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GST council: Taxpayers expected to get Major Relief

It may be recalled that in the 27th meeting held on 4th of May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law.

The 28th meeting of the GST Council was held today in New Delhi, under which once again the 21-member committee has brought in revision to a list of items under Goods and Services Tax (GST) regime. The meeting was chaired by Union Minister of Railways, Coal, Finance and Corporate Affairs Piyush Goyal. While a list of items were getting relief from higher tax slab from GST rate of 28%, Goyal also brought in good news for taxpayers. It may be recalled that in the 27th meeting held on 4th of May, 2018 the Council had approved the basic principles of GST return design and directed the law committee to finalize the return formats and changes in law.

The council said, “The formats and business process approved today were in line with the basic principles with one major change i.e the option of filing quarterly return with monthly payment of tax in a simplified return format by the small taxpayers.”

Here’s how GST Council gave relief to taxpayers.

All taxpayers excluding small taxpayers and a few exceptions like ISD etc. shall file one monthly return. The return is simple with two main tables. One for reporting outward supplies and one for availing input tax credit based on invoices uploaded by the supplier. Invoices can be uploaded continuously by the seller and can be continuously viewed and locked by the buyer for availing input tax credit.

This process would ensure that very large part of the return is automatically filled based on the invoices uploaded by the buyer and the seller. Simply put, the process would be “UPLOAD – LOCK – PAY” for most taxpayers.

Further, taxpayers would have facility to create his profile based on nature of supplies made and received. The fields of information which a taxpayer would be shown and would be required to fill in the return would depend on his profile.

NIL return filers (no purchase and no sale) shall be given facility to file return by sending SMS.

Moreover, the council also approved quarterly filing of return for the small taxpayers having turnover below Rs. 5 Cr as an optional facility. Quarterly return shall be similar to main return with monthly payment facility but for two kinds of registered persons – small traders making only B2C supply or making B2B + B2C supply.

For such taxpayers, simplified returns have been designed called  Sahaj and Sugam. In these returns details of information required to be filled is lesser than that in the regular return.

It needs to be noted that, 93% of the taxpayers have a turnover of less than Rs 5 Cr and these taxpayers would benefit substantially from the simplification measures proposed improving their ease of doing business, as per the council. It explained that even the large taxpayers would find the design of new return quite user friendly.

Not only this, the council also has approved the proposal to open the migration window for taxpayers, who received provisional IDs but could not complete the migration process.

The taxpayers who filed Part A of FORM GST REG-26, but not Part B of the Tsaid FORM are requested to approach the jurisdictional Central Tax/State Tax nodal officers with the necessary details on or before 31st August, 2018.

Taxpayers who intend to complete the migration process are requested to approach their jurisdictional Central Tax/State Tax nodal officers in this regard.

Source : Press Reports

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

Website :  http://www.vidyasunilassociates.com

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819


ROC Annual Filing Compliance

Every company  shall prepare a return (hereinafter referred to as the annual return) in the prescribed form containing the particulars as they stood on the close of the financial year  regarding—

(a) its registered office, principal business activities, particulars of its holding, subsidiary and associate companies;

(b) its shares debentures and other securities and shareholding pattern;

(c) its indebtedness;

(d) its members and debenture-holders along with changes therein since the close of the previous financial year;

(e) its promoters,  directors, key managerial personnel  along with changes therein since the close of the previous financial year;

(f) meetings of members or a class thereof, Board and its various committees along with attendance details;

(g) remuneration of directors and key managerial personnel;

(h) penalty or punishment imposed on the company, its directors or officers and details of compounding of offences and appeals made against such penalty or punishment;

(i) matters relating to certification of compliances, disclosures as may be prescribed;

(j) details, as may be prescribed, in respect of shares held by or on behalf of the Foreign Institutional Investors indicating their names, addresses, countries of incorporation, registration and percentage of shareholding held by them; and

(k) such other matters as may be prescribed, and signed by a director and the company secretary, or where there is no company secretary, by a  company secretary in practice :

Provided that in relation to One Person Company and small company , the annual return shall be signed by the company secretary, or where there is no company secretary, by the director of the company.

(2) The annual return, filed by a  listed company  or, by a company having such paid-up capital and or turnover as may be prescribed, shall be certified by a company secretary in practice in the prescribed form, stating that the annual return discloses the facts correctly and adequately and that the company has complied with all the provisions of this Act.

(3)  An extract of the annual return in such form as may be prescribed shall form part of the Board’s report.

(4) Every company shall file with the Registrar a copy of the annual return, within sixty days from the date on which the annual general meeting is held or where no annual general meeting is held in any year within sixty days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed, within the time as specified, under section 403.

(5) If a company fails to file its annual return under sub-section (4), before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakhs rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

This is that time of the financial year, when every company (PVT or LTD) needs to comply with annual filing with Registrar of Companies (ROC). In our experience not many entrepreneurs are attentive to this requirement, and even if they are, they tend to ignore it, resulting in stringent penalty.

Form Filling-001

The Companies Act, 1956, the guiding law for companies mandates for every company to file their Balance Sheet and Profit and Loss Account along with the audit report within 30 days from Annual General meeting. The company is also required to file annual return containing information such as the name of the company, its registered office, its principal business activities, capital in the company, details of all the directors and shareholders etc. as on the date of Annual General Meeting within 60 days from the date of Annual General Meeting.

Tabular presentation of different form to be filed to comply with annual filing with ROC

Document e-Form Due Date
Balance Sheet Form 23AC to be filed by all companies 30 days from date of AGM
Profit & Loss Account Form 23ACA to be filed by all companies 30 days from date of AGM
Annual Return Form 20B to be filed companies having share capital 60 days from date of AGM
Annual Return Form 21A to be filed by companies without share capital 60 days from date of AGM
Compliance Certificate Form 66 to be filed by companies having paid-up capital of Rs.10 lakh to Rs.5 Crore 30 days from date of AGM

In the following write-up, we have summarized each of these e-forms, its content and pointers.

Form 23AC (Balance Sheet) & Form 23ACA (Profit & Loss Account)

These include following provisions:

  • The Balance Sheet need to adopted at the Annual General meeting held by the Company;
  • A copy of Balance Sheet is to be filed with ROC within 30 days from the date of the Annual General Meeting;
  • Where an annual general meeting (AGM) is not held, copy of balance sheet/profit & loss account is to be e-filed within 30 days from the latest day on or before which the meeting should have been held and a statement of the fact and of the reasons thereof shall have to be filed along with the balance sheet;
  • Where balance sheet is laid before but not adopted at the AGM or the AGM was adjourned without adopting the balance sheet, a statement of the fact and reasons thereof has to be filed along with the balance sheet, etc. within 30 days of the AGM.

Form 20B OR Form 21A (Annual Returns) –

The annual return includes annual return in Form 21A and 20B with the following provisions:

  • Annual Return form need to be filed with the ROC in an electronic mode within 60 days from the date of holding the annual general meeting
  • Where annual general meeting has not been held, the return is required to be filed within 60 days from the date on which the annual general meeting should have been held
  • As per sec 161, the return is to be duly signed digitally and the requisite certificates to be attached
  • In case of a company whose shares are listed on a recognized stock exchange; the return is to be also signed digitally by a secretary in whole-time practice.

Form 66 (Compliance Certificate)

Certain companies whose paid up share capital for the year in the range of Rs. 10 lakhs to 50 crores are required to file a Compliance Certificate in Form 66 with the following provisions:

  • The companies having paid up capital of more than Rs. 10lacs, has to digitally file with the ROC a compliance certificate which is obtained from a Company Secretaries in whole time Practice within 30 days from the date of annual general meeting, along with the Annual Report
  • In case the Annual General Meeting of the company is not held for the same year, the aforesaid Compliance Certificate to be digitally filed with the ROC within 30 days from the latest day on or before which that meeting should have been held.

Please note that the ROC has extended the due to file these forms for FY 2011-12 in the following manner

In case of Company holding AGM or whose due date for holding AGM is on or before 20.09.2012, the time limit will be 03.11.2012 or due date of filing, whichever is later; and

Company holding AGM or whose due date for holding AGM is on or after 21.09.2012, the time limit will be 22.11.2012 or due date of filing, which ever is later.

Further the due date also been extended for filing of e-form 23B without any additional fee till 23.12.2012 or due date of filing whichever is later.

Tabular presentation of Penal Provisions for non-filing or late filing of ROC Compliance Forms

Period of Delay Fixed rate of additional fee
Upto 30 days Two times of normal filing fee
More than 30 days and upto 60 days Four times of normal filing fee
More than 60 days and upto 90 days Six times of normal filing fee
More than 90 days Nine times of normal filing fee
Other Penal Complainces if not adhered

Get the basics right – Alteration of Objects Clause

The company formation document “Memorandum of Association” has an “Object Clause” which defines the business company undertakes. Before April 2014, a simple resolution with consent of Board of Director would have sufficed to undertake any other business activity beyond the coverage of main object clause.

How to comply: Now, with effect from 1st April 2014 all such Companies who were/are carrying of activities other than principal business activities as mentioned in the other objects are required to alter the main objects and include such activities therein.

Consequences: If the provisions are not complied, such business activity shall be treated as ultra-virus. Consequently, owing to multiple business activities, the Companies may also be required to change its name.

I am sure you will go back and check the “Object Clause” in “Memorandum of Association” document and see whether the business description is correct !

2. Displaying Company Identity – CIN on letter heads, invoices etc.

How to comply: Section 12(3) (c) of new Act provides that every company shall get its Name, Address of its Registered Office and the Corporate Identity Number (CIN) along with telephone number, fax number, e-mail and website addresses if any printed in all its business letters, billheads, letter papers and in all its notices and other official publications.

Consequences: In case of any failure to quote the CIN number, penalty of Rs 1,000 per day shall be imposed on the defaulting company and on every officer in default for every day during which the default continues. However, maximum penalty imposable shall not exceed Rs 100,000.

3. Acceptance of Unsecured Loan by Pvt Ltd Companies

Majority of Private Limited Companies accept unsecured loans from Director’s relatives or from its members as allowed under the provisions of Companies Act, 1956. As per Companies (Acceptance of Deposit) Rules, 2014 applicable from 1st April 2014, all such Companies now have to refund such unsecured loan/deposit immediately. As per the provisions, the Companies can accept unsecured loan or deposit from Director of the company provided further that such amount is not a borrowed amount and can accept inter corporate loan(s) from another body corporate and not from any other person.

How to comply: As per companies Act 2013, if the private company has accepted any loan from any person except director, then they need to file a statement in prescribed form with the Registrar of Companies (RoC).

Consequences: The Companies which fails to refund such unsecured loans already accepted from Directors’ relatives or members immediately shall be treated as deposit and as a consequence, defaulting Companies and its officer in default may face penalty/prosecution proceedings under the provisions of Section 73 to 76 of the Companies Act, 2013.

4. Deposits Taken from Public

As per the new act, the company must comply with certain provisions while dealing with deposits taken from public.

How to comply: The Companies which have accepted deposit from public were required to report outstanding deposits, interest thereon by filing a return with the office of Registrar of Companies up to 30th June 2014. These Companies have to refund the outstanding deposit with interest within a period of one year i.e. on or before 31.3.2015.

Consequences: In case of default, penalty can be Rs.1 Crore up to Rs.10 Crore

5. Borrowing Money by Private Companies

How to comply: Now, the private Limited Companies which have borrowed money in excess of its paid up capital and free reserves are required to pass special resolution and members have to decide up to which limit the Company can borrow. As per provisions of Section 180 of the Companies Act, 2013 every such company has to comply this provision immediately.

Consequences: Upto Rs. 10,000/- fine and where the contravention is continuing one then a further fine which may extend to Rs. 1,000/- per day after the first day.


Prevention is better than cure! All these things might sound like greek or latin to you but it will be a good idea to check Ministry of Corporate Affair’s website once in a while to know the latest updates. Companies should be aware about the basic compliances and take necessary action with respect to restructuring of Board of Directors, allotment of shares, acceptance of deposits, reporting major activities to ROC etc.

Also, using a good accounting software from day 1 of starting up the business can help you manage most of these things without much effort.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Books of Accounts / Annual Financial Statements / Statutory Records & Statements along with Reports requisite for Annual Returns under Companies Act 2013


As per Section 92 of the Companies Act 2013, every Company should prepare an annual return in the form of MGT 7containg the financial particulars as they stood on the closure of the financial year ending.

