Demonetisation was implemented to curb or to flush out the black money by demonetizing to the high value notes of Rs. 500 and 1000. As per Govt though it has helped to curb the black money and corruption, definitely the Govt should take few more steps to take it forward with this Budget, 2017.
Digital Payments - The budget may include the incentives for digital payments and for cash less transaction. Digital payment and cashless transactions are very much used word post demonetization. This is the first Union budget after demonetization. It is expected to promote cashless transactions. Benefits to promote people to go cashless through credit cards, debit cards and mobile wallets, apps are expected to be part of this budget.
Incentive for digital payments - The government has already announced incentives for those making payments through digital mediums like debit/credit cards, mobile wallets etc. Service tax on payments for transactions up to Rs. 2000through debit/credit cards have been removed, 0.75% discount has been announced for digital payments at petrol stations. With a vision to move towards a cashless economy, the government may announce further measures to encourage digital payments.
Tax Benefit to Salaried Employees - Currently the exemption limit is 2.5 lakhs, which is very less in comparison to the expenses as part of cost of living. With the continuous rise in the cost of living, raising the exemption limit is the need of the hour. Currently, the exemption limit is Rs 2.5 lakhs. It is expected that on the Govt may announce some upward revision in the income tax slabs in order to benefit the common tax payers of the country.
House Rent Allowance - The section of salaried employees, staying in rented homes, also have expectations from the Finance Minister. Prices of property is shooting up not just in metros but everywhere. Considering this, it would be a wise move if the HRA exemption of 50% of basic salary, which is currently available only in case of metros, is also extended to Tier-2 cities.
Deduction under Income Tax- Under 80C, currently, the deduction in respect of various investments is up to Rs 1.5 Lakh. In a bid to boost savings; a corresponding increase in the limit to Rs 2 lakhs or more would be attractive.
Tax Benefits on Pension Income - One of the most demanding requirement is to give tax benefit for the pension income for the Senior Citizen. It will be better if this can be made completely tax free.
Growth - Post demonetization, different experts have different opinion that India’s growth has been decreased. So steps and initiative must be expected from the budget which will help for the growth in Indian Economy. The economy was better before being hit by demonetization. And hope it will become normal very soon.
Investment - The recent changes in GAAR has brought unhappiness among the investors. The Govt. should take necessary steps in this budget which will lead in inflow of funds as Investment to India.
Relief for farmers - After demonetization, farmers were not able to sell their crops due to unavailability of new cash in sufficient amount. In this budget, it is expected that farmers who were hit by note ban would get some benefits so that they can be compensated for their pain.
Real Estate Growth - The real estate sector is not smooth enough for last few months. As per some expert demonetization played a major role for the same. The Govt should take some initiative for the regulation of Real Estate market, which is a major contributor towards Indian economy.
Welfare benefit Measures - Post demonization, there are so many difficulties faced by the poor as told by different political party. And it’s a very political move for the other party. Keeping aside the political claim, the Govt should introduce some welfare benefits for the benefit of common people. There should be more encouraging scheme for the common people. In short, it should be a people friendly budget.
Quick passage of GST- As India is very near to implement the GST as per the last announcement by the Finance minister, the necessary steps need to be highlighted and taken through this budget. The overall tax burden need to be reduced for the benefit of all. The government should ensure the quick passage of GST which will replace numerous taxes and help consumers.