The Finance Minister has announced Varishtha Pension Bima Yojana (VPBY 2017), a modified version of that floated during FY15. This scheme provides an assured pension and guaranteed rate of return of 8 per cent for 10 years.

The announcement on introduction of Aadhar-based Smart Cards containing the health details will help the aged track their medical history. A full medical history including check-ups, medicines and record of the surgeries they have undergone can help a doctor diagnose them properly.

The proposal to reduce the holding period for qualifying for long-term capital gains tax from three to two years on sale of immovable property is a significant move. Investors will have to pay long-term capital gains on real estate held for more than two years with indexation benefit. Currently, selling within three years attracts short-term capital gain tax wherein the person has to pay as per his tax bracket.

Further, the proposal to change the base year for capital indexation from existing April 1, 1981 to April 1, 2001 will lead to a more realistic cost of acquisition.

The government has decided to put a cap on cash transaction up to ₹3 lakh for an individual tax payer. This will prompt people to use digital means for financial transactions and help curtail black money.

The government has decided to bring in a draft bill to tackle the menace of illicit deposit schemes.

The Budget has proposed to remove the 5 per cent of TDS deducted from commission payable to individual insurance agents whose annual income is below the taxable limit. Currently, the TDS is deducted irrespective of the taxable limit. This will bring cheer to insurance agents.

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