Budget 2017: Big announcements made by FM Arun Jaitley on banks and tax

Finance Minister Arun Jaitley presented the Union Budget 2017 in the Lok Sabha today. We have compiled the key announcements made by him in his speech on banks and tax changes. 

 Banks

• Aadhaar-enabled payment system to be launched with banks targeting to introduce additional 10 lakh point-of-sale terminals by March 2017
• 20 lakh Aadhaar-based swipe machines by 2020
• Payment regulatory board will be created the in Reserve Bank of India
• Digital payment push will focus on rural and semi-urban areas
• Merchant version of Aadhaar-enabled pay will be launched shortly
• Rs 10,000 crore to be provided for recapitalisation of banks

 Tax

• No tax on annual income of Rs 4.5 lakh who use rebates
• Surcharge of 10 per cent on annual income of Rs 50 lakh and Rs 1 crore
• 15 per cent surcharge on incomes above Rs 1 crore to continue
• No scrutiny on fist-time taxpayers
• Propose to reduce existing rate of taxation of those with income between Rs 2.5 lakh to Rs 5 lakh to 5 per cent
• Plan to extend basket of financial instruments to which the capital gains can be invested sans payment of tax

himali@outlookindia.com