Hyderabad: The 2016-17 budget might be seen in the backdrop of a tough year for the real estate and housing. This year’s budget proposals too are expected to be centered around these issues to improve sentiments and boost sales in a sector vastly impacted by November’s demonetisation move.
The 2017-18 budget will be announced one-month prior this year instead of the traditional practice of declaring it on last day of February. The whole idea of advancing Budget is to complete the spending plans and tax proposals before beginning the new financial year.
After demonetisation, the budget is likely to be taxpayer-friendly. According, to the economist, this year budget will cut down the income-tax and corporate tax rates to increase consumption and investment that has been severely hit due to demonetisation.
Watch Big Budget Day here:
There might be a hike in tax-slabs from Rs 2.5 lakh to Rs 4 lakh for individuals, HUFs, etc., and from Rs 3 lakh to Rs 5 lakh for senior citizens. Lower taxes may encourage people to show their real income and discourage the generation of black money.
Start-ups may get lucky this year as they enjoy tax-free for three years. It’s expected that the tax holiday period for start-ups may be increased from three to seven years to help them meet the cash-crunch in the initial phase.
“Post- demonetisation, cash-based transactions have declined and acceptance of full payment in white has gone up. Reputed developers and most of those operating in the bigger metros such as Mumbai were anyway accepting full payment in white. Now, those accepting cash payments, especially in tier-II, III cities are also expected to fall in line to kill black money.
*Double farm income in five years
*Youth skills and jobs
*Social security, health, housing
*Infra for efficiency and better living standards
*Growth and stability
*Public service through people’s participation
*Prudent fiscal management
*Honouring the honest
Well, it’s our Finance Minister Arun Jaitley who will disclose the Budget for 2017- 18 on February 1st. Stay tuned to this space.