Union Budget 2017: 5% tax rate on salary between Rs 2.5 lakh to Rs 5 lakh
Union Budget 2017: 5% tax rate on salary between Rs 2.5 lakh to Rs 5 lakh
Union Budget 2017 is scheduled to be announced at 11 am on February 1, 2017 by Finance Minister Arun Jaitley.
This is a unique budget in many ways as it is the first time in 92 years that there will be no separate railway budget.
Moreover, Budget usually has been scheduled for the end of February each year but the Government has broken that ritual this year. It said that this will help the Government to dole out money allotted in the budget to various ministries and schemes on time.
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Comprehensive restructuring of National Highways Programme to be done, to ensure creation of National Highways Grid of desirable capacity.
One of the key announcements that Finance Minister Arun Jaitley made during the Budget 2017 speech was that Foreign Portfolio Investors (FPIs) in category 1 and 2 are exempted from indirect transfer provision. Read more...
Start-ups will also get the profit (linked deduction) exemption available to them for 3 years out of 7 years from earlier 3 years out of 5 years. Read more...
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Tax will be zero for income upto Rs 4.5 lakh under Section 80C
Propose surcharge levied of 10% on income between Rs 50 lakh- Rs 1 crore
Propose to reduce tax rate to 5% for Rs 2.5 lakh-Rs 5 lakh
Restrict scope of domestic trasfer pricing, proposes Jaitley
Increase threshold limit for audit increased to Rs 2 crore
Proposes to exempt some FPI from indirect transfer provision
Transparency in political donation to be incentivise
Cash donation which can be received by any political party will be only Rs 2000
Political parties will be intitled to receive donation only via cheque or digital
Finance Minister Arun Jaitley presented India's Union Budget 2017-18 speech in Parliament based on ten key themes on Wednesday. Read more
Proposes half custom rate on LNG
Cash donation to any charity reduced from Rs 10,000 to Rs 2,000
No cash transaction of above Rs 3 lakh
Reduce capital gain tax in real estate
Allow carry forward of MAT for 15 years
Propose to ease income tax for smaller companies to 25%
96% of Indian companies to be taxed at 25%
Net tax revenue to grow higher than 17% for second year in a row.
Measures for Affordable Housing scheme: Proposes extension of affordable housing program to five years
Proposes to lower holding period for capital gain on properties
Committed to make tax rate reasonable, ensures FM.
We are largely non- tax compliance society, says FM
Revenue expenditure pegged at 1.9% as against 2% pegged under FRBM Act
Fiscal deficit pegged at 3.2% of GDP for FY18, Jaitley says
Debt to GDP ratio for centre at 60% by 2023, Jaitley says
Rs 3,000 crore allocated to implement Budget announcements.
Rs 2,74,114 crore towards Defence sector excluding Pension
Confiscate assets of offenders, FM Jaitley says in context of Vijay Mallya fraud
Allocation towards rural, agriculture and allied sector is 24% higher that which was allocated to this sector last year. Read more...
Proposes to introduce Aadhaar -enabled payment system
Jaitley proposes to double lending target for small business loans. Propose to spend Rs 2.44 lakh crore for small business loans
ETFs with other govt holding will launch in 2017.
Rs 10,000 crore allocated to state bank recapitalisation
List of PSUs will foster public accountability. Shares of IRCTC will be listed on various stock exchange
Abolish FIPB in 2017-18, says Jaitley
Total allocation for infrastructure stands at record level Rs 3,96,135 crore, Jaitley says
Rs 10,000 crore for BharatNet project.
More than 1,50,000 gram panchayats will benefit with this in next year.
Rs 241387 crore for transportation sector.
This will spur economic activity and create jobs.
Road sector: Rs 64000 crore for highways.
2000 km of coastal roads will be built.
500 stations will be made differently-able friendly.
Introduce coach mitra to register complaints at a single window facility.
FM Arun Jaitley presents #Budget2017 under ten themes
Rs 1 lakh crore capital for passenger safety.
Clear guidelines for implementations and timelines.
Unmanned crossing to be eliminated by 2020.
Total capital: Rs 131000 crore for Railways,
Rs 55000 crore provided by Govt in the Budget.
Railways wil focus on: passenger safety, capital and dev dowrk, clealiness, financial and accouting reforms.
Infra: Railways, roads and rivers are lifeline of the country.
I feel privilege to present first combined budget.
Allocation to SC Rs 38,833 crore 52,933 crore, 35% increase
Affordable housing will now have infra status.
Thanks to surplus liquidity created by demonetisation, banks have already started reducing lending rates.
Interest subvention has been announced by PM.
Rs 500 crore in 14 lakh anganwadi centres.
Rs 6000 each in acccounts of pregnant women.
For welfare of women and children, under various schemes allocation stepped up to Rs 1,84,632 crore.
