Budget 2019

Budget 2016: Highlights

PTI | Updated on January 20, 2018 Published on February 29, 2016
Finance Minister Arun Jaitley along with Minister of State Jayant Sinha addressing a post Budget press conference in the Capital on February 29, 2016. Photo: Ramesh Sharma

B:LINE:Finance Minister, Arun Jaitley along with MoS, Jayant Sinha addressing post budget press conference, in the capital on 29-2-16. Pic:Ramesh Sharma

Following are the highlights of Union Budget 2016—17 presented by Finance Minister Arun Jaitley in Parliament today: <br /> *No change in personal Income Tax slabs <br /> *4-month Compliance Window for domestic black money holders; tax, interest on them at 45% <br /> * 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 <br /> * Surcharge on super-rich with income of over Rs 1 cr raised to 15 per cent, from 12 per cent <br /> * House rent deduction raised from Rs 20,000 to Rs 60,000<br /> * One-time dispute resolution scheme for retro tax cases, penalty, interest waived <br /> * High level committee headed by Revenue Secretary to oversee creation of fresh liability using retro tax law <br /> * Corporate Tax for new manufacturing units fixed at 25% <br /> * Clean energy cess increased from Rs 200/ton to 400/ton on coal, lignite and peat <br /> * 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 <br /> * To achieve fiscal deficit of 3% of GDP by (2017—18) <br /> * Fiscal Deficit target 3.9% in 2015—16, 3.5% in 2016—17 <br /> * Revenue Deficit to be 2.8% in 2015—16 * Current Account Deficit for 2015—16 at USD 14.4 billion or 1.4% of GDP <br /> * Forex reserves at highest at USD 350 billion <br /> * Budget lists 9 transformative pillars including doubling farm income by 2022, infrastructure, investment, reforms <br /> * Highest ever allocation of Rs 38,500 cr for MGNREGA <br /> * Certain equipment for dialysis exempt from basic customs duty, Excise CVD <br /> * Govt to circulate Model Shops and Establishment Bill, small retail shops may remain open for 7 days <br /> * 100% rural electrification by May 1, 2018 <br /> * Govt to pay EPF contribution of 8.33% of new employees for first 3 years.<br /> * Start—ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016—2019 <br /> * To give statutory status to Aadhaar programme <br /> * Infrastructure outlay at Rs 2.21 lakh cr <br /> * Rs 35,984 crore earmarked for farmer welfare; to spend Rs 86,500 crore on irrigation in 5 years <br /> * Rs 20,000 crore irrigation fund to be set up under NABARD <br /> * Rs 2,000 crore for LPG connection to poor; scheme for MPG connection for women <br /> * Stand Up India allocated Rs 500 crore <br /> * Roads and highways allocation at Rs 55,000 crore; NHAI can issue tax free bonds. <br /> *Long term capital gains for unlisted companies to be reduced from 3 to 2 years <br /> * Rs 9,000 crore allocated to Swachh Bharat Abhiyaan <br /> * Targets 10,000 km national highways, upgradation of 50,000 kms of state highways <br /> * Incentivise gas production from deep sea, other unutilised deep sources <br /> * Rs 31,300 cr Infra Bonds to be issued by various agencies —— NHAI, IREDA, NABARD <br /> * Further relaxation of FDI rules in insurance, pension, stock exchanges, asset reconstruction companies <br /> * 100% FDI in food products made domestically <br /> * Rs 25,000 cr for recapitalisation of PSU banks <br /> * Department of Disinvestment renamed Department of Investment &amp; Public Asset Management <br /> * NITI Aayog to identify CPSEs for strategic sale <br /> * To design framework for PSU bank consolidation <br /> * To consider lowering govt stake in IDBI to below 50% <br /> * Health insurance scheme to provide Rs 1 lakh per family <br /> * Senior citizens to get additional healthcare cover of Rs 30,000 under the new scheme <br /> * Comprehensive Code for providing specialised resolution mechanism for bankruptcy of banks/insurance firms <br /> * To amend Companies Act for registration of firms in a day <br /> * GAAR to be implemented from April 1, 2017.<br /> * Legislation to deal with the menace of illicit deposit taking schemes <br /> * Place of Effective Management rules deferred by a year <br /> * Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of NPS <br /> * Steps to re-vitalise Public-Private-Partnership mode <br /> * Public Utility (Resolution of Disputes) Bill to be introduced, Guidelines for renegotiation of PPP Concession Agreements <br /> * New credit rating system for infrastructure projects <br /> * Interest rate setting Monetary Policy Committee in 2016.Krishi Kalyan Cess at 0.5% on all taxable services from, June 1, 2016 <br /> * 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 <br /> * Excise duties on various tobacco products other than beedi raised by about 10 to 15% <br /> * RBI to facilitate retail participation in G—Secs <br /> * New derivative products to be developed by SEBI <br /> * PSU General Insurers to be listed in stock exchanges <br /> * Review and rationalisation of Autonomous Bodies <br /> * Amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs 1.80 lakh crore <br /> * Govt to increase ATMs, micro—ATMs in post offices <br /> * Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme.<br /> * DBT to be used to transfer subsidy on fertiliser in select districts on pilot basis <br /> * Plan, non—Plan distinction to be done away with; a Committee to review FRBM <br /> * Service tax on Single premium Annuity Policies reduced from 3.5% to 1.4% of the premium paid in certain cases <br /> * 10% tax rate on income from worldwide exploitation of patents developed and registered in India by a resident <br /> * NBFCs to get deduction of 5% of its income in respect of provision for bad and doubtful debts <br /> * Basic custom and excise duty on refrigerated containers reduced to 5% and 6% <br /> * 100% deduction for profits in housing project for apartments 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.<br /> * Agriculture credit target highest at Rs 9 lakh crore <br /> * Unified agriculture market e—platform will be dedicated to the nation on the birthday of B R Ambedkar<br />
Published on February 29, 2016
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