Highlights of union budget 2016-17( 14:00, 29-Feb-16)
Highlights of union budget 2016-17
Affirming that the economy is right on track, Finance Minister Arun Jaitley presented the Union Budget for 2016-17. Citing that the CPI inflation has come down to 5.4% from 9 plus, he said it is huge relief for the public.
Total allocation for agriculture and farmer welfare at35984 crores
28.5 lakh heactares of land wil be brought under irrigation.
5 lakh acres to be brought under organic farming over a three year period
Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
Dedicated irrigation fund in NABARD of 20.000 cr
Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.
Rs38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
Swacch Bharat Abhiyan allocated 9,500 crores.
Hub to support SC/ST entrpreneurs
Government is launching a new initiative to provide cooking gas to BPL families with state support.
LPG connections to be provided under the name of women members of family:2000 crore allocated for 5 years for BPL families.
2.87 lakh crore grants to gram panchayats and municipalities - a quantum jump of 228%.
300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
Four schemes for animal welfare.
2.2 lakh renal patients added every year in India. Basic dialysis equipment gets some relief.
A new health protection scheme for health cover upto 1 lakh per family.
National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
Senior citizens will get additional healthcare cover of30,000 under the new scheme
PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened
Scheme to get 500 cr for promoting entrepreneurship among SC/ST
10 public and 10 private educational institutions to be made world-class.
Digital repository for all school leaving certificates and diplomas.1,000 crore for higher education financing.
Rs. 1,700 crore for 1500 multi-skill development centres.
62 new navodaya vidyalayas to provide quality education
Digital literacy scheme to be launched to cover 6 crore additional rural households
Entrepreneurship training to be provided across schools, colleges and massive online courses.
Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna-FM Jaitley
National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi-skill training institutes to be set up.
Rs. 3000 crore earmarked for nuclear power generation
Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
Govt to provide incentive for deepwater gas exploration
Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.
Investments and infrastructure
Rs. 27,000 crore to be spent on roadways
65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
Shops to be given option to remain open all seven days in a week across markets.
Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, -97,000 crore
India's highest-ever production of motor vehicles was recorded in 2015
Total outlay for infrastructure in Budget 2016 now stands at2,21,246 crore
New greenfield ports to be developed on east and west coasts
Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
100 per cent FDI in marketing of food products produced and marketed in India
Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation.
No changes have been made to existing income tax slabs
Infrastructure and agriculture cess to be levied.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
1 per cent service charge on purchase of luxury cars over10 lakh and in-cash purchase of goods and services over2 lakh.
SUVs, Luxury cars to be more expensive
Companies with revenue less than5 crore to be taxed at 29% plus surcharge
Limited tax compliance window from Jun 1 - Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties
Rs 1,000 crore allocated for new EPF (Employees' Provident Fund) scheme
Govt. will pay EPF contribution of 8.33% for all new employees for first three years
Deduction for rent paid will be raised from20,000 to60,000 to benefit those living in rented houses.
Additional exemption of50,000 for housing loans up to35 lakh, provided cost of house is not above50 lakh.
Service tax exempted for housing construction of houses less than 60 sq. m
Banks get a big boost:25,000 crore towards recapitalisation of public sector banks. Jaitley says: Banking Board Bureau will be operationalised, we stand solidly behind public sector banks.
Target of disbursement under MUDRA increased to 1,80,000 crore
Process of transfer of government stake in IDBI Bank below 50% started
General Insurance companies will be listed in the stock exchange
Govt to increase ATMs, micro-ATMs in post offices in next three years
No Change in Personal Taxation Slab
High Income Individuals to pay enhanced surcharge of 15% in case income > 1.00 crore
Relief u/s 87A increased from 2000 to 5000
Deductions u/s 80GG increased from 24000 to 60000
Limit for 44AD increased from 1.00 Crore to 2.00 Crore
(Consequently limit u/s 44AB also increased to 2.00 for business and 50.00 lac for professionals)
Limit for 44AD (Professional) now applicable upto 50.00 lac with presumptive rate of income at 50%
Small Corporate Tax Payers to pay @ 29%
No Service tax on Services provided under DeenDyal Upadhyay Kaushal Yozna
100% Exemption from Profits earned from specified Housing Projects, subject to provisions of section 115JC
Tax on dividends in excess of 10.00 lac for Individuals/HUF
Scope of TCS expanded
Vehicle costing more than 10.00 lac to pay 1% additional tax
Infra Cess on Vehicles levied
Excise Duty of 1% on jewellary without input credit tax
Excise duty on tobacco products increased
Another Voluntary Disclosure scheme launched to reduce litigation
Pending litigation also being rationalised
Section 271(1)(c) modified to levy of graded penalty
Section 14A amended
Waiver of Interest and penalty petitions to be decided in one year
11 New benches of Indirect Taxes Tribunals
TDS Provisons rationalised
NRI not be taxed at higher rate on production of specified documents
E-assessments in seven mega cities.
e-Sahyog to be expanded
Enhanced interest on delayed refunds arising out of Appeal effect at 9%. AO to be made responsible for additional interest.
Source - JRLFS Research, Union Budget 2016-2017- Powered by Capital Market - Live News