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The Union <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">budget 2019</keyword>, which will be an interim one, has triggered a lot of expectations among the common people. Looking back at the past five budgets by the Finance Minister Arun Jaitley, we find a lot of changes in the salary structures and the annual tax outgo. For instance, the 2014 budget raised the personal income tax exemption limit from ₹2 lakh to ₹ 2.5 lakh. Also there was an increase in the investment limit under Section 80C after a decade by ₹ 50,000. The next two budgets that followed increased the tax outgo of super wealthy individuals. In 2017, income tax rate was halved for the ₹2.5 – ₹5 lakh slab. The last budget brought the standard deduction once more. Tax sops still top the wish list of any common man, and the government is expected to give in this time to woo voters. According to Anirudha Taparia, IIFL Wealth Management’s Executive Director, while the government will stick to prudence, the balance will tilt in favor of populist measures designed to assuage restless voters who are currently sitting on the fence. What the common man could expect from budget 2019 There are strong hopes the individual taxpayer’s income tax exemption limit will be lifted from ₹2.5 lakhs to ₹5 Lakhs. There are strong demands to lift up the maximum deduction limit under Section 80C. Talking on this, Founder and CEO of Cleartax Archit Gupta <a href="https://www.businesstoday.in/budget-2019/news/how-budget-2019-is-likely-to-benefit-individual-taxpayers/story/310441.html">writes</a>, "The government must consider revising this limit, the revision must at least accommodate for inflation. Perhaps raising to ₹2 lakh from the present ₹1.5 lakh would be impactful. Any such hikes will help individual taxpayers to invest in various tax saving avenues available under 80C and save on taxes." Additionally, there is demand from industry chambers that the tax slabs will need some tinkering. As part of its pre-budget recommendations, the CII pressed for bringing down the highest personal income tax slab from the present 30% to 25%. FICCI has wished for a revision in the tax slab for the taxpayers suggesting that the 30% rate will be applied only for those making an income beyond ₹20 lakh per year. Another issue in the past was standard deduction limit. Though the government had announced a standard deduction of ₹40,000, the salaried tax payers could not be happy as the transport allowances and medical treatments were scrapped. Hence some experts want it to be increased to ₹75,000. There could also be some real estate sops in the form increase in the exemption limit for interest and principal on housing loans which would be in addition to the exemption given under 80C for principal repayment. Recently, the New Pension Scheme (NPS), also called as the National Pension Scheme, was tweaked to bring an increase in the center’s contribution to the corpus fund to 14% from the present 10% and tax exemptions on withdrawals up to 60%. Once passed, the Finance Act 2019 will see them taking effect.

India’s interim budget and the expectations from the ‘common man’

In India, the tax rate on domestic companies is currently being levied at 30%, which is quiet high in comparison with the global standards. 
 
Finance Minister Arun Jaitley, while presenting Budget 2015-2016, stated that the rate of corporate tax will be reduced to 25% over the next four years along with corresponding phasing out of exemptions and deductions available under the Income Tax Act, 1961. 
 
The Finance Act, 2016 has phased out many exemptions and deductions available under the Act, however, the rate of tax has been reduced to 29%, that too, for a domestic company provided its total turnover or gross receipts in the previous year 2014-2015 does not exceed Rs. 5 crore. 
 
Also, the Finance Act, 2015 increased the surcharge rate by 2% if the income exceeds a specified threshold, i.e. Rs 10 crore in case of a domestic company and Rs 1 crore in case of a firm. 
 So, expectations from Jaitley in <keyword id="6599769" type="UNKNOWN" weightage="20" keywordseo="Budget-2017">Budget 2017</keyword> will be high on tax revenues and deductions. Some of the tax deductions have remained unchanged for nearly two decades. The government could consider adjusting these deductions to inflation and removing the ones which are redundant. This can be done for individual taxpayers. 
 
“The government could consider adjusting these deductions to inflation and removing the ones which are redundant. This can be done for individual taxpayers,” said Archit Gupta, Founder, ClearTax.com. 
 
