When Lawyers become FMs the budgets are generally neither here nor there and Mr Jaitley is not so different from his predecessor .. Mr Chidambaram .
This budget is poor especially cause Pre elections 2014 , Arun Jaitley demanded Raise I-T slab to Rs 5 lakh!
As there are more negatives than positives im just listing out things
- Fiscal deficit is at 3.5% of GDP at Rs 5.95 lakh crore in 2017-18 overshoots 3.2% estimated in previous budget.
- Projecting fiscal deficit to be 3.3% of GDP in the next fiscal likely to be overshot due to it being election year …
- The FM Jaitley has protected his own ie POLITICIANS with inflation linked increase in wage and incentives .
- Big pay hike for gaddi holders President gets at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for governors.
- No cheer for aam admi as there is no change in slabs or rates while taxpayer pays 1% more in 4% health and education cess which will replace the education cess.
- No tax for super rich Crorepati agriculturalists with bentleys and mercs and swimming pools
- Vote bank politics : More Free gas connections in rural India . Good or bad ?. Sustainable or burden on salaried class ? NREGA costs 45000 Cr + and there is corruption there ..India imports gas and oil… what rural India needs is biogass chulla, smokeless chulla and more efficient chulla, like philipino kalans that burns less wood or they will want free gas for life and spare time will go into increasing population !
- Tax slab , tax rates remain unchanged .
- You pay 1% more on everything 4% health and education cess will replace the 3% education cess.
- Long term Capital Gains Tax reintroduced for gains above Rs 100000 ! LTCG of 10% without indexation for part profits earned after 1 Feb 2018 .
- Short term capital tax at 15%, DDT at 10% above 10 lakhs dividend.
- STT will continue to be deducted at old rates(Tds).
- Standard deduction reintroduced only for Salary /Pensioner class of Rs 40000 in lieu of health and medical expenses (so benefit is 40 – 30 existing = Rs 10000 )
- Standard deduction on Family pension ???
- Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr, on petrol cut by 2 rupees to 4.48 rupee/ltr
- Customs Duty on mobile phones and televisions increased.
- Social welfare surcharge of 10% on imported goods. Could cause food inflation as our MSP, land and labor laws make india uncompetitive in comparison to our south and south east asian neighbors !
- All Railway stations with footfall of greater than 25,000 will have escalators.
- 12,000 wagons, 5160 coaches and 700 locomotives being procured.
Measures for Senior citizens
- Exemptions in income of Rs 50,000 from Banks and post office FD Rds etc
- No no TDS on Fixed Deposits and Post Office deposits upto Rs 50,000.
- Under Sec 80D. Senior C MEDICLAIM Exemption now Rs 50,000
- Under Sec 80DDB Senior C Exemption now Rs 100,000
- 8% Interest bearing LIC / Pradhan Mantri Vaya Vandana Yojana investment limit doubled to Rs 15 lakh.