What to expect in budget 2017?
Posted on: 01/Feb/2017 11:07:13 AM
It is expected that there will be new taxes and concessions for cashless transactions in the union budget which is to be tabled today by the Finance Minster. In order to encourage cashless transaction, the Finance Minster may announce various concessions to credit card, debit card, e wallets and digital transactions users.
It was expected that GST tax will be implemented during the month of April but due to difference of opinions between the centre and the states, it has been decided to implement this during the month of July. Tax sharing on the GST by the States may be announced today. It is expected that there may be major changes in income taxes and corporate taxes. There will also be tax rebate in deposits, insurance premium, and mutual funds. The government is expected to cut the corporate income tax rates by 1.25-1.5 per cent to 28.75-28.5 per cent in the budget 2017. There will more concessions for new firms.
Railway budget and general budget is being merged for the first time. The Railways will not be affected because of this. Now Indian Railways can avoid setting aside funds for dividends of about Rs 10,000 crore to the government every year. Importance will be given to passenger amenities and safety. At the same time there are chances of passenger tickets being hiked.
There are expectations that finance minister Arun Jaitley will announce a series of measures to minimize the demonetization pain for farmers in Budget 2017. The government may propose a bundle of tax incentives to firms as part of the Prime Minister Narendra Modi`s signature Make in India initiative to boost manufacturing, create jobs and revive exports. Like in China, industrial cities across the country equipped with production units, public utilities, residential areas, schools and hospitals will be set up.
Finance minister Arun Jaitley is expected to announce initiatives to allow the country`s start-ups, including widening of the tax-free regime to five years from three years and faster procedural clearances.
