01-February-2017 16:37 IST
Salient Features of Direct Tax Proposals in Union Budget 2017
The Union Budget 2017 was laid before the Parliament today by the Hon’ble Finance Minister of India. The salient features of Direct Tax proposals are summarised below:
I. Affordable Housing:
1. Three concessions in the scheme of Income Tax exemption for affordable housing:
(a) Area of 30 and 60 Sq.mtr. to be counted as carpet area and not built-up area;
(b) 30 Sq.mtr. only in 4 metropolitan city limits and 60 Sq.mtr. for the rest of the country;
(c) Completion period extended from 3 years to 5 years.
2. Tax on Notional rental income for builders to be calculated only after 1 year from the end of the year in which completion certificate is received.
3. Changes in Capital Gain taxation for immovable properties:
(a) Holding period reduce for computation of long term capital gain from three years to two years
(b) Base year for counting the cost of property shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.
4. Basket of financial instrument in which capital gain can be invested without payment of tax to be expanded.
5. For joint development agreement, the liability to pay capital gain tax will arise in the year in which project is completed.
6. For Andhra Pradesh capital, land belonging to owners as on 2.6.2014 to be exempted from capital gain if the same is offered under land-pooling mechanism.
II. Measures for stimulating growth:
1. Concessional withholding rate of 5 per cent. for interest received by foreign entities on loans given in India to be continued for another 3 years beyond 30.6.2017.
2. Start-ups to get two relaxations under the scheme of Income Tax holiday given last year.
(a) The condition of continuous holding of 51 per cent. voting rights to be relaxed as long as the original investment of promoter is not diluted.
(b) Exemption available for three years out of any 7 years from the date of establishment instead of 3 out of 5 years
3. The period of carry forward of MAT/AMT credit increased from 10 years to 15 years.
4. The corporate income tax to be reduced from 30% to 25% for companies with turnover upto Rs.50 crore in 2015-16. This will benefit 96% of existing 6.67 lakh companies. This will result into tax saving of 16.67% for these companies.
5. Deduction for provision for NPA of Banks to be increased from to 8.5% instead of 7.5% of profit.
6. In case of NPA of non-scheduled cooperative banks, interest to be recognised as income only when received.
III Promoting Digital Economy:
1. In the presumptive income tax for small traders, income to be taken as 6% of turnover which is received by digital or banking means.
2. Cash expenditure allowable to be reduced to Rs.10,000 from the existing Rs.20,000.
3. Cash transaction of above Rs.3 lakh not to be permitted. The penalty of equal amount to be levied in case of breach.
IV Transparency in Electoral Funding:
1. The cash donation to political parties from one person limited to Rs.2,000/-.
2. Electoral Bond to be introduced for facilitating donation to political parties from explained sources.
3. Political parties to file their return in time limit prescribed in the Income Tax Act.
V. Ease of Doing Business:
1. Domestic transfer pricing to be applied only if one of the two companies enjoys specified profit-linked deduction.
2. The audit limit for business entities opting for presumptive scheme to be increased from Rs.1 crore to Rs.2 crore.
3. Individuals and HUFs not required to keep books of accounts if their turnover is up to Rs.25 lakhs or income is upto Rs.2.5 lakhs.
4. Investment in Category 1 and 2 foreign portfolio investors registered with SEBI to be exempted from provisions of indirect transfer.
5. TDS of 5% not to be deducted for individual insurance agents if they certify their income to be below taxable limit.
6. Professionals in presumptive scheme to pay advance tax only in one instalment in March instead of four.
7. The time limit for revising a tax return reduced to 12 months. Also time limit for completion of scrutiny will be brought down to 12 months from Assessment Year 2019-20 onwards.
VI Personal Income Tax:
1. Personal income tax for people with income in the slab of 2.5 lakh to 5 lakh to be reduced to 5% instead of 10%. This will reduce their tax liability to half while all other tax payers above this slab will also be benefited in terms of lesser tax of Rs.12,500 per individual (revenue loss ofRs.15,500 crores).
2. Surcharge of 10% to be levied on individuals with income between Rs.50 lakhs to Rs.1 crore (revenue gain of Rs.2,700 crore).
VII. Miscellaneous:
1. TCS exemption for state transport corporation in respect of purchase of vehicles.
2. Income of Chief Minister’s relief fund exempt from tax.
3. Penalty on accountant, registered valuer and merchant banker for furnishing incorrect information.
4. In order to ensure timely filing of return and expeditious issue of refund, a fee shall be levied for delay in filing of return.
