The Indian Budget 2017 was presented amidst a battery of turbulent developments across India and the world. From Trump’s decision regarding ousting H-1B visa holders from the country in large numbers, to the frenzy and commotion prior to UP elections. Everything was mounting pressure on the Finance Minister who was battling with time and opposition largely to accomplish his verdict of presenting the budget as early as February 1, unlike every year on March 31. Not only this, 2017 is the first year in which the Union Budget was declared as an unprecedented amalgamation of Financial and Railway budget.
Mushrooming Cashless transactions
Post demonetisation, the government was bound to introduce measures encouraging digitalisation of all currency transactions. The Budget indomitably bolstered the digital economy, thereby cruising the economy to higher growth and mushrooming cashless transactions.
Technology is the prime catalyst towards manifesting “Cashless India”. The initiative was pioneered for rural internet penetration: BharatNet and Aadhaar app-based PoS terminals, are some amongst many steps taken in this direction.
Rollout of GST (Goods and Service Tax)
Not disappointing Indians on any ground at all on the Budget, BJP won all hearts back. As promised, the Finance Minister, Arun Jaitley also reassured that the GST (Goods and Service Tax) format will be integrated into the company’s accounts on the scheduled date i.e. April 4, 2017. All billing systems are undergoing requisite transformation to support GST and ensure it’s successful implementation.
The introduction of GST will mitigate the problem of cascading effect of tax (tax on tax). This will also stimulate the idea of One nation, One tax. Increased transparency and reduced corruption are just basic by-products of the GST, to say the least.
Income Tax
All Indians were yearning for a favourable reduction in tax rate. But as BJP would have done it, it not only showered a tax rate cut but also increased the non-taxable income range. From 2,50,000, the non taxable limit has been shot up to 3,00,000.
The Finance minister said, “I, propose to reduce the existing rate of taxation for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs to 5 percent from the present rate of 10 percent. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 percent of their existing liability.”
He reduced tax rate to 5 percent for Rs 2.5 lakhs to Rs 5 lakhs, down from 10 percent. This means the overall tax rate will come down for those who have income up to Rs 5 lakhs.
An extra surcharge of 10% will be charged on assesses with income above Rs.50 lakh – Rs.1 crore. For those earning above Rs. 1 crore will be charged with a surcharge of 15%.
All these comprehensive updations made in the Budget as against previous years have been integrated primarily to ensure and encourage all Indians to pay tax honestly and not indulge in tax evasion.
