Union
Budget 2017:
Today – 1st February
2017, the Union Budget 2017 was presented in Parliament, which can be
classified into three groups from understanding perspective:
(1)-Personal Tax Aspect (2)-Features
of Budget. (3)-Which goods become cheaper / dearer.
(4)- Investment Scenario going
forward
1-Personal Tax Aspect
Proposed income-tax slabs for FY
2017-18 (Assessment year 2018-19) for Age group < 60 years
|
Income Slab
|
Income Tax Rates
|
Education Cess
|
Education Cess
|
|
Upto – Rs.2,50,000
|
Nil
|
Nil
|
Nil
|
|
Rs.2,50,001 to Rs.5,00,000
|
5% of (Total Income-2,50,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Rs.5,00,001 to Rs.10,00,000
|
Rs.12,500+20% of (Total Income
Rs.5,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Above Rs. Rs.10,00,000
|
Rs.1,12.500+30% of (Total Income – Rs.10,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Surcharge @ 10% for taxable income
between Rs. 50 Lakhs and Rs. 1 crore and @ 15% for taxable income > Rs. 1
crore.
|
|||
Age group: 60 years to < 80 years
|
Income Slab
|
Income Tax Rates
|
Education Cess
|
Education Cess
|
|
Upto- Rs.3,00,000
|
Nil
|
Nil
|
Nil
|
|
Rs.3,00,001 to Rs.5,00,000
|
5% of (Total Income-2,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Rs.5,00,001 to Rs.10,00,000
|
Rs.10000+20% of(Total income – 5,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Above Rs. Rs.10,00,000
|
Rs.1,10,000+30% of(Total income of 10,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Surcharge @ 10% for taxable income between Rs. 50 Lakhs
and Rs. 1 crore and @ 15% for taxable income > Rs. 1 crore.
|
|||
Age Group: 80 years >
|
Income Slab
|
Income Tax Rates
|
Education Cess
|
Education Cess
|
|
Upto- Rs.5,00,000
|
Nil
|
Nil
|
Nil
|
|
Rs.5,00,001 to Rs.10,00,000
|
20% of(Total income – 5,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Above Rs. Rs.10,00,000
|
Rs.1,00,000+30% of(Total income of 10,00,000)
|
2% of Income Tax
|
1% of Income Tax
|
|
Surcharge @ 10% for taxable income between Rs. 50 Lakhs
and Rs. 1 crore and @ 15% for taxable income > Rs. 1 crore.
|
|||
(2)-Features of Budget
Fiscal Deficit
·
Projects 2017/18 fiscal deficit at 3.2%
of GDP
·
Revises 2016/17 fiscal deficit at 3.2%
of GDP
·
Govt. remains committed to 20118/19 at
3% of GDP
·
Budget 2017/18 to pursue prudent fiscal
management to provide financial stability
Growth
·
Nominal GDP growth seen at 11.75% year
on year basis in 2017/18
·
India seen as Engine of growth
Expenditure
·
Estimates 2017/18 expenditure at 21.47
trillion Indian rupees($317.65 Billion)
·
Capital spending raised by 25.4% for
2017/18
Borrowings
·
Net market borrowing estimates 3.48
trillion rupees
·
Gross marlet borrowing seen at 6.05
trillion rupees
Inflation
·
Within 2-6 percent
Taxation & Receipts
·
2017/18 total tax revenue seen at 12.27
trillion rupees
·
2017/18 total revenue seen at 15.16
trillion rupees
·
Proposes change in long term capital
gain tax in property
Foreign Investments
·
Proposes to abolish Foreign Investment
Proposal Board
·
To exempt some Foreign investor from
indirect transfer provisions
Infrastructure
·
Allocates 3.96 trillion rupees for
infra in 2017/18
·
For transport sector allocates 2.41
trillion rupees
·
Proposes 640 billion rupees for state
& national highways
Banking
·
To infuse planned 100 billion of rupees
of capital into state run banks
·
Proposes to raise allowable provision
for bad loans to 8.5% from 7.5%
Disinvestment
·
Total Disinvestment targeted 725
billion rupees
(3)-Which goods become cheaper / dearer.
Things which
became costlier are-
·
Cigarettes, Cigars, Cheroots, Bidis,Tobacco
& Pan Masala,
·
Led lamp components
·
Cashew nuts (Roasted & Salted)
·
Aluminum ores & concentrates
·
Polymer coated MS tapes used in manufacturing of
optical fibres
·
Silver coins & medallions
·
Printed circuit board used in making mobile phone
Folowing are
the list of items turning cheaper-
·
Solar tempered glass used in solar panels
·
Fuel cell based power generating systems
·
Wind operated energy generators
·
Vegetable tanning extracts used in making
leather products
·
POS machine card & finger print reader
·
Group insurance for Defence services
(4)
Investment Scenario Going Forward
Budget has
all the impetus desired for economy to move forward at defined pace, though
markets will see its own ups & down growing in tandem with PE around 22.
Interest rates looks further softening up.
Happy
Reading
