Highlights of Union Budget 2016-17

By Sarkaritel February 29, 2016 13:00

Highlights of Union Budget 2016-17


New Delhi, Feb 29  Highlights of the budget for 2016-17 presented by Finance Minister Arun Jaitley in the Lok Sabha.

Highlights of Union Budget 2016-17 :

* To reduce multiplicity of taxes and cascading, 13 taxes with collections of less than Rs.50 crore a year abolished

* Income tax deptartment will expand e-sahyog to assist small taxpayers

* Scope of e-assessment to be expanded to seven mega cities to simplify compliance for taxpayers

* Taxation proposals to increase government revenue by Rs.19,610 crore

* Penalty to be 50 percent of tax in income under-reporting cases, 200 percent in misreporting of facts

* Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases

* Direct Benefit Transfer in fertilisers on pilot basis in few districts

* Limited tax compliance window from June 1 – September 30 for declaring undisclosed income at 45 percent including surcharge and penalties

* Clean energy cess increased from Rs.200/tonne to Rs.400/tonne on coal, lignite and peat

* Moving towards a low tax regime with non-litigious approach

* Committed to provide a stable and predictable taxation regime

* Relief of Rs.3,000 per year to taxpayers with income below Rs.5 Lakh per year to benefit one crore taxpayers

* Surcharge on income tax for incomes exceeding Rs.1 crore per annum raised from 12 percent to 15 percent 

* Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana

* Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

* Plan, Non-Plan distinction to be removed from 2017-18

* For income below Rs.5 lakh per annum, tax ceiling has been raised from Rs.2,000 to Rs.5,000

* Relief to those in rented houses: Deduction raised from Rs.24,000 to Rs.60,000 under Section 88G 

* Corporate income tax: Incentives for new manufacturing companies and relatively small enterprise companies

* Fiscal deficit for 2016-17 targeted at 3.5 percent

* Committed to implementing General Anti-Avoidance Rules (GAAR) from April 1, 2017

* New policy for managing assets of public enterprises

* Comprehensive approach to be adopted for government investment in central public sector enterprises

* Three initiatives for better delivery of public services

* Increased allocation of Rs.1,80,000 crore under PM MUDRA Yojana

* Market Stabilization Fund for Pulses gets Rs.900 crore

* Financial Data Management Centre for integrated data collection and analysis

* RBI Act being amended to provide statutory basis for monetary policy framework

* 100 percent FDI to be allowed through FIPB route in food products produced and marketed in India

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

* Comprehensive plan being drawn up to be implemented in the next 15-20 years for exploiting nuclear energy

* Government to provide health insurance of up to Rs.1 lakh per family; 300 generic drug stores to be opened under PM Jan Aushadhi Yojana

* Roads and highways allocated Rs.55,000 crore, 50,000 km of state highways to be taken up for upgradaing to national highways

* Stand Up India scheme allocated Rs.500 crore for SCs, STs women entrepreneurs

* Government to incentivise gas production from deep sea and other unutilised deep sources

* Public Utility Resolution of Disputes Bill for resolution of infra sector disputes

* Pradhan Mantri Kaushal Vikas Yojan gets Rs.1,700 crore 

* Digital depository for school leaving certificates

* Higher education financing agency to be set up with fund of Rs.1,000 crore

* National Skill Development Mission has imparted training to 76 lakh youth; 1,500 multi-skill training institutes to be set up

* Model Shops and Establishments Bill to be circulated for voluntary adoption by states 

* Current account deficit down to $14.4 billion

* Rs.2.87 lakh crore for rural and urban local bodies

* Animal welfare programme, animal health card, e-marketing platform for connecting breeders

* 100 percent village electrification to be achieved by May 1, 2018

* Appreciation for 75 lakh middle class and lower middle class families for willingly giving up LPG Subsidy 

* Rs.19,000 crore allotted for PMGSY

* Rs.8.5 lakh crore of agricultural credit targetted in 2015-16; and Rs.9 lakh crore in 2016-17 

* Rs.35,984 crore allocated for agriculture in 2016-17

* Five lakh acres to be brought under organic farming over three-year period

* MGNREGA to get Rs.38,500 crore

* Recapitalisation of banks during next fiscal

* Prudent fiscal policy needed, domestic demand should be raised, reforms need to be carried out 

* Farm, rural sector, infra and social sector to get more funds

* Need to prioritise expenditure given recommendations of 7th Pay Commission and OROP implementation

* Nine pillars for reforming India, among them agriculture, social sector, education, infra, fiscal discipline, and tax reforms

* Presenting budget when global economy in a serious crisis 

* Amidst global headwinds, the Indian economy has held its own

* Converted challenges we inherited into opportunities

* CPI inflation down to 5.4 percent from 9 percent-plus, bringing big relief to the public

* Forex reserves at highest-ever level


By Sarkaritel February 29, 2016 13:00