 2017 season <br /> Infrastructure investment pegged at Rs 3.96 lakh cr <br /> To double irrigation fund corpus to Rs 40,000 cr <br /> Infrastructure status accorded affordable housing <br /> Dairy processing fund with Rs 2000cr corpus to be set up <br /> Rs 1.84 lakh cr allocated for women, child initiatives <br /> Rs 1.87 lakh cr allocated to rural, agri, allied sectors <br /> 1 crore houses by 2019 for homeless <br /> PM Awas Yojana allocation up from Rs 15,000 cr to Rs 23,000 cr <br /> 100% village electrification to be achieved by May 2018 <br /> Rs 31,920 cr allocated for Scheduled Tribes, Rs 4,195 cr minority affairs, outcome based budgeting to start <br /> Road sector allocation hiked to Rs 64,000 cr <br /> Innovation Fund to be created for Secondary Education <br /> Allocation of Rs 2.41 lakh crore rail, road, shipping to create jobs, spur economic activity <br /> New metro rail policy to be announced <br /> New crude oil reserves proposed at Odisha and Rajasthan; to take strategic reserve capacity to 15.33 mmt <br /> India on cusp of digital revolution <br /> FDI increased 35% to Rs 1.45 lakh crore in H1 FY’17<br /> 2 new schemes —— Referral Bonus for individuals, Cash Back for merchants —— under BHIM app soon <br /> Aadhaar enabled payment system for merchants shortly <br /> Bill on curtailing menace of illicit deposit schemes in offing <br /> Fiscal deficit for this fiscal at 3.2%, down from budget estimate of 3.5% <br /> FRBM Committee recommends 3% fiscal deficit for 3 years <br /> Rs 10,000 cr to be provided to banks for recapitalisation <br /> Trade Infrastructure for Export Scheme (TIES) to be launched next fiscal <br /> Simple 1 page form to be filled by individuals having taxable income of Rs 5 lakh <br /> Excise duty on cigars, cheroots hiked to 12.5% or Rs 4,006 per thousand <br /> Excise duty on pan masala hiked to 9% from 6%; on raw tobacco raised to 8.3% from 4% <br /> Parts used for manufacture of LED lights to attract basic customs duty of 5% and CVD of 6% <br /> Solar tempered glass used for manufacture of solar cells/panels exempted from customs duty <br /> Customs duty on printed circuit board for manufacture of mobile phones hiked to 2% from nil <br /> Threshold for audit of businesses opting for presumptive income doubled to Rs 2 cr <br /> Under presumptive taxation for professionals up to Rs 50 lakh advance tax can be paid in one instalment <br /> Scope of domestic transfer pricing restricted to entities availing profit linked deduction <br /> Presumptive tax would be 6% for SMEs with Rs 2 crore turnover opting for digital payment, 8% for others <br /> MAT credit will be allowed to be carried forward for 15 years, as against 10 years at present <br /> Lending target under Mudra Yojana set at Rs 2.44 lakh cr <br /> Computer Emergency Response Team for Financial Sector to be established <br /> Extensive reach out programme for GST to be launched on April 1.<br /> India a bright spot in world economic landscape, to be engine of global growth. <br />
Published on February 01, 2017
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