Its registered Office, principal business activitiies , particulars of its holdings,

subsidary and associate companies;

Its shares, debentures and other securities and share holding pattern;

Its indebtedness;

Its members and debentures along with changes therein since the close of the previous financial year;

Its promoters,directors,key managerial personal along with changes therein since the close of the previous financial year,

Meeting of members or a class thereof, Board and it various commiitees along with attendence details;

Renumeration of directors and key managerial personnel

Penalty or punishment imposed on the country, its diretors or officers and

details of compounding of offences and appeals made against such penalty or


Matters  relating  to  certificate  of  compliances,  disclosure  as  may  be prescribed;

Details , as may be prescribed , in respect of shares held by or on behalf of the

foreign institutional investors indicating there names, addresses , countries of

incorporation , registration and percentage of shareholding held by them and

Such matters as may be pescribed.


Place of keeping of Books of Accounts: Every Company shall prepare and Keep At Its Registered Office

1. Books of Account

2. Other relevant Books and Papers and

Financial Statement for every financial year which give a true and fair view of the state of the affairs of the Company including that of its branch office or offices, if any Company can keep all or any of the books of account aforesaid at Place Other Then

Registered Office (but in INDIA) of the Company by following procedure:

1. Board of Director of the Company will pass a Board Resolution.

2. Within 7 days of passing of resolution company will file form AOC-5 with ROC.

Meaning of Books of Accounts:

Every company must keep proper books of account with respect to:

1. all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;

2. all sales and purchases of goods by the company;

3. the assets and liabilities of the company; and

4. in the case of a company engaged in production, processing, manufacturing or mining activities, such particulars relating to utilization of material or labor or other items of cost as may be prescribed by the Central Government, provided the Central Government so directs to any such class of companies or any particular company.

We have elaborated below some of the common compliances which a private limited company has to mandatorily ensure:

Compliance Requirement Description and Timeline
Appointment of Auditor Auditor will be appointed for the 5 (Five) years and form ADT-1 will be filed for 5-year appointment.The first Auditor will be appointed within one month from the date of incorporation of the Company.
Statutory Audit of Accounts Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year compulsorily. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of filing it with the Registrar.
Filing of Annual Return (Form MGT-7) Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.
Filing of Financial Statements (Form AOC-4) Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.
Holding Annual General Meeting It is mandatory for every Private Limited Company Company to hold an AGM in every Calendar Year. Companies are required to hold their AGM within a period of six months, from the date of closing of the Financial Year.
Preparation of Directors’ Report Directors’ Report will be prepared with a mention of all the information required under Section 134.

Meaning of Book or Paper:

Accounts, Deeds, vouchers, writings, documents, MINUTES and REGISTERES maintained on paper or in electronic form.


Books of accounts of every company relating to a period of Not Less Than 8 (Eighty) Years immediately proceeding the financial year, along with relevant books and papers.

It is highly advisable to pass a Board Resolution to Destroy records every year, after prescribed period is over, giving list of records to be destroyed.


In case of newly incorporate company:

1. If Company incorporated ON OR AFTER 1st January of a year, the period ending on the 31st day of March of FOLLOWING Year.

2.If Company incorporated ON OR BEFORE 1st January of a year, the period ending on the 31st day of March of that Year.

In case of old incorporate company:

i. Financial year means the period ending on the 31st Day of March every year.

Transitory provisions in case of existing Companies:

A company existing on the commencement of the 2013Act, shall, with in a period of 2 (TWO) years from such commencement, align its financial year as 1st April, to 31st March. This period has already been expired.

 Different financial year if holding or Subsidiary is outside India:

If because of holding or subsidiary is outside India Company required to follow a different financial year for consolidation of its accounts outside India. The company can make an application with CLB, if CLB satisfied, allow any period as its financial year, whether or not that period is a year.

[This can happen in case of foreign Companies having subsidiaries in India. Even in that case, the Indian company has to prepare accounts for year ending on 31st March, for income tax purpose]


i. A Balance Sheet

ii. A profit and Loss account (or Income and expenditure account)

iii. Cash Flow Statement

iv. A statement of changes in equity (If applicable)

v. Any explanatory note attached to,

[The State changes in equity is applicable for Companies to which the AS applies]

Cash Flow Statement not required to be prepared by the companies:

i. One Person Company; of

ii. Small Company; or

iii. Dormant Company.

Financial Statement of Companies governed by Special Acts:

Insurance Company Banking Company

Electricity Company any other company governs by Special law.

Need not the disclose matters which are not required to be disclosed under their specific Act.

In other words, financial statements of the Companies governed by Special Acts will be prepared as per provisions of those special Acts and not as per provision of Companies Act.

Preparation of Financial Statements:

i. Every Company must prepare ‘Financial Statement’ for every financial year.

ii. The Financial statement should be prepared at the Annual General Meeting of members.


The Financial Statement (Including consolidated financial statement where applicable) shall be approved by the Board of Directors. After Board approval, the statement should be signed on behalf of the Board as follows-

a) By any two Directors (on shall be MD, if any) and

CEO, if any

CFO, if appointed.

Company Secretary of the Company, if appointed

In case of Small Company where no MD, CEO CFO than Financial statement should be signed by the Two Directors of the Company.

After the signatures, it should be submitted to the auditor for his report thereon.

When financial statement signed by two directors, such directors should be present at the meeting and should sign the accounts at the meeting. (i.e. should be signed at the meeting itself and not later).

Approval of Financial Statement and Board Report by Board in Meeting:

Theoretically, financial statements are presented to auditors only after they approved by Boards and signed by authorized persons. The auditors are only expected to submit his report on the financial statements presented to him for audit.

Practically, The checking of financial statements is already completed before these are approved by the Board. Auditor informally approves the draft financial statements with notes etc., before the accounts are approved by the Board. Usually, he also gives unsigned draft of the Auditor’s Report.

However, auditor signs the financial statements only after these are approved by Board and signed by person authorized by Board of the Company.


Approval of Financial Statement shall be done at the meeting of the Board.

The approval can’t be done by circulation or by committee. (same provision in Secretarial Standard (SS-1) of ICSI

MGT-14: The Board resolution approving financial statement to be filed with ROC in form MGT-14. (But Private Company not required to file MGT-14 after exemption on Private Limited Companies)


To whom:

Every Member of the Company

To every trustee for the debenture-holder of any debentures issued by the Company and

To all persons other than such member of trustee, being the person so entitled.

Time period of circulation:

The financial statement (including consolidated financial statement, if any) auditor’s report and every other documents required by law to be annexed or attached to financial statements, which are to be laid before a company in its general meeting shall be sent “Not Less Than 21 (Twenty One) days before the date of the Meeting.

Publication on Website:

A listed Company (Whether Debt Listed or Equity Listed) shall place its financial statements (including consolidated financial statements, if any), and all other documents required to be attached thereto, on Company’s website, which is maintained by or on behalf of the Company.

Inspection of Documents:

A company shall allow every member or trustee of the holder of any debentures issued by the company to inspect the documents stated under section 136(1) at its registered office during business hours- Section 136(1)

Mode of sending Financial Statement:

Financial statement can be sent to members and others through post or courier or had delivery as per Section 20(2).

However, a listed company or a public company whose net worth is more than one crore and turnover of more than ten Crores, financial statement can be sent by-

E-mail if shares in Demat form and email ID is registered with depository.

E-mail if shares are in physical form and member has positively consented in writing for receiving by email

By post, courier or had delivery as per section


Every company having a subsidiary or subsidiaries has to submit consolidated financial statement in addition to its own ‘financial statement’.

The financial statement should be in same form.

It shall be laid before annual general meeting of the company, along with company’s own financial statement.

In addition to consolidated financial statement, a separate statement containing salient features of financial statement of its subsidiaries shall be attached. (Form AOC-1)


Copy of Financial Statements (including consolidated financial statements in case of holding company), shall be filed with Registrar of Companies with in 30 (Thirty) days from the date when the accounts were duly adopted at the annual General Meeting of the Company.

All documents which are required to be annexed or attached to the financial statement must be filed.

The documents are required to be filed with filing fees.

Financial statement to be filed even if not adopted in AGM:

Even if the financial statements are not adopted at AGM or at the adjourned general meeting, the un-adopted financial statement duly signed is required to be submitted within 30 days from date of AGM. The registrar of Companies shall take them on record a provisional, till the financial statements duly adopted are filed after the accounts are adopted in the adjourned General Meeting.

Such adopted financial statement shall be filed within 30 days from the date of adjourned meeting where the accounts were adopted.

Documents which required to prepare the Annual Return:

  • Memorandum & Article of Association
  • Statutory Registers
    • Register of Members
    • Register of Directors
    • Register of Director Shareholding
    • Register of Key Managerial Personnel
    • Register of Related Party Contracts
    • Register of Loan and Investment
    • Register of Charge
    • Register of Securities
  • Minutes of the Meetings
    • Board Meeting
    • General Meeting
    • Committee Meeting
  • Attendance Sheet of the all Meetings
  • Forms & receipts filed with the Registrar of Companies
  • Indebtedness Certificate signed by Company Secretary/ CFO of the Company.
  • Latest Audited Financial Statement
  • Copy of Notice of Annual General Meeting
  • List of Shareholders as on 1st April and 31st March
  • List of Share Transfers during the Financial Year.
  • Any orders received by the company from the High court or from any other regulatory body
  • List of Promoters
  • Financial statement to be filed even if not adopted in AGM:

Where the annual General Meeting of a company for any year has not been held, the financial statement along with the documents required to be attached under section 137(1), duly signed along with the statement of facts and reasons for not holding the Annual General Meeting shall be filed with the Registrar within 30 (thirty) days of the last date before which the annual General Meeting should have been held.

Filing financial statement in case of OPC:

In case of One Person Company, financial statement along with annexes and attachments should be filed with ROC within 180 days from close of financial year.

Filing financial statement in case of Company having subsidiaries outside India:

In case of companies having subsidiary or subsidiaries outside India and which has no place of business in India, the accounts of subsidiary/ subsidiaries should be filed along with financial statement of the holding Company.


The financial statement and related documents filed with ROC are ‘public documents’ and any person can inspect those documents on payment of prescribed inspection fees.

Duty to lay Annual Accounts at Annual General Meeting:

Notice of AGM

Directors Report and Compliance Certificate from Practicing Company Secretary, (If Required).

Auditors Report

Balance Sheet

Profit & loss Account

In case of Holding company:

Balance Sheet

Directors Report

Auditors Report

Statement of holding company’s interest in subsidiary, if any


Section 143 (3) read with rule 11 of the Companies (Audit and Auditors) Rules, 2014 of the Companies Act, 2013 talks about the provisions of Audit Report:

The Requirement of audit report comes from Section 142(2) of Companies Act, 2013.

The auditor shall make a report to the members of the company on the accounts examined by him and on every financial statement which are required by or under this act to be laid before the company in general meeting.

Importance of Audit Report:

The audit report of the company is referred to and relied upon by many who are dealing with the Company. Information available in the audited accounts is very valuable for all.

Contravention of Provision of Section 139-146: (Attendance in General Meeting): If any provisions of this Section contravene then:

Penalty on Company:

The company shall be punishable with fine which shall not be less than Rs. 25,000 (Rupees twenty-five thousand) but which may extend to Rs. 5 Lac (Rupees five lac)

AND (+)

Penalty on Officer of Company:

Every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year OR with fine which shall not be less than Rs. 10,000/- (Rupees ten thousand) but which may extend to Rs. 1 Lac (Rupees one lakh), OR with BOTH.

Contravention of Provision of Section 145: (Signing of Auditor Report): If any provisions of this Section contravene then:

Penalty on Auditor (without intention or will):

The auditor shall be punishable with fine which shall not be less than Rs. 25,000/- (Rupees twenty-five thousand) but which may extend to Rs. 5 Lac (Rupees five lakh)

Penalty on Auditor (Contravene the provisions knowingly or willfully):

If an auditor has contravened such provisions knowingly or willfully with the intention to deceive the company or its shareholders or creditors or tax authorities, he shall be punishable with imprisonment for a term which may extend to one year AND with fine which shall not be less than Rs. Lac (Rupees one lac) but which may extend to Rs. 25 Lac (Rupees twenty-five lac).


Therefore all Companies registered under the provisions of the companies Act 1956/2013 are required to file with the registrar of companies the audited copy of financial statement with in a period of 30 days of holding the annual general meeting in terms of section 137(1), and the Annual return within a period of 60 days of the Annual General meeting in terms of section 92(4) of the Companies Act, 2013.

