Why the Finance Bill is Important for You
How important is the Finance Bill? The Finance Bill, also known as the Finance Act, has several things to say about tax changes, loans and more. Basically, it’s one of the most important bills in terms of how it affects your money and every day life in general. Here’s why you should care about the Finance Bill, no matter what financial position you are in today.
What does the Finance Bill do?
The Finance Bill of 2018, otherwise known as the Appropriation Act, was passed by Parliament on December 20th, 2017 and will come into force on January 01, 2018. The Finance Bill provides a budget to run government programs during fiscal year 2018-19. The Finance Bill also includes details of how tax revenue collected in fiscal year 2017-18 will be spent. Some provisions in the bill could impact you directly. Here are some highlights from this Finance Bill that you should know about: The Finance Bill introduces tax incentives for start-ups to grow their business faster than before; New exemptions from service tax have been introduced for entrepreneurs who provide technology products or services through electronic means; Tax exemption limits have been raised for residential property buyers; Income tax rates have been revised upwards; etc. The Finance Bill affects several areas of your life. Find out how and why by reading through it. It’s important to stay up to date with the finance bill because it could affect your taxes and investment opportunities. If you are buying a new house soon, make sure to check what implications the Finance Bill has for property taxes as these have changed considerably since last year. Or if you want to buy an air conditioner, you might want to do so before the Finance Bill imposes new duties on such imports next month. Some major changes include cutting excise duty on small cars and completely removing it on electric vehicles. Though it's always good to go through every line in detail, here are two clauses in particular which might concern you: Clause 8 deals with income tax deductions while clause 9 covers liability under anti-money laundering law.
How does it impact you?
The Finance Bill (2017) will have a major impact on your future. If it becomes law, you will be personally liable to pay income tax in India on any income that you earn outside of India. The bill also has provisions that make it mandatory to link your Permanent Account Number (PAN) card with your bank account. This means that if the PAN number is not linked with a bank account, any financial transaction above Rs 50,000 will not be processed. The Finance Bill (2017) may not sound like a big deal at first, but it's actually got a lot of implications on your financial future. First and foremost, if it becomes law, you will be liable to pay income tax in India on any income that you earn outside of India. This means if you're working in Singapore or Malaysia, even though your employer pays taxes there, you'll have to fork over some dough when you come home. The same goes for salary that your domestic employers deduct from your paycheck every month. Another impact of The Finance Bill (2017) will be to link your Permanent Account Number (PAN) card with your bank account. It's important to note that your card can be linked with multiple accounts, and you don't have to put all of them on hold if you don't want to. However, any transaction above Rs 50,000 won't be processed unless it's a linked account. For example, let's say you have an unlinked savings account and a linked checking account. Your transactions under Rs 50,000 will clear just fine from your savings account, but anything above Rs 50k will not process until it is also linked with your checking account.
Whom should you contact?
For anyone who doesn't know what a finance bill is, it's a law that regulates how finances are collected and managed in India. It was created by the Union Cabinet to be introduced in Parliament and has been passed. Now, you may be wondering why this is important to you. The finance bill will have an impact on your daily life because it will determine how much tax you'll have to pay and how much interest your loans will accrue. You should contact your legislator if you want to see what he or she thinks about the finance bill or if you need help understanding some of its provisions. If you're already a member of a political party, call or email your party office to speak with someone in their finance team. If you don't have a political affiliation, you can try contacting one of your local representatives and ask them if they are willing to meet with you so you can talk about finance bills. If they aren't interested, try calling local advocacy groups that might take an interest in money-related matters. For example, there may be small business associations in your area that care about tax reform because it has an impact on their bottom line as well. There's no harm in asking around and networking to get help understanding how finances work and what type of policies would help strengthen them. Write a professional conclusion paragraph based on following description: Because a finance bill can change interest rates, it's crucial to get involved and contact your legislators to tell them what you think about it. Whether or not you have an understanding of finance bills, it's important to let them know how their policies will impact people in your area. It only takes a few minutes to make an impact and educate yourself on money-related policies that will have an effect on you. After all, if you don't care who writes laws affecting money and finances in India, who will? As a citizen of India, it's your responsibility to stay informed and involved. If you don't know how finances work or what effect they have on you, who will? The finance bill doesn't only impact people on Wall Street—it also has an effect on Main Street. A finance bill can change everything from interest rates to tax policies. Financial matters will always be relevant so if you don't get involved and speak up about what you want, no one else will do it for you. If your legislators aren't willing to listen or consider changes based on your feedback, write a letter to someone else in charge who might be more willing to hear your concerns.
