The Union Budget is to be released soon and the finance minister Arun Jaitley may come up with the various amendments, in various clauses related to the upcoming budget. The main goal should be included in the budget is to provide benefits to the people who are expecting so much from this budget.
Listed below are the pre-budget expectations from Arun Jaitley’s budget 2017 speech:
Recently the sudden ban on old currency notes shocked the whole country, As such there are expectations that finance minister Arun Jaitley will announce tax rebates and incentives to encourage transactions through cards and digital means.
Every one is having different thoughts and some experts believe that the finance minister may also announce measures to tax cash withdrawals from banks above a threshold.
Goods and Services Tax (GST)
The finance minister Arun Jaitley is expected to announce Goods and Services Tax (GST)’s implementation schedule in the upcoming budget 2017-18.
After GST, Finance minister Arun Jaitley may raise tax breaks offered on money parked in fixed deposits, insurance premium and mutual funds from Rs 1,50,000 to Rs 2,00,000 a year under the popular Section 80C scheme.This will enhance people to switch their money into banking system instead of stocking cash.
It is expected that government will reduce the corporate income tax rates by 1.25-1.5 per cent to 28.75-28.5 per cent in the upcoming budget 2017.
Finally the government has agreed to merge the railway plans in the budget from 2017. A united budget could make an new beginning in the development of the Indian Railways. This can avoid setting aside funds for dividends of about Rs 10,000 crore to the government every year.
We can also expect that the finance minister Arun Jaitley will announce number of schemes to minimise the demonetisation effect for farmers. Demonetisation have left farmers with no cash to buy seeds in the middle of the sowing season. As per the official data, it is shown that the sowing has been more in 2016 compared to the previous year. The government has already given the relaxation on existing farm loans for the latest kharif and rabi crops.
The government may propose a series of tax incentives for the labour-intensive leather, gems and jewellery sectors as part of the Prime Minister Narendra Modi’s initiative “Make in India” to increase manufacturing and create jobs.
The finance minister may put forward a proposal for creating a favourable environment for foreign direct investors as a part of the broad strategy to ease fund flow to start-ups and small scale businesses.
The Union Budget 2017 may have some good news for the start-ups too. Finance minister Arun Jaitley is expected to announce initiatives to enhance the country’s start-ups, including widening of the tax-free regime to five years from three years and faster procedural clearances.
The move to extend the tax holiday from three years to five years, likely to be announced in budget 2017, will come a year after PM Modi launched the ‘Start-Up India’ programme in the national capital.