Has Arun Jaitley's Budget left you richer or poorer? Read and find out
TNN|
Updated: Feb 02, 2017, 11.23 AM IST
FOR TAXPAYERS
Benefits
►Tax rate for individual income in the lowest Rs 2.5 lakh-5 lakh bracket halved to 5 per cent. One-page tax form for those with taxable income up to Rs 5 lakh.
►No tax scrutiny for such first-time return filers.
►Deduction to self-employed on contributions to National Pension Scheme doubled from 10 per cent to 20 per cent, subject to a limit of Rs 1.5 lakh.
Drawbacks
►Tax rebate cut from 5,000 to 2,500 for individuals with income up to Rs 3.5 lakh.
►Tax break due to interest paid on rented homes (whether first or second) will now be capped at Rs 2 lakh. This is likely to impact investment in real estate.
►10 per cent surcharge on income of Rs 50 lakh-1 crore.
►Pay up to Rs 10,000 for late filing of tax return.
►Limit of cash donation to charitable trusts reduced from Rs 10,000 to Rs 2,000.
FOR INVESTORS
Benefits
►Base for computing indexation benefit for long-term capital gains shifted from April 1, 1981 to April 1, 2001. Holding period for computing long-term capital gains on land and building reduced from three years to two years.
►Reinvestment of capital gains in notified redeemable bonds beyond NHAI, REC to qualify for long-term CG tax exemption.
►Partial withdrawal from NPS tax-exempt up to 25 per cent of employee's contributions.
Drawbacks
►No exemption from long-term capital gains on transfer of listed shares if securities transaction tax not paid on purchase of then unlisted shares bought after Oct 1, 2004.
FOR CONSUMERS
Benefits
►Professionals, salaried employees and smaller businessmen paying more than 50,000 a month as rent will have to deduct tax at source at 5 per cent.
►Train travel set to get cheaper with withdrawal of service charge on tickets bought online through IRCTC.
►Non-residential MBA programmes at IIMs exempt from service tax, to get cheaper.
►Customs duty exemption revised on goods imported through postal parcels, packets and letters where CIF value less than 1,000.
Drawbacks
►Excise duty on cigarettes up across the board; pan masala, bidis, gutkha and other tobacco products to also cost more.
►Silver coins, medallions to become more expensive due to higher customs duty.
FOR BUSINESSMEN
Benefits
►Reduced tax rate of 25 per cent on firms with turnovers upto 50 cr in FY 2015-16 Period for carry-forward and use of MAT credit in creased from 10 to 15 years.
►Beneficial withholding tax rate of 5 per cent on interest on ECBs of Indian firms extended by three yrs till June 2020. Also extended to their rupee-denominated bonds.
►Tax holiday to start-ups now available for 3 out of 7 years instead of existing 3 out of 5 years.
Drawbacks
►No cash deals above Rs 3 lakh.
►No reduction in the corporate tax rate other than for small and medium firms.
►Money, immovable property or specified movable property worth over Rs 50,000 received as gift or for inadequate sum to be taxable.
Benefits
►Tax rate for individual income in the lowest Rs 2.5 lakh-5 lakh bracket halved to 5 per cent. One-page tax form for those with taxable income up to Rs 5 lakh.
►No tax scrutiny for such first-time return filers.
►Deduction to self-employed on contributions to National Pension Scheme doubled from 10 per cent to 20 per cent, subject to a limit of Rs 1.5 lakh.
Drawbacks
►Tax rebate cut from 5,000 to 2,500 for individuals with income up to Rs 3.5 lakh.
►Tax break due to interest paid on rented homes (whether first or second) will now be capped at Rs 2 lakh. This is likely to impact investment in real estate.
►10 per cent surcharge on income of Rs 50 lakh-1 crore.
►Pay up to Rs 10,000 for late filing of tax return.
►Limit of cash donation to charitable trusts reduced from Rs 10,000 to Rs 2,000.
FOR INVESTORS
Benefits
►Base for computing indexation benefit for long-term capital gains shifted from April 1, 1981 to April 1, 2001. Holding period for computing long-term capital gains on land and building reduced from three years to two years.
►Reinvestment of capital gains in notified redeemable bonds beyond NHAI, REC to qualify for long-term CG tax exemption.
►Partial withdrawal from NPS tax-exempt up to 25 per cent of employee's contributions.
Drawbacks
►No exemption from long-term capital gains on transfer of listed shares if securities transaction tax not paid on purchase of then unlisted shares bought after Oct 1, 2004.
FOR CONSUMERS
Benefits
►Professionals, salaried employees and smaller businessmen paying more than 50,000 a month as rent will have to deduct tax at source at 5 per cent.
►Train travel set to get cheaper with withdrawal of service charge on tickets bought online through IRCTC.
►Non-residential MBA programmes at IIMs exempt from service tax, to get cheaper.
►Customs duty exemption revised on goods imported through postal parcels, packets and letters where CIF value less than 1,000.
Drawbacks
►Excise duty on cigarettes up across the board; pan masala, bidis, gutkha and other tobacco products to also cost more.
►Silver coins, medallions to become more expensive due to higher customs duty.
FOR BUSINESSMEN
Benefits
►Reduced tax rate of 25 per cent on firms with turnovers upto 50 cr in FY 2015-16 Period for carry-forward and use of MAT credit in creased from 10 to 15 years.
►Beneficial withholding tax rate of 5 per cent on interest on ECBs of Indian firms extended by three yrs till June 2020. Also extended to their rupee-denominated bonds.
►Tax holiday to start-ups now available for 3 out of 7 years instead of existing 3 out of 5 years.
Drawbacks
►No cash deals above Rs 3 lakh.
►No reduction in the corporate tax rate other than for small and medium firms.
►Money, immovable property or specified movable property worth over Rs 50,000 received as gift or for inadequate sum to be taxable.