Page 40 - Plastics News February 2017
P. 40
FEATURES
The Union Budget 2017 – Allowable provision for Non-Performing Asset of Banks
for tax relief increased from 7.5% to 8.5% of total
Finance Minister Arun Jaitley presented the union income.
budget for fiscal 2017-18 on February 1, 2107. In
the last two and half years administration has moved – Interest taxable on actual receipt instead of accrual
from discretionary, favouritism based to system and basis in respect of NPA accounts of all non-scheduled
transparency based Inflation brought under control. CPI- cooperative banks also to be treated at par with
based inflation declined from 6% in July 2016 to 3.4% in scheduled banks.
December, 2016 Economy has moved on a high growth
path. India’s Current Account Deficit declined from about – Banks have targeted to introduce additional 10 lakh
1% of GDP last year to 0.3% of GDP in the first half of 2016- new POS terminals by March 2017. They will be
17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite encouraged to introduce 20 lakh Aadhar based POS
5% reduction in global FDI inflows. Foreign exchange by September 2017.
reserves have reached 361 billion US Dollars as on 20th
January, 2017 . – The Budget has restricted set off of loss from house
property against income under any other head during
Key Features of Budget 2017-2018 the current year upto R2 lakh (loss carry forward will
be allowed)
AUTOMOBILES
Impact on Companies:
Proposals:
– Considering higher stress in asset quality and capital
– Higher outlay for infrastructure & transportation adequacy parameters, additional capital infusion was
segment expected over and above R10,000 crore. Increase in
allowable provision for NPA for tax relief from 7.5%
– Higher allocation for farm credit to 8.5% of total income will marginally reduce tax
liabilities. Positive for housing finance companies
– Reduction in tax burden for individuals (on income of operating in affordable housing loans & negative for
upto Rs 5 lakh) entities active in mid/large ticket home loans.
Impact on Companies: Impact on the Industry:
– Various measures announced are expected to have – R10,000 crore of capital infusion in PSU Banks for
marginally positive impact on the automobile Original FY18 is as per the roadmap set under “Indra-dhanush”
Equipment Manufacturers (OEMs). scheme announced by the government in August 2015.
Impact on the Industry:
– Positive for commercial vehicle demand
– Shall fuel the demand for farm equipment & tractors
segment
– Likely to stir up demand for two wheelers and small
car segment
BFSI
Proposals:
– Capital infusion of R10,000 crore in PSU Banks for
FY18.
Plastics News | F e b r u a r y 2 0 1 7 40
