Union Budget 2017: Tax rate cut from 10 per cent to 5 per cent for Rs 2.5 lakh to Rs 5 lakh income slab

The Union Budget presentation began on schedule after paying tribute to Kerala MP E Ahamed, who passed away last night.

UPDATES:

12:59 pm: Lok Sabha adjourned after FM Jaitley concludes his Budget 2017 speech and introduces finance bill

12:57 pm: 15% surcharge on incomes above Rs 1 crore to continue

12:55 pm: Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore

12:52 pm: Propose to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%

12:50 pm: Political parties will be entitled to receive donations by cheque or in the digital mode from their donors

12:48 pm: Three years period for long-term capital gains tax on immovable property reduced to two years; base year indexation shifted from 1.4.1981 to 1.4.2001

12:46 pm: Government considering option to amend Negotiable Instruments Act to ensure that holders of dishonoured cheques get payment

12:44 pm: Political parties continue to receive most funds through anonymous donations

12:43 pm: Maximum cash donation any party can receive will be Rs 2000 from one source

12:42 pm: SIT has suggested no cash transaction above Rs 3 lakhs. Government has accepted this: FM

12:41 pm: I propose to reduce basic customs duty on LNG from 5% to 2.5% in 2017-18: Arun Jaitley

12:40 pm: Not to remove Minimum Alternative Tax in 2017-18. Propose to allow a carry forward of MAT for a period of 15 years as against 10 years now

12:39 pm: Income tax for small companies with an annual turnover of 50 crore, now to pay 25%, a 5% reduction

12:38 pm: After demonetisation on November 8 last year, deposit of between Rs 2 lakh and Rs 80 lakh made in 1.09 crore bank accounts at an average of Rs 5.03 lakh till December 30

12:36 pm: Capital gains tax to be exempted, for persons holding land from which land was pooled for creation of state capital of Telangana

12:35 pm: The net tax revenue grew by 17% in 2015-16

12:33 pm: Due to Demonetisation advance tax on personal Income tax increased by 34.8%

12:31 pm: Out of 3.7 crore who filed tax returns in 2015-16, only 24 lakh persons showed income above Rs 10 lakh

12:30 pm: We are largely a tax non-compliant society when too many people evade taxes burden falls on those who are honest

12:28 pm: FRBM (Fiscal Responsibility and Budget Management) review committee recommended 3% fiscal deficit for next 3 years

12:26 pm: Fiscal Deficit target for 2017-18 is 3.2%

12:24 pm: Have increased allocation for scientific ministry to Rs 37,435 crore in 2017-18

12:23 pm: Over 90 per cent of FDI proposals are now processed through automatic route

12:22 pm: Total resources being transferred to the states & union territories with legislature is Rs 4.11 lakh crore

12:21 pm: Defence expenditure excluding pension at Rs 2.74 lakh crore. This includes Rs 86,000 crore for defence capital

12:20 pm: Rs 10,000 crore provided for recapitalisation of banks 

12:18 pm: Legislation soon for economic offenders fleeing country

12:16 pm: Central travel online ticket system for Defence personnel has been developed and they no more have to stand in queues

12:14 pm: Aadhar enabled payment system to be launched soon. Banks have targeted to introduce additional 10 lakh Point-of-Sale terminals by March 17

12:12 pm: Government considering introduction of new law to confiscate assets of offenders who escape the country

12:10 pm: Mission Antyodaya to bring 1 crore households out of poverty and to make 50,000 Gram Panchayats poverty-free

12:08 pm: During 2017-18, another 5 lakh ponds will be constructed, for drought-proofing

12:07 pm: The Foreign Investment Promotion Board has been abolished

12:06 pm: Unmanned railway level crossings to be done away with by 2020. Rs 1 lakh crore corpus for railway safety fund over five years

12:05 pm: Shares of railway PSUs like IRCTC, IRFC to be listed on various stock exchanges

12:03 pm: Service Charge on e-tickets booked through IRCTC to be withdrawn

12:03 pm: Transport sector allocated Rs 2.41 Lakh Crore and Bharat Net Project allocated Rs 10,000 crore

12:01 pm: By 2019, all coaches of Indian Railways will be fitted with Bio-toilets

12:00 pm: Railways allocated Rs 55,000 crore in Budget 2017

11:58 am: Scheduled Tribe allocation of Rs 31,290 crore and Rs 4,195 crore for minorities

11:57 am: A new metro rail policy will be announced, this will open up new jobs for our youth

11:56 am: Rail safety fund with corpus of Rs 1 lakh crore will be created over a period of 5 years

11:54 am: Two new All India Institute of Medical Sciences(AIIMS) to be set up in Jharkhand and Gujarat

11:52 am: Total allocation for rural, agricultural and allied sectors for 2017-18 at record Rs 1.87 crore, it is up by 24%

