On the 1st of feb 2017, the Indian finance minister, Arun Jaitley presented the annual financial statement(union budget) for the upcoming financial year. Although various declarations have been made none of them will be implemented until the end of the current financial year. Here are some of the amendments in the budget:-
1) limiting cash transactions to 3lakhs- the government has accepted the bill proposed by the supreme court in July last year, and has moved to accept it. Thus making all cash transactions in excess of 3 lakhs illegal. This is also a major move in the Indian governments war against black money. Seems like movie makers can no longer show the villains walking around with a briefcase full of cash.
2) personal income tax- Persons earning between 2.5 lakhs and 5lakhs will now pay 5% tax. This rate has been slashed to half. As opposed to the 10% paid by people earning 2-5 lakhs before.
People earning from 5lakhs upto 50lakhs will have their slab unchanged but will benefit from cess savings.
People earning between 50lakhs to a crore will be levied with a surcharge of 10% in addition to their existing income tax slab which remains unchanged.
Those earning above a crore shall be levied with 15% surcharge in addition to their unchanged existing income tax slab.
So over all the amendment in the tax slabs will benefit the lower and middle class but not the rich. All the indian Messis smile just as brightly since they will be evading it anyway.
3) real estate and housing sector- The allocation of 2.41 lakh crore rupees to transport and infrastructure has given the Indian real estate a real kick to get the ball rolling. This money will be used to build over a crore houses in rural area by 2020. Tax relief given to real estate developers on unsold stock. Under the government affordable housing scheme home loan interest rate will be cut down from 10.5% to just 6.5%.
4) employment- no major changes have been made that might lead to any immediate benefit. But in the long schemes like SWAYAM and TRYSEM will lead to better skill and educational development in rural areas. It will also promote entrepreneurship which shall In turn lead to more employment opportunities.
5) others- minor hikes in rates of imported products. Allocation of resources to promote and develop female entrepreneurship. Overall things are looking up for long term investments
A short list of commodities whose cost will increase:-
2) LED lamps
3) Dry fruits and nuts
5) Mobile phones
List of things that will become cheaper:-
1) Railway tickets
3) Solar panels
4) insurance policies
5) leather products