Probable Budget 2017: No Income Tax now: No more Rail Budget
Financial year 2016-17 is going to end soon with a heavy note of great chaos of ban on high value bank notes of Rs. 500 and Rs. 1000.00 since 8th November, 2016. People are getting agitated due to chaos among them and hopping some relaxing new from government in this upcoming budget. After demonetization and cashless campaign, citizens are hoping something surprising gift from Government during the budget 2017. People are hoping something that can compensate both Goods and service tax and demonetization in true sense.
Two major changes will take place during announcement of budget 2017; first, date of announcement of budget has been changed from last week of February to first week of February and secondly merger of rail budget with union budget 2017
Due to change in date of announcement of budget, budget session of parliament may probably start from first week of January. This will not only expedite the process of financial decisions but will provide sufficient time to plan their financial goals for upcoming financial year.
There may be replacement of Income tax with banking transaction tax (BTT) from financial year 2017-18. It is also expected to lower the burden of demonetization on people by expanding income tax slab from existing 2.5 lakhs to 5.00 lakhs and from 5.00 lakhs to 7.00 lakhs. If this expansion of tax slab takes place, it will defiantly reduce burden to income tax from common salaried class people.
Due to upcoming elections in five states, government may en-cash benefit of being in power at center by offering luring announcements to get benefit of the same in elections.
Digital and cashless are perhaps the two most used words by anyone in government since 8 November, when Prime Minister Modi announced the invalidation of old high-denomination currency notes. Both will get a fair share of attention (and money) in the budget too. I expect more sops and incentives for cashless transactions and the makers of hardware required to power such transactions.
Reduction of interest for industry specific also may be announced as part of make In India and Skilled India. There may be abolishment of taxes on import duty on software and hardware benefiting cashless in India. There also may be heavy discount on taxes to merchants transacting online or promoting cashless regime in society.
All these are just expectations and for real and mirror image we need to wait for Budget 2017 in first week of February.
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