Two major economic decisions, one is GST and other is demonetization will have major impact in the budget 2017-18. The Government will try to soothe the 50 days pain of the people of India caused through demonetization.
The other focus will be on making India cashless economy so benefits will be given to those business or individuals transacting cashless.
Two major changes in budget 2016 are merger of union budget with the railway budget and presentation date of the budget will be 1st of the February instead of the end to the February.
- Demonetization effects to be covered up.
- Loopholes comes after demonetization need to filled.
- Demonetization benefits to be passed to the people through income tax rate cuts for individual & corporate the slab rates for individual may be widened from present limit of Rs. 2.50 Lac.This may change to Rs. 4.00 Lac. Read here the new tax slab rates for financial year 2017-18
- The tax rates for corporate may be reduced to 27% since the government has already promised in budget 15-16 to bring the rate down to 25% in four years. Last year government had reduced the tax rates to 25% for companies having turnover less than 5 core. For rest of the companies the rates remained unchanged.
- Farm Package for rural India, and some special package for UP due to near election.
- The cash expenditure limit may be reduced from present 20,000 per transaction per day.
- More provision income tax to give push to cash less economy.
- HRA exemption limit may be increased from present 50% due to rise in prices of property and consequently the rent.
- Increase in the limit of 80D from Rs.15000 to at least Rs. 25000 due to rising medical expenses
- Increase in limit of 80C to boost the investment.
Present changes before Budget 2017-18
- Pradhan MantriGaribKalyanYojana: Under this scheme a last chance is given to disclose the black money which will be taxable @ 50% and additional penalty will be leviable.
- No service on payment made up to Rs. 2000
So big relief is expected for common people in terms of reduced slab rates and business houses will also get benefited with reduction in corporate taxes. The other relief & schemes will be for various states in which near term election to be held. The focus will also be on railway budget since it is the first time it is presented with union budget.
Please comment what you think of expectation from Budget 2017-18.
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