11:50 am: For senior citizens, Aadhar cards giving their health condition will be introduced

FM @arunjaitley presents #Budget2017 under ten themes https://t.co/gY7YQo5nsn pic.twitter.com/P7WRyUEGaA

— PIB India (@PIB_India) February 1, 2017

11:48 am: Budget for women and children schemes increased from 1.54 lakh in 2015-16 to 1.84 lakh crore in 2017-18

11:46 am: Safe drinking water to cover 28,000 arsenic and fluoride affected habitations in the next four years

11:44 am: Open defecation free villages are now being given priority for pipe to water supply

11:42 am: To complete 1 crore houses by 2019 for those without homes and those living in kachcha houses

11:41 am: For youth, proposed to introduce a system of measuring annual learning; Science to be given focus

11:40 am: 100% village electrification will be achieved by May 1,2018

11:40 am: Total allocation for rural, agricultural and allied sectors for 2017-18 is Rs 187223 crore, which is 24% higher than last year

11:39 am: Participation of women in MNREGA has increased to 55%

11:38 am: Dedicated micro-irrigation fund will b set up by NABARD to achieve goal of 'Per Drop More Crop'.Initial corpus will be Rs 5000 crore

11:37 am:  Target of agricultural loans to farmers set at record Rs 10 lakh crore in 2017-18

11:36 am: Dairy processing infrastructure fund will be set up under NABARD, with fund of Rs 8,000 crore

11:35 am:

Allocation for #MNREGA up by Rs 10,000 cr to Rs 48,000 cr #IndianBudget2017 @narendramodi had once derided scheme.

— Ritu Sharma (@ritu86sharma) February 1, 2017

11:35 am: Plan, non-plan classification of expenditure done away with in the Budget for 2017-18 to give a holistic picture

11:34 am: Spend more in rural areas, infra, poverty alleviation, while maintaining fiscal prudence as guiding principle of Budget

11:33 am:  World Bank expects GDP growth rate at 7.6 pc in FY18 and 7.8 pc in FY19

11:32 am: Effects of demonetisation not expected to spill over to the next year

11:31 am: Merger of Railways Budget with General Budget brings focus on a multi-modal approach for development of railways, highways and inland water transport

11:30 am: Functional autonomy of the railways to be maintained

11:28 am: More steps will be taken to benefit farmers and the weaker sections; Budget being presented during weak global economy

11:27 am: Target for agricultural credit set at Rs 10 lakh crore 

11:25 am: Consumer Price Index inflation is expected to remain within RBI's mandated range of 2 to 6 percent

11:23 am: We will continue reforms for the benefit of the poor and underprivileged

11:21 am: Pace of remonetisation has picked up and it is expected to reach comfortable levels

11:20 am: The advanced economies are expected to increase their growth from 1.6%-1.9% and emerging economies from 4.1%-4.5%

11:18 am: Demonetisation has long-term benefits

11:17 am: International Monetary Fund estimates that the world GDP will grow by 3.1% in 2016 and 3.4% in 2017: FM Arun Jaitley

11:15 am: India has become the sixth largest manufacturing economy, from ninth position: FM

11:14 am: The growth in emerging economies like India expected to recover in 2017

11:13 am: The Government is now seen as a trusted custodian of public money: Arun Jaitley

11:10 am: Finance Minister Arun Jaitley starts general budget amidst demands for adjourning the house by opposition

11:07 am: Instead the house will be adjourned tomorrow as a mark of respect for EAhamed Ji: Sumitra Mahajan in Lok Sabha

11:06 am: I would have adjourned the house, but today's sitting has been fixed by President for presentation of Budget 2017: Lok Sabha Speaker Sumitra Mahajan

11:04 am: Parliament session starts with Speaker Mahajan's condolence message to deceased Kerala MP E Ahamed 

10:58 am: Budget has a sanctity, we are already in the 11th hour. There should be no controversy over it. Its constitutional obligation: Venkaiah Naidu

10:48 am: We have to keep in mind that budget is a constitutional obligation, will have to be presented: Lok Sabha Speaker Sumitra Mahajan

10:20 am: Finance minister Arun Jaitley will be presenting the Union Budget at 11 am

The finance minister is expected to present the annual federal budget on schedule later on Wednesday despite the death of a sitting member of parliament, a spokesman for the prime minister's office said.

Parliament typically adjourns for a day after the death of a member, although Indian TV channels cited a precedent where the budget presentation had still gone ahead in a previous year.

Also Read: Economic Survey prescribes cut in income tax, quick remonetisation; will the Budget deliver?

A final decision on the timing of the budget will be taken when political parties and the speaker of the house meet early on Wednesday, officials said.

Finance Minister Arun Jaitley is expected to boost spending and ease back on cutting the deficit when he presents his fourth budget, as he seeks to lift growth hit by the government's drive to purge the economy of "black money".

(With inputs from agencies)