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Wednesday, February 1, 2017

NDA Govt Budget 2017-18 - List of products turning costlier/cheaper




Following is a list items that will turn costlier:
* Cigarettes, pan masala, cigar, cheroots, bidis, chewing tobacco
* LED lamp components
* Cashew nuts (roasted and salted)
* Aluminum ores and concentrates
* Polymer coated MS tapes used in manufacturing of optical fibres
* Silver coins and medallions
* Printed circuit board used in making mobile phones
Following is a list items that will turn cheaper:
* Booking railway tickets online
* RO membrane elements for household usage
* LNG
* Solar tempered glass used in solar panels
* Fuel cell based power generating systems
* Wind operated energy generator
* Vegetable tanning extracts used in making leather products
* POS machines card and fingerprint readers
* Group insurance for Defence services

NDA Govt Budget 2017-18 - Foreign Investment Promotion Board (FIPB) to be abolished; further easing in FDI policy planned




The Foreign Investment Promotion Board (FIPB), which vets and approves foreign direct investment (FDI) proposals not cleared through the automatic route, will be abolished in 2017-18, Finance Minister Arun Jaitley has announced while presenting the Union Budget 2017-18 on Wednesday Feb 01,2017
“A roadmap for the same (abolition of FIPB) will be announced in the next few months. In the meantime, further liberalisation of the FDI policy is under consideration and necessary announcements will be made in due course,” Jaitley said.
The Finance Minister, however, did not clarify the alternative mechanism for routing FDI proposals in case they did not qualify for automatic clearance. One option, he said, could be the designated Ministries and Departments handling the proposals.
“The concerned ministry dealing with it is one alternative,” Jaitley said. The government would carry out the proposal in the course of the year and all options would be looked at, he said.
There will also be further liberalisation of the FDI policy and necessary announcements will be made in due course, the Finance Minister said in his Budget speech.
Through two previous tranches of FDI liberalisation, the BJP-led government has already ensured that more than 90 per cent of total FDI inflows are now through the automatic route. The FIPB has also put in place e-filing and online processing of FDI applications. “We have now reached a stage where FIPB can be phased out,” said Jaitley. Finance Ministry officials clarified that existing FDI procedures for defence and sectors that entail national security will be subject to controls

MS Dhoni Felicitated by Virat Kohli And Co in Bengaluru Wednesday Feb 01,2017

Virat Kohli's troops wrapped off the series in style in Bengaluru but there was an event that preceded the third match between India and England on Wednesday Feb 01,2017
Former India captain Mahendra Singh Dhoni was felicitated by the team for his outstanding achievements as the leader of Team India.

M S Dhoni led India to innumerable success on the pitch during his time as skipper - an era that lasted almost a decade.
Under MSD’s leadership, India won the 2007 World T20, 2011 World Cup and 2013 ICC champions trophy in the limited over format of the game. Dhoni is the only cricketer ever to win the three ICC titles as captain

NDA Govt Budget for 2017-18 presented in Parliament Wednesday Feb 01,2017


Budget 2017-18 was ground breaking in many ways. It is the first time that the presentation of Union Budget was advanced to 1st February to enable ministries to operationalise all activities from the commencement of the financial year. Second, the Railways Budget was merged with the General Budget. Thirdly, the plan and nonplan classification of expenditure was removed to facilitate a holistic view of allocations for sectors and ministries.








NDA Govt Budget 2017-18 - Change in the personal income tax rate for individual assessees