Time Period for filing of Forms:

AOC-4 Within 30 days of Holding of Annual General Meeting
MGT-7 Within 60 days of holding of Annual General Meeting. If there is no AGM then within 60 days from the date on which AGM should held.
MGT-14 Within 30 days of Holding of Board Meeting. For Companies Other than Private Limited Companies.

Date of Filing:

MCA came with a circular according that Companies which have done there Annual General Meeting before 30th September, 2015 can file AOC-4 & MGT-7 upto 30th October, 2015 without any late fee.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Step by step process how to start a startup

An Idea:

Ideas are numerous and everyone have ideas but very few people know how to start a startup. Raw ideas are one liner but to put it in executable way you need to have little market research to find target customers, product demand and scalability. Understand your competitors, if any. Come up with a USP (Unique selling  point) which creates market for you.

Idea is raw ingredient, the way of execution makes it as a tasty product


Write a business plan:

Business Plan is a formal document which contains information how to execute a business in effective way. Business will have numerous things to do. Unless you have a plan in place your productive time may go waste. A plan may have more than 50% deviation but still a plan is a plan. Why?

For instance, you need to buy groceries for a month with a budget of 100 bucks. You may have to buy many things. I know you could have chosen a big super market so that it is easier to pick up from various sections in the store. Few common issues.

  • While paying at cash counter you realized that bill is 50% more that your budget.
  • While putting in refrigerator you may realize many important things missed out.
  • Your friend said that you missed a good deal in other super market, that could have saved 30 bucks.
  • Quantity of few items might be less and few might be more.

These are few common mistakes we usually do while going for groceries. List of items with quantity on a piece of paper should solve 80% of these issues. Consequently, imagine executing a business without plan.

Write a business plan on your own: Click here for step by step process.

Find a mentor:

If you are new to startups I would advise find a good mentor as it saves you money and time a lot. Few people think that we don’t need a mentor however, it makes a lot of difference as they would have already experienced all the phases which you will experience . Find a good mentor and discuss a mode which mutually benefits. Judge them whether they are really worthy. A good mentor really make to life easy and guide you how to start a startup.

Naming a company (how to start a startup):

Usually, people spend a lot of time to name the business. I personally feel keep it simple and spend good amount of time to create branding for it. What is the meaning of Google, Yahoo, Cisco, Intel  in English? name turns into brand and become popular based on the performance and reach of the company I would suggest.

  • Keep it simple short and crisp.
  • Just try to associate with your product.

Majority of the people are thinking that domain name is very important in internet to become so popular. It is a wrong notion, Google algorithm is pretty intelligent and it has many parameters to put you in first page.

Creating Logo:

People are crazy about logos. Logo won’t create value to brand however, the brand creates value to a logo. Keep it simple and if possible use just two colors so looks cute and minimizes cost in printing and branding.

See some free tools to create logos:  Tools to create logos

how to start a startup

Setting up team:

Identify  core members with different skill set based on the nature of business. Judge their passion towards a startup. I would suggest don’t encourage people who are already working or just would like to be employees in your startup as they have to work hard and stay back. I strongly suggest that interview is not the bench mark to judge an employee, you need to do enough journey along with them to understand their skills and mindset. Don’t hesitate to kick them off if they are not right fit for startup ,otherwise you will suffer a lot. Setting up team really teaches you how to start a startup.


Selecting technology is purely based on the product. Usually we have two types

  1. Technology driven product. for instance, product is developing on IoT, 3D printing, Embedded, Protocols etc.
  2. Ecommerce, B2B, B2C or any other business where you will have choice to use the technology which you have expertise.

I would suggest select something you are happy and have expertise.

Working Space:

Home is the best place to start your startup with low cost. If you have team and need more space to setup work environment I would suggest go with some incubators, accelerators or co-working spaces with low cost.


Business has to be registered to have recognition and make the business legal. Follow compliance, pay tax and put everything white form the day one.

Hope you understand now how to start a startup

how to start a startup

All set to go  :), all the best.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Companies Act, 2013 – Annual Return Significant Contents


Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated. Managing the day to day operations of your business along with complying the corporate laws can be little taxing for any entrepreneur. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.

Annual return is an important document, designed to provide information to stakeholders about the company, promoters, members, meetings and remuneration of directors and key managerial persons (KMP).

The intention of legislation under Companies Act, 2013 is to improve corporate governance and empower shareholders. The Act has incorporated a framework which is based on self-regulation but with enhanced disclosures and accountability on the part of companies and their managements.

All companies are required to file returns at the end of the financial year. Both small and large companies need to follow the same procedure. While many smaller entities tend to skip this altogether, it can lead to heavy fines from the Registrar and even to the blacklisting of the company’s directors. So do note what steps need to be taken to file the returns:


Annual Filing Eforms:

As a part of Annual Filing, Companies incorporated under the Companies Act 1956 or Companies Act 2013, are required to file the following eForms with the Registrar of Companies (ROC):

*The annual return, filed by a listed company or, by a Company having paid-up capital of Rs.10 Crores or more OR turnover of Rs.50 Crores or more shall be certified by a PCS in Form No. MGT-8

*Extract of Annual Return: An extract of the annual return in Form No MGT-9 shall form part of the Board’s report.

Objective of Filing the return: The basic purpose of filing annual return with the Registrar of Companies (‘ROC’) is to provide the annual information about the Company to the ROC and its members about the Company’s general compliances. It is the responsibility of the management to file the annual return with the ROC.

After Completion of Two Year of Companies Act, 2013, Law has been settled down. Now it is the high time for the members to start work on Annual Return (MGT-7) and Director Report. Because there were many amendments in Rules, many circulars, notification came during the year 2015-16 which will affect the Annual filing of the Company.

The companies under the Companies Act 2013 are required to E-file annually the following documents with the Registrar of Companies (ROC) as follow:

Type of Document TYPE OF E-FORM Purpose of Filing of Form
Balance –Sheet Form AOC-4. Filing of Financial Statement
Consolidated Financial Statement Form AOC-4 (CFS) Companies which have Subsidiary Company, Associate Company and Joint Ventures.
Profit & Loss Account Form AOC-4. Filing of Profit & Loss Account
Annual Return Form MGT-7. Filled by Companie with Share Capital. To give information relating to directors and shareholder for the period of Financial Year.
Annual Return Form MGT-7 To be filled by companies not having share capital.
Director Report Director Report along with Following Annexure:

1. AOC-2

2. MGT-9

3. Secretarial Audit Report

Filing of CTC of Resolution Form MGT-14

(for the Companies except Private Limited Company)

For the purpose of adoption of Balance Sheet and Director Report.



a) All Listed Companies

b) Every Company having:

Paid-Up share capital of 10 Crore (Ten Crore) rupees or more or

Turnover of 50 Crore (fifty crore) rupees or more


a) All Listed Companies

b) All Public Companies

c) Private Limited company having:

Paid up share Capital Exceeding 50 lac

Turnover exceeding 2 Crore

Companies Exempt from signing of annual return from Company Secretary:

a) One Person Company

b) Small company

The information that needs to be included in the annual return has been increased by Companies Act, 2013. The additional information required, includes particulars of holding, subsidiary and associate companies, remuneration of directors and key managerial personnel, penalty or punishment imposed on the company, its directors or officers.

Section 88 (5):

If a company does not maintain a register of members or debenture-holders or other security holders or fails to maintain them in accordance with the provisions of sub-section (1) or sub-section (2), the company and every officer of the company who is in default shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to three lakh rupees and where the failure is a continuing one, with a further fine which may extend to one thousand rupees for every day, after the first during which the failure continues.

Section 92 (1):

Every company shall prepare a return (hereinafter referred to as the annual return) in the prescribed form containing the particulars as they stood on the close of the financial year regarding:—

1. Its registered office, principal business activities, particulars of its holding, subsidiary and associate companies;

2. Its shares, debentures and other securities and shareholding pattern;

3. Its indebtedness;

4. Its members and debenture-holders along with changes therein since the close of the previous financial year;

5. Its promoters, directors, key managerial personnel along with changes therein since the close of the previous financial Year;

6. Meetings of members or a class thereof, Board and its various committees along with attendance details;

7. Remuneration of directors and key managerial personnel;

8. Penalty or punishment imposed on the company, its directors or officers and details of compounding of offences and Appeals made against such penalty or punishment;

9. Matters relating to certification of compliances, disclosures as may be prescribed;

10. Details, as may be prescribed, in respect of shares held by or on behalf of the Foreign Institutional Investors indicating their names, addresses, countries of incorporation, registration and percentage of shareholding held by them; and

11. Such other matters as may be prescribed, and signed by a director and the company secretary, or where there is no Company \ secretary, by a company secretary in practice:

Section 92 (4):

Every company shall file with the Registrar a copy of the annual return, within 60 (sixty) days from the date on which the annual general meeting is held or where no annual general meeting is held in any year within sixty days from the date on which the annual general meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed, within the time as specified, under section 403.

Section 92 (5):

If a company fails to file its annual return under sub-section (4), before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakhs rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

Section 92 (5):

If a company fails to file its annual return under sub-section (4), before the expiry of the period specified under section 403 with additional fee, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakhs rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to six months or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

VidyaSunil & Associates is into practice of Tax Complaince, Audit, Accounts , Corporate / Business Finance & Outsourced CFO Services.

Advise for contacting VidyaSunil & Associates;

E Mail ID : vidyasunilassociates@gmail.com

Cell No. : +91 9739834819

Budget 2017-2018: Full Speech of Honourable Arun Jaitley, Minister of Finance

Finance Minister Arun Jaitley on Wednesday proposed to ban all cash transactions above Rs 3 lakFinance h beginning April 1, 2017 with eased income tax rates for those on modest incomes and slashed corporate taxes for small and medium firms in his Budget for 2016-17.Budget 2017-2018: Full Speech of Arun Jaitley, Minister of Finance

TV grab of Finance Minister Arun Jaitley presenting Budget.

The budget focuses on lifting up rural incomes while simultaneously pressing ahead with reforms in several sectors of the Indian economy.

The full Union Budget 2017 speech:

Madam Speaker,

On this auspicious day of Vasant Panchami, I rise to present the Budget for 2017-18. Spring is a season of optimism. I extend my warm greetings to everyone on this occasion.

2. Madam Speaker, our Government was elected amidst huge expectations of the people. The underlying theme of countless expectations was good governance. The expectations included burning issues like inflation and price rise, corruption in day to day transactions and crony capitalism. There was also expectation for a major change in the way the country’s natural resources were allocated, processed and deployed.

3. In the last two and half years, it has been our mission to bring a Transformative Shift in the way our country is governed. We have moved

– from a discretionary administration to a policy and system based administration;

– from favouritism to transparency and objectivity in decision making;

– from blanket and loose entitlements to targeted delivery; and

– from informal economy to formal economy.

Inflation, which was in double digits, has been controlled; sluggish growth has been replaced by high growth; and a massive war against black money has been launched. We have worked tirelessly on all these fronts and feel encouraged by the unstinted support of the people to our initiatives. The Government is now seen as a trusted custodian of public money. I take this opportunity to express our gratitude to the people of India for their strong support.

4. We shall continue to undertake many more measures to ensure that the fruits of growth reach the farmers, the workers, the poor, the scheduled castes and scheduled tribes, women and other vulnerable sections of our society. Our focus will be on energising our youth to reap the benefits of growth and employment.

5. Madam Speaker, I am presenting this Budget when the world economy faces considerable uncertainty, in the aftermath of major economic and political developments during the last one year. Nevertheless, the International Monetary Fund (IMF) estimates that world GDP will grow by 3.1% in 2016 and 3.4% in 2017. The advanced economies are expected to increase their growth from 1.6% to 1.9% and the emerging economies from 4.1% to 4.5%. As per current indications, macro-economic policy is expected to be more expansionary in certain large economies. Growth in a number of emerging economies is expected to recover in 2017, after relatively poor performance in 2016. These are positive signs and point to an optimistic outlook for the next year.

6. There are, however, three major challenges for emerging economies. First, the current monetary policy stance of the US Federal Reserve, to increase the policy rates more than once in 2017, may lead to lower capital inflows and higher outflows from the emerging economies. Second, the uncertainty around commodity prices, especially that of crude oil, has implications for the fiscal situation of emerging economies. It is however expected that increase, if any, in oil prices would get tempered by quick response from producers of shale gas and oil. This would have a sobering impact on prices of crude and petroleum. Third, in several parts of the world, there are signs of increasing retreat from globalisation of goods, services and people, as pressures for protectionism are building up. These developments have the potential to affect exports from a number of emerging markets, including India.

