New Delhi: Finance Minister Arun Jaitley is today presenting the Union Budget 2016-17. He began his address in the Parliament by saying that the government will enhance social, rural and agricultural sector. Given below are few highlights from the budget.
Jaitley before beginning said that the government has pledged to “spend prudently and wisely for the people, especially for the poor and downtrodden.”
Highlights from Jaitley Union Budget 2016-17
Cooking gas will be made available for the families (Below Poverty Line)
New Health Insurance
PM Fasal BIMA YOJNA
Focus on spending more in the sectors including – farm, social and infra
GDP growth at robust 7.6%
Three serious implications: Improve the firewall against these conditions, domestic demand must pick up and reform process should continue
The risk of global slowdown is mounting
Increased our plan stage in the RE stage in 2015-16
Money with the government belongs to the people
CPI inflation has come down to 5.4%
Forex Reseves at 350 bn dollars
Working to increase crop yield in rain fed areas
Soil health card scheme is being implemented with greater vigour, all farmers will be covered by March 2017
Allocated Rs 60000 cr to harness ground water
Rs 17000 cr next years and Rs 86500 cr in the next five years to increase area of irrigation
Only 46% of cultivated land is fed with irrigation
Government will work towards doubling the income of farmers within 5 years
Current account deficit has declined from 18.4 billion US dollars in 1st half of last year to 14.4 billion this year
Recapitalization of banks will be done during next FY
Will continue with reform to ensure the passage of GST Bill
Online procurement systems under FCI to ensure that farmers get a fair price for their produces
Rs 5500 cr for PM Fasal Bima Yojna
Rs 9 lakh crore allocated for agricultural loans
NDRF fund norms revised
PM GRAM SADAK Yojna to get Rs 19000
Unified market e-platform will be dedicated to the nation on April 14 – Ambedkar’s birthday
Unified agricultural market scheme being envisaged
Rs 500 crore under food security mission earmarked for cultivation of pulses
Rs 38,500 crore has been allocated to MNREGA. This will be highest amount spent on NREGA
New projects to be taken for dairy procurement, will issue animal health card, e-marketing portal for contacting breeders
Rs 2.87 lakh crores to be given as aid to Gram Panchayats as recommended by Finance Commission, a jump of 128%
Honey production has been increased to 86500 mt tone
E-pashudhan haat for connecting farmers and breeders of livestock
Rs 87765 cr for rural sector as a whole
National digital literacy mission to cover 6 crore rural households
Swatch Bharat gets Rs 9000 crore
100% electrification by May 1, 2018
5542 villages have been electrified Feb 23, 2016, this is more than the total combined achievement of the past three years
300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
National hub will be created to help SC/ST entrepreneurs
The scheme gets Rs 500 cr
‘Stand up scheme’ to promote entrepreneurship in SC/ST and women
Certain dialysis will get tax subsidy. National dialysis service programme will be started to provide dialysis service in all district hospital
New health protection scheme – cover of Rs 1 lakh per family, senior citizens will get an additional cover of Rs 30000
75 lakh middle class and lower middle class have voluntarily given up subsidy on LPG
The mission will cover a total of 5 crore BPL families
LPG connection in the name of women members of poor connections, Rs 2000 crore earmarked for the scheme
Govt will pay EPF contribution of 8.33% for all new employees for 1st three years for those with salaries upto Rs 1500 pm
1 crore youth will be imparted skills in the next 3 years via the 1500 multi-skill institutes which will be set up across the country
National skill development mission has trained 76 lakh youth
Digital depository for school and college certificates will be set up
Higher education financing agency will be set up with an initial capital of Rs 1000 crore
62 new Navodaya Vidyalas will be opened
Focus will be quality education
Will partner with state govt to develop some of these airports to enhance regional connectivity
Action plan for revival of unserved and underserved airports
800 cr for inland waterways
Additional 50000 kms of state highways will be taken up for up gradation as national highway
10000 kms of national highways in 2016-17
Rs 218000 crore investment in roads and railways in 2016-17
Total of Rs 97000 crore will be spend on roads and highways
85% of stalled road projects back on track
Shops will be given an option to remain open on all seven days
Retail trade is largest service sector employer in country. Many more jobs are created in this, provided the regulations are simplified
3,500 medical stores to be opened under Pradhan Mantri Jan Aushodi Yojana
No change in Income Tax slab
Financial Data Management Centre for integrated data collection and analysis
RBI Act being amended to provide statutory basis for monetary policy framework
Dept of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
Will encourage CPSEs to sell their assets like land
100% FDI through FAPB route in marketing of food products produced and manufactured in India
Rs 3000 crore rupees earmarked for nuclear power generation
Considering incentivizing gas production from deep sea, ultra deep water and high temp. areas
New credit rating system for infrastructure
Guidelines of renegotiating PPP contracts will be introduced