In the US, personal tax deductions are inflation adjusted every year. While corporate tax rates could be linked to encouraging investment and flow of capital. Or tax free regime to encourage start-ups or specific sectors such as fintech. 
 
Besides, the share of direct taxes in total collections has seen a downward trend. Since direct taxes play an important in ensuring equality they should form a larger portion of total tax collections. “Indirect taxes are consumption based and impact everyone equally, India must focus on raising the share of direct taxes like the US and UK. This can be done with a play of tax rates (between direct and indirect taxes) and widening of base,” said Gupta. 
 
India also needs reforms in tax compliance. When compared to countries such as US, UK and China, the tax compliance of India, which reflects how our tax revenues keep up with the GDP growth, stands at 17.7%. Whereas, the tax compliance in US is 26.9% and UK is 34.4%. 
 
“Hopefully, with recent digitisation drive and launch of GST, tax compliance is likely to go up. It will be interesting to watch how demonetisation impacts growth and spending. Higher bank balances can lead to higher spending, which can be inflationary in some circumstances. Digitisation could pave the way for financial inclusion for lakhs of people,” said Gupta. 
 
Around 80% of transactions in the US and nearly 90% of transactions in UK are cashless. So there is a huge potential for India, which can lead to wider compliance and growth in filing of tax returns. 
 
(Image: Thinkstock)

Here are the reforms that India needs to compete with UK, US and China in tax deductions

The decline in the tax-GDP ratio over the years and declining share of direct taxes in total tax revenue, clearly suggest that the Central government should emphasize in the <keyword id="6360189" type="General" weightage="20" keywordseo="union-budget" source="Orion">Union Budget</keyword> 2022-23 on substantially improving the tax revenue, Primus Research said in a note. The policies regarding 'tax effort' could be designed through various ways such as, rationalising tax rates, policies regarding widening tax base and net, and improving tax compliance and tax administration. This process would have enormous implications on ameliorating economic growth, deficit (in both the absolute term and as per cent to GDP) would come down. It added that the Budget for FY 2022 should continue to provide more support on the demand side than the supply side by reviving the informal sector and MSMEs. It is expected that against contraction in revenues, increase in expenditures could collectively revive the aggregate demand in the economy. This could lead to a high growth in the near future, henceforth, reducing the fiscal deficit (estimated to be 6.8 per cent in 2021-22) both in absolute terms and as a percentage of GDP. In this regard, it is expected that central government would re-assess its ministry-wise allocations, and increase spending on social and economic sectors to boost aggregate demand in the economy. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/budget-2022-expectation-in-higher-standard-deduction-tax-slabs-and-covid-insurance/slidelist/88891751.cms">From higher standard deduction and change in tax slabs to clarity on Covid insurance, here’s what tax experts want from Budget 2022</a> <a href="https://www.businessinsider.in/budget/news/the-indian-government-has-spent-less-than-half-the-money-it-had-budgeted-for-capital-investments-so-far/articleshow/88852518.cms">The Indian government has spent less than half the money it had budgeted for capital investments, so far</a>

Widening tax base should be a focus area in the Union Budget, says Primus Research

Come February and the countdown to budget begins. With it every sector, big, medium and small, becomes busy preparing their report cards, going again and again over every minute detail with the hope that this year would bring good news. While some will be happy with their balance sheets, others will be filled with despair. And, then there are some who might put up a rosy picture out there but if you dissect it and examine, you will be filled with surprises. One such sector is the <keyword id="535418" type="UNKNOWN" weightage="100" keywordseo="technology-sector">Technology sector</keyword>. If the necessary is not done, this sector would face one of its greatest downfalls in the market soon. Irony is this is the age of technology. Though India is the top most software outsourcing nation in the world, when it comes to hardware manufacturing the performance is dismal. And, since we still import spare parts, the device costs increase too. Bhaskar Choudhuri, Marketing Director (India and South Asia), <keyword id="13722" type="CITY" weightage="100" keywordseo="Lenovo">Lenovo</keyword> talks about the problems and the expectations of the sector from <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">Budget 2016</keyword> 

	Tax breaks- When we are looking at the whole Digital Literacy programme run by the government, one thinks about accessibility before anything else. Favourable tax breaks will allow the device to be far more accessible to the lower end of the population strata. Considering that India has the worst PC penetration among the BRICS nation, this step would increase PC penetration among the tier –III cities.
 

