Union Budget 2016-17

Latest update on 2016 - 17 budget.

Budget 2016 – What you need to know!

Finance Minister Arun Jaitley said that the global economy is in serious crisis and financial markets have been battered in the past one year. However, India’s held its ground firm as the growth is extraordinary high and the country converted difficulties and challenges into opportunities. The financial year 2016-17 will face an additional burden due to implementation of the Seventh Pay Commission and OROP. On inflation, Arun Jaitley in his speech said that CPI inflation was 9.4 per cent in the past 3 years of previous government. The figure has come down to 5.5 per cent now.

Live updates on Union Budget 2016

– FM Arun Jaitley concludes Union Budget speech at 12.41 pm. Stock markets give a thumbs down to Jaitley’s budget with Sensex falling over 500 points intraday.

-Proposed to extend E Assessment to 7 mega cities

– Rationalisation of TDS provisions to benefit the Individuals.

-Govt will pay interest of 9 per cent instead of 6 per cent in case there is a delay in apellatte cases beyond 90 days. Officers to be held accountable

– Compliance cost for small taxpayers to be reduced

– Monetary limit for cases to be decided by 1-member bench up from Rs 15 lakh to Rs 50 lakh

– New Dispute Panel – Tax payer can settle by paying disputed tax and interest up to date of assessment. No penalty where disputed tax is INR 10 lakhs. Penalty on balance to be only 25% of penalty.

– Propose to abolish 13 different cesses levied by different ministeries in which collection is less than Rs 50 crore a year

– 1 year limit for tax payers seeking waivers and refund

– Committee to see government’s assurance on retrospetive tax

– Limited period compliance window to declare undisclosed income – by paying total tax of 45% (no scrutiny). Declaration to have immunity from prosecution (01 June to 30th Sept 2016)

– 10-15 per cent increase in excise duty on tobacco products, including cigarettes

– Cars to be expensive with infra Cess on Cars, Vehicles, SUVs

– Services provided by EPFO exempted from service tax

Dividend taxed at 10% in the hands of individual receiving income in excess of Rs 10 lakhs (in addition to DDT paid by the company)

– Collect at source of tax 1% – Luxury cars exceeding INR 1 crores, and Products worth Rs 200,000.

– STT on options increased to 0.05 per cent

– Instead of 12 per cent, 15 per cent surcharge on income tax for those with incomes exceeding 1 crore per annum

– Security transaction tax on options to be raised from 0.017 per cent to 0.05 per cent

– Service tax exempted for housing construction of houses less than 60 sq. m

– 100% deduction for profits of undertakings from housing projects in cities during Jun ’16 – Mar ’19:

– Proposed to withdrawal upto 40 per cent of corpus under National Pension scheme to be tax free. Annuity also to be tax free.

– Tax treatment should be uniform for defined benefits and contribution of pension scheme and plans-

–  Accelerated Depreciation limited to maximum of 40%

– Start Ups: Exemption for 3 out of 5 years. MAT applies. Capital Gains not taxed where investment made in notified funds or in start ups where they hold majority.

– Proposed to extend presumptive income tax to all professional with income limit of Rs 50 lakhs.

– Lower corporate for next financial year for companies upto Rs 5 cr turnover to 29 per cent for 2015

– Proposed tax rebate under section 87A from Rs 2,000 to Rs 5,000.

– Salaried people upto Rs 5 lakh to get Rs 3,000 relief per year. 2 crore tax payers to benefit

– Thrust of tax policy are in 9 categories: Relief to taxpayers likely

–  Fiscal target to have a range than fixed target to give govt elbow to manage uncertainties

– Non-plan expenditure at Rs 14.28 lakh crore in FY17

– Committee to be set up to review FRBM Act

– Plan and non-plan expenditure classification to be done away with from 2017-18

–  FY17 Fiscal deficit target at 3.5 per cent

– Deduction will be available for all assess for who are covered under tax audit for 30% of expenditure for additional employments. The number of days conditions has been reduced from 300 to 240. Earlier this was for only manufacturing undertakings.