The Finance Minister Arun Jaitley while presenting the Union Budget for 20177-18 on Wednesday Feb 01,2017 chose to move towards person taxation towards the end of his speech, and he entered on a lighter note. “We are largely a tax-non-compliant society,” he said almost winking as he took a pause to drink a sip of water.
And then came the reward, which according to him is well-deserved for those tax-payers who weathered the brunt of the initial days of demonetisation.
In one of the biggest income tax reforms in recent years, those with an income of under Rs 5 lakh now have and halved the 10% tax to 5%.
However, the 10% surcharge imposed on those earning above Rs 50 lakh will hit the wealthy among the salaried hard.
IncomeTax Rates
Up to Rs. 2,50,000Nil
Rs. 2,50,001 to Rs. 5,00,0005 per cent.
Rs. 5,00,001 to Rs. 10,00,00020 per cent.
Above Rs. 10,00,00030 per cent
Above 60 years of age
Up to Rs. 3,00,000Nil
Rs. 3,00,001 to Rs. 5,00,0005 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent.
80 years and above
Up to Rs. 5,00,000Nil
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
Surcharge
Rs 50 lakh to Rs 1 crore10 per cent
Above Rs 1 crore15 per cent

For those in 20 percent (Rs 5 lakh-Rs 10 lakh) and 30 percent (Rs 10 lakh plus), there is a Rs 12,500 rebate in the budget. “The total cost of the two measures for the government will be Rs 15,500 crore,” the FM said. To compensate for this, those earning Rs 50 lakh a year will pay a 10 percent surcharge, he said.
The change in the personal income tax rate for individual assessees between Rs 2.5 lakh and Rs 5 lakh income would reduce the tax liability of all persons below Rs 5 lakh to either to zero (with rebate) or 50 per cent of their existing liability.
In order to have duplication of benefit, the existing benefit of rebate available to them is being reduced to Rs 2,500 available only to assessees upto income of Rs 3.5 lakh.
While the taxation liability of people with income upto Rs 5 lakh is being reduced to half, all other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person.
In the case of senior citizens above 60 years, there will be no tax upto Rs 3 lakh, while the exemption will be upto Rs 5 lakh in case of citizens above 80 years. Both the categories will attract income tax of 20 percent on income between Rs 5 lakh and Rs 10 lakh and 30 per cent for income above Rs 10 lakh

NDA Govt Budget 2017-18 - Cash Dealings Above Rs 3 Lakh Banned From April 01,2017


Continuing with NDA Government steps to clamp down on black money, Finance Minister Arun Jaitley while presenting the Union Budget for 2017-18 on Wednesday Feb 01,2017 proposed to ban all cash transactions above Rs 3 lakh beginning April 1, 2017.
The decision to ban cash transactions beyond a threshold is based on the recommendation of the Special Investigation Team on black money that was set up by the Supreme Court, Jaitley said while presenting Union Budget 2017-18 in Parliament.
All cash transactions above Rs 3 lakh will be banned, he said.
The SIT, headed by Justice M B Shah (retired), in July had submitted its fifth report to the Supreme Court on steps needed to curb black money.
Noting that a large amount of unaccounted wealth is stored in cash, SIT had said: "Having considered the provisions which exist in this regard in various countries and also having considered various reports and observations of courts regarding cash transactions, the SIT felt that there is a need to put an upper limit to cash transactions."
It recommended a total ban on cash transactions of Rs 3 lakh and above and that "an Act be framed to declare such transactions as illegal and punishable under law".

NDA Govt Budget 2017-18 - What is Electoral Bond ?


In the Budget presented by FM Arun Jaitley on Feb 01,2017, the NDA Government reiterated its commitment to reform political funding, blamed as the root of all corruption plaguing India. The steps adopted include capping the maximum cash donation to Rs 2,000 from any one source, limiting donations to political parties to cheque and digital transactions, and to making IT returns for political parties compulsory.
But one measure stood out. Finance Minister Arun Jaitley proposed to amend the RBI Act and issue something called electoral bonds. So just what is this new Electoral Bond ?
What is a bond?
A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation.
What is the 'electoral bond'?
An instrument that will be used to donate money to political parties. The parties involved will probably be a donor, the political party and the RBI, which acts as the intermediary
The FM says wait for a new scheme in this regard that will have all details. Obviously, it can't be called political 'funding' if the party will have to return the money at a later date with or without interest.
What we understand is that this one will be more akin to a bail bond than a financial bond. One possibility is that RBI will issue these ‘bonds’ through designated banks. Say, if you want to donate Rs 25,000 to a party of your choice, you can buy 5 of the Rs 5,000 bonds and donate. So the government knows who bought it and what his source of income is, but it wouldn’t know who he donated it to. The party can go to the bank and redeem the Rs 25,000. The donor if he wants can choose to be anonymous.
How will it be introduced?
The government proposes to design a scheme under which the issuance of electoral bonds to political parties will be sketched out. This would only be possible after an amendment to the Reserve Bank of India (RBI) Act

