The Union budget 2017-18 is not satisfactory. There was a lot of buzz about it and people were expecting something really great, but it hasn’t turned out that way. If you compare it with the last year’s budget you can see the difference. Today we are going to tell you all the details about the budget so you can see it for yourself.
Budget announcements: Income Tax
- For individuals who earn between Rs. 2.5 lakh and Rs. 5 lakh the income tax rate has been decreased – from 10% to 5%. To top that, surcharge has been increased by 10 for individuals earning between Rs. 50 lakh to Rs. 1 crore.
- For Income tax returns taxable up to Rs. 5 lakh, a single one page form has to be filled up by the applicant. Advanced tax on personal income has now been increased by 34.8% – mainly due to demonetization.
- You can donate a maximum amount of Rs. 2000 to any political party as an individual. Also the political parties can receive donations via digital methods now for enhanced transparency.
- Cash transactions for individuals are now limited to Rs. 3 lakh. The basic customs duty which was 5% previously is now 2.5%. Also, cash donation to charitable trusts has been limited to Rs. 2000.
Budget for Businesses and Self Employed
- Tax rates for the companies with annual turnover rate up to Rs. 50 crore will get reduced by 25%. Real estate to make changes in its capital gains taxation.
- You can also revise tax returns within 12 months. However, GST will be announced soon hence not many changes in the excise duty have been mentioned.
- Concessional withholding will be extended to June 30, Rupee denominated masala bonds are going to be introduced. MAT will not be abolished any time soon – at least for the next 15 years it will be implemented.
Infrastructure budget allocation
- The total development expenditure and capex of Railways is to be around Rs. 1.31 trillion. Together with roads and railways the total infrastructure allocation is around Rs. 3.96 trillion.
- 3500km railway lines will be constructed and 500 stations will be made differently-abled friendly. Dedicated tourism or pilgrimage trains will run between different tirthyatra spots and other tourist spots across the country.
- By 2019 all the trains will have bio-toilets and there will be coach mitra facilities in the trains very soon. Safety has been given the number one priority. Unmanned level crossings will be eliminated by 2020.
- 64,000 crore has been announced for the allocation to National Highways and a whopping Rs. 2 trillion are for the construction of roads itself in this fiscal budget.
- 10,000 has been allocated to the Bharat Net Programme. India to become a global hub for the manufacture of electronics. The Digi Gau scheme will soon be launched to help this forward.
- Railways will now offer competitive digital ticket booking facilities. If tickets are booked via IRCTC, service charge will be taken off of it. Selected airports in tier II cities will go under PPP and maintained better.
- Foreign Investment Promotion Board will be abolished in 2017-18. FDI policy may be liberalized further. A Computer Emergency Response Team will be established for the financial sector (CERT-fin). New ETF is launching.
- Shares of the railways and other sectors will now be put up in the listings. Government will enlist shares in the Indian Stock Exchange. This was a long foreseen announcement which has now been realized.
- A bill will be imposed to curb the illicit deposits. A bill to address the resolution of financial firms will also be established in the current session of the budget. This will stress upon the resilience of the parliament.
Agriculture and rural sector
- 14 lakh Anganwadi Centers to receive Rs. 500 crores to set up Mahila Shakti Kendra. This will become the one-stop center to empower women – to teach them skills, to provide them with digital literacy, knowledge in nutrition and employment opportunities.
- IMR will be reduced from 39 to 28 by 2019. MMRs also to be reduced to 100 for the fiscal year 2018-2020. The Aadhar based smartcards will be introduced for the seniors to receive health benefits.
- Farmers will benefit from the 60 day wager announced in 31st Dec 2016. Apart from this the target for the agricultural credit has been fixed at a never-before-seen level of 10,000 crore rupees.
- A micro irrigation fund will be set up at NABARD with an initial amount of Rs. 5000 crores to achieve the ‘per drop, per crop’ agenda. A model law of ‘contract farming’ to be set up and distributed across the country for adoption.
- 9000 crore has been allocated to Fasal Bima Yojana for the FY 2017-18 and beyond. This is because the coverage rates have now been increased by 10% for each year.
- 187223 crores is allocated to the agricultural, allied and rural sector in total for FY 2017-18. Therefore it is one of the prime objectives of the government right now.
- Budget also announced a new training program called SANKALP training program for which Rs. 4000 crore was allocated. It will provide skill training to 3.5 crore youths within 2017-18.
- The government will launch a new online platform called SWAYAM for students. It will help them study over 350 courses online. They can take the coaching online or virtually with the help of high skilled professors and teachers.
- Incredible India 2.0 will be launched across the globe, which will not only promote tourism in the country but will also provide employment opportunities in the tourism sector to the youth.
100 skill training centers will be opened up with the aim of providing education in foreign language courses across the nation. Innovation fund will also be set up for higher education.