Synopsis: Union Budget 2017-2018

GENERAL:

Finance Minister says:

IMF estimates world GDP will grow by 3.4 percent in 2017
India has become the 6th largest manufacturing country, up from ninth previously
Budget contains three major reforms: Budget advanced for early start of fiscal expending; merging of Rail Budget to main Budget; Done away with plan and non-plan expenditure
Merger of the Railway Budget with the Union Budget is a historic approach
Agriculture expected to grow at 4.1% in the current year
Law on Contract Farming to be introduced
Govt plans legislative reforms to simplify existing labour laws - wages, industrial relations, social security and safety
LIC to come up with 8% guaranteed scheme for senior citizen
New rules regarding medical devices will be devised to reduce their cost
Aadhar enabled merchant payment will be launched soon, especially for those without net banking, e-wallets, and debit cards
Centralised defence travel system, where travel ticket can be booked by soldiers online
Model Shops and Establishment Bill to open up additional opportunities for employment of women
Head post offices to issue passports
Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment

Education:

National Testing Agency to conduct all examinations in higher education, freeing CBSE and other agencies from this and facilitate them to focus on academics
Govt plans to increase additional 5,000 post graduate seats per annum
Innovation fund to be created for secondary education
Swayam platform for students - more than 350 courses online
Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat

Infrastructure:

Housing to get 'Infrastructure' status
Allocation for infrastructure stands at a record Rs 3,96,135 crore
3 year period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001

RAILWAY:

DIRECT TAX:
Individuals:

Tax Slabs changed at:

Income up to Rs 2.5 lakh: NIL tax
Income between Rs 2.5 - 5 lakh: Tax at 5%

Income between 5 - 10 lakh: Tax at 20%
Income above Rs 10 lakh: Tax at 30%

Surcharge of 10% in those with income above Rs. 50 lakhs per annum and below Rs. 1 crore
15% surcharge on incomes above Rs 1 crore to continue
No cash transaction above Rs 3 lakh without PAN
5% TDS on insurance agents removed
A single one-page form for filing IT returns for taxable income up to Rs 5 lakh

Corporate:

Corporate tax to be at 25% for small & medium companies whose annual turnover is less than Rs. 50 crores
MAT can be carried forward for 15 years by companies as against 10 years allowed earlier

INDIRECT TAX:
No change in excise and service tax rates due to upcoming GST