	Manufacturing in India- A favourable budget should be there to promote manufacturing in India. A favourable budget is mainly focussed on tax benefits one gets from manufacturing. 
 

	So, do we see a large scale PC manufacturing happening in India anytime soon with a good budget?
 

	“Favourable budget would incur a lot of inducement for us to manufacture, for sure. 2016 would be a year of PC revival to an extent,” he added.
 

	Hardware Manufacturing- Startups will play a major role for the growth of hardware manufacturing in India. 
 

	“We are an assembling nation, not a manufacturing nation. We shouldn’t be positioning us as a cheap labour nation.”
 

	The main question which the government should focus on is ‘How much are you investing in local innovation because otherwise you are inducing a local firm to set up in India?’ 
 

	India has the brains. One just needs to promote the local talent for the right growth of this sector. Proper fund allocation for hardware manufacturing start-ups will make the ball roll.
 

	Budget for R&amp;D- This is the most underserved demand in every budget so far. And, brain drain from the country is the result.
 

	It is high time the government stops ignoring the factors that would become the focal points of its growth in the future. Will Modi government’s first budget be a game changer for this industry?

	 
	 
	(Image credits: indiatimes)

Budget 2016: Tax breaks will increase penetration of Digital Literacy, says Bhaskar Choudhuri of Lenovo

Even as the <a href="http://www.businessinsider.in/Budget-2016-One-of-Indias-biggest-realtor-Surendra-Hiranandani-says-the-sector-needs-Industry-status-to-survive/articleshow/50929511.cms">Real Estate Sector</a> market is stagnated, the rise in rental housing demand is giving a new face to the metropolitan cities. An analysis of the national rental market of the top 11 cities, by Magic Bricks, showed that demand for residential properties on lease was the highest in <keyword id="6354321" type="CITY" weightage="100" keywordseo="Bengaluru">Bengaluru</keyword> followed by Mumbai and Pune. Large job market in Bengaluru and Pune, high cost of owning a home in Mumbai, increasing migration of people to the city led to the growth. 

	But the rise is just recent, over the past few months. The <a href="http://www.businessinsider.in/Budget-2016-Impact-of-FDI-in-real-estate-sector-and-future-expectations/articleshow/50866872.cms">problem</a> is not so much with supply as it is with the shortage of demand. As the country faces a shortage of 19 million houses, around 10.2 million completed units are lying vacant, which can be absorbed under rental housing programme for weaker sections, a recent report by CBRE stated.
 

	According to CBRE, around 56 per cent of the shortage of 19 million units is from the economically weaker section (EWS) with an average annual household income of up to Rs 1 lakh, while around 40 per cent in the lower income group (LIG) with an income of Rs 1-2 lakh.
 

	A major reason which has been holding back its growth is the lack of any regulatory framework.
 

	Factors leading to shortage of demand
 

	1. No generalisation of rent- There are no framework to regulate rent and as a result individuals ask rent according to his will. High rent scares away prospective customers.
 

	2. No fixed framework for the Deposit money
 

	“Sometimes owners ask three months deposit, sometimes they ask 10 months deposit. This hinders the growth of demand,” said Sudarshan Purohit, CEO and co-founder of Zenify.in.
 

	3. There is no regulation for brokers also. 
 

	“Today anybody can become a broker. There should be licensing and background check done for every broker,” said Sudarshan.
 

	4. No fixed framework for rent agreement- anything and everything is included in a rent agreement, from the high hike in rent to cost of damage control. This fends off the customers too.
 

	5. Lack of any regulation on the hike of rent 
	 
	The supply in the sector is why <a href="http://www.businessinsider.in/Heres-why-Budget-2016-is-crucial-for-the-real-estate-sector/articleshow/50835775.cms">Budget 2016</a> should give utmost importance to this particular section of the sector.
 

