Budget 2017 Review: 8 important takeaways for consumers

 

TRAIN TRAVEL

 

 

A service charge of Rs 40 is charged on every ticket booked in the AC III,II and I classes. For sleeper class, a service charge of Rs 20 is levied by IRCTC when ticket is booked through its website. So now, you get to travel a bit cheaper . In case of i-tickets (where a printout of ticket is delivered) there will be a saving of Rs 92 on reserved second class or sleeper class tickets and Rs 138 in other classes.

 

FOR YOUR HEALTH AND POCKET

 

 

While excise on various lengths of cigarettes has been increased by 2.5% to 6%, for paan masala, it has been increased from 6% to 9% and unmanufactured tobacco from 4.2% to 8.3%. The list also includes cigars, cheerots and the likes. For other tobacco products like chewing tobacco, jarda-scented tobacco and gutkha, Jaitley proposed to double the excise from 6% to 12%.

 

WATER!

 

 

If you are one of those who has an RO water filter in their house, then maintaining that will become a costly affair as the water filter membranes will be incurring a 2.5% hike in customs duty.

 

SILVER

 

 

Silver medallions and coins, silver articles will become expensive thanks to a customs duty of  12.5%. An imported 100 gram silver bar, costing Rs 5,096, is likely to be dearer by Rs 650.

 

EDUCATION

 

 

Time to study. Non-residential management programmes get cheaper as service tax exemption has been extended to it. A two year IIM PGDM distance learning course costing Rs 16 lakh will now be Rs 2.08 lakh cheaper.

 

PHONES

 

 

You will end up paying more for smartphones since the government has proposed a special additional duty of 2% on a component – printed circuit boards – which accounts for nearly 30% of a phone’s manufacturing cost. Handset manufacturers will have to pay that extra duty which will then be passed on to you, the consumer.

 

NUTS

 

 

The cake might have to do with a little less of cashews and so will your food as basic customs duty on cashew nuts has risen by 15% so a bag priced at Rs 800 will now cost you at least Rs 865.

 

RENT

 

 

The government has proposed to insert a new section of 194-IB in the I-T Act to provide that an individual or a HUF (other than those covered under 44AB of the Act), who pays rent exceeding Rs 50000 for a month or part of month during the previous year, shall deduct an amount equal to 5% from source as income-tax . The following amendment will take effect from 1st June 2017.