Budget 2017-18 Highlights

TAX ADMINISTRATION:

Black money: No cash transactions above Rs3 lakh
Political funding: Maximum amount of cash donation that can be received is Rs2,000; political parties can receive donations by cheques or digitally; amendment proposed to RBI Act to issue electoral bonds; every party has to file returns within specified time
Personal income tax: Rate reduced to 5% for income bracket of Rs2.5-5 lakh; All other categories to get uniform benefit of Rs12,500 per person; to levy surcharge on income bracket Rs50 lakh-Rs1 crore
Personal income tax: To have simple one-page form for taxable income up to Rs5 lakh
GST: preparedness of IT system on schedule
Not many changes to excise duties since GST will be implemented soon
FPI category 1 and 2 investors exempted from indirect transfer provisions
Time period of revising tax returns reduced to 12 months
Real estate: to make changes in capital gains tax from 3 to 2 years.
Concessional withholding rate will be extended to 30 June 2020, rupee-denominated masala bonds to be included
Corporate tax rate: MSMEs’ rate (annual turnover less than Rs50crore) reduced to 25%
LNG: Reduce customs duty to 2.5%
Limit of cash donation for charitable trusts cut to Rs2,000.
MAT credit carry forward for 15 instead of 10 years
Base Year for indexation now 2001 instead of 1981
Presumptive tax for small traders with turnover upto 2 crore under 44Ad now 6% instead of 8 % for full non cash turnover
Cash expenditure now allowed only 10000 instead of 20000 per transaction
Trust cash donations max allowed only 2000 instead of 10000
Domestic transfer pricing – only if 1 party enjoys tax benefits
44AD – turnover limit increased to 2 crores for business. –
Professionals can pay advance tax in 1 installments if below 50 lac
Scrutiny time limit reduced to 18 months
TDS – no Tds on insurance agents if 15 h filed

FARMERS:

Farmer credit fixed at record level of Rs10 trillion; will ensure adequate flow to underserved areas
Soil health cards: Govt to set up mini-labs in Krishi Vigyan Kendras
Long-term irrigation fund in Nabard—corpus at Rs40,000 crore
Model law on contract farming to be circulated
Dairy processing infra fund with corpus of Rs8,000 crore
Dedicated micro-irrigation fund with Rs5,000 crore corpus

RURAL POPULATION:

Mission Antyodaya to bring 1 crore households of poverty
MGNREGA: Rs48,000 crore has been allocated; participation of women now at 55%; using space technology in a big way
Prime Minister Gram Sadak Yojana: Rs19,000 crore allocated; along with states, Rs27,000 crore will be spent in FY18
Pradhan Mantri Awas Yojana: Rs23,000 crore allocated
100% village electrification by May 2018
Rural livelihood mission: Rs4,500 crore allocated
Mason training to be provided for 5 lakh people
Panchayat Raj: Human resource reform programme to be launched
Rs1,87,223 crore allocated for rural programmes

YOUTH:

Education: System of measuring annual learning outcomes, emphasis on science
Innovation fund for secondary education
Reforms in UGC: Colleges to be identified based on ranking and given more autonomy
Propose to leverage information technology with launch of SWAYAM platform for virtual learning
National testing agency to be established for all entrance exams, freeing up CBSE, AICTE and other bodies
100 Indian international skill centres to be established with courses in foreign languages
Rs4,000 crore allocated to launch skill acquisition and knowledge awareness
Special scheme for creating employment in leather/footwear sector
Tourism: Five special zones to be set up

POOR AND UNPRIVILEGED:

Women: Mahila Shakti Kendras with Rs500 crore corpus
Stepped up allocation to Rs1.84 trillion for various schemes for women and children
Affordable housing to be given infrastructure status
Action plan to eliminate leprosy by 2018, TB by 2025, reduce IMR to 29 in 2019
To create additional PG medical seats per annum
Two new AIIMS in Jharkhand and Gujarat
New rules to be introduced for medical devices
Labour rights: Legislative reforms to simplify and amalgamate existing labour laws
Allocation to SCs increased to Rs52,393 crore; STs given Rs31,920 crore, minority affairs allocated Rs4,195 crore
Senior citizens: Aadhaar-based smart cards with health details to be provided

INFRASTRUCTURE:

Total capex and development expenditure of railways pegged at Rs1.31 trillion
Railways: Passenger safety—Safety fund corpus set up; unmanned level crossings to be eliminated by 2020
Railway lines of 3,500km to be commissioned
To launch dedicated tourism/pilgrimage trains
500 stations to be made differently-abled friendly
Cleanliness in railways: To introduce Coach Mitra facility; By 2019, biotoilets for all coaches
Railways to offer competitive ticket-booking facility; service charge withdrawn for tickets booked on IRCTC
New metro rail policy to be announced
Roads sector: Allocation for national highways at Rs64,000 crore
Airports Authority of India Act to be amended to enable monetization of land resources
Total allocation to transport sector at Rs2 trillion
Telecom sector: Allocation to Bharat Net programme at Rs10,000 crore
Digi-gau initiative to be launched
To make India global hub for electronics manufacture
Export infra: New restructured central scheme to be launched
Total allocation for infrastructure: Rs3.96 trillion

FINANCIAL SECTOR:

Foreign Investment Promotion Board (FIPB) to be abolished
Commodities market: panel to study legal framework for spot and derivative markets
Resolution mechanism for financial firms
Cyber-security: Computer emergency response team to be set up
Listing of PSEs will foster public accountability; revised mechanism for time-bound listing
To create integrated public sector oil major
New ETF to be launched
Pradhan Mantri Mudra Yojana: Lending target at Rs2.44 trillion
Stand-up India scheme: over 16,000 new enterprises have been set up

DIGITAL ECONOMY:

India at cusp of massive digital revolution
Govt to launch two new schemes to promote BHIM app, including cashback scheme for merchants
Aadhaar Pay to be launched for people who don’t have mobile phones
Focus on rural and semi-urban areas
To strengthen financial inclusion fund
Panel on digital payments has recommended structural reforms
To create payment regulatory board at RBI

PUBLIC SERVICES:

To use head post-office for passport services
Defence: centralized defence travel system developed
Defence: Centralized pension distribution system to be established
Govt recruitment: To introduce two-tier exam system
Govt looks to introduce laws to confiscate assets of economic defaulters
High-level panel chaired by PM to commemorate Mahatma Gandhi’s 150th birth anniversary

FISCAL MANAGEMENT:

Total budget expenditure: Rs21 trillion
Rs3,000 crore to implement various budget announcements
Defence expenditure excluding pensions: Rs2.74 trillion
Consolidated outcome budget for all ministries being created
Fiscal deficit for FY18 pegged at 3.2% of GDP
Revenue deficit for FY18 at 1.9%

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