Indian Budget 2017 – Big Changing Step In India

Posted by Admin @ TataNewProjects on February 03, 2017

This time the budget is out before time, and has come out distinctly with totally unique features giving a big relief to all, keeping in mind that the budget was for the "Universal Basic Income" this time the budget has been different one- firstly, the announcing policy has been changed and the declaration has been made earlier and secondly, with this the railway budget has also been out and this will be in continual process now.

Indian community will face the major jounce after this budget in either one way or the other. The finance minister Arun Jaitley has covered almost every aspect from infrastructural changes to tax revisions, postmarking the digitalization, poor and women attained focus. This year's budget is greatly swayed by government’s drive to pipe out the black money from the country.
This step has benefitted number of factors, some of the key announcements in the budget, predominantly in taxes, finance, political party funding, railways, and housing.

Here is how Budget 2017-18 will influence you:

Key highlights for Real Estate Sector in Union Budget 2017:

  • A welcome move for the Affordable Housing, which has given the Infrastructure status, which is likely to result in increased participation from private players. Finance Minister Arun Jaitley in his Budget 2017-18 has given one of the much-needed upshots to the Indian real estate sector.
  • 1 crore rural houses will be developed by 2019 and National Housing Bank to refinance Rs 20,000 crore loans and under Pradhan Mantri Awas Yojana Rs 23,000 crore.
  • Real estate developers will get tax relief on unsold stock as liability to pay capital gains and will arise only in the year a project is completed.
  • With the Decrease in tax rate from 10% to 5%, there is a saving of Rs 12,500 for the people earning 2.5 to 5 lakh and Rs. 14, 806 for those having income of Rs 1 crore or above. Tax rebate decreased to Rs 2,500 from Rs 5,000 per year for taxpayers with income up to Rs 3.5 lakh (earlier Rs 5 lakh).
  • Rich tax payers will be surcharged 10% with income below one crore and 15% for the income above one crore.
  • Holding period for immovable property to be considered "long term" has been reduced to 2 years, which ensure that the property held beyond 2 years is taxed at reduced rate of 20% and eligible for various privileges on reinvestment.
  • Long-term capital gains tax will result in a lower payout owing to beneficial amendments. The base year for indexation of cost, (adjustment of inflation) have been shifted to April 1, 2001 from April 1, 1981. This means lower profits on sale.
  • A simple one-page tax return form is to be introduced for individuals with taxable income up to Rs 5 lakh (excluding business income). Those filing returns for the first time in this category will generally not be subject to scrutiny.
  • Deduction for first-time investors in listed equity shares or listed units of equity oriented fund under the Rajiv Gandhi Equity Savings Scheme is withdrawn from 2017-18. If an individual has already claimed deduction under this scheme before April 1, 2017, he/she shall be allowed to avail a deduction for the next two years.

As, affordable housing has got an upward step number of builders will now be cheering and the investors and the end users will be just out of the world. I think the best affordable house to be opted after demonetization and budget.

One of the prominent builders Tata Housing has stepped in Noida Sector 150 with its realm Tata Value Homes Noida. The destination with no doubts is attaining lot of attention with all the major localities in close vicinity. Tata Value Homes comprise of 2BHK+2T, 3BHK+2T and 3BHK+3T apartments with all well- nurtured amenities and specified with modern features.

Demonetization Effect:

  • Demonetization has hit India’s growth by 0.25-0.5% of GDP and this, hints at a handout of the bonanza, possibly through Jan Dhan accounts, brightening BJP’s hopes in coming state elections.
  • GDP growth is expected at 6.75-7.5% next year, well below the “sweet spot” of over 8% that the Modi government started with. The Survey accentuates that 8-10% GDP growth needs 15-20% export growth.  

Railway budget is also out with the main budget:

  • This time railway budget has been declared simultaneously. Railways budget has announced a Rail Sanrakshan Kosh with a core of Rs.1 lakh crore. The government will provide a seed fund and the reaming will be generated by the Railways.
  • In order to improve the security of Railways, which is much needed these days, unmanned level crossings are proposed to be eliminated by 2020.
  • Through partnership, Railways will incorporate end-to-end transport solutions for selected commodities.
  • Bio-toilets will be fitted by 2019 in all coaches of Indian Railways to improve the hygiene.

Reforms in Political parties’ funding:

  • Now the cash donation limit has been set up to Rs. 2000 and more than that will be transferred through electronic medium. Now finally “Bharat banega Digital”.
  • Additional step amendment proposed to RBI act to enable issuance of electoral bonds in accordance to scheme by GOI. Donor could purchase bonds from authorized banks.

Agriculture will improve, improving the life of farmers:

  • This time main focus has been debt on farmers with doubling the income in five years and by strengthening the social security net
  • Target has been set for Rs 10 Lakh Crore for agricultural credit and the “Fasal Beema Yojana” coverage to be increase to 40 percent in 2017-18 and 50 percent in 2018-19.

Health also includes some of the major hit points:

  • Senior citizens will get Awadhi cards mentioning their health conditions. I think this will help number of senior citizens who deprived of their health checkups.
  • 2 new AIIMS to come up in Jharkhand and Gujarat and more doctors will be provided on tertiary level.
  • Regulatory reform in medical sector along with push for more DNB courses in medical colleges of repute.
  • Safe drinking water in the areas affected by the 28,000 arsenic and fluoride will be clean now, no more dirty water please.

Education will now improve:

  • To improve local innovation, Innovation fund has been promoted.
  • ICT enabled transformation, 3479 educationally backward blocks.
  • National Testing Agency to transform higher studies, entrance exam structure and to bring transparency in this much- needed sector.
Conclusion: This time we can really say that India has finally seen a big transformation after long period. Budget 2017 has come up as new hope where each class section is benefitted and each sector will modernize in some or the other way and now people look out will be broader.