Right before the Union Budget, every year people look up with new hopes and aspirations and wait eagerly for the Finance Minister to make important announcements. This year budget to be presented on Feb 1,2017 is assuming significance as Finance Minister Arun Jaitley is presenting the budget right after PM Modi's demonetisation move and also with five states going to elections in February.
The state elections in Uttar Pradesh and Punjab are do and die battle for all parties and so many are now left wondering what one can expect from the Budget2017. There are five major expectations which are listed below.
Income Tax Slabs
Expectations are increasing that income tax slabs will be revised upward to benefit the common tax prayers in the country. It is expected that the limit may be increased to Rs 4 lakhs from the current 2.5 lakhs.
Cashless
The first budget after demonetisation may promote cashless transactions in big way. Government already implemented discounts on card payments, discounts for toll booth payments using cards, waiver of merchant discount rates when using debit cards at POS machines, etc
One may expect additional benefits to make peple go cashless through credit cards, debit cards and mobile wallets, apps and there can be benefit for bank payments.
Real Estate
Real Estate Regulatory Act (RERA) and demonetisation caused major damages to this sector. Cash crunch affected the industry and it is expected that relaxation in income tax rate, hike in the HRA deduction limit for salaried people, measures to standardize the construction material costs
House Loan
Narendra Modi-led government announced the Pradhan Mantri Awas Yojna (PMAY) in 2015. The scheme is aimed to provide housing for all as such everyone is expecting for some tax concessions in the budget. The increase in the tax deduction for interest paid on housing loan is expected. Some concessions may be offered in the Union Budget 2017-18 to 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.
Farmers
Farmers may get relief as they were unable to sell rabi crops after demonetisation due to lack of new currency. Measures to provide greater access to cashless transaction modes in rural areas and farmers are also expected. This will make the purchase of seeds, fertilizers, and other agricultural essentials easy.
