KEY HIGHLIGHTS of Union Budget 2017-18

Finance Minister Arun Jaitley presented the Union Budget 2017, his 4th annual budget, today. Here are the highlights of this year's budget:

Income Tax Related Changes:
Income Tax rate cut to 5 % for individuals having income between Rs 2.5 lakh to Rs 5 lakh.
Reduction in 87A rebate to Rs 2500 and available to people who is having income below Rs 3.5 lakh.
10 % surcharge on individual income above Rs 50 lakh and upto Rs 1 cr to make up for Rs 15,000 cr loss of due to cut in personal I-T rate. 15 % surcharge on income above Rs 1 cr to continue.
Of 3.7 cr individuals who filed tax returns in 2015-16, 99 lakh showed income below exemption limit.
Direct tax collection not commensurate with income and expenditure pattern.
Of 76 lakh individuals who reported income of over Rs 5 lakh, 56 lakhs are salaried people.
As against 4.2 crore people working in organized sector, only 1.74 crore individuals filed income tax returns.
Political parties can receive donations in Cheque, electronic mode; electoral bonds to be issued by RBI.
Maximum amount of cash donation a political party can receive will be Rs 2000 from any one source as part of effort to clean political funding.
3 yr period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from 1.4.1981 to 1.4.2001.
No transaction above Rs 3 lakh in cash will be allowed as suggested by SIT.
To make MSME companies more viable, govt proposes to reduce IT tax with annual turnover of Rs 50 core up to 25 percent.
Not possible to remove MAT levied on advance tax for now; carry forward allowed for 15 yrs instead of 10 yrs.
Capital gains tax exempted for the land pooled to build new capital of Andhra Pradesh effective from 2.6.2014.
Actual revenue loss on tax proposals Rs 22,700 cr; gain from additional resource mobilisation is Rs 2,700 cr.Net revenue loss from direct tax proposals to be about Rs 20,000 cr.
6% presumptive income in case of transactions through banking channels.

Key Figures and Facts of Demonetisation:
Demonetisation will help in transfer of resources from tax evaders to government.
Only transient impact on economy due to demonetisation; long term benefit includes higher GDP growth and tax revenue.
Effects of demonetisation not expected to spill over to the next year, says Finance Minister.
World Bank expects GDP growth rate at 7.6 % in FY18 and 7.8 % in FY19.
After demonetisation on Nov 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 cr bank.
Over Rs 80 lakh deposits in 1.48 lakh cr at an average of Rs 3.31 cr per account.
Increase in personal tax collections is 34.8 per cent in last three quarters. Demonetisation has played a role.
17 % growth in direct tax revenue for the second year in a row in 2016-17.