Budget 2017: Tax rate reduced to 5% on income between Rs 2.5 to 5 lakh

Arun Jaitley expressed gratitude towards people of India for support on war against black money. He promises to continue work for youth, women.

Budget 2017: Tax rate reduced to 5% on income between Rs 2.5 to 5 lakh

Finance Minister Arun Jaitley concludes Budget 2016-17 presentation and introduces Finance Bill in Lok Sabha. House adjourned to meet on Friday.

"Net loss from direct tax changes is 20000 crores. None from indirect tax changes," announces FM Jaitley.

"15% surcharge for those with incomes of over Rs. 1 crore remains."

Government reduces existing rate of taxation for individuals with income between 2.5 lakh to 5 lakh to 5% instead of 10%.

Political parties cannot receive more than Rs 2000 in cash as donation: Jaitley

"Political parties can receive donations by cheque or digital mode. Electoral bonds can be purchased, redeemable only against registered parties."

"Parties have to declare the income. Only such parties can fight elections and accept donations."

"Tax for MSME firms with less than Rs 50 crore turnover cut to 25%," says Jaitley.

No transaction above Rs. 3 lakh to be permitted in cash: Jaitley.

No capital gains tax for those who pooled land for Amravati (Andhra Pradesh): Jaitley

Basic customs duty on LNG to be reduced from 5% to 2.5%, announces Arun Jaitley

"Advance tax on income tax increased by 34.8 per cent due to demonetisation. Main priority of government to eliminate black money component from the economy."

"3.7 crore individuals filed tax returns, 99 lakh of them below taxable limit. Number of people with more than 50 lakh income is 1.26 lakh."

"Web-based pension distribution system for defence pensioners. 2,74,114 crores allocated to defence expenditure."

A computer emergency response team will be established to ensure cyber security in financial sector and to coordinate with regulators and stakeholders, says Jaitley.

More than 90% FDI inflows through automatic route. FIPB successfully implemented online processing of applications. FIBP to be abolished to ease foreign investment.

20 lakh Aadhaar-based swipe machines by 2020.

Airport Authority Act to be amended to monetise airport land.

Selected airports in Tier 2 cities will be taken for Public-Private Partnership: FM

Safety Fund for Railways: 1 lakh crore over a period of 5 years. 500 stations will be made differently-abled friendly.

"Allocation of highways raised to Rs. 64,000 crore. All service taxes for bookings via IRCTC to be withdrawn."

"All railway coaches will have bio-toilets by 2019. Our focus is on swachh railways," announced Arun Jaitley.

Railway lines of 35,000 km to be commissioned and at least 25 stations to be redeveloped in 2017-18 : Arun Jaitley

"Allocation for SC increased. ST to 31900 crores, minority to 4190 crores."

Special schemes will be annouced to create employment in textile sector: Arun Jaitley

National Testing Agency to conduct all entrance exams for higher education: FM

PM Kaushal Kendras will be set up in more than 600 districts across the country to offer advanced training and foreign languages: Jaitley

Agriculture: "Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 crore, which is 24% higher than last year," says Finance Minister.

"MGNREGA allocations doubled to Rs 48,000 crore, highest allocation ever."

2. Rural Reforms

"Affordable housing for all by 2022. MNREGA targets for more farms ponds, compost pits. 48,000 crore for MNREGA."

"Government to accelerate rural road building pace to 133 km/day under Pradhan Mantri Gram Sadak Yojana (PMGSY). Committed to complete PMGSY target by 2019. 27,000 crore."

The union finance minister highlights the ten main provisions in the Budget:

1. For farmers:

"Target for agricultural credit for 2017-18 is set at ten lakh crore."

"Support NABARD for digitisation of 63,000 agricultural centres, cooperative and rural banks."

"Crop insurance allocation for kharif crops now at 1,45 lakh crore, up from 62,000 crore."

Jaitley lists reforms under e-NAM. More allocations under irrigation per drop more crop scheme. 8000 crore corpus for dairy farming.

"Demonetisation to create a new normal for a bigger, cleaner GDP; slowdown, if any, will be only transient. Effects of demonetisation will not spill over to the next year. Demonetisation is a bold and decisive measure, for many decades tax evasion was a way of life for many. I am reminded of what our father of the nation Mahatma Gandhi said ‘a right cause never fails’."

"Demonetisation will lead to digitisation and formalisation of the economy. Will ultimately contribute to growth in GDP."

"CPI inflation dropped from 6% to 4%. Current account deficit dropped from 1% of GDP to 0.3%. FDI @ 1.45lakh crore."

Arun Jaitley expressed gratitude towards people of India for support on war against black money. He promises to continue work for youth, women.

Arun Jaitley starts Budget presentation with greetings for Basant Panchami. He begins with emphasis on good governance moves by the Centre.

 House condoles death of MP E Ahamed. “We deeply mourn the death of our colleague,” said Lok Sabha Speaker Sumitra Mahajan. She also informed the house will be adjourned on Thursday as a mark of respect to deceased MP.

“Budget has a sanctity, we are already in the 11th hour. There should be no controversy over it. It’s a constitutional obligation, Naidu said.

 “We are saddened at the demise of MP E Ahamed, but the Budget will be presented today itself. We have to keep in mind that budget is a constitutional obligation, it will have to be presented,” Mahajan told reporters outside Parliament House.

Lok Sabha Speaker Sumitra Mahajan has confirmed that the Union budget will be presented today. News agency ANI quotes her as saying that a formal announcement will be made shorty.

As the opposition parties like the Congress suggested that the Budget be delayed a day after Lok Sabha member and former union minister E Ahamed died last night, Union Finance Minister Arun Jaitley, in a tweet said, he will present the Buget at 11 am.

Jaitley has already left his office on schedule, holding the brown Budget briefcase and already met the President Pranab Mukherjee.

Speaker Sumitra Mahajan too will pay her respects. Ministers Venkaiah Naidu and Ananth Kumar will pay their respects to E. Ahamed at 9 Teen Murti Marg.

Prime Minister Narendra Modi condoled the demise of the MP and said his efforts for empowerment of the Muslim community will be remembered.