7. Amidst all these developments, India stands out as a bright spot in the world economic landscape. India’s macro-economic stability continues to be the foundation of economic success. CPI inflation declined from 6% in July 2016 to 3.4% in December, 2016 and is expected to remain within RBI’s mandated range of 2% to 6%. Favourable price developments reflect prudent macro-economic management, resulting in higher agricultural production, especially in pulses. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. Foreign Direct Investment (FDI) increased from ` 1,07,000 crores in the first half of last year to ` 1,45,000 crores in the first half of 2016-17. This marks an increase by 36%, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017, which represents a comfortable cover for about 12 months of imports.

8. The Government has also continued on the steady path of fiscal consolidation, without compromising on the public investment requirements of the economy. Externally, the economy successfully weathered a number of shocks, the redemption of FCNR deposits, volatility from the US elections and the Fed rate hike. According to IMF forecast, India is expected to be one of the fastest growing major economies in 2017.

9. A number of global reports and assessments, over the last two years, have shown that India has considerably improved its policies, practices and economic profile. These are reflected in Doing Business Report of the World Bank; World Investment Report 2016 of UNCTAD; Global Competitiveness Report of 2015-16 and 2016-17 of the World Economic Forum; and several other Reports. India has become the sixth largest manufacturing country in the world, up from ninth previously. We are seen as an engine of global growth.

10. In the last one year, our country has witnessed historic and impactful economic reforms and policy making. In fact, India was one of the very few economies undertaking transformational reforms. There were two tectonic policy initiatives, namely, passage of the Constitution Amendment Bill for GST and the progress for its implementation ; and demonetisation of high denomination bank notes. The advantages of GST for our economy in terms of spurring growth, competitiveness, indirect tax simplification and greater transparency have already been extensively discussed in both Houses of Parliament. I thank all Members of both the Houses for having passed the Constitution Amendment unanimously. I also thank the State Governments for resolving all relevant issues in the GST Council.

11. Demonetisation of high denomination bank notes was in continuation of a series of measures taken by our Government during the last two years. It is a bold and decisive measure. For several decades, tax evasion for many has become a way of life. This compromises the larger public interest and creates unjust enrichment in favour of the tax evader, to the detriment of the poor and deprived. This has bred a parallel economy which is unacceptable for an inclusive society. Demonetisation seeks to create a new ‘normal’ wherein the GDP would be bigger, cleaner and real. This exercise is part of our Government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding. Like all reforms, this measure is obviously disruptive, as it seeks to change the retrograde status quo. Drop in economic activity, if any, on account of the currency squeeze during the remonetisation period is expected to have only a transient impact on the economy. I am reminded here of what the Father of the Nation, Mahatma Gandhi, had said: “A right cause never fails”.

12. Demonetisation has strong potential to generate long-term benefits in terms of reduced corruption, greater digitisation of the economy, increased flow of financial savings and greater formalisation of the economy, all of which would eventually lead to higher GDP growth and tax revenues. Demonetisation helps to transfer resources from the tax evaders to the Government, which can use these resources for the welfare of the poor and the deprived. There is early evidence of an increased capacity of Banks to lend at reduced interest rates and a huge shift towards digitisation among all sections of society. We firmly believe that demonetisation and GST which were built on the third transformational achievement of our Government, namely, the JAM vision, will have an epoch making impact on our economy and the lives of our people.

13. Madam Speaker, we are at an important turning point in the path of our growth and development.

14. The pace of remonetisation has picked up and will soon reach comfortable levels. The effects of demonetisation are not expected to spill over into the next year. Thus IMF, even while revising India’s GDP forecast for 2016 downwards, has projected a GDP growth of 7.2% and 7.7% in 2017 and 2018 respectively. The World Bank, however, is more optimistic and has projected a GDP growth of 7% in 2016-17, 7.6% in 2017-18 and 7.8% in 2018-19. This pick up in our economy is premised upon our policy and determination to continue with economic reforms; increase in public investment in infrastructure and development projects; and export growth in the context of the expected rebound in world economy. The surplus liquidity in the banking system, created by demonetisation, will lower borrowing costs and increase the access to credit. This will boost economic activity, with multiplier effects.

15. The announcements made by Honourable Prime Minister on 31st December, 2016 address many of the key concerns of our economy at this juncture, such as, housing for the poor; relief to farmers; credit support to MSMEs; encouragement to digital transactions; assistance to pregnant women and senior citizens; and priority to dalits, tribals, backward classes and women under the Mudra Yojana.

16. My overall approach, while preparing this Budget, has been to spend more in rural areas, infrastructure and poverty alleviation and yet maintain the best standards of fiscal prudence. I have also kept in mind the need to continue with economic reforms, promote higher investments and accelerate growth.

17. The last one year was a witness to other major reforms, namely, enactment of the Insolvency and Bankruptcy Code; amendment to the RBI Act for inflation targeting; enactment of the Aadhar bill for disbursement of financial subsidies and benefits; significant reforms in FDI policy; the job creating package for textile sector; and several other measures. We will continue the process of economic reforms for the benefit of the poor and the underprivileged.

18. Madam Speaker, the Budget for 2017-18 contains three major reforms. First, the presentation of the Budget has been advanced to 1st February to enable the Parliament to avoid a Vote on Account and pass a single Appropriation Bill for 2017-18, before the close of the current financial year. This would enable the Ministries and Departments to operationalise all schemes and projects, including the new schemes, right from the commencement of the next financial year. They would be able to fully utilise the available working season before the onset of the monsoon. Second, the merger of the Railways Budget with the General Budget is a historic step. We have discontinued the colonial practice prevalent since 1924. This decision brings the Railways to the centre stage of Government’s fiscal policy and would facilitate multi modal transport planning between railways, highways and inland waterways. The functional autonomy of Railways will, however, continue. Third, we have done away with the plan and non-plan classification of expenditure. This will give us a holistic view of allocations for sectors and ministries. This would facilitate optimal allocation of resources.

19. Madam Speaker, we are aware that we need to do more for our people. Continuing with the task of fulfilling the people’s expectations, our agenda for the next year is : “Transform, Energise and Clean India”, that is, TEC India. This agenda of TEC India seeks to

– Transform the quality of governance and quality of life of our people;

– Energise various sections of society, especially the youth and the vulnerable, and enable them to unleash their true potential; and

– Clean the country from the evils of corruption, black money and non-transparent political funding.

I propose to present my Budget proposals under ten distinct themes to foster this broad agenda. The themes are :

(i) Farmers : for whom we have committed to double the income in 5 years;

(ii) Rural Population : providing employment and basic infrastructure;

(iii) Youth : energising them through education, skills and jobs;

(iv) Poor and the Underprivileged : strengthening the systems of social security, health care and affordable housing;

(v) Infrastructure: for efficiency, productivity and quality of life;

(vi) Financial Sector : growth and stability through stronger institutions;

(vii) Digital Economy : for speed, accountability and transparency;

(viii) Public Service : effective governance and efficient service delivery through people’s participation;

(ix) Prudent Fiscal Management : to ensure optimal deployment of resources and preserve fiscal stability; and

(x) Tax Administration : honouring the honest.


20. The Indian farmer has once again shown his commitment and resilience in the current year. The total area sown under kharif and rabi seasons are higher than the previous year. With a better monsoon, agriculture is expected to grow at 4.1% in the current year.

21. In last year’s Budget speech, I focused on ‘income security’ of farmers to double their income in 5 years. I had also announced a number of measures. We have to take more steps and enable the farmers to increase their production and productivity; and to deal with post-harvest challenges.

22. For a good crop, adequate credit should be available to farmers in time. The target for agricultural credit in 2017-18 has been fixed at a record level of ` 10 lakh crores. We will take special efforts to ensure adequate flow of credit to the under serviced areas, the Eastern States and Jammu & Kashmir. The farmers will also benefit from 60 days’ interest waiver announced by Honourable Prime Minister in respect of their loans from the cooperative credit structure.

23. About 40% of the small and marginal farmers avail credit from the cooperative structure. The Primary Agriculture Credit Societies (PACS) act as the front end for loan disbursements. We will support NABARD for computerisation and integration of all 63,000 functional PACS with the Core Banking System of District Central Cooperative Banks. This will be done in 3 years at an estimated cost of ` 1,900 crores, with financial participation from State Governments. This will ensure seamless flow of credit to small and marginal farmers.

24. At the time of sowing, farmers should feel secure against natural calamities. The Fasal Bima Yojana launched by our Government is a major step in this direction. The coverage of this scheme will be increased from 30% of cropped area in 2016-17 to 40% in 2017-18 and 50% in 2018-19. The Budget provision of ` 5,500 crores for this Yojana in BE 2016-17 was increased to ` 13,240 crores in RE 2016-17 to settle the arrear claims. For 2017-18, I have provided a sum of ` 9,000 crores. The sum insured under this Yojana has more than doubled from ` 69,000 crores in Kharif 2015 to Rs 1,41,625 crores in Kharif 2016.

25. Issuance of Soil Health Cards has gathered momentum. The real benefit to farmers would be available only when the soil samples are tested quickly and nutrient level of the soil is known. Government will therefore set up new mini labs in Krishi Vigyan Kendras (KVKs) and ensure 100% coverage of all 648 KVKs in the country. In addition, 1000 mini labs will be set up by qualified local entrepreneurs. Government will provide credit linked subsidy to these entrepreneurs.

26. A Long Term Irrigation Fund has already been set up in NABARD. Honourable Prime Minister has announced an addition of Rs 20,000 crores to its corpus. This will take the total corpus of this Fund to Rs 40,000 crores.

27. A dedicated Micro Irrigation Fund will be set up in NABARD to achieve the goal, ‘per drop more crop’. The Fund will have an initial corpus of Rs 5,000 crores.

28. For the post-harvest phase, we will take steps to enable farmers to get better prices for their produce in the markets. The coverage of National Agricultural Market (e-NAM) will be expanded from the current 250 markets to 585 APMCs. Assistance up to a ceiling of Rs 75 lakhs will be provided to every e-NAM market for establishment of cleaning, grading and packaging facilities. This will lead to value addition of farmers’ produce.

29. Market reforms will be undertaken and the States would be urged to denotify perishables from APMC. This will give opportunity to farmers to sell their produce and get better prices.

30. We also propose to integrate farmers who grow fruits and vegetables with agro processing units for better price realisation and reduction of post-harvest losses. A model law on contract farming would therefore be prepared and circulated among the States for adoption.

31. Dairy is an important source of additional income for the farmers. Availability of milk processing facility and other infrastructure will benefit the farmers through value addition. A large number of milk processing units set up under the Operation Flood Programme has since become old and obsolete. A Dairy Processing and Infrastructure Development Fund would be set up in NABARD with a corpus of Rs 8,000 crores over 3 years. Initially, the Fund will start with a corpus of Rs 2,000 crores.


32. I now turn to the Rural Sector, which was so dear to the heart of Mahatma Gandhi.

33. Over Rs 3 lakh crores are spent in rural areas every year, if we add up all the programmes meant for rural poor from the Central Budget, State Budgets, Bank linkage for self-help groups, etc. With a clear focus on improving accountability, outcomes and convergence, we will undertake a Mission Antyodaya to bring one crore households out of poverty and to make 50,000 gram panchayats poverty free by 2019, the 150th birth anniversary of Gandhiji. We will utilise the existing resources more effectively along with annual increases. This mission will work with a focused micro plan for sustainable livelihood for every deprived household. A composite index for poverty free gram panchayats would be developed to monitor the progress from the baseline.

34. Our Government has made a conscious effort to reorient MGNREGA to support our resolve to double farmers’ income. While providing at least 100 days employment to every rural household, MGNREGA should create productive assets to improve farm productivity and incomes. The target of 5 lakh farm ponds and 10 lakh compost pits announced in the last Budget from MGNREGA funds will be fully achieved. In fact, against 5 lakh farm ponds, it is expected that about 10 lakh farm ponds would be completed by March 2017. During 2017-18, another 5 lakh farm ponds will be taken up. This single measure will contribute greatly to drought proofing of gram panchayats.

35. Participation of women in MGNREGA has increased to 55% from less than 48% in the past.

36. Honourable Members would be happy to note that the budget provision of Rs 38,500 crores under MGNREGA in 2016-17 has been increased to Rs 48,000 crores in 2017-18. This is the highest ever allocation for MGNREGA. The initiative to geo-tag all MGNREGA assets and putting them in public domain has established greater transparency. We are also using space technology in a big way to plan MGNREGA works.

