A Monthly magazine of Maloo Finance and Investment Services

2. The decline in fiscal deficit has continued GDP growth rate at constant market
prices for the current year i.e. 2016-17 is
placed at 7.1 per cent. FY 18 GDP Growth
seen in range Of 6.75-7.5%
Growth rate of the industrial sector
estimated to moderate to 5.2% in 2016-17
from 7.4% in 2015-16
CPI based core inflation has remained
stable in current fiscal year averaging
around 5%. Inflation based on Wholesale
Price Index (WPI) averaged 2.9 per cent
during April-December 2016

3. INCOME TAX RATES FOR FY 2017-18 AT A GLANCE
Tax
Slab
Rate
Individuals including Women Senior Citizens (More than 60
years but lesser than 80
Years)
Very Senior Citizens (More
than 80 Years)
FY 2016-17 FY 2017-18 FY 2016-17 FY 2017-18 FY 2016-17 FY 2017-18
NIL 0 to 2,50,000 0 to 2,50,000 0 to 3,00,000 0 to 3,00,000 0 to 5,00,000 0 to 5,00,000
5% NA 2,50,001 to
5,00,000
NA 3,00,001 to
5,00,000
NA NA
10% 2,50,001 to
5,00,000
NA 3,00,001 to
5,00,000
NA NA NA
20% 5,00,001 to 10,00,000
30% 10,00,001 and above
Notes Rs 2,500 rebate for income up to Rs 3.5 Lakh
3% Education Cess on tax liability
10% surcharge on income above Rs 50,00,001 to Rs 1 Cr and 15% surcharge on income above
Rs 1 Cr
Effect No tax for income up to Rs 3 Lakh.
Net savings of Rs 2,575/- including cess for income between Rs 3 to 3.5 Lakh.
Tax savings from Rs 2,575 to Rs 7,725 for incomes between Rs 3.5 to 5 Lakh.
Tax savings of Rs 12,875 for income between Rs 5 to 50 Lakh.
Additional tax of Rs 1,22,213 for income between Rs 50 Lakh and Rs 1 Cr.

4. • Base of computation indexation benefit for
LTCG shifted to 01 Apr 2001 from 01 Apr 1981.
• Holding period for computing LTCG on land and
building reduced from 3 to 2 years.
• Reinvestment of capital gains in notified
redeemable bonds beyond NHAI, REC to
qualify for LTCG tax exemption.
• No exemption from LTCG on transfer of listed
shares if security transaction tax is not paid on
purchase of then unlisted shares bought after
01 Oct 2004.
• Partial withdrawal from NPS exempted tax up
to 25% of employee’s contributions.
BUDGET FOR
INVESTORS

5. • IT slab rate for individual income from Rs 2.5 to 5 Lakh
halved to 5%.
• 10% surcharge on income on income of Rs 50 Lakh to 1 Cr.
• Tax rebate cut from Rs 5,000 to Rs 2,500 for individuals
with income up to Rs 3.5 Lakh.
• One page tax return for taxable income income up to Rs 5
Lakh.
• No tax scrutiny for first time tax filers.
• Deduction to self-employed on contributions to NPS
doubled from 10% to 20%, subject to limit of Rs 1.5 Lakh.
• Tax break due to interest paid on rented homes will now
be capped at Rs 2 Lakh.
• Limit of cash donation to charitable trusts reduced from
Rs 10,000 to Rs 2,000.
BUDGET FOR
TAXPAYERS

6. • Corporate tax rate for MSME (annual
turnover less than Rs 50 Cr) proposed to be
reduced from 30 to 25%. Benefits 96% of
business entities.
• Presumptive income for small and medium
taxpayers (turnover up to 2 Cr) reduced
from existing 8% to 6% of turnover by non-
cash means.
• Raised the threshold limit for audit of
business entities that opt for presumptive
income scheme from Rs 1 to Rs 2 Cr.
BUDGET FOR
CORPORATE

9. CHEAPER
AFTER BUDGET
• Online railway ticket booking
• 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
• Point of Sale (PoS) machine cards and fingerprint readers
• Group insurance for Defence Services
COSTLIER
AFTER BUDGET
• Cigarettes, pan masala, cigars, cheroots, bidis and chewing tobacco
• LED lamp components
• Cashew nuts
• Aluminum ores and concentrates
• Polymer coated MS tapes used in manufacturing of optical fibers
• Silver coins and medallions