The budget highlights the estimated GDP growth for 2016-17 at 7.1% and 2017-18 at 6.75-7.5%, with the fiscal deficit estimated at 3.5% for 2016-17 and 3.2% for 2017-18. Significant allocations were made to rural development, agriculture, infrastructure, job creation, and poverty alleviation while maintaining fiscal prudence. Key initiatives include increased funding for rural connectivity, irrigation, healthcare, education, skill development, and tourism to boost employment. Tax rates for individuals and MSMEs were reduced to increase disposable income and stimulate the economy.

1. BUDGET2017-2018Highlights
•GDPGrowthfor2016-17at7.1%vs.estimatedfor2017-18at6.75%-7.5%.
•Fiscaldeficitfor2016-17at3.5%vs.estimatedfor2017-18at3.2%
•Thebudgetwasdocumentedkeepinginmindthegovernmentagendato “Transform,EnergizeandClean
India”(TECIndia).
•Followingtheirmissiontobringatransformativeshift,thegovernments’approachto
thisbudgetistospendmoreinruralareas,infrastructureandpovertyalleviationwhilemaintainingfiscal
prudence.
•Agriculturehasbeengivensignificantimpetusthroughincreaseincredit,improvementininfrastructureand
irrigationfacilitieswhichwillsupportthecontributionofthissectorat4.1%ofGDPin2017-18.
•TotalbudgetallocationforRural,AgricultureandAlliedSectorshasincreased24% Y-O-Y.Stepstakeninthis
budgetincludesprovidinghousing,villageelectrification,constructionofroadstoenhanceconnectivity,
increasingsanitationcoverage,safedrinkingwaterandcreatingjobsthroughskilldevelopmentprograms.
•Jobc•Jobcreationforyouththrougheducationandskilldevelopmentincludinglaunching
ofonlinecourses,addingIndiaInternationalskillcentersacrossthecountry,providingmarketrelevant
training,creatingemploymentinleather,textilesandfootwearindustryandintroductionofincredibleIndia2.0
campaigntopromotetourismandsupportemployment.
•Significantallocationtoinfrastructurewheretransportationsectorincludingrail,roads,shippinghave
receivedanincreasedbudgetallocationof10%Y-O-Y.
••2000km’sofCoastalconnectivityroads,3500km’sofRailwaylines,promoting privateparticipationin
airportandrailwayoperationsandmaintenance,solar poweredanddisabledfriendlyrailwaystations,
introductionofbiotoiletsacrossrailwaysaresomekeyinitiativesintheinfrastructuresectors.
•‘DigiGaon’initiativetobelaunchedtoprovidetelemedicine,educationandskillsthroughdigitaltechnology
bylayinghighspeedbroadbandconnectivityacrossGram Panchayats.
•ForeignInvestmentPromotionBoard‘FIPB’tobeabolishedin2017-18topromoteeaseofdoingbusiness
andFDIinIndia.
•INR10,000c•INR10,000croresallocatedforrecapitalizationofbanksin2017-18.
•SignificantpushtopromoteaDigitalEconomyandonlinetransactionsincluding proposedschemeson
BHIMApp,AadharPayandmandateforallgovernmentreceiptsthroughdigitalmeans.

2. BUDGET2017-2018Highlights
•WiththeobjectiveofJobcreationandstimulatingtheeconomy,allocationforcapital
expenditurewasincreasedby25.4%Y-O-Y.
•AttempttobringTransparencyinpoliticalfundinginIndiabylimitingcashdonationstoRs.2000andallother
donationstobebychequeordigitalmode.Taxbenefits availabletosuchpoliticalpartiessubjectto
compliancewithnewnorms.
••TaxrateonindividualsforslabofINR2.5lakhtoINR5lakhreducedto5%from 10%.Surcharge@ 10%
imposedonindividualshavingtotalincomebetweenINR50lakhtoINR1Crore
•Section115BBDAamendedtoextendscopeof10%taxondividendreceivedto“all residentassessee”
exceptdomesticcompaniesortrustorinstitutionorfund registeredu/s12AAorreferredtoinsection
10(23C).Earlierthissectionwas applicableonlyonresidentIndividual,HUFsandFirmsonly.
•The•TheholdingperiodforLTCGonimmovablepropertyisreducedto2yearsfrom existing3years.Further,the
baseyearforindexationandconsiderationofFMVis proposedtobechangedfrom1.4.1981to1.4.2001for
allclassesofassetsincludingimmovableproperty.
•NoexemptionofLTCGu/s10(38)onlistedequitysharesifsuchshareswereacquiredafter1.10.2004and
notsubjectedtoSecurityTransactionTax(STT).
•Section71(3A)SetoffofHousepropertylosseswiththeotherheadsrestrictedtoRs.2,00,000/-.Balancecan
bec/ftosubsequentyearstobeadjustedwiththeincomefromHouseproperty.
•Sec•Sec50CAproposedtobeinsertedtolevycapitalgainstaxontransferofunquoted sharesonFMVifthe
actualsaleconsiderationislessthanFMV.
•Clause(x)insertedinsection56(2)toextendtaxationofanymoney,immovable propertyormovable
propertyreceivedwithoutconsiderationorforinadequateconsiderationby“anyassessee”.Atpresentsuch
provisionsareapplicableonlyon IndividualorHUF[56(2)(vii)]andCompaniesandFirms[56(2)(viia)]in
certaincases.
••Tofulfillthecommitmenttoreducecorporatetaxrates,itisproposedtoreducetaxrateofMSMEcompanies
havingannualturnoveruptoINR50croreinFY2015-16to25%fromexisting30%.
•C/fofMATcreditproposedtobeallowedfor15yearsasagainst10yearsatpresent.

3. BUDGET2017-2018Highlights
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•Tocurbblackmoney,itisproposedtoinsertSec269STwhichprovidesthatnoperson shallreceivean
amountofINR300,000ormoreotherwisethanbyA/cpayeecheque/ bankdraft/electronicpayment.
Contraventionof269STwillattractpenaltyu/s271DAequivalenttotheamountofsuchreceipt.
•Lawoflimitation-Section197(C)oftheFinanceAct’2016whichprovidedforassessmentofundisclosed
incomerelatingtoanyperiodpriortoIncomeDeclarationScheme-1hasbeenrepealed.
•Timelimitforscrutinyu/s153forassessmentofAY2018-19reducedto18monthsfrom21months.
•Domestic•DomesticTPscoperestricted-DTPnottoapplyonsection40A(2)(b)transactions.
•ForeignPortfolioInvestor,CategoryIorIIexemptedfromIndirecttransferprovisions.
•TheFinanceMinisterhasproposednottomakeanychangesincurrentregimeofexcise&servicetaxasthe
samearetobereplacedbyGSTsoon.
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