Highlights of Union Budget 2016-17
A. TAX
Cess
- Infrastructure and Agriculture Cess to be levied
- Pollution Cess of 1 % on small petrol, LPG and CNG cars; 2.5 % on diesel cars of certain specifications; 4 % on higher-end models
- Krishi Kalyan Cess to be levied on all services - 0.5 %
Service Charge
- Service Charge on purchase of Luxury cars (over Rs. 10 lakh) - 1 %
- Service Charge on purchase of goods and services (over Rs. 2 lakh) in cash - 1 %
High-end Taxes
- High capacity tax for SUV cars - 4 %
- Companies with revenue less than Rs. 5 crore to be taxed at - 29 % + Surcharge
- Dividend in excess of Rs. 10 lakh per annum to be taxed at additional - 10 %
Excise Duty
- Excise Duty on tobacco products (except beedis) - raised from 10 % to 15 %
- Excise Duty on articles of jewellery (excluding silver) - 1 %
Tax Compliance Window
- Limited tax compliance window from June 1 - Sep 30 for declaring undisclosed income at - 45 % including surcharge and penalties
B. PERSONAL FINANCE
Income Tax
- No change in existing Income Tax Slabs
- 15 % surcharge (raised from 12 %) on Income above Rs. 1 crore
EPF - Employees provident fund
- Rs. 1000 crore allocated for new EPF (Employees' Provident Fund) scheme
- Government will pay EPF contribution of 8.33 % for all new employees for first 3 years
Exemptions and benefits
- Deduction limit under Section 87A of I-T Act raised from Rs. 2,000 to Rs. 5,000 per annum (applicable to those with total income of less than Rs. 5 lakh)
- Relief for taxpayers who do not own a house and don't get house rent allowance (HRA) from employers. Under Section 80GG, deduction for rent paid will be raised from Rs. 24,000 to Rs. 60,000 per annum
- Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh (provided cost of house is not above Rs. 50 lakh)
- Service Tax exempted for construction of houses less than 60 square meter
C. SOCIAL
Allocations
- MGNREGA for 2016-17 allocated - Rs. 38,500 crore
- Swacch Bharat Abhiyan alocated - Rs. 9,500 crore
- Hub to support SC / ST entrepreneurs
LPG, cooking gas
- Government is launching a new initiative to provide cooking gas to BPL families with state support
- LPG connections to be provided under the name of women members of family - Rs. 2,000 crore allocated for 5 years for BPL families
Rural and Urban
- 2.87 lakh crore grants to Gram panchayats and municipalities - a quantum jump of 228 %
- 300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
Animal Welfare
- 4 schemes for animal welfare
D. HEALTH
Dialysis
- 2.2 lakh renal patients added every year in India. Basis dialysis equipment gets some relief
- National Dialysis Service Program with funds through PPP mode to provide dialysis at all district hospitals
Health cover
- A new health protection scheme for health cover upto 1 lakh per family
- Senior Citizens will get additional healthcare cover of Rs. 30,000 under the new scheme
Generic drug store
- PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened
E. EDUCATION
- Scheme to get Rs. 500 crore for promoting entrepreneurship among SC / ST
- 10 public and 10 private educational institutions to be made world-class
- Digital repository for all school leaving certificates and diplomas.
- Rs. 1,000 crore for higher education financing
- Rs. 1,700 crore for 1,500 multi-skill development centers
- Digital literacy scheme to be launched to cover 6 crore additional rural households
- Entrepreneurship training to be provided across schools, colleges and massive online courses
- Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojana
- National Skill Development Mission (NSDM) has imparted training to 76 lakh youth,
F. ENERGY
- Rs. 3,000 crore earmarked for nuclear power generation
- Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
- Govt to provide incentive for deep-water gas exploration
- Deep-water gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels
G. INVESTMENTS AND INFRASTRUCTURE
- Rs. 27,000 crore to be spent on roadways
- 65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms / day
- Shops to be given option to remain open all 7 days in a week across markets
- Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY - Rs. 97,000 crore
- India's highest-ever production of motor vehicles was recorded in 2015
- Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
- New greenfield ports to be developed on east and west coasts
- Revival of under-served airports. Center to partner with states to revive small airports for regional connectivity
- 100 % FDI in marketing of food products produced and marketed in India
- Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
- Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation
- MAT will be applicable for startups that qualify for 100 % tax exemption
- Direct Tax proposals result in revenue loss of Rs. 1,060 crore; Indirect Tax proposals result in gain of Rs. 20,670 crore
H. AGRICULTURE
- Total allocation for agriculture and farmer welfare at Rs. 35,984 crore
- 28.5 lakh hectares of land will be brought under irrigation
- 5 lakh acres to be brought under organic farming over a 3 year period
- Rs. 60,000 crore for recharging of ground water as there is urgent need to focus on drought hit areas cluster development for water conservation
- Dedicated Irrigation Fund in NABARD of Rs. 20,000 crore
- Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojana
I. BANKING
- Banks get - Rs. 25,000 crore towards recapitalization of Public Sector Banks. Banking Board Bureau will be operationalized.
- Target of disbursement under MUDRA increased to 1.8 lakh crore
- Process of transfer of government stake in IDBI Bank below - 50 % started
- General Insurance companies will be listed in the stock exchange
- Govt to increase ATMs, micro-ATMs in Post Offices in next 3 years
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