-Companies Act to be amended to facilitate ease of doing business, Start-ups to register in one day

– Targetted deliveries of financial and other subsidies through Aadhar framework should be initiated

– Public sector general insurance companies to be listed on stock exchanges

– Govt has option to reduce stake in IDBI below 50 per cent

– Road for merger of public sector banks to be spelt out

– Rs 25,000 crore for recapitalisation pf PSU banks

– SARFAESI Act to be amended to give sponsors of Asset Reconstruction Company (ARC) 100 per cent stake

– RBI Act to be amended to give statutory basis for monetary policy framework

– Department of Disinvestment to be renamed Department of Investment and Public Asset Management

100 per cent FDI through FIPB route to be allowed in food products produced and processed in India

– FDI policy to be changed in insurance, pension, asset reconstruction companies and stock exchanges

– Govt to set up 1500 skill development institute, Rs 1,700 crores allocated

-Rs 3,000 cr per annum to be allocated for nuclear power generation

–  Rs 800 crore for national waterways allocatedAbolition of Permit Raj to be medium-term goal

– Abolition of Permit Raj to be medium-term goal

– Total outlay for infrastructure of 2016-17 stands at Rs 2,21,246 cr

– Rs 55,000 cr allocated or road and highways, taking total road investments including Gram Sadak Yojna to Rs 97,000 cr during 2016-17

– Small and medium shops should be given a choice to open on all 7 days. A model shop and establishment bill to be circulated which is to be adopted on a voluntary basis

– Government to give 8.33 per cent interest to all new persons in EPFO in a bid to bring in unemployed person

– Propose to exempt part of dialysis equipments from customs duty

– Govt to spend Rs 850 crore in a few years on animal husbandry, cattle and livestock breeding:

– New health care scheme with Rs 1 lakh cover for each family to be initiated

– PM has called for entrepreneurship amongst SC and ST. For this Cabinet has approved Rs 500 crore through ‘Stand Up India’ shceme to promote SC, ST and women entrepreneurs.

– 3,000 medicines stores under Prime Minister Jan Ausidhi Yojna to be started

– 75 lakh middle income people have given up LPG subsidy through ‘Give it Up’ scheme

– Rs 2000 cr to be allocated for LPG cylinders to women members of poor families

– Rs 87,765 cr allocated for rural development in this Budget

– Digital literacy mission scheme to include 6 crore more households in next 3 years

– Digital literacy mission scheme to include 6 crore more households in next 3 years

– Proposed Rs 9,000 cr for Swachh Bharat Abhiyaan in FY17

– Need to think beyond food security to income security for agri and farmers.

– to achieve by May 1, 2018 100 per cent village electrification

100 kms road construction per day currently to be stepped up

– Rs 500 crore allocated to pulses production

-Rs 38,500 cr to be spent on MGNERGA, highest ever

– Rs 2.8 lakh crore grant to gram panchayat and local bodies, a quantum jump of previous years

– Rs 15,000 crore scheme to ease loan burden for farmers in 2016-17

The govt is implementing unified agricultural market scheme for farmers to access markets easily with e-platform

– Identified 9 pillars for having a transforming impact on the economy and Life of people

– Agriculture, Rural Sector, Social Sector (healthcare), Education, Infrastructure, Financial Sector, Governance and Ease of Business, Fiscal Discipline, Tax Reform

– Long-term irrigation fund of Rs 20,000 cr to be created

– Govt to reorient intervention in farm and non-farm sector to double farmers’ income in 5 years

– Tax reforms to be initiated to reduce compliance burden

– Public sector insurance company may be listed

– Govt to continue with ongoing reform measures, including bankruptcy law

– Focus to pass GST, bankruptcy code

– 2016-17 to be challenging, additional burden on account of 7th pay commission and OROP

– Firewalls should be created against global risks, says Arun Jaitley

– India’s GDP at 7.6 per cent despite slowdown in exports

– Global economy in serious economic crisis, says Arun Jaitley

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