Needs Affordable, Hobbies Expensive – #Budget2k17
In a noteworthy stride, Finance Minister Arun Jaitley declared the lessening of the current rate of tax assessment for people with salary going between Rs 2.5 lakh to Rs 5 lakh to 5% rather than 10%. There will be an additional charge of 10% for those whose yearly wage is Rs 50 lakh to Rs 1 crore. Also, the 15% additional charge on Rs 1 crore or more stays unaltered. This is to compensate for Rs 15,000 crore misfortune because of the cut in the individual pay charge rate.
“This would lessen the expense risk of all people beneath Rs 5 lakh salary either to zero (with discount) or half of their current obligation. All together not to have duplication of advantage, the current advantage of discount accessible to a similar gathering of recipients is being lessened to Rs 2500 accessible just to assessees upto pay of Rs 3.5 lakhs. The joined impact of both these measures will imply that there would be zero expense risk for individuals getting wage up to Rs 3 lakhs p.a. also, the assessment risk might be Rs 2,500 for individuals with salary between Rs 3 and Rs 3.5 lakhs,” the fund serve said in his financial plan.
“On the off chance that the farthest point of Rs 1.5 lakh under Section 80C for speculation is utilized completely, the duty would be zero for individuals with salary of Rs 4.5 lakhs. While the tax assessment obligation of individuals with wage up to Rs 5 lakhs is being diminished to a large portion of, the various classes of citizens in the resulting pieces will likewise get a uniform advantage of Rs 12,500 for every individual. The aggregate sum of assessment inevitable because of this measure is Rs 15,500 crores,” he said.
Major Highlights of Union Budget 2017:
1. Total Budget of ₹ 21.47 Lakhs crores for 2017-2018.
2. Increase in Direct Tax collection by 34% after demonetisation.
3. Holding period for LTCG for Land & Building reduced to 2 years.
4. Carried forward of MAT Credit for 15 years instead of 10 years.
5. 5% tax exemption for companies having turnover below ₹ 50 crores.
6. 6% presumptive tax for turnover upto ₹ 2 crores.
7. No cash transaction above ₹ 3 Lakhs will be permitted.
8. Maximum Donation receivable from unknown source by pol party will be ₹ 2k.
9. Change in period of limitation for scrutiny assessment.
10. 5 % tax for income below ₹ 5 Lakhs.
11. No tax for income upto ₹ 3 Lakhs.
12. 10% surcharge for assesse income between ₹ 50 Lakhs to ₹ 1 crores.
13. One page Income Tax return proposed.
14. No major changes for Indirect taxes due to GST implementation.