So, the India Govt. recently passed its budget for 2017 and there are new rules galore. For the fiscal year 2017 – 18, there have been many amendments made (good and bad). Here’s everything you need to know.
- If your annual income is between 2.5 lakhs and 5 lakhs then your income tax is now reduced to 5%. [Good]
- After rebates, zero tax liability for people with income of 3 lakhs annually. [Good]
- All other categories will get uniform benefit of Rs 12,500.
- If you annual taxable income is between 50 lakhs and 1 crore, there shall be a surcharge of 10% of income tax [Bad]
- If you annual taxable income is above 1 crore, you will be charged 15 percent surcharge. [Bad]
- For persons having Taxable income up to 5 lakhs other than income from Profits and Gains from Business or profession(PGBP), you can file your taxes with just a one page Income tax return.
- Maximum limit for audit of specified assesses who opt for presumptive income (Section 44AD of Income Tax Act) scheme is now increased from 1 crore to 2 crores.
- Transactions above 3 lakh Rupees will not be permitted via cash. (with some exceptions). [Good]
- Maximum donation of 2000 rupees in cash per person for political parties.
- Foreign Investment Promotion Board (FIPB) will be abolished.
- Rs 23,000 crore is now allocated to the Pradhan Mantri Gramin Awas Yojana.
- Foreign direct investment increased from 1,07,000 crores in the first half of last year to 1,45,000 crores in the first half of 2016-17.
Overall, it’s been a great budget for all spectrums with the exception of those with income above 1 Crore annually. For most of the lower and middle class, the changes are welcome and should help to build a better economy.