Here are the announcements made by Finance Minister Arun Jaitley in Union Budget 2017-18:
The presumptive income tax for small and medium tax payers whose turn-over is up to Rs 2 crore will be reduced from the present 8% of their turnover which is counted as presumptive income to 6% in respect of turnover which is received by non-cash means. This benefit will be applicable for transactions undertaken in the current year also.
Limit of cash expenditure allowable as deduction, both for revenue as well as capital expenditure, will be Rs 10,000. Similarly, the limit of cash donation which can be received by a Charitable Trust is being reduced from Rs 10,000/- to Rs 2000/-.
Exempting BCD, Excise/CV duty and SAD on miniaturised POS card reader for m-POS, micro ATM standards version 1.5.1, Finger Print Readers/Scanners and Iris Scanners, in order to promote cashless transactions.
Government has decided that no transaction above Rs 3 lakh will be permitted in cash
Government will launch two new Schemes to promote the usage of BHIM App i.e, Referral Bonus Scheme for individuals and a Cashback Scheme for merchants
Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly. This will be specifically beneficial for those who do not have debit cards, mobile wallets and mobile phones
A Mission will be set-up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards.
Banks have targeted to introduce additional 10 lakh new PoS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based PoS by September 2017.
In order to encourage banking sector, the limit of NPAs is being increased from 7.5% to 8.5%. This will reduce the tax liabilities of banks.
I also propose to tax interest receivable on actual receipts instead of accrual on basis of NPA accounts of all non schedule banks. This will remove the hardships of having to pay tax even when interest income is not realized.
The government gave income tax exemption to startups with certain conditions last year. For the purpose of carrying forward losses in respect of such startups with condition continuous holding of 51% voting rights have been relaxed subject to the condition that the holding of original promoter continues
The profit linked deductions available to startups for 3 years out of 5 years has been changed to 3 years out of 7 years
Minimum alternative tax(MAT) at present is levied on advanced tax. There's a strong demand for the abolition of MAT. Although the plan for phasing out exemptions will kick in from 1.4.2017, the full benefit of revenue out of the phase out will be available to the government only after 7-10 years when all those who are already availing exemptions at present complete their period of availment. Therefore it's not possible to remove MAT at present. However in order to allow companies to use MAT credit in future, I propose to allow carry forward of MAT for a period of 15 years instead of 10 years at present
As per the data of FY 2015-16, 2.85 lakh companies making a profit of less than Rs 1 cr, effective tax rate was 30.26% while 298 companies making a profit of Rs 500 cr pay an effective rate of only 25.90%
In order to encourage firms to migrate to companies format and to make MSMEs more viable, I propose to reduce the income tax for smaller companies with an annual turnover of up to Rs 50 Cr to 25%. 96% of the Indian companies filing tax (according to FY 2015-16 data) will get benefit of this lower taxation
The new capital of Andhra Pradesh is being being built by innovative land pooling method and not land acquisition
Capital Gains tax will be exempted for those who pool their land for building the capital city
Of 3.7 cr individuals who filed tax returns in 2015-16, 99 lakh showed income below exemption limit
Income Tax rate cut to 5 pc for individuals having income between Rs 2.5 lakh to Rs 5 lakh
15 pc surcharge on income above Rs 1 cr to continue
Reduction in tax rates from 10 per cent to 5 per cent for individual income between Rs. 2.5 to 5 lakhs. The total amount of tax foregone on account of this measure is expected to be Rs 15,500 crores.
FPI to be exempt from indirect transfer provisions
Basic customs duty on LNG halved to 2.5 pc
With abolition of plan and non-plan expenditure, the govt's focus is on revenue and capital expenditure
Govt pegs fiscal deficit target at 3.2 per cent for 2017-18 and 3 per cent for next year
Revenue deficit reduced to 2.1 pc from 2.3 pc for 2016-17
Over Rs 80 lakh deposits in 1.48 lakh cr at an average of Rs 3.31 cr per account
Govt to double lending target under PM Mudra Yojana to Rs 2,44,000 crore for 2017-18
Govt doubles distribution target under Mudra Yojana to Rs 2.44 lakh crore for 2017-18
Govt to introduce two new schemes to promote BHIM App - referral bonus for users and cash back for traders
A proposal to receive all government receipts beyond a certain threshold through e-modes under consideration
3 yr 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
Payment regulatory board to be set up in RBI to regulate electronic payments, replacing Board for Regulation and Supervision in Payments and Settlements System
FRBM(Fiscal Responsibility and Budget Management) review committee has recommended 60 pc debt to GDP ratio; 0.5 pc of GDP deviation from stipulated fiscal deficit targets
Govt considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment.
