Under the existing provisions of section 80CCG, deduction for three consecutive assessment years is allowed upto Rs. 25,000 to a resident individual for investment made in listed equity shares or listed units of an equity oriented fund subject to fulfilment of certain conditions.
Key highlights of the Finance Budget are presented as under: Reduction in Income tax rate from 10% to 5 % for individuals having income between Rs. 2.5Lakhs – Rs. 5Lakhs. This is clear cut reduction in 50% rate for the above slab. The below table will bring out clear cut impact of the change :
Union Finance Minister, Shri Arun Jaitley has tabled the Finance Bill, 2017 in Lok Sabha today. As the Government is determined to introduce Goods and Services Tax (GST), the biggest ever indirect tax reform of Independent India, the Finance Bill,2017 amendments with respect to Service Tax is kept at minimum.
Finance Minister Shri Arun Jaitley has also proposed that a Special Scheme for creating employment in leather and footwear industries will also be implemented. This will be on the line of already launched a Special Scheme for creating employment in the textile sector.
Shri Jaitley expressed the hope that 100% village electrification would be achieved by 1st May 2018 and he added that an increased allocation of Rs 4,814 crores has been proposed under the Deendayal Upadhyaya Gram Jyoti Yojana in 2017-18.
Admitting that Dairy is an important source of additional income for the farmers, the Finance Minister Shri Jaitley announced that a Dairy Processing and Infrastructure Development Fund would be set-up in NABARD with a corpus of Rs 8,000 crores over 3 years. He said that issuance of Soil Health Cards has gathered momentum, even as the Government has decided to set-up new mini labs in Krishi Vigyan Kendras (KVKs) and ensure 100% coverage of all 648 KVKs in the country.
Government will put greater focus on quality of expenditure and higher tax realisation from the huge cash deposits in Banks, triggered by demonetization, Shri Jaitely concluded.
The Government gave income tax exemptions to Start-Ups with certain conditions last year. For the purpose of carry forward of losses in respect of such Start-Ups, the condition of continuous holding of 51% of voting rights has been relaxed subject to the condition that the holding of the original promoter/promoters continues. Also the profit linked deduction available to the start-ups for 3 years out of 5 years is being changed to 3 years out of 7 years.
Concluding his Budget Speech, Shri Arun Jaitley outlined the Government’s overarching agenda: “Transform, Energise and Clean India’. Government’s emphasis will be on implementing all these proposals for the benefit of the farmers, the poor and the under privileged sections of the society, the Finance Minister added.
Listing and trading of Security Receipts issued by a securitisation company or a reconstruction company under the SARFAESI Act will be permitted in SEBI registered stock exchanges. This will enhance capital flows in to the securitisation industry and will particularly be helpful to deal with bank NPAs.