	Recommendations for <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">Budget 2016</keyword>
 

	1. When ‘<a href="http://www.businessinsider.in/Housing-for-All-Budget-2016-expectations/articleshow/50901695.cms">Housing for All 2022</a>’ was finally launched by the NDA government last year, it was only about providing 20 million houses on ownership basis by 2022 with an approximate central commitment of Rs 3 lakh crore. There was no mention about ensuring 20 % of the units should be for rental housing, as was proposed earlier. This should be looked into on priority.
 

	2. The government should fast track the process of preparing the Draft National Urban Rental Policy 2015 and Draft Model Tenancy Act 2015.
 

	3. Increase <a href="http://www.businessinsider.in/Budget-2016-Tax-breaks-will-increase-penetration-of-Digital-Literacy-says-Bhaskar-Choudhuri-of-Lenovo/articleshow/50916483.cms">Tax</a> exemption for rental income from 30 % to 50 % while giving woman headed households full exemption

	 
	 
	(Image credits: indiatimes)

Budget 2016: Why rental housing is the next big thing in the realty sector

The whole country is eagerly waiting for the <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2017&amp;sortorder=effectivedate">Budget 2017</a>. There are several speculations on how is it going to be and what will get affected and how. Nishchal Maheshwari, Head Institutional <keyword id="45369" type="CITY" weightage="20" keywordseo="equities">Equities</keyword>, <a href="http://www.businessinsider.in/searchresult.cms?query=Edelweiss+Securities&amp;sortorder=effectivedate">Edelweiss Securities</a>, told ET that housing finance companies, construction companies and cement are the three sectors that could to do well after <keyword id="6358021" type="PERSON" weightage="20" keywordseo="budget">Budget</keyword>. 
 
Maheshwari said that he hasn’t seen much impact of <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation+&amp;sortorder=effectivedate">demonetisation </a>in the Q3 earnings. 
 
“It does not look like there is going to be major impact basically as far as demonetisation is concerned,” he told ET. 
 
When asked about the industries that he thinks will be benefitted in the upcoming <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2017-18&amp;sortorder=effectivedate">Budget 2017-18</a>, he said that cement industry is the first thing that comes to his mind. 
 
Other than that he also named housing finance companies and construction companies in the industries that will be happy after the budget. 
 
“Housing finance companies, construction companies could be definitely Budget beneficiaries,” he said. 
 
He also said that he expects good news for the agrochemical side too. 
 
When asked about his top largecap idea for 2017, he said that it still is <a href="http://www.businessinsider.in/searchresult.cms?query=Reliance&amp;sortorder=effectivedate">Reliance</a>.

These sectors may get various benefit from Budget 2017, as per this expert

After RBI Governor Raghuram Rajan pinned hopes on Budget loaded with reforms and less spending, the work for Finance Minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword>’s team becomes even more thoughtful and nail biting. 
 
But nothing to worry about as Jaitley has a reliable team, which can come out with flying colours. 
 Here’s a sneak peek into his team for <keyword id="2783177" type="UNKNOWN" weightage="20" keywordseo="Budget-2016">Budget 2016</keyword> 
 
Chief Economic Advisor Arvind Subramanian 
 
In the last budget, Arvind Subramanian’s idea of increased public expenditure was adopted and well executed. This time, he is planning to change the fiscal consolidation road map and continue with public spending. He will also make sure to meet the pay panel’s suggestions. 
 
Secretary, Department of Financial Services Anjuly Chib Duggal 
 
In the backdrop of Indra Dhanush plan, the finance minister will keep the steam building in banking sector reforms. Duggal would be assisting in reducing bad loans in the banking sector and give a boost to Jan Dhan-Jan Suraksha scheme. 
 
Secretary, Department of Economic Affairs Shaktikanta Das 
 
Das is not new in budget making process and is entrusted to trigger private investments. He will also ensure to pack a budget laden with economic reforms. 
 
Secretary, Department of Revenue Hasmukh Adhia 
 
He is the man to look out for regarding changes in direct taxes, reducing exemptions and reduction in corporate tax rate. 
 