02-February-2017 12:20 IST
New Benefits announced for NPS Subscribers in Union Budget 2017-18
In a bid to provide further impetus to the National Pension System (NPS), the following provisions have been introduced in the Finance Bill 2017 laid down in the Parliament today.
Tax-exemption to partial withdrawal from National Pension System (NPS)
The existing provision of section 10(12A)of the Income Tax Act, 1961 provides that payment from National Pension System (NPS) to a subscriber on closurer of his account or opting out shall be exempt up to 40% of total corpus at the time of withdrawal . The amount utilized for purchase of annuity is also tax exempt. At the time of normal exit, 40% of the total corpus is mandatorily required to be purchased for annuity. The subscriber has the option to use higher amount for purchase of annuity.
In order to provide further relief to the subscriber of NPS, it has been proposed to insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and regulations made there under.
This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017.
Further, Contribution up to 20% of the Gross Income of the Self-employed individual (Individual other than salaried class) will be deductible from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against 10% earlier.
This is with a view to provide parity between a salaried employee and a self-employed.
This benefit will be available on contribution made by the self employed persons on or after 1st April 2017.
This increased limit for tax benefit will help the self-employed individuals, to save taxes on higher contribution in NPS and thereby properly plan for their old age income security.
Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD (1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.
केंद्रीय वित्त मंत्री अरुण जेटली ने 2017-18 का बजट संसद में पेश कर दिया है। भारत के इतिहास में पहली बार ऐसा हो रहा है जब आम बजट और रेल बजट एक साथ पेश किया जा रहा है। पेश है 2017-18 के बजट की खास बातें और अहम ऐलान। लोकसभा में यह अरुण जेटली का चौथा बजट है। पेश है अरुण जेटली के बजट भाषण की खास बातें एवं घोषणाएं।
-3 लाख तक की आमदनी पर कोई टैक्स नहीं
-इनकम टैक्स स्लैब को 2.5 लाख से बढ़ाकर तीन लाख किया गया
-तीन से पांच लाख की आय पर पांच फीसदी टैक्स
-इनकम टैक्स ढांचे में बड़ा बदलाव किया गया
-धार्मिक डोनेशन पर टैक्स छूट घटाई गई
-राजनीतिक दल 2000 तक ही नकद चंदा ले सकेंगे
-राजनीतिक पार्टियां चेक या डिजिटल डोनेशन ले सकेंगी
-ट्रांजैक्शन लिमिट तय करने के लिए आईटी एक्ट में बदलाव होगा
-3 लाख से ज्यादा कैश ट्रांजैक्शन की इजाजत नहीं होगी
-2 करोड़ तक बिक्री वाले दुकानों की आय 8 फीसदी की जगह 6 फीसदी मानी जाएगी
-50 करोड़ तक टर्नओवर वाली कंपनियों को टैक्स में पांच फीसदी छूट
-छोटी कंपनियों को टैक्स में 25 फीसदी की छूट
-स्टार्ट अप के लिए कंपनियों को सात साल तक टैक्स में छूट
-सस्ते घर की स्कीम में बदलाव किया गया
-सस्ते घर, रीयल एस्टेट को बढ़ावा देने के लिए योजना में परिवर्तन
-नोटबंदी की वजह से लोगों को अपनी आय ज्यादा बतानी पड़ी
-नोटबंदी के दौरान 1.09 करोड़ खाते में 2.80 लाख करोड़ रुपए जमा हुए
-टैक्स चोरी का भार ईमानदार टैक्स पेयर्स पर पड़ता है
-2.7 लाख कंपनियों ने नुकसान दिखाया
-1.72 लाख लोग ही 50 लाख से ज्यादा आय दिखाते हैं
-सिर्फ 24 लाख लोग 10 लाख से ज्यादा आय दिखाते हैं
-अब डाकघरों में भी बनेंगे पासपोर्ट, हेड पोस्ट ऑफिस अब पासपोर्ट ऑफिस की तरह काम करेंगे
