Budget 2017; Jaitley speaks on Taxation

Highlights:

* We are largely a tax non-compliant society.

* More than 17% growth in tax collection for the second year in a row.

* Govt to further liberalise FDI policy.

* Over 90 per cent of FDI proposls are now processed through automatic route.

* Big IPO lineup ahead: IRCTC, IRCON, IRFC to be listed during FY18, says FM.

* Foreign Investment Promotion Board (FIPB) will be abolished.

* Trade Infrastructure Export Scheme to be launched in 2017-18; total allocation for infra at record Rs 3.96 lakh crore.

* Capital gains tax in real estate: Holding period reduced to 2 years.

* Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh.

* Due to demonetisation, advance tax on personal income tax increased by 34.8 per cent.

* There is an urgent need to protect the poor from chit fund schemes, draft bill placed in public domain.

* MAT can be carried forward for 15 years by companies as against 10 years allowed earlier.

* Holding period for long-term captial gains for immobile assets reduced from 3 years to 2 years; base year for indexation to be 2001.

* Plan to extend basket of financial instruments to which the capital gains can be invested sans payment of tax.


Yet other important pointers of Jaitley's speech:

* Digi Gaon will be launched to promote tele-medicine and education.

* Crude oil strategic reserves to be set up in Odisha and Rajasthan apart from three already constructed.

* Second phase of solar power development to be taken up with an aim of generating 20,000 MW.

* National Testing Agency for higher education entrance.

Stay tuned for more such updates.