Union Budget 2017: As it happened

Finance Minister Arun Jaitley on Wednesday proposed to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10 percent to 5 percent while presenting the Union Budget 2017.

New Delhi: Finance Minister Arun Jaitley on Wednesday proposed to reduce existing rate of taxation of those with income between Rs 2.5 lakh to Rs 5 lakh from 10 percent to 5 percent while presenting the Union Budget 2017.

Jaitley also proposed not to impose any tax on income up to Rs 3 lakh.

However, he announced a 10 percent surcharge on individual income above Rs 50 lakh and upto Rs 1 crore to make up for Rs 15,000 crore loss of due to cut in personal I-T rate. Additionally, the 15 percent surcharge on income above Rs 1 crore will continue.

01 February 2017

12:55 IST

Personal Income Tax

-No tax on income up to Rs 3 lakh

-Rate of taxation reduced from existing 10 percent to 5 percent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs

-While the taxation liability of people with income up to Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person

-10 percent surcharge on people earning between Rs 50 lakh and 1 crore

-15 percent surcharge on income above Rs 1 crore will continue

-Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs 5 lakhs other than business income

-3-year period for long-term capital gains tax on immovable property reduced to 2 years

-Carpet area and not built up area to be considered for affordable housing

-Propose to amend the RBI Act for issue of electoral bonds for political funding

-Maximum donation a political party can receive by cash capped at Rs 2,000; down from Rs 20,000

-Cheques and e-transactions for political donations above Rs 2,000

-Government considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment

12:46 IST

- The profit-linked deduction available to start-ups for three years out of five years is now being changed to three years out of seven years

-National Housing Bank will refinance loans worth Rs 20,000 crore

-LNG basic customs duty halved from 5 percent

-Allocation of Rs 10,000 crore for Bharat Net project for providing high-speed broadband through optical fiber

-No transaction above Rs 3 lakhs to be permitted in cash

-A political party can receive a maximum of Rs 2000 cash donation from any one source

-Political parties can receive donation by cheque of digital payments from donors

-An amendment to the RBI Act has been proposed which will enable issuance of electoral bonds. Donor can purchase bonds from designated banks, and these bonds can be redeemed by a political party within a prescribed limit.