Union Budget 2017-18 is the amalgamation of both general and railway budget together. First off, it will be published on 1st February than the usual date of 1st March and as stated earlier, there will be no separate railway budget this year. By this amalgamation, it is projected that it will help the government to ease up the burden of the common man.
It has been forecast that there is decline in India’s GDP growth which is currently 7 % as against its October projection of 7.6%. This downfall is highly due to the demonetisation which has brought a huge impact on the economy of India with a drop in consumer spending and job cuts. Although the decision is admirable for the purpose of curbing the terror funding borne out of black money but has resulted in cash crunch in the economy. At this instance, impact of demonetisation has shaken the industries sales and a latest analysis by SBI among SMEs reveals a decline of 66.67% in business.
After facing all such difficulties, the expectations of common man from the upcoming Union Budget 2017-18 are extremely high. The following are some of the key expectations from Budget 2017-18:
Towards a Simplified Tax Regime
This is the topmost expectation of every Indian citizen. Budget 2017 is expected to reaffirm the government intention towards a simplified tax regime, with lower rates for corporates and individuals while abolishing all exemptions
- With demonetisation woes, it is highly expected that there is change in the current tax slabs , high hopes for any upward revision in the minimum tax slabs will be appraised and corporate tax rates currently at 35% will be brought down to 20% while abolishing all exemptions.
- Presently under Section 80C of Income Tax Act 1961, the deduction is restricted to INR 1.50 Lakh. A revision in this limit to INR 2 lakh will be appealing to the citizens and will save their money.
- Under house properties head, if a person has more than one property ,then tax is levied on deemed income received from other properties assuming it as let out or unoccupied. Taxing this deemed income may be eliminated in the upcoming budget.
- Looking forward for introduction of various healthcare schemes to improve the livelihood of the rural population, and as healthcare costs is increasing it is widely expected that exemption on medical reimbursement will be revised and upgraded.
- After the introduction of ICDS (Income Computation& Disclosure Standard), Corporate tax payers have to maintain multiple books as required under different laws which led to compliance burden over the companies. Some experts do believe that upcoming budget will provide relief in this regards also.
- Introduction of GST and GAAR are really important reforms in India and can actually be a game changer, bringing abatements schemes and streamlining the current tax alignments.
Measures to build Cashless Economy
In order to transform India into a digitally empowered society, the next budget is expected to promote cashless transactions. Some of these already introduced such as discounts availed if cards are used at petrol pumps, toll booths. Additional benefits are expected in the upcoming budget for those opting for digital mediums for making payments.
Interest subsidy on Low cost home loans
Prime Minister of India, Mr Narendra Modi’s year-end speech, supposedly a preview to the budget declared interest subsidy on low cost home loans and easily availability of land, by proposing a one step process to bring down stamp duty.
Focus on Agriculture
The poor and rural areas are hurting badly. It is widely anticipated that govt. will bring policies to put more money in their pockets and special focus will be given on the methods adopted by farmers in order to increase their income and greater access to cashless transaction modes.
After all these expectations and wishlist, it would be really interesting enough to know how the budget 2017 will goes on 1st February.