Finance Secretary Ratan P Watal 
 
He has seen India's economic architecture change with 1991 reforms as private secretary to the then Prime Minister Narasimha Rao. Watal controls the spending and hence he will see if funds are there to meet the pay panel suggestions. 
 
Secretary, Department of Disinvestment Neeraj Kumar Gupta 
 
The Indian government is likely to miss the Rs 69,500 crore divestment target. With disinvestment become even more crucial, Gupta as a tough task to handle. 
 
(Image: Indiatimes)

Here is Arun Jaitley's dream team which is working on Budget 2016

We are hopeful that the upcoming budget will be encouraging for the tourism industry as it has been over the last couple of years. Travel and tourism sector makes significant contribution to the economy in terms of revenue and job creation and a positive budget allocation for this sector will only mean more contribution to the GDP, increase in employment and India’s positive image on global tourism map. 
 
Travel Infrastructure and Safety are the two aspects that need urgent attention by the government. Tourist safety is a major concern in some states as some gruesome incidents came to the fore in the last couple of months. Spending on security should be increased at prominent tourist destinations. 
 
There should be focus on improving infrastructure such as hotels, road and rail connectivity to major tourist destinations to promote domestic tourism. There needs to be focus on improved sanitation and hygiene on main road routes and at heritage sites. Facilities like parking, access for disabled, tourist interpretation centres and security should be reinforced t prominent tourist destinations and heritage sites. 
 
Tax structure has been a contentious topic for a while now and getting clarity is what the tourism industry is eagerly awaiting. Relaxation in tax norms is something the industry has been looking forward to for quite some time now. There should be tax exemption for adventure tourism, medical tourism and on-line travel aggregators. 
 
Strong marketing initiatives should be looked at to market brand India on global level. India is probably one of the few countries that is teeming with diversity and can be promoted in more way than one to attract tourist and travellers from all corners of the world. 
 
The focus should be on creating the demand by showcasing India as business-friendly and traveller friendly destination. Medical tourism is another aspect that can be a boon for the industry and steps need to be taken to enable swift visa clearances for medical tourist. 
 
After the implementation of e-visas and visa on arrival for international tourist, government should look at working holiday visas and associate with developed and developing countries to promote two way flow of tourist and travellers. It is a two year programme and provides an opportunity for visitors to travel and work part time to fund their travel. 
 
The government should focus on incentivising and promotion of online payments by offering tax rebates to consumers making use of digital payment options. 
 
There should also be tax advantages to merchants who make high value transactions mandatory to be made digitally. This will also result in curbing the black money issue that the government is trying to tackle. There still seems to be an ambiguity with regard to the taxation on some of the service led online companies. We expect that there will be more clarity and simple taxation framework in place to address this issue. Also, with the Make in India campaign, there are ample opportunities created but with that the need for stringent laws to follow it are important. 
 
Largely the budget should provide a shot in the arm for tourism industry in India and take India on the top of travellers’ wish-list. 
 
(The article is authored by Ashish Kashyap, Group CEO, ibibo Group) 
 
(Image: Indiatimes)

Budget 2016: Travel experts tell us how India can attract more tourists

The <a href="http://www.businessinsider.in/searchresult.cms?query=government&amp;sortorder=effectivedate">government</a> is looking forward to a comprehensive employment generation package for millions of youth that enter the market and this might lead to a big announcement in the upcoming <a href="http://www.businessinsider.in/searchresult.cms?query=Union+Budget+2017&amp;sortorder=effectivedate">Union Budget 2017</a> which may include incentives for <a href="http://www.businessinsider.in/searchresult.cms?query=employment+generation&amp;sortorder=effectivedate">employment generation</a> in labour intensive sectors and a target for setting up coastal employment zones that would directly link tax incentives to job creation. 
 
According to the officials, the proposal includes incentives for creating jobs in sectors such as leather, electronics manufacturing, and gems and jewellery, on the lines of sops introduced for textiles last year. 
 
"The government is under pressure to speed up the process of job creation in the country because despite several efforts not many employment opportunities are opening up across sectors,” a senior government official, who did not wish to be identified, told ET. 
 
