HIGHLIGHTS OF BUDGET FOR FY 2017-18
No Cash transaction over INR 3 Lac-
As per Budget 2017-18 no cash transaction is permitted for more than INR 3 Lac. This has become a problem for sectors that deal in Cash. Ex Jewellery, Property where major payments are done in cash. If someone is caught making cash payment of more than INR 3 Lac then there is 100% penalty on it.
Income tax slab reduced-
Income tax slab reduced from 10% to 5% for people earning between INR 2.5 Lac -5 Lac. This has become a reason for happiness among the salaried class earning up to INR 5 Lac.
10% Surcharge imposed-
Surcharge of 10% has been imposed on individuals earning between INR 50 Lac- 1 Crore. It’s an extra burden for individuals earning between INR 50 Lac- 1 Crore.
Long Term Capital Gain tenure reduced from 3 years to 2years-
Another sense of relief for people who love to invest in Land and buildings as the tenure of Long Term Capital Gain tenure has been reduced from 3 years to 2years. Hence w.e.f. FY 2017-2018 if the Land and building are sold after 2 years then it will come under Long-term Capital Gain. And the person will get the benefit of Indexation.
No change in Long-term Capital and short term Capital gain tax for Equity Investors-
The budget for FY 2017-18 has brought good news for Long-term Capital gainers as there is no change in Long term Capital gain tax for equity investors. This means they can enjoy the benefit from equity market after 1 year i.e. All gains will be considered tax-free.
Corporate tax for MSME companies below 50 Crore turnover is reduced to 25%-
The tax slab has been reduced to 25% for Corporate whose turnover is less than INR 50 Crores. Thus, this would benefit 96% of MSME along with the startups.
Cash Donation limit to political parties reduced-
Earlier we could make a cash donation to political parties for INR 20000. But w.e.f. FY 2017-18 this limit has been reduced to INR 2000 only.
Aadhaar pay is about to be launched soon-
This means that from now onwards shopping has become hassle free. As, you can do shopping with only a thumb impression.
No change in Service tax-
Another good news is the service tax has not been increased which was expected before the budget.
5% TDS on rent more than INR 50000–
W.E. F Budget FY 2017-18, 5% TDS has been imposed if the rent paid is more than INR 50000.
Infrastructure status has been given to Affordable Housing-
This means real estate companies will receive funding at lower rate now as compared to earlier for affordable housing.