Rural sector total allocation is up 24%, at Rs 1,87,223 crore
We are well on our way of achieving 100% village electrication by April 1, 2017.
Proposed to incerase allocation to national rural livelihood mission to Rs 4500 crore.
PM's employment generation scheme has gone by by more than 3 times.
Swacch Bharat Mission has helped ending open defecation.
42% to 60%, is rural sanitation.
Rs 19000 crore for PMGSY. Total of Rs 27000 crore with support of state govts.
The initiative to geotag all MNREGA assets and putting them in public domain has gained traction.
PMGSY is at 133 km road per day in 2016-17 as against 73 km per day during 2011-14.
We have taken the task of connecting habitats of more than 100 persons in left-wing blocks.
MNREGA should create productive assets.
Targets of 5 lakh ponds and 10 lakh composite pits have been afully achieved.During 2017-18, another 5 lakh ponds would be taken up.
Participation of women increased to 55% from 48% in the past.
In budget provision of Rs 48,000 crore in 2017-18, highest ever allocation for MNREGA ever.
Jaitley says 1 crore households will be brought out of poverty.
Arun Jaitley says that the Budget will focus on farmers.
He says lasst year's budget was about doubling farm income, increasing productivity.
Adequate credit should be availble.
Rs 10 lakh crore: agri credit, he announces.
Special efforts to ensure adequate flow of credit to underserved areas.
Themes:
Farmers for whom we have committed to double their incomes.Energising youth.
Healthcare and affordable housing.
Growth in financial sector.
Digital economy for speedy accountability.
Public service, efficiency.
Prudent fiscal management .
Tax administration, honouring the honest.
Will continue economic reform for the benefit of the poor.
We are aware that we need to do more for our people.
Agenda for the next year is transform, energise and clean India i.e. tech India.
Jaitley is now talking about announcements made by PM Modi on December 31, 2016.
Approach has been to spend more on rural areas, infrastructure and poverty alleviation.
Arun Jaitley is now reading a poem asking people to stand with the government and its intention with respect to demonetisation.
There is early evidence of banks to lend at reduced interest rates and digitisation in all sections of society.
Demonetisation has been a bold measure, Jaitley says.
It seeks to create a new normal where economy will be bigger and cleaner. Terror funding will be curbed.
This measure is disruptive.
Drop in economy, if any, will have only transient impact on economy.
A right cause never fails, he quotes Mahatma Gandhi.
We are seen as an egine of global growth.
India has seen historic and impactful growth.
Two tectonic policy initiatives; GST and progress for its implemention and demonetisation, he says.
Advantages of GST are being listed out by Jaitley.
I thank all members of both members for passing Const. Amend. GST Bill.
Arun Jaitley right now is talking about Indian economy and giving updates of events from last year.
He is talking about CAD, FDI, forex reserves.
Govt has continued on steady path of fiscal consolidation, he says.
He says economy has weathered many shocks like US elections, FCNR deposits and US Fed rates.
Optimistic signs in next year.
Three major challenges.
First, US FD stance to incerease interest rates may lead to higher outflows from emerging economies.
Second, higher crude oil has impacted economies. Looking at shale gas.
Third, in several parts of the world, increasing signs of retreat from globalisation to protectionism.
Can impact exports from India.
India stands out as bright spot in global economic landscape.
CPI has been declining and expected to remain between 2-6%.
I place this budget in face of global uncertanity.
IMF estimates world GDP 3.4% in 2017.
We feel encouraged by unstinted support to the people by our initiatives. We shall continue to work for poor, farmers, women, SC, ST. Focus on energising youth and reap benefits.
Jaitley: In the last two and a half years its been our mission to bring transformation change to this country.
From blacnket and loose entitlements to targetted delivery and from an informal to a formal economy.
Arun Jaitley has started his budget speech.
Mayhem in Parliament. Opposition demands adjournment. Sumitra Mahajan says this is not the way.
Budget Session begins.
Mallikarjun Kharge is speaking. He says as a mark of respect to late E Ahamad, Parliament should be adjourned today.
Sumitra Mahajan says Budget speech will be today.
Sumitra Mahajan, Speaker, Lok Sabha:
· as we all know that E Ahamed passes away
· I just came from his residence after paying him homage
· he was a very active member
· budget is a constitutional thing and it has to be present
· we are taking the decision
· budget will be there
Arun Jaitley has reached parliament.
Finance Minister Arun Jaitley is all set to announce Union Budget 2017-18.
Nikkei India Manufacturing PMI is out
Indian manufacturing output increased during January on the back of rising order books.
"Greater production needs encouraged companies to purchase more inputs, but failed to generate jobs in the sector. On the price front, input cost inflation climbed to its highest mark since August 2014, while output charges were raised for the eleventh successive month," it said.