-हर साल 2500 करोड़ रुपए डिजिटल पेमेंट का लक्ष्य
-जिनके पास डेबिट, क्रेडिट कार्ड नहीं वो आधार बेस्ड पेमेंट करेंगे
-अब तक 125 लाख लोगों के मोबाइल में भीम ऐप्प
-डिजिटल लेनदेन को बढ़ावा देने के लिए भीम ऐप्प शुरू किया गया
-नेशनल हाईवे के लिए 64,900 करोड़ रुपए
-एलआईसी में वरिष्ठ नागरिकों को 8 फीसदी ब्याज दर तय
-मेट्रो रेल के लिए नई नीति की घोषणा होगी
-शेयर बाजार में आईआरसीटीसी बतौर कंपनी लिस्टेड होगी
-आईआरसीटीसी के जरिए ट्रेन टिकट की बुकिंग पर सर्विस चार्ज नहीं लगेगा
-इंटरनेट से रेलवे टिकट बुकिंग सस्ती
-2019 तक सभी ट्रेन में बायो टॉयलेट लगाने का लक्ष्य है
-पर्यटन, तीर्थ के लिए नई ट्रेन शुरू होगी
-स्वच्छ रेल के लिए क्लीम माई कोच योजना शुरू की जाएगी
-राष्ट्रीय रेल सुरक्षा के लिए एक लाख करोड़ रुपए का आवंटन
-रेल यात्रियों की सुरक्षा के लिए राष्ट्रीय सुरक्षा कोष बनाया जाएगा
-रेलवे के लिए 1 लाख, 31 हजार करोड़ रुपए का आवंटन किया गया गहै
-वरिष्ठ नागरिकों के लिए आधार कार्ड बेस्ट स्मार्ट योजना शुरू होगी
-2017 तक कालाजार, 2020 तक खसरा को खत्म करने की योजना
-2025 तक टीबी की बीमारी को खत्म करेंगे
-श्रम कानूनों को सरल बनाया जाएगा
-राष्ट्रीय परीक्षा एजेंसी बनाए जाएगी
-झारखंड और गुजरात में दो नए एम्स बनाए जाएंगे
-5 स्पेशल टूरिज्म जोन बनाए जाएंगे
-2018 तक सभी गांवों में बिजली पहुंचाई जाएगी
-गर्भवती महिलाओं को 6 हजार रुपए दिए जाएंगे
-350 ऑनलाइन कोर्स की शुरूआत की जाएगी
-2019 में बेघरों को एक करोड़ घर देने का लक्ष्य
-दीनदयाल ग्राम ज्योति योजना के लिए 4814 करोड़ खर्च करेंगे
-2022 तक स्किल इंडिया के तहत पांच लाख लोगों को ट्रेनिंग दी जाएगी
-5 साल में तालाबों को ठीक किया जाएगा
-प्रधानमंत्री ग्रामीण सड़क योजना में 27 हजार करोड़ खर्च करेंगे
-मनरेगा के लिए अब 48 हजार करोड़ रुपए का प्रस्ताव
-मनरेगा के लिए हमने ज्यादा पैसे दिए और ज्यादा खर्च भी हुए
-प्रत्येक ग्रामीण परिवार को कम से कम 100 दिन के रोजगार की गारंटी
-गरीबी मुक्त ग्राम पंचायत बनाने की सरकार की कोशिश होगी
-सरकार ने भारत में कारोबार करने को और आसान बना दिया है
-नाबार्ड के लिए 20 हजार करोड़ की अतिरिक्त राशि दी गई
-नॉर्थ ईस्ट के किसानों को लोन देने में तरजीह दी जाएगी
-देश को गरीबी से मुक्त कराने के लिए नए मिशन
-कृषि विकास दर 4.1 फीसदी रहेगी
-जीएसटी से देश को गति मिलेगी- जेटली
-किसानों की आय पांच साल में दोगुनी होगी
-टैक्स को लेकर ईमानदार व्यक्तियों का सम्मान
-ग्रामीण क्षेत्रों के इंफ्रास्ट्रक्चर में ज्यादा निवेश की जरूरत
-युवाओं और गरीबों को ज्यादा सुविधाएं देना हमारा लक्ष्य
-खरीब, रबी फसलों की बुआई में बढ़ोतरी हुई
-अच्छी फसल के लिए किसानों को सस्ते कर्ज मुहैया कराना जरूरी
-रेल बजट का आम बजट के साथ विलय ऐतिहासिक
-बजट इसलिए पहले पेश हुआ ताकि पैसे का पूरा इस्तेमाल हो
-नोटबैन से डिजिटल इकॉनोमी में रफ्तार आई-
-पेट्रोलियम की कीमतों में कमी आ सकती है
-नोटबंदी का असर आनेवाले वित्तीय वर्ष में खत्म हो जाएगा
-विश्व बैंक ने कहा है कि भारत की विकास दर 7.6 फीसदी रहेगी
-महिला,मजदूर,किसान, पिछड़ों तक विकास पहुंचा है
-नोटबंदी के बाद बहुत ज्यादा पैसा बैंकों में जमा हुआ है
-नोटबंदी के बाद बैंक लोगों के सस्ते लोन दे रहे हैं
-महंगाई दर छह फीसदी से नीचे ले आएं- जेटली
-धीमी पड़ी अर्थव्यवस्था पटरी पर लौटेगी
-भारत दुनिया का छठा सबसे बड़ा डिसइन्वेस्टमेंट करने वाला देश बना
-दाल का उत्पादन बढ़ने की उम्मीद
-कालेधन से लड़ाई लड़ रहे हैं- जेटली
-सरकार विकास के रास्ते पर आगे बढ़ रही है
-भारी उम्मीदों के साथ सरकार को जनादेश मिला
-पहली बार महंगाई काबू में आई, कालेधन पर लगाम लगी
-वित्त मंत्री अरुण जेटली ने बजट पेश किया
*BUDGET 2017 HIGHLIGHTS *
• Political parties will be
entitled to receive donations by cheques or digital modes.