NDA Govt Budget 2017-18 - Highlights


Budget 2017-18 was ground breaking in many ways. It is the first time that the presentation of Union Budget was advanced to 1st February to enable ministries to operationalise all activities from the commencement of the financial year. Second, the Railways Budget was merged with the General Budget. Thirdly, the plan and nonplan classification of expenditure was removed to facilitate a holistic view of allocations for sectors and ministries.


  • Tax rates halved to 5% for income of Rs. 2.5-5 lakh, tax slabs unchanged
  • 10% surcharge on people earning between Rs. 50 lakh-1 cr
  • 15% surcharge on annual income above Rs. 1 cr to continue
  • Cash transactions above Rs. 3 lakh banned
  • Corporate tax for SMEs with turnover up to Rs. 50 cr cut to 25%; 96% companies to benefit
  • Customs duty of LNG halved to 2.5%
  • Fiscal deficit pegged at 3.2% next year, 3% in FY’19
  • Political parties barred from accepting cash donation beyond Rs. 2,000 per individual. They can receive donations via cheques, electronic mode; electoral bonds to be issued by RBI
  • Aadhaar—based health cards for senior citizens; a scheme for them to ensure 8 per cent guaranteed returns
  • FIPB to be abolished; further FDI policy liberalisation
  • Government to have time-bound procedure for CPSE listing
  • Railway PSUs —— IRCTC, IRFC, IRCON to be listed
  • Payment Regulatory Board to be set up within RBI to regulate digital payments
  • Negotiable instruments Act to be amended to deal with cheque bounce cases
  • Legislative changes to confiscate of assets of economic offenders who flee country
  • Demonetisation bold, decisive measure; to help GDP growth, taxes mop up to rise
  • Effect of demonetisation not to spill over to next year
  • GST, demonetisation ‘tectonic changes’ for economy
  • Service charges on e—tickets booked via IRCTC waived
  • Capital expenditure of Railway fixed at Rs. 1.31 lakh cr
  • Rail safety fund of Rs. 1 lakh cr over 5 years, unmanned level crossing to be eliminated by 2020
  • Budget based on 3 agenda —— Transform, Energise, Clean India (TECIndia).
  • 3 year period for long—term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from April 1, 1981 to April 1, 2001
  • Disinvestment target at Rs. 72,500 cr, up from 56,500 crore
  • Gross market borrowing pegged at Rs. 6.05 lakh crore
  • Duty exempted on POS machines and Iris readers for encouraging digital payments
  • Tax benefits for Start ups to be for 3 out of 7 years
  • FPI to be exempt from indirect transfer provision
  • Integrated public sector oil major to be created to match global giants
  • Direct Tax collection growth 15.8%, indirect tax 8.3%
  • Total expenditure pegged at Rs. 21.47 lakh crore
  • Capital expenditure up 24%; to have multiplier effect
  • Allocation to states hiked to Rs. 4.11 cr
  • FRBM Committee suggests Debt—GDP ratio of 60% by 2020
  • Retail inflation to remain within 2—6 pc
  • 2 new AIIMS to come up in Jharkhand, Gujarat
  • Highest ever allocation of Rs. 48,000 cr to MNREGA
  • Farm sector to grow at 4.1% this fiscal, to double farm income in five years
  • Farm credit target for next fiscal at Rs. 10 lakh crore
  • Fasal Bima yojana increased to 40% of crop area; raised to Rs. 1.41 lakh crore in Kharif 2017 season
  • Infrastructure investment pegged at Rs. 3.96 lakh cr
  • To double irrigation fund corpus to Rs. 40,000 cr
  • Infrastructure status accorded affordable housing
  • Dairy processing fund with Rs. 2000cr corpus to be set up
  • Rs. 1.84 lakh cr allocated for women, child initiatives
  • Rs. 1.87 lakh cr allocated to rural, agri, allied sectors
  • 1 crore houses by 2019 for homeless
  • PM Awas Yojana allocation up from Rs. 15,000 cr to Rs. 23,000 cr