"Having deteriorated in December for the first time in one year, the health of India’s manufacturing economy improved in the opening month of 2017. The headline Nikkei India Manufacturing Purchasing Managers’ IndexTM (PMI) TM was up from 49.6 to 50.4 in January," Markit added.
In total the government has only achieved 60% of the divestment target it had put up in the previous Budget. Read more...
As the Government of India gets ready to prepare its Union Budget 2017-18 in few hours from now, we managed to bring you 20 important Budget 2017 Glossary terms that you need to know.
Finance Minister Arun Jaitley will present the country's Budget 2017 in the Lok Sabha in New Delhi on Wednesday. Read more
Abheek Barua, Economist, HDFC Bank is LIVE on Zee Business;
Finance Minister Arun Jaitley will be interacting with Twitterati. He will be answering questions on Twitter related to Budget.
People can ask the questions to Finance Minister by using #MyQuestionToFM and get a chance to interact directly with him.
Also, Govt might introduce two-tier service tax in order to get closer to GST.
Read this Zee Business EXCLUSIVE: or WATCH HERE
Will Arun Jaitley raise service tax?
There is a possibility as HDFC Bank's Abheek Barua tells Zee Business.Railway Budget will be keenly watched as this would be first time it has been merged with Union Budget. Suresh Prabhu, in his Railway Budget of last year, had spoken about bringing in three 'R' – Reorganise, Restructure, Rejuvenate in Indian Railways.
Many analysts expect the upcoming Union Budget to earmark Rs 1.3 lakh crore -1.4 lakh crore spending for next fiscal. Also to focus on bringing major safety changes for Railways. WiFi services and E-catering will be major push this budget.
Read More: Railway Budget: New trains to privatisation, what will Suresh Prabhu do?
This Budget will be challenging in many ways. HDFC Bank says on Zee Business.
Meanwhile, on Tuesday, Ministry of Statistics & Programme Implementation revised the real Gross Domestic Product (GDP) growth to 7.9% for the fiscal year 2016 as against 7.6% in earlier estimates.
"Real GDP or GDP at constant (2011-12) prices for the years 2015-16 and 2014-15 stands at Rs. 113.58 lakh crore and Rs. 105.23 lakh crore, respectively, showing growth of 7.9 per cent during 2015-16 and 7.2 per cent during 2014-15," Ministry said.
Increasing the personal income tax basic exemption limit from Rs 2.5 lakh to Rs 3.5 lakh and the rationalisation of tax slabs, could push consumption back on track after it was impacted due to demonetisation. Read more...
Ahead of presentation of Union Budget 2017-18, domestic markets on Wednesday opened flat. At 0927 hours, Sensex was trading at 27,690.74, up 34.78 points or 0.13%, while, Nifty was trading at 8,572.30, up 11 points or 0.13%.
On 30-share benchmark, among top gainers were State Bank of India (1.54%), Adani Ports (1.40%), HDFC (0.91%), Maruti Suzuki (0.79%) and Sun Pharma (0.70%). Among losers were Infosys (-1.92%), TCS (-1.05%), NTPC (-0.96%), ICICI Bank (-0.84%), Wipro (-0.68%).
WATCH: What to expect from the Budget FY18 from our estemmed panel:
One of the key expectations many expect to see during this Budget is a reduction in the corporate and personal income tax level. Read more...
The Union Budget which will be declared on February 1, a month prior to its usual timeline and will present consolidated funds for the centre as well as Indian railways. Read more about What to expect in today's Union Budget....
Budget FY18 copies have reached parliament.
Domestic markets will be closely watched today as the Finance Minister Arun Jaitley will be announcing the Union Budget for 2017.
After the presentation of Economic Survey on Tuesday, the indices took a hit by closing nearly 1% down. Yesterday, Sensex closed at 27,655.96, down 193.60 points or 0.70%, while, Nifty ended at 8,561.30, down 71.45 points or 0.83%.
FM Jaitley and other finance ministry officials have left for Rashtrapati Bhavan.
Finance Minister Arun Jaitley has arrived at the ministry. However, sources say that the final decision on today's budget presentation will be taken at 10 am by the Speaker.
The Union Budget which will be declared on February 1, a month prior to its usual timeline will present consolidated funds for the centre as well as Indian railways.
Ministry of Finance said that they will do away with plan and non- plan expenditure as it expresses expenditure as capital and revenue.
READ MORE: What to expect in today's Budget; a final roundup
What will Arun Jaitley do your income tax slabs?
READ MORE: Budget 2017: Will Jaitley meet taxpayers' expectations?
FISCAL DISCIPLINE IN UNION BUDGET 2016-17
Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.
