The Union Finance Minister Arun Jaitley presented the Budget 2017-18 on February 1, 2017. The new budget now excepts tax for the citizen with an annual income of less than Rs 3 lakh. Income class of up to Rs 5 lakh will be imposed an income tax at 5 per cent. A surcharge of 10 per cent will be levied on people with annual income between Rs 50 lakh to Rs 1 crore.
Arun Jaitley failed to live up to his promise of tax concessions. A concession in Income tax is observed in the minimum slab from 10 percent to 5 percent for salary holders between Rs 2.5 lakh to Rs 3 lakh. However, this fell short of expectations as it is expected that he would exempt tax up to Rs 4 lakhs. Macro-level announcements are on more positive note for the economy.
It is expected that Demonetisation will lead to a transient impact on the economy. Also, it is expected that it will have a strong impact on the economy and lives of people. The bold move will lead to higher GDP growth and the effects will not spill over to the next fiscal.
The budget assures security against natural calamities for sowing farmers. Rs. 10 lakh crore is allocated as credit for farmers along with interest waiver of 60 days. NABARD fund will be raised to Rs. 40,000 crore. The latest budget also assured to set up mini labs in Krishi Vigyan Kendras for testing soil. The government also targets to get 1 crore households out of poverty by 2019. Five lakh farm ponds will be taken under the MGNREGA during 2017-18.
On youth sector, the budget focuses on 3,479 educationally backward blocks mainly. Will also introduce a system to measure annual learning outcomes and come out with an innovation fund for secondary education. Under a nationwide scheme for pregnant women, a sum of Rs. 6000 will be transferred to each person. Rs. 500 crore allocated for Mahila Shakthi Kendras. In total, Rs.1,84,632 will be allocated for women and children.
|Income Slab||Tax Rate|
|Income up to Rs 3,00,000||Nil|
|Income from Rs 3 lakh up to 5 lakhs||5%|
|Income from Rs 5 lakh up to Rs 10 lakh||20%|
|Income above Rs 10 lakh up to Rs 50 lakh||30%|
|Income above Rs 50 lakh up to Rs 1 crore||30% + 10% surcharge|
|Income above Rs 1 crore|
30% + 15% surcharge