As everyone know that this year budget will be announced one-month in advance, instead of the traditional practice of declaring it on last day of February. It is done only to advance the annual financial plan in order to complete the spending and tax proposals before beginning of next financial year. With every new budget there are also new expectations of the public. Here are the lists of some expectation from the Union Budget 2017-18:
1. Revision in Income Tax Slab Rates
In order to benefits the common tax payer, it is expected from Mr Arun Jaitley that on February 1, 2017 he may announce some upward revision in the income tax slabs. The current income tax limit is Rs 2.5 lakh; it is expected to increase this limit to Rs 4 lakh.
2. Avail Benefits and Go Cashless
After the strike of demonetization, there are many changes made in current system. Govt. takes many steps and incentives in order to promote cashless transactions. Discounts on card payments, discounts for toll booth payments using cards, waiver of merchant discount rates when using debit cards at POS machines, etc., have already been implemented. Union budget 2017 is the first budget after demonetization strike that is why it is expected that some additional benefits are also given to promote people to go cashless through credit cards, debit cards and mobile wallets is also made in Union Budget 2017. Benefits for banking through payment banks are also expected.
3. Provide Relief to Farmers
Demonetization strike put farmers in difficulty to decide how they can sell their rabbi crops when there is the unavailability of new currency notes in sufficient numbers. This causes huge losses for the farmers that why it is expected to give some benefits to farmers in Union Budget 2017. It is also expected that govt. will provide greater help to access to cashless transaction modes in rural areas. This will make the purchase of seeds, fertilizers, and other agricultural essentials easy.
4. Hike in Real Estate Sector
Real Estate Regulatory Act (RERA) and demonetization caused major damages to this sector. Cash crunch made problems for buyers, sellers, and constructors. And also the 2016 was not so beneficial for the major GDP contributors of India’s real estate sector. So it is expected that govt. will take initiative in order to standardize the construction material costs and hike in prices for real estate sector are also expected in budget.
5. Convenience in Housing Loan
As in 2015, our Prime Minister Narendra Modi announced the Pradhan Mantri Awas Yojna (PMAY) which aimed to provide housing for all and in budget for 2017 it is expected that to provide some concession on these houses. It is also expected that there will be an increase in the tax deduction for interest paid on housing loan. In the Union Budget 2017-18, it is expected that govt. shall increase the tax benefit on payment of interest beyond the annual Rs 2 lakh, to give a helping hand to both the industry and tax payers.