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Union Budget 2017: The 5 Big Takeaways

Union Finance Ministry Arun Jaitley/File photo

Political Financing

• Limit that political parties can receive in cash reduced from Rs 20,000 to Rs 2,000
• India bans general cash transactions above Rs 3 lakh
• Amendment to RBI Act to enable issuance of ‘electoral bonds’

Taxation

• Tax liability for individuals earning between Rs 2.5-5 lakh reduced to 5% from 10%

• Zero tax liability for people earning upto Rs 3 lakh per annum

• Surcharge of 10% for individuals earning between Rs 50 lakh to Rs 1 crore

• Companies with annual turnover of Rs 50 lakh get a 5% reduction in Corporate tax

• Foreign investors exempted from paying tax on offshore funds with Indian assets

Investment

• India abolishes the Foreign Investment Promotion Board (FIPB), the body which approves all inbound FDI investment proposals.

Fintech

• Payment regulatory board to be created at the RBI
Macroeconomy

• Government sticks to fiscal consolidation path, fiscal deficit marginally up to 3.2% of GDP in FY 2017-18, 3% in FY 2018-19

• Total expenditure of government in FY 2017-18 pegged at 21.47 lakh crore

Source: News18