37. The Pradhan Mantri Gram Sadak Yojana (PMGSY) is now being implemented as never before. The pace of construction of PMGSY roads has accelerated to reach 133 km roads per day in 2016-17, as against an average of 73 km during the period 2011-2014. We have also taken up the task of connecting habitations with more than 100 persons in left wing extremism affected Blocks. We have committed to complete the current target under PMGSY by 2019. I have provided a sum of Rs 19,000 crores in 2017-18 for this scheme. Together with the contribution of States, an amount of Rs 27,000 crores will be spent on PMGSY in 2017-18.

38. We propose to complete 1 crore houses by 2019 for the

houseless and those living in kutcha houses. I have stepped up the allocation for Pradhan Mantri Awaas Yojana – Gramin from Rs 15,000 crores in BE 2016-17 to Rs 23,000 crores in 2017-18.

39. We are well on our way to achieving 100% village electrification by 1st May 2018. An increased allocation of Rs 4,814 crores has been proposed under the Deendayal Upadhyaya Gram Jyoti Yojana in 2017-18.

40. I have also proposed to increase the allocations for Deendayal Antyodaya Yojana- National Rural Livelihood Mission for promotion of skill development and livelihood opportunities for people in rural areas to Rs 4,500 in 2017-18. The allocation for Prime Minister’s Employment Generation Programme (PMEGP) and credit support schemes has been increased more than 3 times.

41. Swachh Bharat Mission (Gramin) has made tremendous progress in promoting safe sanitation and ending open defecation. Sanitation coverage in rural India has gone up from 42% in October 2014 to about 60%. Open Defecation Free villages are now being given priority for piped water supply.

42. We propose to provide safe drinking water to over 28,000 arsenic and fluoride affected habitations in the next four years. This will be a sub mission of the National Rural Drinking Water Programme (NRDWP).

43. For imparting new skills to the people in the rural areas, mason training will be provided to 5 lakh persons by 2022, with an immediate target of training at least 20,000 persons by 2017-18.

44. Panchayati raj institutions still lack human resources for implementing development programmes. A programme of “human resource reforms for results” will be launched during 2017-18 for this purpose.

45. The Government will continue to work closely with the farmers and the people in the rural areas to improve their life and environment. This is a non-negotiable agenda for our Government. The total allocation for the rural, agriculture and allied sectors in 2017-18 is Rs 1,87,223 crores, which is 24% higher than the previous year.


46. Let me now focus on my proposals for the youth.

47. Quality education will energise our youth. In the words of Swami Vivekananda, “The education which does not help the common mass of people to equip themselves for the struggle for life ………… is it worth the name?”

48. We have proposed to introduce a system of measuring annual learning outcomes in our schools. Emphasis will be given on science education and flexibility in curriculum to promote creativity through local innovative content.

49. An Innovation Fund for Secondary Education will be created to encourage local innovation for ensuring universal access, gender parity and quality improvement. This will include ICT enabled learning transformation. The focus will be on 3479 educationally backward blocks.

50. In higher education, we will undertake reforms in the UGC. Good quality institutions would be enabled to have greater administrative and academic autonomy. Colleges will be identified based on accreditation and ranking, and given autonomous status. A revised framework will be put in place for outcome based accreditation and credit based programmes.

51. We propose to leverage information technology and launch SWAYAM platform with at least 350 online courses. This would enable students to virtually attend the courses taught by the best faculty; access high quality reading resources; participate in discussion forums; take tests and earn academic grades. Access to SWAYAM would be widened by linkage with DTH channels, dedicated to education.

52. We propose to establish a National Testing Agency as an autonomous and self-sustained premier testing organisation to conduct all entrance examinations for higher education institutions. This would free CBSE, AICTE and other premier institutions from these administrative responsibilities so that they can focus more on academics.

53. We have a huge demographic advantage. Skill India mission was launched in July 2015 to maximise the potential of our youth.

54. Pradhan Mantri Kaushal Kendras (PMKK) have already been promoted in more than 60 districts. We now propose to extend these Kendras to more than 600 districts across the country. 100 India International Skills Centres will be established across the country. These Centres would offer advanced training and also courses in foreign languages. This will help those of our youth who seek job opportunities outside the country.

55. In 2017-18, we also propose to launch the Skill Acquisition and Knowledge Awareness for Livelihood Promotion programme (SANKALP) at a cost of Rs 4,000 crores. SANKALP will provide market relevant training to 3.5 crore youth.

56. The next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) will also be launched in 2017-18 at a cost of Rs 2,200 crores. STRIVE will focus on improving the quality and market relevance of vocational training provided in ITIs and strengthen the apprenticeship programmes through industry cluster approach.

57. A special scheme for creating employment in the textile sector has already been launched. A similar scheme will be implemented for the leather and footwear industries.

58. Tourism is a big employment generator and has a multiplier impact on the economy. Five Special Tourism Zones, anchored on SPVs, will be set up in partnership with the States. Incredible India 2.0 Campaign will be launched across the world.


59. Madam Speaker, I now turn to my proposals for the poor and the underprivileged.

60. Sabka Saath Sabka Vikas begins with the girl child and women. Mahila Shakti Kendra will be set up at village level with an allocation of

Rs 500 crores in 14 lakh ICDS Anganwadi Centres. This will provide one stop convergent support services for empowering rural women with opportunities for skill development, employment, digital literacy, health and nutrition. A nationwide scheme for financial assistance to pregnant women has already been announced by Honourable Prime Minister on 31st December, 2016. Under this scheme, Rs 6,000 each will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children.

61. For the welfare of Women and Children under various schemes across all Ministries, I have stepped up the allocation from Rs 1,56,528 crores in BE 2016-17 to Rs 1,84,632 crores in 2017-18.

62. We propose to facilitate higher investment in affordable housing. Affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits.

63. The National Housing Bank will refinance individual housing loans of about Rs 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing. In addition, interest subvention for housing loans has also been announced by the Honourable Prime Minister.

64. Poverty is usually associated with poor health. It is the poor who suffer the maximum from various chronic diseases. Government has therefore prepared an action plan to eliminate Kala-Azar and Filariasis by 2017, Leprosy by 2018 and Measles by 2020. Elimination of tuberculosis by 2025 is also targeted. Similarly, action plan has been prepared to reduce IMR from 39 in 2014 to 28 by 2019 and MMR from 167 in 2011-13 to 100 by 2018-2020. 1.5 lakh Health Sub Centres will be transformed into Health and Wellness Centres.

65. We need to ensure adequate availability of specialist doctors to strengthen Secondary and Tertiary levels of health care. We have therefore decided to take steps to create additional 5,000 Post Graduate seats per annum. In addition, steps will be taken to roll out DNB courses in big District Hospitals; strengthen PG teaching in select ESI and Municipal Corporation Hospitals; and encourage reputed Private Hospitals to start DNB courses. We will work with the State Governments to take these tasks forward. The Government is committed to take necessary steps for structural transformation of the Regulatory framework of Medical Education and Practice in India.

66. Two new All India Institutes of Medical Sciences will be set up in the States of Jharkhand and Gujarat.

67. We propose to amend the Drugs and Cosmetics Rules to ensure availability of drugs at reasonable prices and promote use of generic medicines. New rules for regulating medical devices will also be formulated. These rules will be internationally harmonised and attract investment into this sector. This will reduce the cost of such devices.

68. We are keen on fostering a conducive labour environment wherein labour rights are protected and harmonious labour relations lead to higher productivity. Legislative reforms will be undertaken to simplify, rationalise and amalgamate the existing labour laws into 4 Codes on (i) wages; (ii) industrial relations; (iii) social security and welfare; and (iv) safety and working conditions. The Model Shops and Establishment Bill 2016 has been circulated to all States for consideration and adoption. This would open up additional avenues for employment of women. The amendment made to the Payment of Wages Act, is another initiative of our Government for the benefit of the labour and ease of doing business.

69. Our Government is giving special importance to implementation of the schemes for welfare of Scheduled Castes, Scheduled Tribes and Minorities. The allocation for the welfare of Scheduled Castes has been stepped up from Rs 38,833 crores in BE 2016-17 to Rs 52,393 crores in

2017-18, representing an increase of about 35%. The allocation for Scheduled Tribes has been increased to Rs 31,920 crores and for Minority Affairs to Rs 4,195 crores. The Government will introduce outcome based monitoring of expenditure in these sectors by the NITI Aayog.

70. For senior citizens, Aadhar based Smart Cards containing their health details will be introduced. A beginning will be made through a pilot in 15 districts during 2017-18. The LIC will implement a scheme for senior citizens to provide assured pension, with a guaranteed return of 8% per annum for 10 years.


71. The fifth component of TEC India agenda is Infrastructure.

72. Railways, roads and rivers are the lifeline of our country. I feel privileged to present the first combined Budget of independent India that includes the Railways also. We are now in a position to synergise the investments in railways, roads, waterways and civil aviation. For 2017-18, the total capital and development expenditure of Railways has been pegged at Rs 1,31,000 crores. This includes Rs 55,000 crores provided by the Government.

73. Among other things, the Railways will focus on four major areas, namely :

(i) Passenger safety;

(ii) Capital and development works;

(iii) Cleanliness; and

(iv) Finance and accounting reforms.

74. For passenger safety, a Rashtriya Rail Sanraksha Kosh will be created with a corpus of Rs 1 lakh crores over a period of 5 years. Besides seed capital from the Government, the Railways will arrange the balance resources from their own revenues and other sources. Government will lay down clear cut guidelines and timeline for implementing various safety works to be funded from this Kosh. Unmanned level crossings on Broad Gauge lines will be eliminated by 2020. Expert international assistance will be harnessed to improve safety preparedness and maintenance practices.

75. In the next 3 years, the throughput is proposed to be enhanced by 10%. This will be done through modernisation and upgradation of identified corridors. Railway lines of 3,500 kms will be commissioned in 2017-18, as against 2,800 kms in 2016-17. Steps will be taken to launch dedicated trains for tourism and pilgrimage.

76. Railways have set up joint ventures with 9 State Governments. 70 projects have been identified for construction and development.

77. A beginning has been made with regard to station redevelopment. At least 25 stations are expected to be awarded during 2017-18 for station redevelopment. 500 stations will be made differently abled friendly by providing lifts and escalators.

78. It is proposed to feed about 7,000 stations with solar power in the medium term. A beginning has already been made in 300 stations. Works will be taken up for 2,000 railway stations as part of 1000 MW solar mission.

79. Our focus is on swachh rail. SMS based Clean My Coach Service has been started. It is now proposed to introduce ‘Coach Mitra’ facility, a single window interface, to register all coach related complaints and requirements. By 2019, all coaches of Indian Railways will be fitted with bio toilets. Pilot plants for environment friendly disposal of solid waste and conversion of biodegradable waste to energy are being set up at New Delhi and Jaipur railway stations. Five more such solid waste management plants are now being taken up.

80. Today Indian Railways face stiff competition from other modes of transportation which are dominated by the private sector. Transformative measures have to be undertaken to make Indian Railways competitive to retain their position of pre-eminence. The following steps will therefore be taken :

(i) Railways will implement end to end integrated transport solutions for select commodities through partnership with logistics players, who would provide both front and back end connectivity. Rolling stocks and practices will be customised to transport perishable goods, especially agricultural products.

(ii) Railways will offer competitive ticket booking facility to the public at large. Service charge on e-tickets booked through IRCTC has been withdrawn. Cashless reservations have gone up from 58% to 68%.

(iii) As part of accounting reforms, accrual based financial statements will be rolled out by March 2019.

81. It will be our continuous endeavour to improve the Operating Ratio of the Railways. The tariffs of Railways would be fixed, taking into consideration costs, quality of service, social obligations and competition from other forms of transport.

82. Metro rail is emerging as an important mode of urban transportation. A new Metro Rail Policy will be announced with focus on innovative models of implementation and financing, as well as standardisation and indigenisation of hardware and software. This will open up new job opportunities for our youth.

83. A new Metro Rail Act will be enacted by rationalising the existing laws. This will facilitate greater private participation and investment in construction and operation.

84. In the road sector, I have stepped up the Budget allocation for highways from Rs 57,976 crores in BE 2016-17 to Rs 64,900 crores in 2017-18. 2,000 kms of coastal connectivity roads have been identified for construction and development. This will facilitate better connectivity with ports and remote villages. The total length of roads, including those under PMGSY, built from 2014-15 till the current year is about 1,40,000 kms which is significantly higher than previous three years.

