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- Service charges for e-ticket booking through IRCTC website to be withdrawn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
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