Public Utility Resolution of Disputes Bill for resolution of disputes in infra sector
AADHAR NO will not be a proof of citizenship or domicile
Task force has been constituted to rationalize the human resources in various ministries has been instituted
General Insurance companies owned by the govt. will be listed in the stock exchanges
Nationwide of ATMS, micro-ATMs across the country
PM Mudra Yojna amount sanctioned has reached Rs 1 lakh crore, next year’s target is 1,80,000 crore
Process of transformation of IDBI has already started, govt will reduce its stake below 50%
RBI Act being amended to provide statutory basis for monetary policy framework
Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill in 2017
SEBI act to be amended to provide more benches on the security appellate tribunal
A bill on targeted delivery of financial services using Aadhar to be introduced
Public Money should reach the poor and deserving without any leakage\
will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in passenger segment
stands firmly behind public sector banks Rs25k crore for bank recapitalization
Buffer stock of pulses will be created; 900 crore rupees for Market Stabilization Fund for Pulses
Plan and non-plan classification of govt expenditure will be done away with
The fiscal target will be retained at 3.9 for 2015-16, and 3.5 for 2016-17
Relief to those who living on rent – Rent deduction raised from Rs 24,000 to Rs 60,000
Direct benefit transfer scheme will be implemented for disbursal of fertilizer subsidy on a pilot basis
FRBM Act has been under implementation for the past decade, a school of though now feels that instead of a fixed figure, there should a range based target for managing fiscal deficit
Tax ceiling has been raised from 2000 to 5000 rupees for those earning less than Rs 5 lakh rupees p.a.
Taxation is a major tool to remove poverty and inequality in the society’
Fiscal deficit for Financial Year 2016-’17 targeted at 3.5%
Revenue deficit estimate for FY 2015-16 down to 2.5% from earlier estimates
Relief to those who living on rent – Rent deduction raised from Rs 24,000 to Rs 60,000
Accelerated depreciation to be limited to 40% wef from Apr 1, 2017
Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit
Committed to implementing GAAR from April 1, 2017
Presumptive income of 8% Committed to increase investment in asset reconstruction companies
Hike in to limit from 1 to 2 crore on small business assess in MSME category
Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana
Incentives for new manufacturing companies and smaller enterprise companies
Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India
MAT will apply for such undertakings
PM Awas Yojna: 100% deduction for profits of undertakings from housing projects in cities during June 2016 – March 2019
Committed to provide a stable and predictable taxation regime
Move towards a low tax regime with non litigious approach
Clean energy cess increased from RS 200 per tonnne to 400 per tonnne on coal, lignite and peat
Limited tax compliance window from Jun 1 – Sep 30 2016 for declaring undisclosed income at 45% including surcharge and penalties. There shall be no scrutiny or prosecution in this regard
Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit
10% dividend on earnings over earnings over 10 lakhs
Service tax on single premium annuity to be reduced to 1.5 percent from 3.5 percent
Krishi Kalyan Cess of 0.5% on all taxable services
I propose to lower corporate IT rate for next financial yr of relatively small enterprises companies with turnovers nt exceeding 5cr
15% surcharge on income tax for those with incomes exceeding 1 crore pa
Service tax exempted for housing construction of houses less than 60 sq metres
Companies Act to amended for ease of doing business; to enable registration of companies in a day
To reduce multiplicity of taxes and cascading – 13 taxes with collection less than Rs 50 Cr a year abolished
11 new benches of tax tribunals to be established to reduce pendency
Incentives for new manufacturing companies and smaller enterprise companies
Monetary limit for cases to be decided by 1-member bench up from 15 lakh to 50 lakhs
Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases
Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts
Levy of heavy penalty for non-payment of tax has led to high litigation. Proposal to modify scheme for penalties
Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019
Income tax department will expand e-sahyog to assist small taxpayers
Scope of e-assessment to be expanded to 7 mega cities
Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr
Excise duty on Tobacco products increased by 10-15%
New grading system of imposing penalties – on the basis of under reporting or concealment of income
Presumptive tax extended for professional earning up to Rs 50 lakh
National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt
Lower Corporate tax for small companies at 29% surcharge + cess
Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess
Under 5 lakh income – rebate increased from 2000 to 5000
Tax rebate for those earning less than 5 lahk per annum
FM announces 9 objectives for tax reforms
National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt
Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts
Reduction of Rs 60,000 per annum for those who don’t own house and pay rent
First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost not more than Rs 50 lakh
No change in Income Tax slab
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