Revenue Deficit target fom 2.8% to 2.5% in RE 2015-16
Total expenditure projected at ` 19.78 lakh crore
Plan expenditure pegged at ` 5.50 lakh crore under Plan, increase of 15.3%
Non-Plan expenditure kept at ` 14.28 lakh crores
Mobilisation of additional finances to the extent of ` 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raising Bonds.
Plan / Non-Plan classification to be done away with from 2017-18.
Every new scheme sanctioned will have a sunset date and outcome review.
Rationalised and restructured more than 1500 Central Plan Schemes into about 300 Central Sector and 30 Centrally Sponsored Schemes.
Committee to review the implementation of the FRBM Act.
According to Prabhudas Lilladher:
- Controlling fiscal deficit at 3.5% of GDP in FY17 will be a challenge and unlikely to see lower fiscal deficit in FY18 as well.
• Expect to see a reduction in corporate and personal income tax levels. Should that happen, we expect this to be offset with withdrawal of various exemptions.
• Service tax rates could see an increase and an alignment in line with the GST rates.
• Major tax collections in Nov 16 in line with what were there in FY16. Excise duties and Service tax have seen better collections till Nov 16 when compared to FY16.
• Corporate earnings may not see a pick up in 2HFY17, resulting in likelihood of shortfall in corporate tax collections for FY17.
• Farm loan waiver/subvention a possibility as a boost to rural India and agriculture.
• While we have desisted from predicting the level of market borrowings for FY18, it is our assumption that with private capex low, the budget will focus more on public sector/government capex. With a drop in tax rates, the fiscal will have to be loosened to facilitate growth.
• In our estimates, it is the public sector/government spending which has resulted in the economic growth and the trend in public spending will continue to aid growth. As a consequence we expect to
see the fiscal policy to be loose rather than tight till we see growth returning strongly.
• The key theme of this budget remain as a balancing act between improving growth, fiscal prudence lower tax rates and sops to the masses
Key Features of Budget 2016-2017
Growth of Economy accelerated to 7.6% in 2015-16.
India hailed as a ‘bright spot’ amidst a slowing global economy by IMF.
Robust growth achieved despite very unfavourable global conditions and two consecutive years shortfall in monsoon by 13%
Foreign exchange reserves touched highest ever level of about 350 billion US dollars.
Despite increased devolution to States by 55% as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in 2015-16 – in contrast to earlier years.
Is Banking Transactions Tax coming back in Union Budget 2017?
It looks like:
Tax cash transactions, Committee tells Govt; Finance Ministry says no final view yetMeanwhile, Income Tax Department on Tuesday that it will send notices to 18 lakh people asking them to explain sources of income.
Parliamentarian E Ahmed who suffered cardiac arrest yesterday has died today morning. The protocol says that Parliament must be adjourned if a member passes away.
However, sources say that Lok Sabha speaker has to take the final call and the Budget announcement will go ahead as scheduled, i.e. 11 am.
UNION BUDGET FY18 EXPECTATIONS:
Cut in corporate tax to 27%
Raise IT threshold to `400,000 from `250,000
Roads, Railways seen key beneficiaries; Defence constrained
Banking: NPA resolution; TDS Exemption Limit on FDs
Banking: Bankruptcy Law; Clarity on Natl Infra Fund
Banking: Bad Bank on the anvil; ARC for bad loans?
Fin Mkts: Brace for STT rise. Long Term Taxation on anvil?
Tax changes in 80C limits to `2 Lakh from 1.5 lakh
Hike in passenger fares to fund Railway capex
Tax sops on affordable housing; interest subvention
Cement: Cut in 12.5% excise duty; Custom duty on imports
GOVT'S REPORT CARD
PLUSES:
Cash surplus banks; Tax windfall post demonetisation
Inflation down to 5% from 9%
10-Yr Bond yield falls to 6.5% from 9%
Repo Rate dips to 6.25% from 8%
GOVT'S REPORT CARD
MINUSES:
Demonetisation to hit informal, actual growth
7 State elections need heavy govt spending
Promised 9% GDP growth; Doubling of Farm incomes
Private, Public capex standstill
POINTS TO PONDER
Nifty surges 5.7% in January; Best Pre-Budget Gain Since February 2009.
Nifty rose 3.4% in previous week, ahead of Budget.
MACRO:
Budget Should be fiscally prudent; modestly populist.
FY18 Fiscal Deficit Seen At 3.1-3.2% of GDP.
Macro picture to keep 7 state elections in 2017.
Here's the expectations from the real estate sector from this Union Budget 2017.
Union Budget 2017 is scheduled to be announced at 11 am on February 1, 2017 by Finance Minister Arun Jaitley.
This is a unique budget in many ways as it is the first time in 92 years that there will be no separate railway budget.
Moreover, Budget usually has been scheduled for the end of February each year but the Government has broken that ritual this year. It said that this will help the Government to dole out money allotted in the budget to various ministries and schemes on time.
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