On, 1 February 2017, Arun Jaitley Finance Minister of India presented the Union Budget of India for the fiscal year 2017-18. The Union Budget use to happen later at the end of February. But this time it was held on the very first day of February. This Union Budget was so important to look for a lot of people as India went from a phase of demonetization of Rs.500 and Rs.1000 currency. What reduction will be done in taxes to help people.
Remember there were lots of things introduced in the budget from various things were it would be farming, health care, infrastructure, housing, railways, defence and accountability for various public services. We are covering the things that effect/affect individuals and common man. We are not going to write “How much many was allocated to different sectors in this Union Budget”.
Top 10 highlights of India’s union budget of 2017-2018
1. Aadhaar Pay
Government of India is going to introduce 20 lakhs Aadhaar based payment POS Machine till september,2017. Finance minister has allocated 2,500 crore rupees for the increase adoption of digital mode of payment in India. On the other hand Indian Banks have said to add 10 Lakhs Point of sale (POS) machine.
2. Indian Railways
Railway Budget previously was introduced separately. But this year 2017, it was combined with the union budget for the first time in 92 years. Rs. 55,000 Crore has been allocated to the Railway sector. Railways autonomy will continued to be maintained. Rs.1,31,000 Crore for five years has been planned for Rashtriya Rail Sanraksha Kosh (National Railway Safety Fund).
3. Apply for Indian Passport in Post Office
Now you can also apply for passport in the Head Post office of your district other than the Passport Seva Kendras across India.
4. Political Parties have to use bonds to get donation.
Indian Political Parties, now can only receive Rs.2000 from individuals in the form of Cash. More than Rs.2000 donation will have to be made in the form of Cheque, Demand Draft, Online bank transaction or through e-wallets. With this the people who want to give anonymous donation to the political party will have to get election bonds from Banks and then they give donation to which ever political party they want to.
5. Number of People who pay taxes and files for Income tax return.
- Out of 13.14 Lakh Companies only 5.97 filed for Income tax return the year 2016-17.
- 1.95 Crore showed their income between the 2.5 lakh to 5 lakh.
- 76 Lakh declared their income above Rs.5,00,000 out of which 56 Lakh are salaried individuals.
6. Strict rules for Loan Defaulters
We are very familiar with the Loan defaulter Vijay Mallya who fled the country to avoid prosecution and other things. Government is planning to bring change in legislation to confiscate the assets of these people within the country.
7. No Cash payment for transaction above Rs.3,00,000
Government is planning to amend the Income tax Act to ensure that no transaction above Rs.3 Lakh is permitted in Cash.
8. No Service charge and easy ticket booking for defense personnel on IRCTC portal
Mr. Arun Jaitley has said there will be no service charge imposed on booking online train tickets from IRCTC portals. Also for defense personnel in Army, Navy and Airforce easy online booking system is going to be developed.
9. BHIM Referral and Cashback offers.
Looks like Government of India is going to follow the strategy of popular mobile bank wallet to gain more users into their BHIM app by giving incentive to users like Cashbacks and Referral bonus like paytm, mobikwik and freecharge continue to give. It would be sight-seeing the Govt. of India’s BHIM app in direct competition to Private companies e-wallet services.
10. Personal Tax Slab
- Previously tax exemption was up to 2.5 lakh. Now it has been extended up to 3 Lakh.
- Previous year tax slab of Rs.2.5 to 5 Lakh at 10% tax is now reduced to 5% tax from 3 lakh to 5 Lakh.
- People who are earning between 5 lakh to 10 lakh will be subjected to tax of 20%.
- Earning more 10 lakh will attract 30% in taxes.