The official also said that the issue of lack of job generation has been raised by several ministers. 
 
In the current scenario, India adds about 12 million people to the job market every year and more than 65% of its population is below the age of 35, a big demographic advantage for the nation that is aspiring to become the human resource capital of the world. 
 
According to the government's fifth annual employment-unemployment survey released in September 2016, about 77% of the households reported no regular wage earning or salaried person. 
 
To deal with it, the <a href="http://www.businessinsider.in/searchresult.cms?query=labour+ministry&amp;sortorder=effectivedate">labour ministry</a> has proposed that employers across labour intensive sectors be given the option of fixed-term employment, along with waiving their contribution to provident fund and increasing overtime work hours. 
 
"This in turn will push demand in the economy,” an official told ET. This move, if approved will give employers the flexibility to hire workers as per demand for a fixed period of time without compromising on their parity with permanent workers in terms of working hours, wages, allowances and other statutory dues.

Job creation will be key thrust area, sops expected in Budget 2017

The tour and travel industry has sought for exemption on service tax on foreign exchange earned on inbound tours in the upcoming <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget 2017</a>. 
 
The industry wants <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Arun Jaitley</a> to announce lower tax rate and fix the <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST </a>rates for the sector. 
 
"Travel and tourism is one of the highest foreign exchange earners for the country. The industry is expecting that there will be exemption of service tax on foreign exchange earned by tour operators for inbound tours," Cox &amp; Kings Ltd CFO Anil Khandelwal told PTI. 
 
He further said paying of double tax on outbound tours must be also ended. 
 
Currently, an Indian customer pays double tax on outbound holidays for the overseas part of the trip due to service tax in India and also local GST/VAT of the visiting country, he said. 
 
"The service tax/GST should be levied only on the Indian component of the tour," Khandelwal said. 
 
Thomas Cook India Group Chairman and Managing Director Madhavan Menon said: "Strengthening 'Incredible India' brand through the creation of tourist circuits, key infrastructure and rail-roadways, is mission critical." 
 
Effective marketing to position India as a top leisure and MICE destination is also of prime importance, he added. 
 
"The tourism industry is one of the largest and most dynamic sectors globally, accounting for more than a third of the total services trade.... Keeping this in mind, we are hopeful that the upcoming Union Budget will provide a vital and much needed boost to the sector," Menon said. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=oyo&amp;sortorder=effectivedate">OYO</a> Founder and CEO Ritesh Agarwal said considering the government's focus on speedy implementation of digitalisation for long-term economic growth, "all eyes are now on the Union Budget for clarity on <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword> policy and regulatory issues, and fixing norms for the credit guarantee scheme. We hope to see supportive policies for the travel and tourism sector." 
 
He said additional incentives should be provided for infrastructure investments in the travel and tourism sector to accelerate growth. 
 
"A lower tax rate for hospitality business and lower rate of interest for real-estate development will ensure opening up of more supply for the nascent branded budget hospitality sector," Agarwal added.

Tour operators want Arun Jaitley to exempt service tax on foreign exchange during inbound trips

The Indian government is evaluating plans to have a <keyword id="4073568" type="UNKNOWN" weightage="20" keywordseo="national-security-system">national security system</keyword> for poor and <a href="http://www.businessinsider.in/searchresult.cms?query=unemployment&amp;sortorder=effectivedate">unemployed</a> in upcoming <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget 2017</a>. The ambitious plan is still at a nascent stage and all pros and cons are being considered. 
 
The government is mulling over income transfer scheme. “There is a thinking... pros and cons of having such a scheme are being examined,” a government official told ET. 
 
Having such a programme can have its repercussions on the economy, especially on <a href="http://www.businessinsider.in/searchresult.cms?query=fiscal+deficit&amp;sortorder=effectivedate">fiscal deficit</a>. As per estimates, if the government plans to provide Rs 1,500 every month to an estimated 200 million poor, it will cost the government about Rs 3 lakh crore. 
 
This comes at a time when the government wants to reduce its fiscal deficit to 3% of GDP in FY18. 
 
