Budget 2017; Jaitley speaks on Taxation
Highlights:
* We are largely a tax non-compliant society.
* More than 17% growth in tax collection for the second year in a row.
* Govt to further liberalise FDI policy.
* Over 90 per cent of FDI proposls are now processed through automatic route.
* Big IPO lineup ahead: IRCTC, IRCON, IRFC to be listed during FY18, says FM.
* Foreign Investment Promotion Board (FIPB) will be abolished.
* Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh crore.
* Capital gains tax in real estate: Holding period reduced to 2 years.
* Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh.
* Due to demonetisation, advance tax on personal income tax increased by 34.8 per cent.
* There is an urgent need to protect the poor from chit fund schemes, draft bill placed in public domain.
* MAT can be carried forward for 15 years by companies as against 10 years allowed earlier.
* Holding period for long-term captial gains for immobile assets reduced from 3 years to 2 years; base year for indexation to be 2001.
* Plan to extend basket of financial instruments to which the capital gains can be invested sans payment of tax.
Yet other important pointers of Jaitley's speech:
* Digi Gaon will be launched to promote tele-medicine and education.
* Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from three already constructed.
* Second phase of solar power development to be taken up with an aim of generating 20,000 MW.
* National Testing Agency for higher education entrance.
Stay tuned for more such updates.