 |
| Budget 2016-17 |
Budget 2016-17
Budget 2016-17: Key Highlights
Key Features of Budget 2016-2017
Budget focus on to double farmers' income by 2022
Govt is launching a new initiative to provide cooking gas to BPL families with government's support
Rs 9000 crore has been provided for Swachch Bharat Programme
Villages will be rewarded to discourage open defecation
RS 500 crore for Stand up India to promote entrepreneurship amongst SC, ST
To set up 1500 multi skilled training institutes, Rs 1700, crore set aside for skill training institutes
To promote 100 model career centres by end of 2016
Measures to speed up road construction: Rs 55000 crore allocated for roads and highways by 2017
To bring amendment in Passenger Vehicles Act: Entrepreneurs will be allowed to operate buses/ fleet services; will create jobs for youth and have multiplier effect on economy
To open new greenfiled ports in Eastern and Western sector
Attempt to incentivise deep see gas exploration
Public Utilisty and Resolution Bills to streamline conflicts in infrastructure area; Credit rating system for infrastructure projects
To allow firms to launch infra bonds worth Rs 31300 crore
Small airports and air strips to be developed for improving regional connectivity
FDI policy will address farmers' needs
Fiscal Deficit target 3.5%, revised revenue deficit target at 2.5%
New Bankruptcy code will be introduced in the Parliament in 2016; measure to fight bankruptcy in PSU banks
NITI Aayog to identify PSUs for asset sale
Rs 25,000 crore for recapitalisation of PSU banks allocated; road for consolidation of PSU banks will be spelled out
Debt recovery Tribunal will be strengthened
Adhar made compulsory for availing social sector benefits
To introduce DBT in fertiliser on pilot basis
Tax rebate to those under Rs 5 lakh per annum
Tax rebate on rent( HRA allowance) increased to Rs 60,000 per annum for Rs 24,000 per annum
100% tax deduction for startups for first three years
New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess, provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.
Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.
To exempt affordable houses up to 60 sq metre from service tax
Levy on purchase of luxury cars
First time home buyer – Rs 50,000 deduction for upto Rs 30 lakh loan provided house cost not more than Rs 50 lakh
1% infrastructure cess proposed with an attempt to curb pollution
1% cess on petrol, CNG cars
Tobacco tax up from 10% to 15%
2.5% cess on diesel, 4% on SUVs
Under reporting of income to be taxed more; deadline of September 30 to disclose undeclared income. Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts.
Justice Iswar committee recommendations largely accepted
No change in income tax slabs
Courtesy: Excerpts taken from FM Budget 2016-17
