Huge expectations have been raised for today’s budget presentation, as it comes immediately after Demonetization, and what more – just coming weeks before the Assemble Polls in five states across India.
For our readers – a quick takeaway from the Budget 2017 today morning:
Contributed by: CA Anshul Mogra – Vice President, ICAI Branch, Udaipur
- Finance Bill proposes ban on Cash transactions above Rs. 3 lakhs
- Presumptive Income under Section 44AD for digital receipts is reduced to 6%
- End to a 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
- Finance Minister proposes to reduce tax rate by 5% for SMEs with annual turnover of up to 50 crores. Now rate is 25%.
- 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
- Proposal for changes in Profit linked deduction for affordable housing scheme
- Govt. intending to amend Negotiable Instrument Act to help quick realization in case of dishonored cheques
- To promote digital economy, FM proposes two new schemes to promote BHIM application
- More than 90% of FDI are proposed under automatic route
- Draft bill to curb illegal deposit shall be proposed in current budget session
- Rs. 500 crores allocated to set up Mahila Shakti Kendras
- Service charge on IRCTC ticket booking will be removed
- A dedicated fund to be set up by NABARD with corpus of Rs. 5,000 crore to assure market prices to the farmers for their produce
- 48000 crore allocated to MGNREGA Scheme
- Affordable housing will be given infrastructure status
- Service charges withdrawal on e-Ticket to boost govt’s digitisation endeavour
- Cash expenses limit reduced to 10,000 to promote digital transaction.