This document summarizes key points from India's Union Budget for 2017-2018. It outlines changes to individual and corporate income tax rates, including tax rebates for middle-class individuals and a higher surcharge for high-income earners. It also discusses revisions to capital gains tax and services charges, as well as changes to excise duties on tobacco and cash transaction limits. The budget aims to boost small businesses and encourage tax compliance, while continuing to roll out the new Goods and Services Tax nationwide.

1. By
Ch. Meher Pranav
B.Bhargav Naidu
MBA (First year)

2. • WHAT IS BUDGET ?
• WHAT IS TAX?
• WHAT ARE TYPES OF TAXES?
• HOW DOES TAX PLAY A KEY ROLE IN BUDGET?

3. • Up to Rs.2,50,000-No tax
• Rs.2,50,000 to Rs.5,00,000-5%
• Rs.5,00,000 to Rs.10,00,000-20%
• Over Rs.10,00,000-30%

4. • Lesser tax for middle class : There is a
Rs 12500 rebate for all the people in the
slab .
• More tax for the rich : There is a additional
10% surcharge to all those whose income
lies between ₹50 lakh to ₹1crore
• 15% surcharge for people having income
above ₹1 crore

5. • People filing returns for the first time will not be
subject to IT scrutiny unless there is a clear indication
of cash deposits under demonetisation. Also, people
with income under Rs 5 lakh (without any business
income) will now file a simplified one-page return.
This will encourage people to file returns and get all
the benefits of filing like easier access to home loans,
bank accounts, and more.

6. • The time period for revising a tax return is
being reduced to 12 months

7. • Long-term holding has been reduced to two
years, and the base year for indexation will
now be 2001 instead of 1982. This will bring
down the capital gains liability significantly

8. • Service charge on e-tickets booked
through IRCTC has been withdrawn to bring
rail tickets at affordable prices to the general
public.

9. • Bad news for first-time home buyers — the
additional Rs 2 lakh deduction on home
loan interest (sec 80EE) given in 2016 has
now been withdrawn

10. • Small companies with annual turnover up to
Rs 50 crore will now only pay income tax at 25
percent. As the honourable finance minister
says, this will cover 96 percent of the Indian
companies and thus boost Indian business. It
will also encourage many businesses to adopt
legal company structures.

11. • Cash transactions have been restricted, with
only Rs 10,000 cash expenses now allowed as
deduction for businesses. Cash donations to
charitable organisations and political parties
will be limited to Rs 2,000 per source

12. • In the interest of public health, the
government has increased the excise duty levy
on cigars, cigarettes, and other tobacco
substitutes. This levy has been increased from
Rs 3,755 per 1,000 to Rs 4,006 per 1,000

13. • Promoters holding shares through private
trusts will now have to pay 10% tax on
dividend income above Rs10lakh
• This move could hit succession planning of
many corporate houses

14. • Tax rebates extended for 3 out of first 7 years

15. • The indirect tax scene has not changed
significantly as GST is expected to be rolled
out on July 1, 2017, subsuming all the current
indirect taxes.

16. • If exemption has increased it gives more
power to consumerism.
• It can act as a booster to Indian economy.
• India could also embrace concept of joint filing
of tax return by a married couple.