Presenting the Union Budget 2017 in Lok Sabha today, Finance Minister Arun Jaitley announced important changes in the Income Tax slab. Personal income tax in Rs 2.5 lakh - 5 lakh bracket has been reduced to 5 per cent from 10 per cent.
Apart from lowering Income Tax rates, one of the major highlights of Jaitley's Budget proposal was new rules concerning political donation. Political parties receiving donations above Rs 2,000 will now have to disclose the identity of the donor, Arun Jaitley said.
While Prime Minister Narendra Modi hailed Jaitley for tabling a Budget which he said serves the interest of all, Congress vice president slammed it as a damp squib. "We expected some fireworks but it was damp squib," Gandhi told reporters outside Parliament.
Although the finance minister made some populist announcements in his Budget, tax rates on certain items have also been hiked. Here is a list to commodities which will cost more, less:
WHAT GOES UP
- Excise duty on un-manufactured tobacco raised to 8.3 per cent from 4.2 per cent.
- Excise duty on pan masala (gutkha) hiked to 9 per cent from 6 per cent.
- Excise duty on cigar, cheroots hiked to 12.5 per cent or Rs 4006 per thousand, whichever is higher, from 12.5 per cent or Rs 3,755 per
- Parts used for manufacturing LED lights will attract basic Customs Duty of 5 per cent and CVD of 6 per cent.
- Customs Duty on printed circuit board for manufacture of mobile phones hiked to 2 per cent. Such electronic items were tax free previously.
- Excise duty on non-filter cigarettes of length not exceeding 65 mm raised to Rs 311 per thousand from Rs 215 per thousand.
- Duty on aluminium ores and concentrates raised to 30 per cent from nil presently.
- E-rail tickets.
- Solar tempered glass used for manufacturing of solar cells/panels exempted from Customs Duty.
- Customs duty on Liquefied Natural Gas (LNG) to be reduced from 5 per cent to 2.5 per cent.
- Duty exempted on various Point-of-sale (POS) machines and iris readers to encourage digital payments.
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