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:

• No change in Passenger Fares
• Service charges for e-ticket booking through IRCTC website to be withdrawn
• IRCTC & IRCON as a company to be listed on stock exchange

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