85. An effective multi modal logistics and transport sector will make our economy more competitive. A specific programme for development of multi-modal logistics parks, together with multi modal transport facilities, will be drawn up and implemented.

86. Select airports in Tier 2 cities will be taken up for operation and maintenance in the PPP mode. Airport Authority of India Act will be amended to enable effective monetisation of land assets. The resources, so raised, will be utilised for airport upgradation.

87. For transportation sector as a whole, including rail, roads, shipping, I have provided Rs 2,41,387 crores in 2017-18. This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities.

88. Telecom sector is an important component of our infrastructure eco system. The recent spectrum auctions have removed spectrum scarcity in the country. This will give a major fillip to mobile broadband and Digital India for the benefit of people living in rural and remote areas.

89. Under the BharatNet Project, OFC has been laid in 1,55,000 kms. I have stepped up the allocation for BharatNet Project to Rs 10,000 crores in 2017-18. By the end of 2017-18, high speed broadband connectivity on optical fibre will be available in more than 1,50,000 gram panchayats, with wifi hot spots and access to digital services at low tariffs. A DigiGaon initiative will be launched to provide tele-medicine, education and skills through digital technology.

90. For strengthening our Energy sector, Government has decided to set up Strategic Crude Oil Reserves. In the first phase, 3 such Reserves facilities have been set up. Now in the second phase, it is proposed to set up caverns at 2 more locations, namely, Chandikhole in Odisha and Bikaner in Rajasthan. This will take our strategic reserve capacity to 15.33 MMT.

91. In solar energy, we now propose to take up the second phase of Solar Park development for additional 20,000 MW capacity.

92. We are also creating an eco-system to make India a global hub for electronics manufacturing. Over 250 investment proposals for electronics manufacturing have been received in the last 2 years, totalling an investment of Rs 1.26 lakh crores. A number of global leaders and mobile manufacturers have set up production facilities in India. I have therefore exponentially increased the allocation for incentive schemes like M-SIPS and EDF to Rs 745 crores in 2017-18. This is an all-time high.

93. We have to focus on our export infrastructure in a competitive world. A new and restructured Central scheme, namely, Trade Infrastructure for Export Scheme (TIES) will be launched in 2017-18.

94. The total allocation for infrastructure development in 2017-18 stands at Rs 3,96,135 crores.


95. I now turn to the Financial Sector. The focus of TEC India agenda in this sector is on building stable and stronger institutions. We will continue with our reform agenda with several new measures.

96. Our Government has already undertaken substantive reforms in FDI policy in the last two years. More than 90% of the total FDI inflows are now through the automatic route. The Foreign Investment Promotion Board (FIPB) has successfully implemented e-filing and online processing of FDI applications. We have now reached a stage where FIPB can be phased out. We have therefore decided to abolish the FIPB in 2017-18. A roadmap for the same will be announced in the next few months. In the meantime, further liberalisation of FDI policy is under consideration and necessary announcements will be made in due course.

97. The Commodities markets require further reforms for the benefits of farmers. An expert committee will be constituted to study and promote creation of an operational and legal framework to integrate spot market and derivatives market for commodities trading. e-NAM would be an integral part of such framework.

98. The draft bill to curtail the menace of illicit deposit schemes has been placed in the public domain and will be introduced shortly after its finalisation. There is an urgent need to protect the poor and gullible investors from another set of dubious schemes, operated by unscrupulous entities who exploit the regulatory gaps in the Multi State Cooperative Societies Act, 2002. We will amend this Act in consultation with various stakeholders, as part of our ‘Clean India’ agenda.

99. The bill relating to resolution of financial firms will be introduced in the current Budget Session of Parliament. This will contribute to stability and resilience of our financial system. It will also protect the consumers of various financial institutions. Together with the Insolvency and Bankruptcy Code, a resolution mechanism for financial firms will ensure comprehensiveness of the resolution system in our country.

100. I had stated in my last Budget speech that a Bill will be introduced to streamline institutional arrangements for resolution of disputes in infrastructure related construction contracts, PPP and public utility contracts. After extensive stakeholders’ consultations, we have decided that the required mechanism would be instituted as part of the Arbitration and Conciliation Act 1996. An amendment Bill will be introduced in this regard.

101. Cyber security is critical for safeguarding the integrity and stability of our financial sector. A Computer Emergency Response Team for our Financial Sector (CERT-Fin) will be established. This entity will work in close coordination with all financial sector regulators and other stakeholders.

102. I have also proposed several other measures in the financial sector which are listed in Annex I.

103. Listing of Public Sector enterprises will foster greater public accountability and unlock the true value of these companies. The Government will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. The disinvestment policy announced by me in the last budget will continue.

104. The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed in stock exchanges.

105. We see opportunities to strengthen our CPSEs through consolidation, mergers and acquisitions. By these methods, the CPSEs can be integrated across the value chain of an industry. It will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders. Possibilities of such restructuring are visible in the oil and gas sector. We propose to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies.

106. Our ETF, comprising shares of ten CPSEs, has received overwhelming response in the recent Further Fund Offering (FFO). We will continue to use ETF as a vehicle for further disinvestment of shares. Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18.

107. The focus on resolution of stressed legacy accounts of Banks continues. The legal framework has been strengthened to facilitate resolution, through the enactment of the Insolvency and Bankruptcy Code and the amendments to the SARFAESI and Debt Recovery Tribunal Acts. In line with the ‘Indradhanush’ roadmap, I have provided Rs 10,000 crores for recapitalisation of Banks in 2017-18. Additional allocation will be provided, as may be required.

108. Listing and trading of Security Receipts issued by a securitization company or a reconstruction company under the SARFAESI Act will be permitted in SEBI registered stock exchanges. This will enhance capital flows into the securitization industry and will particularly be helpful to deal with bank NPAs.

109. The Pradhan Mantri Mudra Yojana has contributed significantly to funding the unfunded and the underfunded. Last year, the target of Rs 1.22 lakh crores was exceeded. For 2017-18, I propose to double the lending target of 2015-16 and set it at Rs 2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes, Minorities and Women.

110. The Stand Up India scheme was launched by our Government in April 2016 to support Dalit, Tribal and Women entrepreneurs to set up greenfield enterprises and become job creators. Over 16,000 new enterprises have come up through this scheme in activities, as diverse as food processing, garments, diagnostic centres, etc.


111. Promotion of a digital economy is an integral part of Government’s strategy to clean the system and weed out corruption and black money. It has a transformative impact in terms of greater formalisation of the economy and mainstreaming of financial savings into the banking system. This, in turn, is expected to energise private investment in the country through lower cost of credit. India is now on the cusp of a massive digital revolution.

112. A shift to digital payments has huge benefits for the common man. The earlier initiative of our Government to promote financial inclusion and the JAM trinity were important precursors to our current push for digital transactions.

113. Already there is evidence of increased digital transactions. The BHIM app has been launched. It will unleash the power of mobile phones for digital payments and financial inclusion. 125 lakh people have adopted the BHIM app so far. The Government will launch two new schemes to promote the usage of BHIM; these are, Referral Bonus Scheme for individuals and a Cashback Scheme for merchants.

114. Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly. This will be specifically beneficial for those who do not have debit cards, mobile wallets and mobile phones. A Mission will be set up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards. Banks have targeted to introduce additional 10 lakh new PoS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based PoS by September 2017.

115. Increased digital transactions will enable small and micro enterprises to access formal credit. Government will encourage SIDBI to refinance credit institutions which provide unsecured loans, at reasonable interest rates, to borrowers based on their transaction history.

116. The digital payment infrastructure and grievance handling mechanisms shall be strengthened. The focus would be on rural and semi urban areas through Post Offices, Fair Price Shops and Banking Correspondents. Steps would be taken to promote and possibly mandate petrol pumps, fertilizer depots, municipalities, Block offices, road transport offices, universities, colleges, hospitals and other institutions to have facilities for digital payments, including BHIM App. A proposal to mandate all Government receipts through digital means, beyond a prescribed limit, is under consideration.

117. Government will strengthen the Financial Inclusion Fund to augment resources for taking up these initiatives.

118. Government will consider and work with various stakeholders for early implementation of the interim recommendations of the Committee of Chief Ministers on digital transactions.

119. The Committee on Digital Payments constituted by Department of Economic Affairs has recommended structural reforms in the payment eco system, including amendments to the Payment and Settlement Systems Act, 2007. Government will undertake a comprehensive review of this Act and bring about appropriate amendments. To begin with, it is proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. Necessary amendments are proposed to this effect in the Finance Bill 2017.

120. As we move faster on the path of digital transactions and cheque payments, we need to ensure that the payees of dishonoured cheques are able to realise the payments. Government is therefore considering the option of amending the Negotiable Instruments Act suitably.


121. I now turn to Public Service. Our focus here is on effective government and efficient service delivery.

122. We have made a strong beginning with regard to Direct Benefit Transfer (DBT) to LPG and kerosene consumers. Chandigarh and eight districts of Haryana have become kerosene free. 84 Government schemes have also boarded on the DBT platform.

123. The Government e-market place which is now functional for procurement of goods and services, has been selected as one of the winners of the South Asia Procurement Innovation Awards of the World Bank.

124. Our citizens in far flung regions of the country find it difficult to obtain passports and redress passport related grievances. We have decided to utilise the Head Post Offices as front offices for rendering passport services.

125. Our defence forces keep the country safe from both external and internal threats. A Centralised Defence Travel System has now been developed through which travel tickets can be booked online by our soldiers and officers. They do not have to face the hassle of standing in queues with railway warrants.

126. A comprehensive web based interactive Pension Disbursement System for Defence Pensioners will be established. This system will receive pension proposals and make payments centrally. This will reduce the grievances of defence pensioners.

127. At present our citizens, especially those belonging to the poor and unprivileged sections, go through cumbersome procedures of Government recruitment. There are multiplicity of agencies and examinations. We propose to introduce a system of single registration and two tier system of examination.

128. Over the years, the number of tribunals have multiplied with overlapping functions. We propose to rationalise the number of tribunals and merge tribunals wherever appropriate.

129. In the recent past, there have been instances of big time offenders, including economic offenders, fleeing the country to escape the reach of law. We have to ensure that the law is allowed to take its own course. Government is therefore considering introduction of legislative changes, or even a new law, to confiscate the assets of such persons located within the country, till they submit to the jurisdiction of the appropriate legal forum. Needless to say that all necessary constitutional safeguards will be followed in such cases.

130. Our Government will continue to remain committed to improve the standards of public service and transparent governance. Service to the people was the life-long commitment of the Father of the Nation, Mahatma Gandhi. As we approach, the 150th Birth Anniversary of the Mahatma, we will take all steps to celebrate it in a befitting manner. A High Level Committee under the Chairmanship of Honourable Prime Minister is proposed to be set up for the same. We will also commemorate the centenary year of Champaran Satyagrah this year. Government of India will support Government of Gujarat to commemorate 100 years of Sabarmati Ashram in 2017, in a befitting manner. 200 years ago in 1817, a valiant uprising of soldiers led by Buxi Jagabandhu took place in Khordha of Odisha. We will commemorate the same appropriately.


131. I now turn to the fiscal situation in the context of the Budget for 2017-18.

132. The total expenditure in Budget for 2017-18 has been placed at

Rs 21.47 lakh crores. With the abolition of Plan-Non Plan classification of expenditure, the focus is now on Revenue and Capital expenditure. I have stepped up the allocation for Capital expenditure by 25.4% over the previous year. This will have multiplier effects and lead to higher growth. The total resources being transferred to the States and the Union Territories with Legislatures is Rs 4.11 lakh crores, against Rs 3.60 lakh crores in BE 2016-17. Details of allocations for important sectors and schemes and transfer of resources to States are given in Annex II of my Speech.

133. I have made a provision of Rs 3,000 crores under the Department of Economic Affairs to implement various Budget announcements and other new schemes in 2017-18. For Defence expenditure excluding pensions, I have provided a sum of Rs 2,74,114 crores including Rs 86,488 crores for Defence capital. I have increased the allocation for Scientific Ministries to Rs 37,435 crore in 2017-18.

134. For the first time, a consolidated Outcome Budget, covering all Ministries and Departments, is being laid along with the other Budget documents. This will improve accountability of Government expenditure.

