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Highlights of the 2016 Union Budget
Finance Minister Arun Jaitley on Monday presented the Union Budget for 2016-17.
Following are the highlights of Union Budget 2016-17 that were presented by Finance Minister Arun Jaitley in Parliament:
- No change in personal Income Tax slabs
- 4-month Compliance Window for domestic black money holders; tax, interest on them at 45 per cent
- Relief for tax payers who earn below Rs 5 lakh; ceiling of rebate u/s 87A raised to Rs 5,000 from Rs 2,000
- House rent deduction raised from Rs 20,000 to Rs 60,000.
- One-time dispute resolution scheme for retro tax cases, penalty, interest waived.
- High level committee headed by Revenue Secretary to oversee creation of fresh liability using retro tax law.
- Corporate Tax for new manufacturing units fixed at 25 per cent.
- Clean energy cess increased from Rs 200/ton to 400/ton on coal, lignite and peat.
- First home buyers to get addl deduction of Rs 50,000 on interest for loan up to Rs 35 lakh; cost of house should not be more than Rs 50 lakh.
- To achieve fiscal deficit of 3 per cent of GDP by (2017-18).
- Fiscal Deficit target 3.9 per cent in 2015-16, 3.5 per cent in 2016-17.
- Revenue Deficit to be 2.8 per cent in 2015-16.
- Current Account Deficit for 2015-16 at $14.4 billion or 1.4 per cent of GDP
- Forex reserves at highest at $350 billion.
- Budget lists 9 transformative pillars including doubling farm income by 2022, infrastructure, investment, reforms
- Highest ever allocation of Rs 38,500 cr for MGNREGA.
- Certain equipment for dialysis exempt from basic customs duty, excise CVD.
- Govt to circulate Model Shops and Establishment Bill, small retail shops may remain open for 7 days.
- 100 per cent rural electrification by May 1, 2018.
- Govt to pay EPF contribution of 8.33 per cent of new employees for first 3 years.
- Start-ups to get 100 per cent tax exemption for 3 years except MAT which will apply from April 2016-2019.
- To give statutory status to Aadhaar programme
- Infrastructure outlay at Rs 2.21 lakh cr.
- Rs 35,984 crore earmarked for farmer welfare; to spend Rs 86,500 crore on irrigation in 5 years.
- Rs 20,000 crore irrigation fund to be set up under NABARD.
- Rs 2,000 crore for LPG connection to poor; scheme for MPG connection for women.
- Stand Up India allocated Rs 500 crore.
- Roads and highways allocation at Rs 55,000 crore; NHAI can issue tax free bonds.
- Long term capital gains for unlisted companies to be reduced from 3 to 2 years
- Rs 9,000 crore allocated to Swachh Bharat Abhiyaan
- Targets 10,000 km national highways, upgradation of 50,000 kms of state highways.
- Incentivise gas production from deep sea, other unutilised deep sources
- Rs 31,300 cr Infra Bonds to be issued by various agencies -- NHAI, IREDA, NABARD.
- Further relaxation of FDI rules in insurance, pension, stock exchanges, asset reconstruction companies.
- 100 per cent FDI in food products made domestically
- Rs 25,000 cr for recapitalisation of PSU banks
- Department of Disinvestment renamed Department of Investment & Public Asset Management
- NITI Aayog to identify CPSEs for strategic sale
- To design framework for PSU bank consolidation
- To consider lowering govt stake in IDBI to below 50%
- Health insurance scheme to provide Rs 1 lakh per family
- Senior citizens to get additional healthcare cover of Rs 30,000 under the new scheme
- Comprehensive Code for providing specialised resolution mechanism for bankruptcy of banks/insurance firms
- To amend Companies Act for registration of firms in a day
- GAAR to be implemented from April 1, 2017.
- Legislation to deal with the menace of illicit deposit taking schemes
- Place of Effective Management rules deferred by a year.
- Withdrawal up to 40 per cent of the corpus at the time of retirement to be tax exempt in the case of NPS.
- Steps to re-vitalise Public-Private-Partnership mode.
- Public Utility (Resolution of Disputes) Bill to be introduced, Guidelines for renegotiation of PPP Concession Agreements.
- New credit rating system for infrastructure projects.
- Interest rate setting Monetary Policy Committee in 2016.
- Krishi Kalyan Cess at 0.5 per cent on all taxable services from June 1, 2016
- Infrastructure cess at 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4% on other higher engine capacity vehicles, SUVs
- Excise duties on various tobacco products other than beedi raised by about 10 to 15 per cent.
- RBI to facilitate retail participation in G-Secs
- New derivative products to be developed by SEBI
- PSU General Insurers to be listed in stock exchanges
- Review and rationalisation of Autonomous Bodies
- Amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs 1.80 lakh crore
- Govt to increase ATMs, micro-ATMs in post offices
- Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme.
- DBT to be used to transfer subsidy on fertiliser in select districts on pilot basis
- Plan, non-Plan distinction to be done away with; a Committee to review FRBM
- Service tax on Single premium Annuity Policies reduced from 3.5 per cent to 1.4 per cent of the premium paid in certain cases
- 10 per cent tax rate on income from worldwide exploitation of patents developed and registered in India by a resident
- NBFCs to get deduction of 5 per cent of its income in respect of provision for bad and doubtful debts
- Basic custom and excise duty on refrigerated containers reduced to 5 per cent and 6 per cent
- 100 per cent deduction for profits in housing project for flats up to 30 sq metres in four metros; 60 sq mts in other cities, approved during June 2016 to March 2019 and completed in 3 years. MAT to apply.
- Agriculture credit target highest at Rs 9 lakh crore
- Unified agriculture market e-platform will be dedicated to the nation on the birthday of B R Ambedkar.
OneIndia News
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Story first published: Wednesday, January 25, 2017, 23:24 [IST]