Budget 2017: Jaitley aims at Swachh Politics with cash donations capped at Rs 2000

Budget 2017 aims at Swachh Politics! Cash donations to political parties limited to Rs 2000. The Rs 2000 cap on cash is a reduction from the current Rs 20000.

One of the announcements at the budgets aims at cleaning up the murky political donations. So, currently a single source can donate Rs 20,000 to a political party. This amount will be capped at Rs 2000. 

This means a source cannot donate over Rs 2000 to a political party in cash. Instead, Jaitley announces steps like cheque and digital payments. The Budget 2017 has proposed to amend the central bank's act for issue of electoral bonds by RBI for political funding. The donor will have to buy these bonds from banks, and they can then be redeemed within a prescribed limit.

Other highlights of the Budget 2017 include:

* Jaitley announced a reduction in the tax rate in the income tax slab of ₹2.5 lakh to ₹5 lakh to 5% from 10%.

* Present burden of taxation mainly on salaried class. 

* All other categories of taxpayers in subsequent brackets will get benefit of  ₹12,500. 

* Surcharge of 10 per cent to be levied on persons earning between ₹50 lakh to Rs. 1 crore.

* 10 pc surcharge on individual income above ₹50 lakh and upto Rs 1 cr to make up for ₹15,000 cr loss of due to cut in personal I-T rate.

* Surcharge of 10% for those whose annual income is ₹50 lakh to Rs 1 crore

* Existing surcharge of 15% on people earning more than 1 crore will continue: Jaitley

With inputs from PTI.