Highlights of Union Budget 2017 | H&R Block

Date – 01/02/2017

11.00 am

Budget Speech starts amidst opposition on time.

11.20 am

FM rides high on reforms and the disruptive moves taken in the last year including demonetisation, IDS schemes. Demonetisation slated to increase digitisation and make the people more enabled digitally.

Agenda for next fiscal year – Transform, energise and clean India.

11.47 am

Banks to reduce lending rate as a result of the recent demonetisation drive.

Aadhar based smart cards to be issued to senior citizens

LIC to give 8% guaranteed returns to senior citizens

11.59 am

Aadhar based health benefits will be introduced for senior citizens

No service charges on online ticket booking.

12.03 pm

Rs. 3.59 cr allocated to infrastructure

FIPB to be abolished

CERT – Computer Emergency Response Team proposed for financial sector

12.07 pm

BHIM app to be used extensively for digitisation. Promotion of the BHIM app by way of referral and cashback schemes

12.16 pm

Army personnel to have a web based pension distribution system and they no longer need to stand in queues.

Government to continue use ETF for divestment in PSUs

12.20 pm

Fiscal deficit target set at 3.2% for the year 2017-18

Proportion of direct vs indirect taxes is not acceptable as of now

1.74 crs salaried individuals paying taxes as against a very lower amount from companies – about

99 lacs showed income below 2.5 lacs

76 lacs declare income above 5 lacs

24 lacs declare income above 10 lacs

India largely a non tax compliant nation

12.30 pm

Personal Advance tax growth due to efforts taken by the government now stands at 34.8%

12.32 pm

Capital gains tax liability to significantly reduce now as the holding period for immovable property has now reduced to 2 years from 3 years.

For builders the stock in trade flats will be taxed under house property income since they will be considered deemed rented property. This will, however, apply only after one year has lapsed from completion of construction.

12.40 pm

No cash transactions allowed above Rs 3 lacs

12.50 pm

Tax returns to be revised in 12 months. Scrutiny of completed assessment reduced to 18 months and 12 months.

Government to increase the tax base.

Reduce the rate of taxation to 5% for the slab 2.5 lacs to 5 lacs

Zero tax liability for persons earning income up to Rs 3 lakhs

Surcharge of 10% to be levied on income between 50 lacs to 1 crore