People with income below Rs 3 lakh per year will be exempted from tax, said Arun Jaitely who presented Union Budget 2017 today on Feb 1st at 11 am on Wednesday, during the Budget Session.
Here are the full updates of the same:
Personal Income Tax:
- Arun Jaitely said that for first time tax payers, no scrutiny will be done.
- FM: IT return will have 1 simple page form that will be introduced.
- Arun Jaitely : 99 lakh people showed income below the exemption limit in 2015-16 out of 3.7 crore individuals who have filed the tax returns.
- 15% surcharge will continue for incomes above 1 crore.
- 10% surcharge for people with income between 50 lakh to 1 crore.
- Zero tax for people using rebates on Rs 4.5 lakh income.
- No income tax for people with income of 3 lakhs and below and maximum of Rs 2,500 tax for income between Rs 3 and 3.5 lakh.
- People with income between Rs 3 lakh to Rs 5 lakh will pay tax of 5%, which is reduced from previous 10%.
- Minimum Alternative Tax (MAT) will not be removed in 2017-18. “I propose to allow to carry forward of MAT for a period of 15 years as against 10 years now: Arun Jaitley.
- 5% tax rebate for companies with turnover above Rs 50 crore. The overall income tax will get reduced to 25%. More than 90% Indian companies will get benefit from this and it will boost the MSME sector said FM.
More Key Points of Budget
1) Big Budget push! MGNREGA allocation at Rs 48,000 crore, highest ever, says FM.
2) Target for agriculture credit fixed at Rs 10 lakh crore
3) PM scheme for housing has been raised from Rs 15,000 crore to Rs 23,000 crore in current year, Jaitley says
4) Govt will continue to work closely with farmers to improve life and environment: Arun Jaitley
5) We have to complete 1,00,00,000 houses by 2019 for the houseless and those living in kaccha houses” 11:44 AM (IST), Feb 01
6) FM pushes for safe train rides in Budget: Rs 1 lakh cr safety corpus for Railways
7) Rs 9,000 crore higher allocation for payment of sugarcane arrears: Jaitley 11:48 AM (IST), Feb 01
8) Committed to doubling the farmers’ income in 5 years:
9) FM pushes for safe train rides in Budget: Rs 1 lakh cr safety corpus for Railways.
10) Aadhar based smart card for senior citizens:
11) Scheme for senior citizens to give them assured income and health benefits.
12) Two new AIIMS to be set up in Gujarat and Jharkhand
13) Service charges on tickets booked through IRCTC stands withdrawn says FM..
14) A new metro rail policy will be announced, this will open up new jobs for our youth:
15) By 2019, all coaches of Indian Railways will be fitted with bio-toilets.
16) Total rail capital expenditure for fiscal year 2018 pegged at 1.31 trillion rupees:
17) We will continue reform agendas and abolish FIPB (Foreign Investment Promotion Board):
18) Rs 500 crore allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh crore to Rs 1.84 lakh crore for women and child welfare.
19) Total capital and developmental expenditure Rs1.31 lakh crore for Railways in 2017-18 including Rs 55,000 crore to be provided by govt.
20) Rs. 3.96 Cr for Infra structure….Announces new scheme for Trade Infrastructure exports…!
21) Govt. plans to merge Tribunals, wherever necessary….Master stroke by our Taxmann FM
22) Jena – AKT: .New metro rail policy to be unveiled:
23) Aadhaar Pay to be launched soon.
24) India is at the cusp of a massive digital revolution”.
25) 3.5 crore youth will be trained under Sankalp program launched by the government.
26) 3.5 crore youth will be trained under Sankalp program launched by the government:
27) A new law likely to confiscate assets of the big-time economic offenders fleeing country.
28) Head post offices to be used as the front office for passport sevices.
29) Total allocation for infrastructure in Budget stands at a record level Rs 3,96,135 crore in 2017-18: Arun Jaitley
30) Jena – AKT: Non ITR filers have no escape route cautions FM…!
31) cars sold and foreign travel being compared with return filed by individuals
32) By end of 2017-18, high speed broadband connectivity on optic fibres will be available in more than 1,50,000 gram panchayats:
33) Fiscal deficit pegged at 3.2 per cent of GDP in 2017-18 and 3 per cent in the following year.
34) Draft Bill to curb illegal deposit scheme ready:
35) Total ITR showing income above 5lacs is only 76 lacs out of which 56 lacs are salaried employees….FM
36) When too many people evade taxes, burden falls on those who are honest” 12:27 PM (IST), Feb 01
37) From the 3.5 crore individuals who filed tax returns, 99 lakh showed income below income tax slab, while only 24 lakh show income above Rs 10 lakhs, Jaitley says in Parliament
38) 34 percent increase in advance tax for 3 qtrs
39) holding period for long term reduced to 2 years in case of property
40) Corporate Tax Rate reduced to 25% for Cos turnover upto Rs 50 Cr
41) Mat credit carry forward period increased to 15 from 10
42) Custom duty on LPG reduced to 2.5%
43) Cash donation recd by charitable trusts reduced to Rs 2000/- from Rs. 10000/-
44) Threshold limit under Section 40A(3) for payment of expenses in cash is reduced to Rs. 10,000:
45) Finance Bill proposes ban on cash transactions above 3 lakhs
46) Presumptive income under Section 44AD for digital receipts is reduced to 6%:
47) Capital gains tax to be exempted for the land acquired for creation of Telangana: Arun Jaitley
48) Domestic TP norms is simplified..great move to reduce TP litigations
49) Threshold limit for audit of entities opting for presumptive taxation under Section 44AD is increased to 2 crores.
50) Personal IT- exemption limit remains same
51) But 2.5 to 5 lacs reduced to 5% instead of present 10 % all other category remains the same
52) First time return filers wont be subject to scrutiny for 1st year..T&C apply
53) One page ITR form to be introduced for taxpayers with taxable income of up to 5 lakhs except business income
54) Govt. proposes levy of surcharge of 10% for income between Rs. 15 lakhs and Rs. 1 crores.
Download the full PDF released by Government on Budget 2017