BUDGET 2017- FM PROPOSED NO CHANGE IN EXEMPTION LIMIT BUT REDUCES TAX RATE TO 5% FOR INCOME BETWEEN 2.5 LAC TO 5 LACS

BUDGET 2017- FM PROPOSED NO CHANGE IN EXEMPTION LIMIT BUT REDUCES TAX RATE TO 5% FOR INCOME BETWEEN 2.5 LAC TO 5 LACS

This is the first time in Indian history that Union Budget has been announced one month in advance. This decision is made to complete the legislative process for approval of annual spending plans and tax proposals before beginning of the new financial year on April 1.

Key takeaways from Budget Speech are given hereunder:

1.	Govt. proposes levy of surcharge of 10% for income between Rs. 50 lakhs and Rs. 1 crores
2.	FM proposed no change in Exemption limit but reduces tax rate to 5% for income between 2.5 lac to 5 lacs
3.	Threshold limit for audit of entities opting for presumptive taxation under Section 44AD is increased to 2 crores
4.	One page ITR form to be introduced for taxpayers with taxable income of up to 5 lakhs except business income: FM
5.	FM proposes to reduce basic customs duty on LNG from 5% to 2.5% in 2017-18
6.	The maximum amount of cash donation for political party will be Rs. 2,000 from any one source: FM
7.	Corporate tax rates for small companies with turnover of up to Rs. 50 crore is reduced to 20%: FM
8.	Threshold limit under Section 40A(3) for payment of expenses in cash is reduced to Rs. 10,000: FM
9.	Finance Bill proposes ban on cash transactions above 3 lakhs
10.	Presumptive income under Section 44AD for digital receipts is reduced to 6%: FM
11.	To end the controversy, amendment is proposed that income on NPA Accounts will be recognized on receipt basis instead of accrual basis
12.	Capital gain tax under Joint Development Agreement to be levied in a year of completion: FM
13.	Govt. proposes carry forward of MAT Credit for a period of 15 years instead of 10 years
14.	2001 shall be the base year for calculating the capital gains instead of existing 1981: FM
15.	Capital Gains: Holding period for immovable property is reduced to 2 years: FM
16.	Jaitley proposes changes in Profit linked deduction for affordable housing scheme
17.	Govt. intending to amend Negotiable Instrument Act to help quick realization in case of dishonored cheques: FM
18.	To promote digital economy, FM proposes two new schemes to promote BHIM application
19.	More than 90% of FDI are proposed under automatic route: FM
20.	Draft bill to curb illegal deposit shall be proposed in current budget session: FM
21.	Rs. 500 crores allocated to set up Mahila Shakti Kendras
22.	Service charge on IRCTC ticket booking will be removed
23.	A dedicated fund to be set up by NABARD with corpus of Rs. 5,000 crore to assure market prices to the farmers for their produce: FM
24.	48000 crore allocated to MGNREGA Scheme.
25.	Affordable housing will be given infrastructure status: FM
26.	SANKALP programme will be introduced for skill development and training of 1 crore youth
27.	Govt. will create 'Passenger Safety Sanraksha kosh' for safety of Railways passengers with corpus of Rs. 1 lakh crores: FM
28.	For senior citizens, adhaar based smart card containing their health details will be introduced