135. The FRBM Review Committee has given its report recently. The Committee has done an elaborate exercise and has recommended that a sustainable debt path must be the principal macro-economic anchor of our fiscal policy. The Committee has favoured Debt to GDP of 60% for the General Government by 2023, consisting of 40% for Central Government and 20% for State Governments. Within this framework, the Committee has derived and recommended 3% fiscal deficit for the next three years. The Committee has also provided for ‘Escape Clauses’, for deviations upto 0.5% of GDP, from the stipulated fiscal deficit target. Among the triggers for taking recourse to these Escape Clauses, the Committee has included “far-reaching structural reforms in the economy with unanticipated fiscal implications” as one of the factors. Although there is a strong case now to invoke this Escape Clause, I am refraining from doing so. The Report of the Committee will be carefully examined and appropriate decisions taken in due course.

136. Nevertheless, I take note of the fiscal deficit roadmap of 3% recommended by the Committee for the next three years. I have taken into consideration the need for higher public expenditure in the context of sluggish private sector investment and slow global growth. I have kept in mind the recommendation of the Committee that a sustainable debt should be the underlying basis of prudent fiscal management. Considering all these aspects, I have pegged the fiscal deficit for 2017-18 at 3.2% of GDP and remain committed to achieve 3% in the following year. With this gradual approach, I have ensured adherence to fiscal consolidation, without compromising the requirements of public investment.

137. I have taken due care to limit the net market borrowing of Government to Rs 3.48 lakh crores after buyback, much lower than Rs 4.25 lakh crores of the previous year. More importantly, the Revenue Deficit of 2.3% in BE 2016-17 stands reduced to 2.1% in the Revised Estimates. The Revenue Deficit for next year is pegged at 1.9% , against 2% mandated by the FRBM Act.

138. It will be our endeavour to improve upon these fiscal numbers, especially the fiscal deficit, in the next year, through greater focus on quality of expenditure and higher tax realisation from the huge cash deposits in Banks, triggered by demonetisation.


Madam Speaker,

139. I shall now present my tax proposals:

140. India’s tax to GDP ratio is very low, and the proportion of direct tax to indirect tax is not optimal from the view point of social justice. I place before you certain data to indicate that our direct tax collection is not commensurate with the income and consumption pattern of Indian economy. As against estimated 4.2 crore persons engaged in organised sector employment, the number of individuals filing return for salary income are only 1.74 crore. As against 5.6 crore informal sector individual enterprises and firms doing small business in India, the number of returns filed by this category are only 1.81 crore. Out of the 13.94 lakh companies registered in India upto 31st March, 2014, 5.97 lakh companies have filed their returns for Assessment Year 2016-17. Of the 5.97 lakh companies which have filed their returns for Assessment Year 2016-17 so far, as many as 2.76 lakh companies have shown losses or zero income. 2.85 lakh companies have shown profit before tax of less than Rs 1 crore. 28,667 companies have shown profit between Rs 1 crore to Rs 10 crore, and only 7781 companies have profit before tax of more than Rs 10 crores.

141. Among the 3.7 crore individuals who filed the tax returns in

2015-16, 99 lakh show income below the exemption limit of Rs 2.5 lakh p.a., 1.95 crore show income between Rs 2.5 to Rs 5 lakh, 52 lakh show income between Rs 5 to Rs 10 lakhs and only 24 lakh people show income above Rs 10 lakhs. Of the 76 lakh individual assesses who declare income above Rs 5 lakh, 56 lakh are in the salaried class. The number of people showing income more than Rs 50 lakh in the entire country is only 1.72 lakh. We can contrast this with the fact that in the last five years, more than 1.25 crore cars have been sold, and number of Indian citizens who flew abroad, either for business or tourism, is 2 crore in the year 2015. From all these figures we can conclude that we are largely a tax non-compliant society. The predominance of cash in the economy makes it possible for the people to evade their taxes. When too many people evade taxes, the burden of their share falls on those who are honest and compliant.

142. After the demonetisation, the preliminary analysis of data received in respect of deposits made by people in old currency presents a revealing picture. During the period 8th November to 30th December 2016, deposits between Rs 2 lakh and Rs 80 lakh were made in about 1.09 crore accounts with an average deposit size of Rs 5.03 lakh. Deposits of more than 80 lakh were made in 1.48 lakh accounts with average deposit size of Rs 3.31 crores. This data mining will help us immensely in expanding the tax net as well as increasing the revenues, which was one of the objectives of demonetisation.

143. Madam Speaker, one of the main priorities of our Government is to eliminate the black money component from the economy. We are committed to make our taxation rates more reasonable, our tax administration more fair and expand the tax base in the country. This approach will change the colour of money.

144. The net tax revenue of 2013-14 was Rs 11.38 lakh crores. This grew by 9.4% in 2014-15 and 17% in 2015-16. As per the RE of 2016-17, we will end the year with a high growth rate of 17% for the second year in a row. Because of the serious efforts made by the Government, the rate of growth of advance tax in personal income tax in the first three quarters of the current financial is 34.8%.

145. Madam Speaker, the thrust of my tax proposals in this Budget is stimulating growth, relief to middle class, affordable housing, curbing black money, promoting digital economy, transparency of political funding and simplification of tax administration.

Measures for Promoting Affordable Housing and Real Estate Sector

146. In my budget proposals last year, I had announced a scheme for profit-linked income tax exemption for promoters of affordable housing scheme which has received a very good response. However, in order to make this scheme more attractive, I propose certain changes in the scheme. First of all, instead of built up area of 30 and 60 sq.mtr., the carpet area of 30 and 60 sq.mtr. will be counted. Also the 30 sq.mtr. limit will apply only in case of municipal limits of 4 metropolitan cities while for the rest of the country including in the peripheral areas of metros, limit of 60 sq.mtr. will apply. In order to be eligible, the scheme was to be completed in 3 years after commencement. I propose to extend this period to 5 years.

147. At present, the houses which are unoccupied after getting completion certificates are subjected to tax on notional rental income. For builders for whom constructed buildings are stock-in-trade, I propose to apply this rule only after one year of the end of the year in which completion certificate is received so that they get some breathing time for liquidating their inventory.

148. We also propose to make a number of changes in the capital gain taxation provisions in respect of land and building. The holding period for considering gain from immovable property to be long term is 3 years now. This is proposed to be reduced to 2 years. Also, the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property. This move will significantly reduce the capital gain tax liability while encouraging the mobility of assets. We also plan to extend the basket of financial instruments in which the capital gains can be invested without payment of tax.

149. For Joint Development Agreement signed for development of property, the liability to pay capital gain tax will arise in the year the project is completed.

150. The new capital for State of Andhra Pradesh is being constructed by innovative land-pooling mechanism without use of the Land Acquisition Act. I propose to exempt from capital gain tax, persons holding land on 2.6.2014, the date on which the State of Andhra Pradesh was reorganised, and whose land is being pooled for creation of capital city under the Government scheme.

Measures for Stimulating Growth

151. A concessional with-holding rate of 5% is being charged on interest earned by foreign entities in external commercial borrowings or in bonds and Government securities. This concession is available till 30.6.2017. I propose to extend it to 30.6.2020. This benefit is also extended to Rupee Denominated (Masala) Bonds.

152. The Government gave income tax exemptions to start-ups with certain conditions last year. For the purpose of carry forward of losses in respect of such start-ups, the condition of continuous holding of 51% of voting rights has been relaxed subject to the condition that the holding of the original promoter/promoters continues. Also the profit linked deduction available to the start-ups for 3 years out of 5 years is being changed to 3 years out of 7 years.

153. Minimum Alternate Tax is at present levied as an advance tax. There is a strong demand for abolition of MAT. Although the plan for phasing out of exemptions will kick in from 1.4.2017, the full benefit of revenue out of phase-out will be available to Government only after 7 to 10 years when all those who are already availing exemptions at present complete their period of availment. Therefore, it is not practical to remove or reduce MAT at present. However, in order to allow companies to use MAT credit in future years, I propose to allow carry forward of MAT upto a period of 15 years instead of 10 years at present.

154. In my Budget proposals in 2015, I had announced that I would be bringing the corporate income tax rate down to 25% gradually. In 2016 Budget, I had announced a reduction by 1% in case of those companies whose turnover is less than Rs 5 crore. In the same Budget, I had also announced that new manufacturing companies who do not avail of any exemption would be charged only 25% income tax.

155. Medium and Small Enterprises occupy bulk of economic activities and are also instrumental in providing maximum employment to people. However, since they do not get many exemptions, they end up paying more taxes as compared to large companies. As per data of financial year 2015-16, 2.85 lakh companies making profit of less than Rs 1 crore pay effective tax rate of 30.26% while 298 companies making profit above Rs 500 crores pay effective tax rate of 25.90%.

156. In order to make MSME companies more viable and also to encourage firms to migrate to company format, I propose to reduce the income tax for smaller companies with annual turnover upto Rs 50 crore to 25%. As per data of Assessment Year 2015-16, there are 6.94 lakh companies filing returns of which 6.67 lakh companies fall in this category and, therefore, percentage-wise 96% of companies will get this benefit of lower taxation. This will make our MSME sector more competitive as compared to large companies. The revenue forgone estimate for this measure is expected to be Rs 7,200 crore per annum.

157. In order to give a boost to banking sector, I propose to increase allowable provision for Non-Performing Asset from 7.5% to 8.5%. This will reduce the tax liability of banks. I also propose to tax interest receivable on actual receipt instead of accrual basis in respect of NPA accounts of all non-scheduled cooperative banks also at par with scheduled banks. This will remove hardship of having to pay tax even when interest income is not realised.

158. Considering the wide range of use of LNG as fuel as well as feed stock for petro-chemicals sector, I propose to reduce the basic customs duty on LNG from 5% to 2.5%.

159. In order to incentivise domestic value addition and to promote Make in India, I propose to make changes in Customs & Central Excise duties in respect of certain items which are given in the Annex III of this speech. Some of these proposals are also for addressing duty inversion.

Promoting Digital Economy

160. There is a scheme of presumptive income tax for small and medium tax payers whose turnover is upto Rs 2 crores. At present, 8% of their turnover is counted as presumptive income. I propose to make this 6% in respect of turnover which is received by non-cash means. This benefit will be applicable for transactions undertaken in the current year also.

161. I propose to limit the cash expenditure allowable as deduction, both for revenue as well as capital expenditure, to Rs 10,000. Similarly, the limit of cash donation which can be received by a charitable trust is being reduced from Rs 10,000/- to Rs 2000/-.

162. The Special Investigation Team (SIT) set up by the Government for black money has suggested that no transaction above Rs 3 lakh should be permitted in cash. The Government has decided to accept this proposal. Suitable amendment to the Income-tax Act is proposed in the Finance Bill for enforcing this decision.

163. To promote cashless transactions, I propose to exempt BCD, Excise/CV duty and SAD on miniaturised POS card reader for m-POS, micro ATM standards version 1.5.1, Finger Print Readers/Scanners and Iris Scanners. Simultaneously, I also propose to exempt parts and components for manufacture of such devices, so as to encourage domestic manufacturing of these devices.

Transparency in Electoral Funding

164. India is the world’s largest democracy. Political parties are an essential ingredient of a multi-party Parliamentary democracy. Even 70 years after Independence, the country has not been able to evolve a transparent method of funding political parties which is vital to the system of free and fair elections. An attempt was made in the past by amending the provisions of the Representation of Peoples Act, the Companies Act and the Income Tax Act to incentivise donations by individuals, partnership firms, HUFs and companies to political parties. Both the donor and the donee were granted exemption from payment of tax if the accounts were transparently maintained and returns were filed with the competent authorities. Additionally, a list of donors who contributed more than Rs 20,000/- to any party in cash or cheque is required to be maintained. The situation has only marginally improved since these provisions were brought into force. Political parties continue to receive most of their funds through anonymous donations which are shown in cash.

165. An effort, therefore, requires to be made to cleanse the system of political funding in India. Donors have also expressed reluctance in donating by cheque or other transparent methods as it would disclose their identity and entail adverse consequences. I, therefore, propose the following scheme as an effort to cleanse the system of funding of political parties:

a) In accordance with the suggestion made by the Election Commission, the maximum amount of cash donation that a political party can receive will be Rs 2000/- from one person.

b) Political parties will be entitled to receive donations by cheque or digital mode from their donors.

c) As an additional step, an amendment is being proposed to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the Government of India would frame in this regard. Under this scheme, a donor could purchase bonds from authorised banks against cheque and digital payments only. They shall be redeemable only in the designated account of a registered political party. These bonds will be redeemable within the prescribed time limit from issuance of bond.

d) Every political party would have to file its return within the time prescribed in accordance with the provision of the Income-tax Act.

