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Tuesday, March 1, 2016

2016-17 Union Budget Feb 29,2016 - Highlights



    *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
  • * Surcharge on super-rich with income of over Rs. 1 cr raised to 15 per cent, from 12 per cent
  • * 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%
  • * 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% 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 USD 14.4 billion or 1.4% of GDP
  • * Forex reserves at highest at USD 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% 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
  • * 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% 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 (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% 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
  • * 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% 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 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.
  • * 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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