  • 100% village electrification to be achieved by May 2018
  • Rs. 31,920 cr allocated for Scheduled Tribes, Rs. 4,195 cr minority affairs, outcome based budgeting to start
  • Road sector allocation hiked to Rs. 64,000 cr
  • Innovation Fund to be created for Secondary Education
  • Allocation of Rs. 2.41 lakh crore rail, road, shipping to create jobs, spur economic activity
  • New metro rail policy to be announced
  • New crude oil reserves proposed at Odisha and Rajasthan; to take strategic reserve capacity to 15.33 mmt
  • India on cusp of digital revolution
  • FDI increased 35% to Rs. 1.45 lakh crore in H1 FY’17
  • 2 new schemes —— Referral Bonus for individuals, Cash Back for merchants —— under BHIM app soon
  • Aadhaar enabled payment system for merchants shortly
  • Bill on curtailing menace of illicit deposit schemes in offing
  • Fiscal deficit for this fiscal at 3.2%, down from budget estimate of 3.5%
  • FRBM Committee recommends 3% fiscal deficit for 3 years
  • Rs. 10,000 cr to be provided to banks for recapitalisation
  • Trade Infrastructure for Export Scheme (TIES) to be launched next fiscal
  • Simple 1 page form to be filled by individuals having taxable income of Rs. 5 lakh
  • Excise duty on cigars, cheroots hiked to 12.5% or Rs. 4,006 per thousand
  • Excise duty on pan masala hiked to 9% from 6%; on raw tobacco raised to 8.3% from 4%
  • Parts used for manufacture of LED lights to attract basic customs duty of 5% and CVD of 6%
  • Solar tempered glass used for manufacture of solar cells/panels exempted from customs duty
  • Customs duty on printed circuit board for manufacture of mobile phones hiked to 2% from nil
  • Threshold for audit of businesses opting for presumptive income doubled to Rs. 2 cr
  • Under presumptive taxation for professionals up to Rs. 50 lakh advance tax can be paid in one instalment
  • Scope of domestic transfer pricing restricted to entities availing profit linked deduction
  • Presumptive tax would be 6% for SMEs with Rs. 2 crore turnover opting for digital payment, 8% for others
  • MAT credit will be allowed to be carried forward for 15 years, as against 10 years at present
  • Lending target under Mudra Yojana set at Rs. 2.44 lakh cr
  • Computer Emergency Response Team for Financial Sector to be established
  • Extensive reach out programme for GST to be launched on April 1.
  • 2017 Assembly Elections in Uttar Pradesh,Punjab and Uttarakhand - CNN-News18 Mega Poll of Polls Results

    Congress-SP Ahead in UP, Congress May Win Punjab, BJP to Get Uttarakhand


    CNN-News18's Mega Poll of Polls has predicted a severe setback for the Bharatiya Janata Party (BJP) in Uttar Pradesh and for the Akali Dal-BJP alliance in Punjab in the coming Assembly elections. But it sees the BJP coming to power in Uttarakhand.
    According to the Mega Poll of Polls computed in partnership with Gramener, the Akhilesh Yadav-led Samajwadi Party in alliance with the Congress is set to win 181 seats, which is ahead of the rest of the pack but is still not enough to get to the halfway mark in a house of 403 seats.
    The BJP is placed second with 160 seats, way down from its performance in the 2014 Lok Sabha polls where it rode the Modi wave and won 71 out of 80 seats. Mayawati's Bahujan Samajwadi Party (BSP) is left way behind in the third spot with 57 seats.
    In Punjab, the ruling SAD-BJP combine is predicted to lose in a big way with only 21 out of 117 seats. The Congress is likely to end up quite close to majority with 58 seats and Arvind Kejriwal's Aam Aadmi Party (AAP) with 37 seats.
    The BJP seems set to trump the Congress in Uttarakhand and bag 40 out of 70 seats. Harish Rawat's Congress is predicted to end up with only 26 seats

