Union Budget 2017: What the nation expects this time
Among the various activities of the government, there is none like the announcement of the Union Budget that keeps people and all industries on their toes. This year the Union Financial Budget is due to be announced on the 1st of February, 2017. It will be the budget for the year 2017 – 2018. It has a direct bearing on all aspects of the nation.
Importance of the financial budget
The budget has always been a topic of debate and speculations. Experts from every field have their opinions of what is right and what needs to be done for making the operation smooth. Television channels invite experts with commerce background to the studios and hold talk shows to discuss the impending budget. The same is in the process this year too.
The Union Budget 2017 is such a national activity that has stirred all sectors in the full gear. The decisions, which are taken in the budget, will affect all aspects of the national life. The verdicts will affect both rich and poor. No matter which profession you are in, you will be affected either in positive or in a negative way.
Most of the financial decisions, which will be put in motion, are announced in the budget. So all eyes are on the speech of the Finance Minister and what decisions he will be taking. Most of the experts are already leaving no stones unturned for making the right speculations, which might be a part of this year’s budget.
Expectations of the nation
The stage has been prepared for the announcement of the Financial Budget 2017, and all eyes will be glued to the television sets on the 1st of February. Here are some of the top expectations, which the people have from the Finance Minister:
Amendments in the income tax relaxation
In the wake of demonetization, announced in November 2016, the common people of the country had to suffer a lot. Every year, the main focus of laymen of the country is fixed on the income tax rebate rate. This year too, the situation has not changed. Salaried individuals expect to get higher tax discounts so that they can save better.
This year, the tax expectations are expected to be as the following:
- For people, with an annual income of fewer than 4 lakhs, the government must not be levying any income taxes. Their income should be regarded as tax-free.
- For individuals, with an annual income, ranging between 4 lakhs to minus 8 lakhs, the rate of income tax is expected to be 10%.
- For people, with an annual income of 8 lakhs to an amount minus 12 lakhs, the rate of interest on income should be Rs. 40,000 + 20 % of the total amount that comes under taxation.
- For individuals with an income of Rs. 12 lakhs and more, the income tax is expected to be Rs. 1.2 lakhs + 25% of the total taxable income.
More Inducements for making digital transactions
The Union Government has already announced incentives for those who are making the monetary transaction via the digital media. It is a strategic move to put less pressure on the cash crunch situations. The government has already eliminated the payment of any service tax for any monetary transactions, amounting to Rs.2000. Individuals are awarded 0.75% at petrol pumps when they pay via digital media. The government is expected to increase the incentive or the discount percentage to encourage this.
REITs and simple tax norms
There are no extra points for guessing that around 15% of the nation’s GDP is contributed by the property and real estate sectors. Thus, a lot of expectations are associated with this field. It is expected that the tax levels of the REIT will be slashed for the betterment of the average buyers.
Slashing the housing loan rate
A lot of revenue is generated from the real estate market. Most of it comes from the selling and purchase of houses. Buying a house requires a lot of money, and most people opt for the housing loans to cope with it. The financial instates get a high amount of revenue from this. With the demonization drive, it is expected that the government will reduce the interest rate on the housing loans. It will enable more and more people to purchase their dream home. These kinds of lump sum monetary transactions will also assist in reviving the Indian financial market.
Clarity on the latest GST structure
Though the structure of the GST has already been proclaimed, the real estate department has kept its eyes fixed on it. This is because, the budget and the soaring or falling tax structure will directly or indirectly affect the good and services market and it will, in turn, affect the property markets.
Reduction in the HRA structure
Salaried individuals get house rent allowance, which is also known as HRA as a part of their aggregate compensation, and can, in this manner, guarantee a derivation. This conclusion can be considered in situations where the compensation and its HRA segment are higher. In any case, independently employed people and the individuals who draw singular amount pays without an HRA segment can just claim a most extreme derivation of Rs 2,000 a month under Section 80GG.
Modernize Present Tax Saving Mechanisms
Expectations are high that the Finance Minister will make few significant amendments for upgrading the existing structure of the tax calculation and payment process. These will assist the salaried persons and elderly individuals for saving a good amount of money.
If all these expectations see the light of the day, then you can be rest assured that will have fewer troubles in managing the financial aspects of life. The success of the budget will depend on the proper implementation of the decisions. The decisions of the budget will have a direct effect on the financial health and GDP generation of the country. So, set the alarm for the 1st of February and don’t miss the most important telecast of the year.