Following the presentation of the Union Budget 2017-18, Finance Minister Arun Jaitley said that the government’s motive was to continue the fight against black money and corruption in the country. Addressing a press conference post-budget presentation, Jaitley said that through this year’s budget the government has taken steps to make people tax compliant. Stating that the government has announced schemes to cleanse political funding, to make economy cleaner and transparent, the Finance Minister said that if tax returns are filed both the donor and the donee will get exemption on tax in political donations.
FM Jaitley further stated that there are many steps in the budget which are aimed towards boosting employment in the country. Jaitley asserted that through the budget the government has made attempts to make the honest tax-payers be the most beneficial.
Presenting the Union Budget 2017, FM Arun Jaitley announced that he will reduce the tax rate of individuals earning between Rs 2.5 lakh to Rs 5 lakh to 5% from the current 10%. This would also translate into an additional benefit of Rs 12,500 for tax payers even beyond Rs 5 lakh. Tax and industry experts were already expecting that to assuage the demonetisation pains of the common man and alleviate their sufferings, some tax reliefs may be provided in the budget. Even Finance Minister Arun Jaitley had hinted in his speeches earlier that the tax burden on taxpayers may be lowered due to higher tax revenues being collected on account of cashless systems.
FM Jaitley further said that political parties continue to received funding from anonymous sources, and hence reduced the maximum donation that a political party can receive in cash is Rs 2,000 from any one source. He added that no transaction of more than Rs 3 lakh will be permitted in cash.