    UK Parliament votes in favour of starting Brexit process Wednesday Feb 01,2017

    Britain moved one step closer to a final separation from the EU as members of the UK parliament voted overwhelmingly in favour of allowing the Government to begin Brexit negotiations.


    Members of the House of Commons voted on Wednesday Feb 01,2017  by 498 to 114 to advance the bill that would give Prime Minister Theresa May the authority to invoke Article 50 of the Lisbon Treaty —— the formal process of leaving the EU.



    The vote came after two days of debate that exposed divisions within the ruling Conservative party and the main opposition Labour party.
    The bill now faces further scrutiny in the Commons and the House of Lords before it can become law.
    Earlier, Prime Minister Theresa May had confirmed that she will be publishing a White Paper on her Brexit strategy.
    In response to a query by Conservative MP Maria Miller, May told the House of Commons: “I can inform my Right Hon Friend and the House that that White Paper will be published tomorrow (Thursday)“.
    Under pressure from the Opposition and some of her own rebel MPs, the British PM had announced last week that she would be publishing a White Paper on the negotiating plans for Britain’s exit from the EU in due course.
    “The White Paper will reflect the plan already set out by the Prime Minister Theresa May in her Brexit speech,” a Downing Street spokesperson told reporters at a briefing on Wednesday morning.
    The confirmation of a date for the White Paper came as MPs continued a second day of debate on the so—called Brexit Bill, which will give May the authority to invoke Article 50 and trigger the official Brexit negotiations with the EU.
    “History has been made,” British Foreign Minister Boris Johnson tweeted after the voting.
    The government was expected to win despite the Liberal Democrats and Scottish National Party voting against it.
    Labour leader Jeremy Corbyn had issued a three—line whip, a strong disciplinary order, to his MPs to back the bill.
    However, many Labour MPs had already indicated they would defy that whip, including Indian—origin MP Virendra Sharma.
    Labour rebels joined MPs from the SNP, Liberal Democrat party, the SDLP, Green MP Caroline Lucas and Tory MP Ken Clarke in an attempt to stop May invoking Article 50 and starting the process of leaving the EU.
    A total of 90 MPs are likely to oppose the bill, not enough to stop Prime Minister Theresa May moving a step closer to be able to work towards her declared timeline of wanting to invoke Article 50 by the end of March 2017

    Triggering Article 50 gives the UK two years to negotiate a separation deal with the 27 other members of the EU
    David Davis, minister for exiting the European Union, had opened the debate in the House of Commons with a clear message to MPs that they must implement a decision made by the people in the June 2016 referendum — with 51.9 per cent wanting to leave the EU and 48.1 per cent wanting to remain within the 28-nation economic bloc.

    Former Labour Party leader Ed Miliband said he would support the measure but outlined major concerns over Brexit’s impact on Britain’s future global relationships — particularly with the United States.
    “I can go along with the Prime Minister that ‘Brexit means Brexit,'” he said. “But I cannot go along with the idea that Brexit means Trump. And nor do I believe that is inevitable, and nor do I believe that is what the British people want either.”
    Former Chancellor of the Exchequer George Osborne, who was a vocal supporter of Britain remaining in the European Union, said he would nonetheless vote in favor of the bill to respect the democratic will of the people

    Note

    In a landmark day on June 25,2016 for the United Kingdom, Britain has voted to leave the European Union following a referendum that captured the world's attention.