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Union Budget 2016-17 Highlights : Cigarettes Cars to Become Expensive

Union Budget 2016-17 Highlights
Written by Team Maffat

Union Finance Minister Mr. Arun Jaitley on 29th February 2016, Monday announced his 3rd Budget speech in Parliament. The Finance Minister said that the country is beefing up its economy at a time when the world is weathering through an economic crisis.

Arun Jaitley said, “The Current Account deficit has declined from 18.4 billion US dollars in the first half of last year to 14.4 billion this year. It is projected to be 1.4% of GDP at the end of this year. Our foreign exchange reserves are at the highest ever level of about 350 billion US dollars.”

Following are the highlights of Union Budget 2016-17 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%

 

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

 

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To achieve fiscal deficit of 3% of GDP by (2017-18)

 

Fiscal Deficit target 3.9% in 2015-16, 3.5% in 2016-17

 

Revenue Deficit to be 2.8% in 2015-16

 

Current Account Deficit for 2015-16 at $14.4 billion or 1.4% of GDP

 

Forex reserves at highest at $350 billion

 

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%

 

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

 

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% rural electrification by May 1, 2018

 

Govt to pay EPF contribution of 8.33% of new employees for first 3 years.

 

Start-ups to get 100% 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

 

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

 

Rs 2,000 crore for LPG connection to poor; scheme for MPG connection for women

 

Stand Up India allocated Rs 500 crore

 

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% 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% 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 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% on all taxable services from June 1, 2016

 

Infrastructure cess at 1% on small petrol, LPG, CNG cars, 2.5% 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%

 

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

 

Plan, non-Plan distinction to be done away with; a Committee to review FRBM

 

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

 

Service tax on Single premium Annuity Policies reduced from 3.5% to 1.4% of the premium paid in certain cases

 

10% tax rate on income from worldwide exploitation of patents developed and registered in India by a resident

 

NBFCs to get deduction of 5% of its income in respect of provision for bad and doubtful debts

 

Basic custom and excise duty on refrigerated containers reduced to 5% and 6%

 

100% 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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