Head post offices to issue passports
Govt to set up a web-based interactive platform for defence pensioners
Govt mulling introduction of legal changes to confiscate assets of offenders, including economic offenders, who flee the country
Rs 7,200 cr revenue loss due to reduction in tax on smaller companies
Urgent need to protect poor from chit fund schemes, draft bill placed in public domain
After demonetisation on Nov 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 cr bank accounts at an average of Rs 5.03 lakh till Dec 30
More funds beyond Rs 10,000 cr for recapitalisation of banks will be provided if needed
The shares of railway CPSCs like IRCTC and IRFC to be listed on various stock exchanges
We are largely a tax non-compliant society
New ETF with diverse stocks will be launched in 2017-18
Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakh are salaried
Integrated public sector oil major to be created to match global giants
Computer emergency response team to be set for cyber security of financial sector
Second phase of solar power development to be taken up with an aim of generating 20,000 MW
Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh cr
FIPB(Foreign Investment Promotion Board) will be abolished
Over 90 per cent of FDI proposls are now processed through automatic route.
Govt to further liberalise FDI policy
Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital
Govt will amend the Multi-state Cooperative Act to protect the poor and gullible investors
Railway line of 3,500 km will be commissioned in 2017-18 as against 2,800 km in 2016-17
Capital and development expenditure pegged at Rs 1.31 lakh cr for railways in 2017-18 from Budget
Unmanned railway level crossings to be eliminated by 2020
500 stations to be provided with lifts and escalators for differently abled
New metro rail policy to be unveiled
Railway tariffs to be fixed on the basis of cost, social obligation and competition
Government proposes Coach Mitra facility to redress grievances related to rail coaches
Rs 1 lakh cr corpus for railway safety fund over five years
Allocation for SCs increased from Rs 38,833 cr to Rs 52,393 cr, a rise of 35 per cent
A scheme for senior citizens to ensure 8 per cent guaranteed returns
Total allocation for rural, agri and allied sectors for 2017-18 is a record Rs 1,87,223 cr, up 24 per cent from last year
Select airports in tier-II cities to be taken up for operations, development on PPP mode
Delhi and Jaipur to have solid waste management plants and five more to be set up later
Budget allocation for highways stepped up to Rs 64,000 crore in FY18 from Rs 57,676 crore
Crude oil strategic reserves to be set up in Odisha and Rajasthan
Dedicated micro-irrigation fund to be set up by NABARD to achieve mission of Per Drop, More Crop
National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18
1.5 lakh health sub centres to be converted to Health Wellness Centres
New rules regarding medical devices will be devised to reduce their cost
Digi Gaon will be launched to promote tele-medicine and education
Two new AIIMS to be set up Jharkhand and Gujarat
Model Shops and Establishment Bill to open up additional opportunities for employment of women
For senior citizens, Aadhaar based health cards will be issued
Govt to set up dairy processing fund of Rs 8,000 crore over three years with initial corpus of Rs 2,000 crore
1 cr households to be brought out of poverty under Antodya Scheme
A system of annual learning outcome in schools to be introduced; innovation fund for secondary education to be set up
In higher education, we will undertake reforms in UGC, give autonomy to colleges and institutions
The allocation for rural agri and allied sector in 2017-18 is record Rs 1,81,223 crore
PM Kaushal Kendras will be extended to 600 districts; 100 international skill centres to be opened to help people get jobs abroad
Rs 500 cr allocated to set up Mahila Shakti Kendras; Allocation raised from Rs 1.56 lakh cr to Rs 1.84 lakh cr for women & child welfare
Sanitation coverage in villages has increased from 42 pc in Oct 2016 to 60 pc, a rise of 18 pc
We propose to provide safe drinking water to 28,000 arsenic and fluoride affected habitations
To construct one crore houses by 2019 for homeless. PM Awas Yojana allocation raised from Rs 15,000 cr to Rs 23,000 cr
100 pc electrification of villages to be completed by May 2018
27,000 cr on to be spend on PMGSY; 1 cr houses to be completed by 2017-18 for houseless
National Testing agency to conduct all examinations in higher education, freeing CBSE and other agencies
