The finance minister, Arun Jaitley presented the union budget 2017 on 1st February. Though after demonetization people had thought that the budget will be very relaxing for them, it did not meet their expectations. Still it has some benefits for each category.
Income Tax Benefits
- For people with an annual income between 2.5 lakh rupees and 5 lakh rupees, the income tax has reduced to 5% from 10%, thus people can save up to 12,500 rupees.
- 10% surcharge is imposed on people who are earning an annual income between 50 lakh rupees and 1 Crore rupees.
- On income more than 1 Crore rupees, there is a surcharge of 15%.
- People with an income up to 5 lakh rupees will have to fill only a one-page form for filing the ITR.
- 5% tax has been reduced for companies with an annual turnover of less than 50 Crore rupees.
- MAT credit can be carried forward for 15 years now, which was 10 years earlier.
Digital Payments and Personal Finance
- The government will be promoting the use of BHIM app – the app that is directly connected to your bank account and can be used for digital payments.
- Senior citizens will also be given smart cards to support Aadhaar based payments. They will also have an option to avail pension schemes that offer guaranteed return of 8% over the period of 10 years.
- 2 schemes have been launched in order to do so:
- Users will get the benefit of referral bonus
- Traders will be given cash back benefits
for using BHIM app.
- The government is going to open 20 lakh POS terminals by September this year.
- A target of 2500 crores digital payments or transactions has been set using debit cards, Unified Payment Interface, Aadhaar based payments, USSD(Unstructured Supplementary Service Data) and Immediate Payment Service etc.
- Political parties can take a donation up to 2 thousand rupees per source and the payments are supposed to be done by cheque or digital methods only.
- These steps have been taken to promote digital payment for people who do not own a debit card or a credit card. Aadhaar based payments are being promoted.