• IRCTC, IRFC, IRCON to be listed in stock exchanges
• Persons filing returns for the first time will not be subject to scrutiny, unless specific information is available with the Dept.
• No major changes proposed in existing regime of indirect taxation
• One page ITR form to be introduced for taxpayers with taxable income of up to
5 lakhs except business income
• Govt. proposes levy of surcharge of 10% for income between Rs. 50 lakhs and
rs. 1 crores
• FM proposed no change in Exemption limit but reduces tax rate to 5% for
income between 2.5 lac to 5 lacs
• Threshold limit for audit of entities opting for presumptive taxation under section 44AD is increased to 2 crores
• FM proposes to reduce basic customs duty on LNG from 5% to 2.5% in 2017-18
• The maximum amount of cash donation for political party will be Rs. 2,000 from any one source
• Capital gains tax to be exempted for the land acquired for creation of Telangana
• • Political parties will be entitled to receive donations by cheques or digital modes.
• IRCTC, IRFC, IRCON to be listed in stock exchanges
• Persons filing returns for the first time will not be subject to scrutiny, unless specific information is available with the Dept.
• No major changes proposed in existing regime of indirect taxation
• One page ITR form to be introduced for taxpayers with taxable income of up to
5 lakhs except business income
• Govt. proposes levy of surcharge of 10% for income between Rs. 50 lakhs and
rs. 1 crores
• FM proposed no change in Exemption limit but reduces tax rate to 5% for
income between 2.5 lac to 5 lacs
• Threshold limit for audit of entities opting for presumptive taxation under section 44AD is increased to 2 crores
• FM proposes to reduce basic customs duty on LNG from 5% to 2.5% in 2017-18
• The maximum amount of cash donation for political party will be Rs. 2,000 from any one source
• Capital gains tax to be exempted for the land acquired for creation of AP
• Corporate tax rates for small companies with turnover of up to Rs. 50 crore is
reduced to 20%
• Threshold limit under Section 40A(3) for payment of expenses in cash is reduced
to Rs. 10,000
• Finance Bill proposes ban on cash transactions above 3 lakhs
• Presumptive income under Section 44AD for digital receipts is reduced to 6%
• To end the controversy, amendment is proposed that income on NPA Accounts will be recognized on receipt basis instead of accrual basis
• Capital gain tax under Joint Development Agreement to be levied in a year of completion
• It is proposed to reduce tax rate by 5% for SMEs with annual turnover of up to
50 crores
• Govt. proposes to extended facility of Concessional withholding rates on interest
payable to foreign entities
• Govt. proposes carry forward of MAT Credit for a period of 15 years instead of
10 years
• 2001 shall be the base year for calculating the capital gains instead of existing 1981
• Capital Gains: Holding period for immovable property is reduced to 2 years
• Proposed changes in Profit linked deduction for affordable housing scheme
• Relief to middle class tax payers and affordable houses are major highlights of
this budget
• Highest ever advance tax collection in personal income tax in last three quarter
of current FY
• From 3.5 crore return filers, 99 lakh taxpayers disclosed income less than
minimum exemption limit, while only 24 lakh disclosed income above Rs 10
lakhs
• Finance Minister discloses surprising facts about the return filings in India to conclude that we are largely a tax non-compliant society
• Tax to GDP ratio of India is very low: Finance Minister
• Head post offices to be used as the front office for passport services
01-February-2017 13:55 IST
General Budget 2017-18 proposes Reduction in Customs and Excise for Renewable Energy Sector, and Cashless Transaction Devices
The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley while presenting the General Budget 2017-18 in Parliament today announced substantial relief in Customs and Excise Duties for Renewable Energy Sector and for manufacture of Cashless Transaction Devices.