133-km road per day constructred under Pradhan Mantri Gram Sadak Yojana as against 73-km in 2011-14
Mini labs by qualified local entrepreneurs to be set up for soil testing in all 648 krishi vigyan kendras in the country
Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture
Committed to double farm income in 5 yrs
Demonetisation was a bold and decisive strike in a series of measures to arrive at a new norm of bigger, cleaner and real GDP
Agricultural sector is expected to grow at 4.1 per cent this fiscal
Tax administration honouring the honest is one of the 10 pillars of Budget 2017-18
Target of agriculture credit fixed at Rs 10 lakh cr in 2017-18
Rs 9,000 cr higher allocation for payment of sugarcane arrears
Allocation under MNREGA increased to 48,000 crore from Rs 38,500 crore. This is highest ever allocation
We will continue the process of economic reform for the benefit of poor
Spend more in rural areas, infra, poverty alleviation, while maintaining fiscal prudence as guiding principle of Budget
Monetary policy to be expansionary in major economies
More steps will be taken to benefit farmers and the weaker sections; budget being presented during weak global economy
Only transient impact on economy due to demonetisation; long term benefit include higher GDP growth and tax revenue
Cabinet extends tenure of loans under Credit Linked Subsidy Scheme of Pradhan Mantri Awas Yojana from 15 to 20 years
Effects of demonetisation not expected to spill over to the next year
Govt took two tectonic policy initiatives - passage of GST Bill and demonetization
Demonetisation was a continuation of series of measures taken by govt in 2 yrs; it is bold and decisive measure
We are seen as engine of global growth; IMF sees India to grow fastest in major economies
36 pc increase in FDI flow; forex reserves at USD 361 billion in January enough to cover 12 months needs
Double digit inflation has been controlled; sluggish growth replaced by high growth; war on blackmoney launched
Protectionism is increasing
CAD declined from 1 pc last year to 0.3 pc in first half of current fiscal
India has emerged as bright spot in the world
India has become the 6th largest manufacturing country in the world now
Our agenda for next year is to transform, energise and clean India.
World Bank expects GDP growth rate at 7.6 pc in FY18 and 7.8 pc in FY19
Functional autonomy of the railways to be maintained
Demonetisation will help in transfer of resources from tax evaders to government
Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport
There are three major challenges faced by emerging economies:current monetary policy stance of the United States of Federal Reserves to increase the policy rate to more than once in 2017 may lead to lower capital inflows and higher outflows from emerging economies.
the uncertainty of the prices of crude oil has implications on fiscal situation
in several parts of the world, there are signs of increasing retreat from globalization of goods, services and people as pressure of protectionism is building up. These developments have the potential to effect the imports of emerging economies including India
The advanced economies are expected to increase their growth from 1.6% to 1.9% and the emerging economies from 4.1% to 4.5%.
IMF estimates that the world GDP will grow by 3.1 % in 2016 and 3.4% in 2017.
I'm presenting this budget when the international economy is facing considerable uncertainly in the aftermath of major political and economic developments across the world.
The government is now seen as a trusted custodian of public money.
On this auspicious occasion of Basant Panchami, I present the Union Budget 2017-18.
Spring is the season of optimism. I extend my warm greetings to everybody.
The underlying theme of countless good governance issues faced by the current government included burning issues like price rise, inflation, corruption and crony capitalism.
There were also major expectation in terms of how country's major natural resources were explored and deployed.
In the last 2 and a hlaf years, we have moved form a discretionary based administration to a policy and system based administration.
Union Budget 2017-18 is going to go down in history as one of its kind. Whether it's changing the 92-year-old tradition of presenting a separate rail budget or changing the date of budget, the whole world's eyes are set on this budget post demonetisation. Finance Minister Arun Jaitley is presenting budget for the fourth consecutive time but surely, it's going to be more decisive than any of its predecessors.