Today we will discuss on the Key point to watch on budget 2017. In this blog, we will discuss what are the expectation of various people from budget 2017. Also we have shared the things that will be happen in the Budget 2017.
TAX SLAB FOR INDIVIDUAL
In every budget, we will see some increase in tax slab for the individual, but now after demonetization expectation of common man is very high.
Upper middle class is also expecting – Increase in limit of section 80C to 2 lac from 1.5 lac
The lower middle class will expect – Increase in 87A Rebate to 10,000 from 5,000.
We have to check how Budget 2017 will tackle this.
The salaried class will expect an increase in the Allowances limit for them.
Infrastructure Bonds –
The government may introduce the tax saving infrastructure bonds. It will increase the speed of infrastructure in the country.
TAX SLAB FOR CORPORATE –
Corporate is expecting a decline in income tax rate for them. Currently, income tax rate is 30% in this they will expect the rate to 25%.
Reduce in the MAT rate – Minimum alternate tax is levied if book profit is more than income tax profit. Currently, MAT rate is 18.5%, in this they will expect the rate to 7.5%
Tax on Equity market –
After Prime minister remarks people are expecting there may be a tax on long-term capital gain earned on share, but many people believe they will change the definition of long term. The budget will change the term to two years from one year to qualify for the long term.
There is something surely happen on tax on the equity market.
CHANGE IN SERVICE TAX –
Service tax rate may be increased to match the rate with the GST. In GST the rate will be 18% but now service tax rate is 15%. The government may increase the service tax rate by 1-2%.
GST IN BUDGET 2017 – People will want to hear the Clear roadmap of the GST when it will come finally.
Fiscal Deficit in Budget 2017 –
Fiscal deficit means the excess of total expenditure over total receipts during the given financial year.
If fiscal deficit is lower it will give the purchasing power in the hands of the consumer and increase the demand.
If fiscal deficit is more it will control the inflation.
After Demonetisation as the demand is slow down, Industry and people will expect the Fiscal deficit lower 3 to 3.5% of GDP.
This is our analysis of budget 2017, Kindly give your View in the comment Box what you will need in the budget 2017.