In a bid to incentivize domestic value addition under Make in India initiative of the Government, the Finance Minister has proposed to reduce Customs and Excise duties on several items related to the Renewable Energy Sector. This includes all items of machinery required for - fuel based power generating system to be set up in the country for demonstration purposes; systems operating on biogas/ biomethane/ byproduct Hydrogen; LED lights or fixtures etc.
The Finance Minister has proposed zero Customs and Excise duties on certain items related to cashless transaction devices to promote domestic manufacturing of these products.
Proposals for reduction in Customs duty on inputs and raw materials to reduce costs and for incentivizing domestic value addition under Make in India have been submitted for certain items like Liquefied Natural Gas, Nickel, Vegetable Tanning Extracts and certain Capital Goods.
Proposal to hike Excise duties and to levy additional duties under Sec 85 of the Finance Act, 2005 on several tobacco and tobacco related products have also been made in the Budget.
01-February-2017 13:57 IST
Budget gives a major push to Digital Economy; proposes No Cash Transaction above Rs 3 lakh
Government to launch schemes to promote BHIM app, Aadhar Enabled Payment System
Mission to be set-up to achieve a target of 2500 Cr digital transactions in 2017-18
Series of measures proposed to strengthen and regulate digital economy
Government to launch schemes to promote BHIM app, Aadhar Enabled Payment System
Mission to be set-up to achieve a target of 2500 Cr digital transactions in 2017-18
Series of measures proposed to strengthen and regulate digital economy
In a bid to give a push to Digital Economy and weed-out corruption and black money, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley in his Budget Speech today said that the Government has decided that no transaction above Rs 3 lakh will be permitted in cash. Accepting a suggestion by Special Investigation Team on Black Money to ban cash transactions above Rs 3 lakhs, the Finance Minister has proposed an amendment to the Income-tax Act in the Finance Bill.
Presenting the General Budget 2017-18 in the Parliament, the Finance Minister said that the 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. BHIM App was launched to promote digital transactions and will unleash the power of mobile phones for digital payments and financial inclusion, The Finance Minister Shri Jaitley informed the House that 125 lakh people have adopted the BHIM app so far.
The Finance Minister Shri Jaitley also announced that 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.
Highlighting the Government’s strategy to clean the system through digital economy, Shri Jaitley said that it has a transformative impact in terms of greater formalisation of the economy and mainstreaming of financial savings into the banking system. This, in turn, is expected to energise private investment in the country through lower cost of credit. India is now on the cusp of a massive digital revolution, he added. The Finance Minister said that a shift to digital payments has huge benefits for the common man. The earlier initiative of the Government to promote financial inclusion and the JAM trinity were important precursors to the current push for digital transactions, the Finance Minister added.
In a bid to incentivize the digital transactions, the Finance Minister Shri Jaitley proposed that 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, he added.
The Finance Minister also proposed to limit the cash expenditure allowable as deduction, both for revenue as well as capital expenditure, up to 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/-.
To promote cashless transactions, the Finance Minister in the Budget has proposed to exempt 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. He also proposed to exempt parts and components for manufacture of such devices, so as to encourage domestic manufacturing of these devices.
To strengthen and regulate the digital economy, the Finance Minister has proposed to create a Payments Regulatory Board in the Reserve Bank of India(RBI) by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. The Committee on Digital Payments constituted by the Department of Economic Affairs has recommended structural reforms in the payment eco system, including amendments to the Payment and Settlement Systems Act, 2007. The Government will undertake a comprehensive review of this Act and bring about appropriate amendments, Finance Minister added.
To strengthen the digital payment infrastructure and grievance handling mechanisms, the Finance Minister said in his Budget Speech that the focus would be on rural and semi urban areas through Post Offices, Fair Price Shops and Banking Correspondents. He added that steps would be taken to promote and possibly mandate petrol pumps, fertilizer depots, municipalities, Block offices, road transport offices, universities, colleges, hospitals and other institutions to have facilities for digital payments, including BHIM App. A proposal to mandate all the Government receipts through digital means, beyond a prescribed limit, is under consideration. The Government will strengthen the Financial Inclusion Fund to augment resources for taking up these initiatives, the Finance Minister added.
In his Budget Speech, the Finance Minister informed that increased digital transactions will enable small and micro enterprises to access formal credit. He said that the Government will encourage SIDBI to refinance credit institutions which provide unsecured loans, at reasonable interest rates, to borrowers based on their transaction history.
The Finance Minister assured the House that the Government will consider and work with various stakeholders for early implementation of the interim recommendations of the Committee of Chief Ministers on digital transactions.
Shri Jaitley said that the Government is considering the option of amending the Negotiable Instruments Act to ensure that the payees of dishonoured cheques are able to realise the payments.
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