The Honbl’e Finance minister Shri. Arun Jaitley announced the Union Budget on 1st February, 2017. The biggest highlight in the 2017 budget was the slashing of income tax by half for individual tax payers, ban on cash transactions over Rs.3lakhs and reduction in holding period to 2 years for capital gains.

The income tax rate cut to 5% for individuals having between Rs.2.5 lakh to Rs.5 lakhs. Even if a person with a Rs.3 lakhs income could enjoy zero tax liability. surcharges of 10% for those whose annual income is Rs.50 lakhs to 1 crore and surcharges on Rs.1 crore or more remains unchanged. For micro small and medium enterprises with an annual turnover of up to Rs.50crore has been reduced to 25% . The reduction in income tax would give many MSMEs a 5% decrease in their tax bill. The period of profit –linked deductions available to the startups to seven years and the profits made by startups for three years . Only to those start ups which are recognized by the DIPP.

MAT

The business would be allowed to forward their MAT to 15 years from the present period of five years. This provide the companies an additional five years before they become liable to pay their MAT. The presumptive income scheme has been increased for from Rs.1 crore to Rs.2 crore and the threshold for maintenance of books for individual and HUF increased from a turnover of Rs.10 lakhs to Rs.25 lakhs or income from Rs.1.2 lakhs to 2.5 lakhs. Under the presumptive scheme for professional with receipt upto Rs.50 lakhs per annum, advance tax can be paid in four instalment instead of one.

Banks has been increased from 7.5% to 8.5% to improve the risk appetite of bank Pradhan Mantri Mudra Yojana has been increased to Rs.2.44 lakh crores. Priority under the scheme will be given to borrowers from certain backgrounds like Dalits, Tribals, Backward classes. Indradhanush’ mission Rs.10,000 crores has been allocated in the 2017 budget for recapitalization of banks.

For the affordable home buyer, rates are likely to come down further with the National Housing Bank taking on incremental 20,000 crore refinance.Time limit is extended for construction from three years to five years and also allows us to make 30 sq metres and 60 metres of carpet area for affordable houses.

The tax period for capital gains has been reduced to two years from three years. This means that lesser capital gain tax will be the offing for those intending to sell their property after a span of two years of purchase, as against three years (earlier).