Finance minister Arun Jaitley presented the Union Budget 2017-18 in the Lok Sabha today. Here are the highlights of the Union Budget. Terming the Union Budget “futuristic”, Prime Minister Narendra Modi said it will usher in a new beginning to fulfill the dreams of every section. “This is a Budget for the future — for farmers, underprivileged, transparency, urban rejuvenation, rural development and enterprise,” Modi said in a televised message about the Budget proposals.
Let's have a look at major changes proposed in Union Budget 2017-18
Income Tax Slab Rate (Revised applicable from FY 2017-18 by Budget 2017-18)
Individual
Income Tax Slab Rate applicable from 2017-18 to male and female having age less than 60 years is as below:
Income Tax Slab
|
Rate of Tax
|
Income less than 2,50,000
|
Nil
|
Income from 2,50,001 to 5,00,000
|
5%
|
Income from 5,00,001 to 10,00,000
|
20%
|
Income exceeding 10,00,000
|
30%
|
Income Tax Slab Rate applicable from 2017-18 to senior citizen is as below:
Income Tax Slab
|
Slab Rate
|
Income less than 3,00,000
|
Nil
|
Income from 3,00,001 to 5,00,000
|
5%
|
Income from 5,00,001 to 10,00,000
|
20%
|
Income exceeding 10,00,000
|
30%
|
It is to be noted that Tax Slab for super senior citizen remains same
Other Major Amendments in Income Tax Act in Budget 2017-18
Section 71 – Income from House Property – in respect of any assessment year, the net result of the computation under the head “Income from house property” is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to set off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income under the other head
80CCD – Deduction in respect of contribution to pension scheme of Central Government – Ceiling limit of an employee for contribution in this scheme is increased from 10% of gross total income to 20%.
80CCG – Deduction in respect of investment made under an equity savings scheme – Rajiv Gandhi Equity Savings Scheme will no longer continue, govt proposes to discontinue from 01-04-2018. However who has acquired listed equity shares or listed units of an equity oriented fund in accordance with the scheme referred to in sub-section (1) and claimed deduction under this section for any assessment year commencing on or before the 1st day of April, 2017, shall be allowed deduction under this section till the assessment year commencing on the 1st day of April, 2019, if he is otherwise eligible to claim the deduction
80G – Deductions for Donations – Now no cash donations will be allowed exceeding Rs. 2,000 as compared to the present limit of Rs. 10,000
87A – Rebate – Rebate amount shall be reduced from Rs. 5,000 to Rs. 2,500 to only those assessees having income below Rs. 3,50,000 (present limit – Rs. 5,00,000)
80TTA: - Bank Savings Interest also entitled for this Financial year 2017-18 and no changes in this Finance Budget.
