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Highlights of the 2016 Union Budget

Finance Minister Arun Jaitley on Monday presented the Union Budget for 2016-17.

By Oneindia Staff Writer
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Following are the highlights of Union Budget 2016-17 that were presented by Finance Minister Arun Jaitley in Parliament:

Hightlights of Budget 2017-17
  • 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.

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