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Synopsis: Union Budget 2016-2017

By : Dr. Anand Wadadekar on 29 February 2016 E-mail Print Report Abuse


Hello,
 
It has been my every year ritual - since more than 13 years now - to send the "Synopsis of Union Budget"as soon as declared by our Finance Minister.
 
So this year too, I carry on with this ritual, unabated...
 
Hope you will benefit from this... this year too... 
 
Please find below the "Synopsis of the Union Budget 2016-2017" presented by our Finance Minister Arun Jaitley in the Parliament today, Monday, the 29th February of 2016.
 
Key Features, Finance Bill, Budget Speech are available on www.indiabudget.nic.in
 
Please do pass on this in your contacts...
 
Best Regards,
- Dr. Anand Wadadekar, Ph.D.
Educationist | Economist | Author
Founder Director & CEO
Discovering Careers India Pvt. Ltd.
 
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GENERAL:

Finance Minister says:

 

 

  • Govt. has to prioritize expenditure. Focus on the rural and social sectors, infrastructure and recapitalization of banks
  • Agenda for next year is to undertake transformative measures based on 9 pillars for India - Agriculture, rural sector, social sector, edu skills/job creation, infra investment, financial sector reforms, governance, ease of doing business, fiscal & tax reforms
  • PSU Insurance Companies To Be Listed
  • Statutory backing for Aadhar soon
  • A unified agriculture market e-platform will be dedicated to the nation on the birthday of Dr. B.R. Ambedkar
  • 100% rural electrification of Indian villages by May 2018
  • Rs 9,000 crores allocated to Swaccha Bharat Abhiyaan
  • 3,000 new Jan Aushadhi stores to come up for quality medicines
  • 100% FDI to be allowed through FIPB route in Food Products Produced and Marketed in India
  • Fiscal deficit target retained at 3.5 per cent of GDP

 

Education:

 

  • National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi skill training institutes to be set up
  • Digital depository for academic certificates to help reduce the issue of fake degrees
  • Rs. 1000 cr set aside for higher education financing
  • We will interlink state employment exchanges with national service career platform
  • Objective to skill 1 crore youth in next 3 years under the PM Kaushal Vikas Yojana

 

Infrastructure:

 

  • Rs 55,000 crore set aside for roads and highways in FY17
  • 85% of stalled road projects back on track
  • Total allocation to road sector including PMGSY: Rs. 97,000 crores
  • A mammoth total outlay of Rs 2,18,000 crore for railways and roads in FY17
  • Total outlay for infrastructure Rs. 2,21,246 crores in 2016/17
  • Target of 10,000 kms of national highway and upgradation of 50,000 kms of state highways in 2016/17
  • Rs 3,000 crore allocated for nuclear power
  • Private Entrepreneurs to be allowed to run bus services on various routes, subject to efficiency
  • 50% of tax as penalty for income under-reporting cases, 200% for misreporting facts

 

Finance:

 

 

  • Growth of GDP has accelerated to 7.6% .Retail inflation declined to 5.4%
  • Forex Reserves have reached their highest mark at $350 billion
  • FY16 CAD seen at 1.4% of GDP
  • New Financial Data Management Centre to facilitate integrated data analysis
  • Department of Disinvestment to be renamed as Department of Investment and Public Asset Management
  • Asset-reconstruction companies' sponsors to be allowed to hold 100%; Sarfaesi Act to be amended
  • RBI Act to be amended to give statutory backing for monetary policy
  • Comprehensive code to provide specialised resolution mechanism for bankruptcy of banks/insurance firms
  • 25,000 crore for recapitalization of public sector banks
  • An increased allocation of Rs 1,80,000 Crores under PM MUDRA Yojana
  • More no. of benches of Security Appellate Tribunal to be introduced by amending SEBI Act to reduce pendency
  • Plan Non-plan distinction to be removed from 2017/18
  • Revenue gains of Rs 19,600 cr from indirect and direct tax changes

 

DIRECT TAX:

 

Individuals:

Tax Slabs remain unchanged at:

 

Income up to Rs 2.5 lakh: NIL tax
Income between Rs 2.5-5 lakh: Tax at 10%

 

Income between 5-10 lakh: Tax at 20%
Income above Rs 10 lakh: Tax at 30%

 

 

  • Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual income to be raised to Rs 5000 from Rs 2000
  • HRA deduction increased to Rs 60,000 per annum from Rs 24,000 per annum
  • Presumptive I-T scheme extended to all professions
  • Krishi Kalyan Cess of 0.5% on all taxable services
  • Tax compliance window from Jun 1-Sep 30 for declaring undisclosed income
  • To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs. 50 Crores a year abolished
  • 11 new benches of tax tribunals to be established to reduce pendency

 

Corporate:

 

  • Corp tax rate cut to 29% from FY18 for firms with turnover of less than Rs 5 cr
  • 100% deduction on profits for start-ups for 3 out of first 5 years; MAT to apply
  • Capital gains not to be taxed on investments in regulated Fund of Funds for start-ups
  • 100% deduction on profits to undertakings for construction of affordable housing

 

INDIRECT TAX:

 

Service tax exemption for construction of affordable housing upto 60 sq.m. under state and central housing schemes

STT in options to be increased to 0.05 per cent

Excise duty on most tobacco products raised by 10-15%

 

 

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Disclaimer: This Synopsis prepared by Dr. Anand Wadadekar, has been prepared with utmost care and accuracy, however errors or omissions cannot be fully ruled out and the Author is not responsible for the same. The recipient is advised to go through the original Finance Bill if required.

 

 

Best Regards,
- Dr. Anand Wadadekar, PhD
Educationist | Economist | Author
Pune, Maharashtra
 
Source : Finance Minister,

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