Needless to say that the existing exemption to the political parties from payment of income-tax would be available only subject to the fulfilment of these conditions. This reform will bring about greater transparency and accountability in political funding, while preventing future generation of black money.

Ease of Doing Business

166. As an anti-avoidance measure, the provision of domestic transfer pricing in respect of related entities was brought in the Finance Act of 2012. Since then the number of entities being covered under domestic pricing has gone up substantially necessitating a longer scrutiny, which causes hardship to domestic companies. In order to reduce the compliance burden due to domestic transfer pricing provisions, I propose to restrict the scope of domestic transfer pricing only if one of the entities involved in related party transaction enjoys specified profit-linked deduction.

167. I propose to increase the threshold limit for audit of business entities who opt for presumptive income scheme from Rs 1 crore to Rs 2 crores. Similarly, the threshold for maintenance of books for individuals and HUF is being increased from turnover of Rs 10 lakhs to Rs 25 lakhs or income from Rs 1.2 lakhs to Rs 2.5 lakhs.

168. In 2012, Income-tax Act was amended to provide for taxation of those transactions of transfer of shares or interest in a foreign entity deriving its value substantially from Indian assets. Apprehensions have been raised about some difficulties which arise because of this provision in case of transfer of stake of investors of India-based funds located abroad but investing in India-based companies.

169. In order to remove this difficulty, I propose to exempt Foreign Portfolio Investor (FPI) Category I & II from indirect transfer provision. I also propose to issue a clarification that indirect transfer provision shall not apply in case of redemption of shares or interests outside India as a result of or arising out of redemption or sale of investment in India which is chargeable to tax in India.

170. As on today, a TDS of 5% is being deducted from commission payable to individual insurance agents even if the income of some of them may be below taxable limit. I propose to exempt them from the requirement of TDS subject to their filing a self-declaration that their income is below taxable limit.

171. Last year, I had announced a new scheme for presumptive taxation for professionals with receipt upto Rs 50 lakhs p.a. In respect of such assesses, they are being given further benefit in terms of paying advance tax in one instalment instead of four.

172. In order to allow the people to claim the refund expeditiously, the time period for revising a tax return is being reduced to 12 months from completion of financial year, at par with the time period for filing of return. Also the time for completion of scrutiny assessments is being compressed further from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019-20 and thereafter.

Personal Income-Tax

173. While the Government is trying to bring within tax-net more people who are evading taxes, the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. Also an argument is made that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net.

174. I, therefore, propose to reduce the existing rate of taxation for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs to 5% from the present rate of 10%. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50% of their existing liability. In order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500 available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs p.a. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. If the limit of Rs 1.5 lakh under Section 80C for investment is used fully the tax would be zero for people with income of Rs 4.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500/- per person. The total amount of tax foregone on account of this measure is Rs 15,500 crores.

175. In order to make good some of this revenue loss on account of this relief, I propose to levy a surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore. The existing surcharge of 15% of Tax on people earning more than Rs 1 crore will continue. This is likely to give additional revenue of Rs 2,700 crores.

176. In order to expand tax net, I also plan to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto Rs 5 lakhs other than business income. Also a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction. I appeal to all citizens of India to contribute to Nation Building by making a small payment of 5% tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.

177. Some other important proposals for amendment in Tax Laws which are not covered by me in my speech are given in Annex III of this speech.

Goods and Services Tax

178. There has been substantial progress towards ushering in GST, by far, the biggest tax reform since independence. Since the enactment of the Constitution (One Hundred and First Amendment) Act, 2016, the preparatory work for this path-breaking reform has been a top priority for the Government. In this context, several teams of officers both from the States and Central Board of Excise and Customs have been working tirelessly to give finishing touch to the Model GST law and rules and other details. Government on its part has promptly given effect to various provisions of the Constitutional Amendment Act, including constitution of the GST Council. Since then, the GST Council held 9 meetings to discuss various issues relating to GST, including broad contours of the GST rate structure, threshold exemption and parameters for composition scheme, details for compensation to States due to implementation of GST, examination of draft model GST law, draft IGST law and the Compensation Law and administrative mechanism for GST. It is my privilege to inform this august house that the GST Council has finalised its recommendations on almost all the issues based on consensus and after spirited debate and discussions. The preparation of IT system for GST is also on schedule. The extensive reach-out efforts to trade and industry for GST will start from 1st April, 2017 to make them aware of the new taxation system.

179. Centre, through the Central Board of Excise & Customs, shall continue to strive to achieve the goal of implementation of GST as per schedule without compromising the spirit of co-operative federalism. Implementation of GST is likely to bring more taxes both to Central and State Governments because of widening of tax net. I have preferred not to make many changes in current regime of Excise & Service Tax because the same are to be replaced by GST soon.


180. In the Annual Conclave of Tax officers called ‘Rajaswa Gyan Sangam’ held in June 2016, the Prime Minister had expressed his desire to bring reforms in tax administration in the form of an approach of RAPID which stands for Revenue, Accountability, Probity, Information and Digitisation. This approach precisely reflects the strategy of Tax Department which is now formulated. While revenue considerations always remain the focus of Revenue Department, we are trying to bring in maximum use of Information Technology to remove human contact with assesses as well as to plug tax avoidance. We will try to maximise our efforts for e-assessment in the coming year. We are also using a lot of data mining capability, both in-house and outsourced. We plan to enforce greater accountability of officers of Tax Department for specific act of commission and omission. I would like to assure everyone that honest, tax-compliant person would be treated with dignity and courtesy.

181. Madam Speaker, my direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore. There is no significant loss or gain in my indirect tax proposals.


182. Madam Speaker, I have outlined the Budget proposals under our overarching agenda: “Transform, Energise and Clean India”. Our emphasis will now be on implementing all these proposals for the benefit of the farmers, the poor and the underprivileged sections of our society.

183. Madam Speaker, it is said: “When my aim is right, when my goal is in sight, the winds favour me and I fly”. There is no other day, which is more appropriate for this, than today.

184. With these words, Madam Speaker, I commend the Budget to the House.

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HIGHLIGHTS: Union Budget 2017-18

Softening the demonetisation blow, the Budget for 2017-18 on Wednesday halved the tax to 5 per cent on incomes up to Rs 500,000 but proposed a new surcharge of 10 per cent on incomes between Rs 50 lakh and Rs 1 crore and raised duties on cigarettes and pan masala while stepping up allocations for infrastructure, rural, agriculture and social sectors.Following are the highlights of Union Budget 2017-18, presented by Finance Minister Arun Jaitley in Parliament on February 1:

  • Tax rates halved to 5% for income of Rs 2.5-5 lakh, tax slabs unchanged
  • 10% surcharge on people earning between Rs 50 lakh-1 cr
  • 15% surcharge on annual income above Rs 1 cr to continue
  • Cash transactions above Rs 3 lakh to banned
  • Corporate tax for SMEs with turnover up to Rs 50 cr cut to 25%; 96% companies to benefit
  • Customs duty of LNG halved to 2.5%
  • Fiscal deficit pegged at 3.2% next year, 3% in FY’19
  • Political parties barred from accepting cash donation beyond Rs 2,000 per individual
  • They can receive donations via cheques, electronic mode; electoral bonds to be issued by RBI
  • Aadhaar-based health cards for senior citizens; a scheme for them to ensure 8 pc guaranteed returns
  • FIPB to be abolished; further FDI policy liberalisation
  • Government to have time-bound procedure for CPSE listing
  • Railway PSUs — IRCTC, IRFC, IRCON to be listed
  • Payment Regulatory Board to be set up within RBI to regulate digital payments
  • Negotiable instruments Act to be amended to deal with cheque bounce cases
  • Legislative changes to confiscate of assets of economic offenders who flee country
  • Demonetisation bold, decisive measure; to help GDP growth, taxes mop up to rise
  • Effect of demonetisation not to spill over to next year
  • GST, demonetisation ‘tectonic changes’ for economy
  • Service charges on e-tickets booked via IRCTC waived
  • Capital expenditure of Railway fixed at Rs 1.31 lakh cr
  • Rail safety fund of Rs 1 lakh cr over 5 years, unmanned level crossing to be eliminated by 2020
  • Budget based on 3 agenda — Transform, Energise, Clean India (TECIndia).
  • 3-year period for long-term capital gains tax on immovable property reduced to 2 years; base year indexation shifted from April 1, 1981 to April 1, 2001
  • Divestment target at Rs 72,500 cr, up from 56,500 cr
  • Gross market borrowing pegged at Rs 6.05 lakh cr
  • Duty exempted on POS machines and Iris readers for encouraging digital payments
  • Tax benefits for Start ups to be for 3 out of 7 yrs
  • FPI to be exempt from indirect transfer provision
  • Integrated public sector oil major to be created to match global giants
  • Direct Tax collection growth 15.8%, indirect tax 8.3%
  • Total expenditure pegged at Rs 21.47 lakh crore
  • Capital expenditure up 24%; to have multiplier effect
  • Allocation to states hiked to Rs 4.11 cr
  • FRBM Committee suggests Debt-GDP ratio of 60% by 2020
  • Retail inflation to remain within 2-6 pc
  • 2 new AIIMS to come up in Jharkhand, Gujarat
  • Highest ever allocation of Rs 48,000 cr to MNREGA
  • Farm sector to grow at 4.1% this fiscal, to double farm income in five years
  • Farm credit target for next fiscal at Rs 10 lakh crore
  • Fasal Bima yojana increased to 40% of crop area; raised to Rs 1.41 lakh crore in Kharif 2017 season
  • Infrastructure investment pegged at Rs 3.96 lakh cr
  • To double irrigation fund corpus to Rs 40,000 cr
  • Infrastructure status accorded affordable housing
  • Dairy processing fund with Rs 2000cr corpus to be set up
  • Rs 1.84 lakh cr allocated for women, child initiatives
  • Rs 1.87 lakh cr allocated to rural, agri, allied sectors, 1 crore houses by 2019 for homeless
  • PM Awas Yojana allocation up from Rs 15,000 cr to Rs 23,000 cr
  • 100% village electrification to be achieved by May 2018
  • Rs 31,920 cr allocated for Scheduled Tribes, Rs 4,195 cr minority affairs, outcome based budgeting to start
  • Road sector allocation hiked to Rs 64,000 cr
  • Innovation Fund to be created for Secondary Education
  • Allocation of Rs 2.41 lakh crore rail, road, shipping to create jobs, spur economic activity
  • New metro rail policy to be announced
  • New crude oil reserves proposed at Odisha and Rajasthan; to take strategic reserve capacity to 15.33 mmt
  • India on cusp of digital revolution
  • FDI increased 35 pc to Rs 1.45 lakh crore in H1 FY’17.
  • 2 new schemes — Referral Bonus for individuals, cashback for merchants — under BHIM app soon
  • Aadhaar enabled payment system for merchants shortly
  • Bill on curtailing menace of illicit deposit schemes in offing
  • Fiscal deficit for this fiscal at 3.2%, down from budget estimate of 3.5%
  • FRBM Committee recommends 3% fiscal deficit for 3 years
  • Rs 10,000 cr to be provided to banks for recapitalisation
  • Trade Infrastructure for Export Scheme (TIES) to be launched next fiscal
  • Simple 1 page form to be filled by individuals having taxable income of Rs 5 lakh
  • Excise duty on cigars, cheroots hiked to 12.5% or Rs 4006 per thousand
  • Excise duty on pan masala hiked to 9% from 6%; on raw tobacco raised to 8.3% from 4%
  • Parts used for manufacture of LED lights to attract basic customs duty of 5% and CVD of 6%
  • Solar tempered glass used for manufacture of solar cells/panels exempted from customs duty
  • Customs duty on printed circuit board for manufacture of mobile phones hiked to 2% from nil
  • Threshold for audit of businesses opting for presumptive income doubled to Rs 2 cr
  • Under presumptive taxation for professionals up to Rs 50 lakh advance tax can be paid in one instalment
  • Scope of domestic transfer pricing restricted to entities availing profit linked deduction
  • Presumptive tax would be 6% for SMEs with Rs 2 crore turnover opting for digital payment, 8% for others
  • MAT credit will be allowed to be carried forward for 15 years, as against 10 years at present
  • Lending target under Mudra Yojana set at Rs 2.44 lakh cr
  • Computer Emergency Response Team for Financial Sector to be established
  • Extensive reach out programme for GST to be launched on April 1.
  • India a bright spot in world economic landscape, to be engine of global growth.


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