Income tax reduced from 10% to 5% for those earning between Rs. 2.5 lakh & Rs. 5 lakh
Budget 2017 : Income tax halved to 5 per cent for those earning between Rs. 2.5 lakh and Rs. 5 lakh. Post demonetization there is legitimate expectation of reduced burden and therefore finance minister Arun Jaitly proposed Tax rebate. Income tax reduced from 10% to 5% for those earning between Rs. 2.5 lakh & Rs. 5 lakh and one page single form for filling income tax returns for taxable income up to Rs.5 lakh
To clean the political system in country, Finance Minister proposes maximum amount a political party can receive is 2000 rupees from one source.
Few More take-aways from Budget 2017:
- No transaction above Rs. 3 lakh to be admitted in cash. Income Tax Act to be amended accordingly.
- Cash donation receivable by a charitable trust to be reduced to Rs. 2000 from Rs. 10,000
- LNG customs duty down to 2.5% from 5%
- Banks- interest received to be taxed on receipt rather than on accrual for NPA accounts
- Corporate tax- MSMEs with annual turnover upto Rs. 50 crore will have to pay only 25% tax
- MAT carry forward to be expanded to 15 years from 10 now
- Startups can carry forward their losses for three years even if the promoter goes below 51 per cent
- Land pool offerors for Andhra Pradesh capital to get cap gains exemption
Summing up the whole budget speech Some good corrective steps though but people who stood in lines during demonetization were expecting more. While finance minister is making Budget speech markets have gone up : Sensex up by over 300 points, Nifty up 80 points.