Union Budget 2017 - Highlights, Impacts and Indian Businesses

On February 1st by announcing the Union Budget, the Colonial Era tradition of presenting it on the last working day of Feb has been changed. It was the post demonetization budget for 2017-18. As per Prime Minister Mr. Narender Modi, the revised date of Budget presentation will ensure speedy application of government schemes. This year’s budget has schemes for farmers, women, senior-citizens, Individuals and businessmen.

Finance minister Mr. Arun Jaitley claimed that the aim of Union Budget 2017 is to Clean, energize and transform India. The budget 2017-18 brought lot of benefits and hopes for the small companies, whereas increased the tax liabilities of the larger companies and super rich. It has rewarded the honest tax payers and executed the economic offenders.



 Budget 2017-18 Highlights

  •  Gross domestic product will grow by 3.4% in 2017 estimated by IMF.
  •  Oil prices, Rising of Dollar and volatile commodity prices can instable Indian Economy.
  •  Demonetization will be the best decisive measure to disclose many for whom tax evasion was the way of life. It will have a momentary influence on our economy.
  •  Preponement of Budget will provide enough time to all departments to execute schemes.
  •  Governments goal is to send help in rural areas by giving 1,87,200 Cr and represent 24 percent high. 100% electricity in villages by May'2018. Pradhan Mantri Awas Yojna allocation increased to 23,000 Cr. Pradhan Mantri Gram sadak Yojna allocation increased to 133 Km per day.
  •  Women's participation in MNREGA up to 55% by allocating 48,000 Cr.
  •  Agriculture industry expected to show growth of 4.6%.
  •  FDI flow to show increase of 36%.
  •  One crore houses for homeless till 2019.
  •  Clean and safe drinking water for fluoride affected areas in coming 4 years.
  •  Introduction of Health condition Aadhar cards for senior citizens.
  •  Construction of 3500 kms new railway track and withdrawal of service charge on IRCTC website on ticket bookings. 500 rail stations to be made user friendly.
  •  New job openings in new metro rail policy for youths.
  •  3,96135 Cr. allocation of funds for infrastructure.
  •  Aadhar card based payment system to be promoted by launch of Aadhar payment app BHIM for merchants. It will help to clean the economy and clear the corruption and black money.
  •  Introduction of new amendments and laws to seize the assets of offenders who escape country.
  •  Allocation to Defense expenditure raised to 2.74 Cr.
  •  No cash transaction above 3 lakhs.
  •  Maximum party donations not to exceed Rs.2000 from single source and can accept only through digital payments and cheque.
  •  Proposal to RBI to start electoral bonds.
  •  Income tax slab reduced from 10% to 5% for tax slab of Rs. 2.5 to 5 lakhs.
  •  10 percent surcharge on income above 50 lakhs to 1 Cr and 15 percent for 1 Cr and above incomes.
  •  Food subsidy allocated at 1.45 trillion in 2017-18.


  •  Impact on Individuals. SMEs and Businesses of Union budget 2017

     For Individuals

    There has been a tremendous relief to the Salaried class of lowest income tax group from the current budget. There has been some relief to all categories of tax payers in some way or the other. From the beginning of the new financial year 2017-18 there has been some change in the income tax slab, the income tax on the income between 2.5 lakhs to 5 lakhs has been reduced from 10 per cent to 5 per cent. It is said in the budget that all the three income tax categories will be benefitted by Rs.12500.

    To eliminate the duplication of the benefit rebate has been reduced to 2,500 which will be available to assesses of income up to 3.5 lakhs. For senior citizens, no tax will be collected up to Rs.3 lakhs. There will be tax exemption up to 5 lakhs for 80 years and above aged people. 20 per cent Income tax will be collected from 5 lakhs to 10 lakhs income category and 30 per cent from above 10 lakhs.

     For SMEs

    There has been a tremendous relief to the Salaried class of lowest income tax group from the current budget. There has been some relief to all categories of tax payers in some way or the other. From the beginning of the new financial year 2017-18 there has been some change in the income tax slab, the income tax on the income between 2.5 lakhs to 5 lakhs has been reduced from 10 per cent to 5 per cent. It is said in the budget that all the three income tax categories will be benefitted by Rs.12500.

     For Businesses

    For making businesses easy, the finance minister eradicated the FIPB and has taken the decision that from now the foreign investment proposals will be cleared by ministries and don’t have to wait for government clearance. The clear guidelines will be provided in few months from now. The FDI policy is under consideration and soon necessary announcements will be made by ministry.

     Tax Software

    Filling the tax manually is a tedious job and that too when there are new tax slabs introduced in the budget. To help companies and individuals to file income tax and other tax returns there aretax softwares. The tax software simplifies the process of filing tax by allowing user to fill tax related forms and calculates the tax obligations of the companies as well as individuals. Many of the income tax softwares are available at both retail shops as a software as well as online.

    The tax software not only answers all the user queries but it also open to the hyper link in case some word or phrase is not understood. The constantly updated softwares will help you file the returns as per the newly introduced tax slabs. The tax software helps the user to understand the most confusing elements in different ways. Most of the tax preparation applications in the software also offers lot of help as they possess the giant databases with the tax information.

    The best tax software not only educates the user but also gives them confidence so that they don't worry about the complexities of filing return and audit later on. There are different types of tax software available in the market, most of them are very helpful but user must select the best one according to their need.