On the flip side, the national security scheme can be a success, riding on the back of <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a> and the upcoming rollout of <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST</a>. 
 
Some policymakers are confident that Pradhan Mantri Jan Dhan Yojana accounts and the Socio-Economic and Caste Census of 2011 will facilitate a targeted scheme if a universal basic income cannot be provided. 
 
The idea has been gaining ground across the world. Finland recently announced a basic income scheme for anyone seeking employment. 
 
"My personal view is in favour of targeted instead of universal transfers,” Niti Aayog vice-chairman Arvind Panagariya told ET in an interview last month. "With the Socio-Economic and Caste Census, we have a pretty good idea of who the poor are. So we can use the limited fiscal resources more effectively to combat poverty... I lean in favour of a strategy that places a larger volume of cash in the pockets of the poor than the one that gives cash to everyone in smaller amounts,” he had said.

Budget 2017 may include national social security system for poor, unemployed. Here are pros and cons if this gets through

Planning a <keyword id="6358021" type="PERSON" weightage="20" keywordseo="budget">budget</keyword> for 2017 and thinking of buying your dream house? If yes, you should definitely not overlook some of the tax benefits that were introduced in Budget 2016. Home loan borrowers can get additional benefits, if they qualify. Also, if you haven’t received <a href="http://www.businessinsider.in/searchresult.cms?query=House+Rent+Allowance&amp;sortorder=effectivedate">House Rent Allowance</a> (HRA), you should also check as to whether you can claim the increased tax break given to them in Budget 2016. 
 
Under Section 80EE of the <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+Act&amp;sortorder=effectivedate">Income Tax Act</a>, 1961, first-home buyers availing home loans in 2016-17 are allowed to take additional tax benefit of up to Rs 50,000. So, a home loan borrower paying interest on the loan can claim deduction of interest so paid from his/her gross total income up to a maximum of Rs 2 lakh per annum under Section 24. However, there are some conditions attached to it and they are: 
 
The additional deduction with respect to interest on loan taken will be applicable only for residential self occupied house property. 
 
It's only for first-time home buyers. 
 
The maximum additional benefit is capped at Rs 50,000 a year. 
 
The value of the house for which loan is taken cannot exceed Rs 50 lakh. 
 
The loan amount cannot exceed Rs 35 lakh. 
 
The loan has to be sanctioned between April 1, 2016 and March 31, 2017. 
 
Illustratively, on a home loan of Rs 35 lakh at 9.6/8.6 per cent interest for 15 years, the first year interest amount comes to approximately Rs 3.3 lakh and Rs 2.96 lakh, respectively. 
 
Other thing that one can look for is the increase in time period for claiming deduction of interest. In a home loan, the interest payable up to Rs 2 lakh gets deducted from gross total income while computing income from self-occupied house property. However, it is only applicable in cases where the acquisition or construction of the house is completed within three years from the end of the financial year in which the loan was taken. 
 
In <a href="http://www.businessinsider.in/searchresult.cms?query=Budget+2016&amp;sortorder=effectivedate">Budget 2016</a>, there was a relaxation in the time period and the <a href="http://www.businessinsider.in/searchresult.cms?query=tax+benefit+&amp;sortorder=effectivedate">tax benefit </a>would hold even if the acquisition or construction is completed within five years from the end of the financial year in which the capital was borrowed. 
 
All those getting house possession this year, this extension gives a relief. With builders not completing projects on time and delivery of homes getting delayed, this change in tax rules will benefit several home loan borrowers and they will not suffer (due to inability to avail tax benefit) because of builder's default in handling over the homes in time. 
 
One can also look for benefit, if they aren’t getting HRA. Section 80GG provides for a deduction of any expenditure incurred by an individual in excess of 10 per cent of his total income towards rent payment with respect to any furnished or unfurnished accommodation occupied by him as his residence if he is not granted HRA by his employer, to the extent that such excess expenditure does not exceed Rs 2,000 per month or 25 per cent of his total income for the year, whichever is less. 
 
In Budget 2016, relief was provided to such employees. The maximum limit of deduction was increased from the existing Rs 2,000 per month to Rs 5,000 per month.

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