1. Budget 2017: Great expectations from FM Arun Jaitley

Budget 2017: Great expectations from FM Arun Jaitley

From housewives to industrialists, everyone’s hoping for goodies from the Union Budget for 2017-18. It will be hard for finance minister Arun Jaitley to please everyone but he must fix the economy.

By: | New Delhi | Published: January 30, 2017 6:53 AM
Personal income tax waiver limit may be raised to R3 lakh or above, from R2.5 lakh; 3-tier slab/rate structure to see change. Personal income tax waiver limit may be raised to R3 lakh or above, from R2.5 lakh; 3-tier slab/rate structure to see change.

From housewives to industrialists, everyone’s hoping for goodies from the Union Budget for 2017-18. It will be hard for finance minister Arun Jaitley to please everyone but he must fix the economy.

Personal income tax

Personal income tax waiver limit may be raised to R3 lakh or above, from R2.5 lakh; 3-tier slab/rate structure to see change. The exemption limit for interest on home loans may be upped to R3 lakh and there may be more sops for low-cost housing

Corporate tax

Likely: A 2 percentage point cut; supplemented by similar cut in MAT, in keeping with FY16 Budget promise to lower the base rate to 25% in 4 years

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No tax on notional gains of firms switching to Indian Accounting Standards

15%Current rate (with cesses); net tax after abatement varies widely for many services; just 1.5% for financial leasing services, for instance

Excise duty: MRP-based levy for most consumer goods doesn’t align with GST
and so might go; consequent changes in duty structure likely

Currently, 15% tax on gains from sale of listed shares and 40% for unlisted equities held up to a year; the rate is zero on gains made after longer periods of holding

Short-term tax may go up; longer period  of holding for long-term tag; also 10% long term capital gains on equity to bring it at par with debt

  1. A
    Amudha.G
    Jan 30, 2017 at 6:24 am
    keeping the tax on long term listed equity in par with debt will not benefit the corporate in raising the issue capital.
    Reply

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