Birds eye view - What Budget says

29-2-2016

Contents

19,610 cr of net revenue gain from direct & indirect taxes
High-level Committee Chaired To Allay Fears Of Retro Tax
Corp tax to be cut to 29% from FY18 for cos with turnover less than ₹ 5 cr
Creating 11 new benches of Indirect Tax tribunal
Propose to rationalise norms for tax deducted at source
Dividend Tax rate of 10% for individuals/HUF if dividend in excess of 10 lk/annum
Propose to abolish 14 different cesses levied by ministers
Skill development reforms to boost MII
To lower penalty to 50% of tax in case of under-reporting of income
Propose 1-time Scheme w.r.t Dispute Resolution Provided Case Withdrawn
STT increase in options
New cos will not be allowed to seek any exemption
LTCG period for unlisted companies reduced to 2 years
New mfg cos after March 1, 2016 to be taxed at 25% plus cess+surcharge
Accelerated depreciation limited for R&D to 150% from FY18
Accelerated depreciation limited to 40% from FY18
Number of measures will be undertaken to deepen corporate bond market
Raise personal I-T house rent exemption to 60,000 from 24,000/yr
To enable non institutional investors to invest in ARCs
Turnover limit of 2 cr for SMEs
Department of Disinvestment to be renamed as Department of Investment and Public Asset Management
Govt stands firmly behind public sector banks
Will undertake massive nationwide of ATMs in the next 3 years
To propose introduction of DBT in fertilizer on pilot basis
Total resources allocated to states 99681 cr more than 2015-16 RE
To do away with plan & non-plan classification from FY18
2.5% revenue deficit target for FY16 vs budgeted est of 2.8%
Committee To Review FRBM
Non-plan classification from FY18
Non-plan expenditure at ₹ 14.28 lk cr
15.3% increase in plan expenditure to to ₹ 5.5 lk crore
FY17 fiscal deficit target at 3.5%
To adhere to fiscal deficit target
Aadhaar bill to be introduced in current session of parliament
Govt has option to reduce stake in IDBI below 50%
Amend SEBI act to increase benches in SAT
25,000 cr for bank recap
Comprehensive framework to deal with CIS schemes
100% FDI through FIPB route in marketing of food products marketing will be allowed
To announce 3 initiatives in reinvigorate pvt sector
SEBI to bring new derivative pdts for commodity markets
Tax of 10% in the hands of dividend recipients above 10 lk
Propose New Dispute Resolution Scheme
Offering limited period compliance window for undisclosed income
Voluntary disclosure of income for blackmoney
To raise excise duty on most tobacco products by 10-15%
Clean energy cess for coal ₹ 400/ tonne
To levy 1% infra cess on small gasoline cars
Increase limit for rent paid
Deduction amount under 80GG increased from 24,000 pa to 60,000 pa
Deduction to rent payers under 80 GG increased from ₹ 24k cr to 60k cr
Benefits of research will be 150% by 1st April 2017 and 100% by 1st April 2020
Lower corporate tax rates from co with Rev under ₹ 5cr to 29% + surcharge + cess
First home buyers an additional deduction of interest of 50,000 provided value of house does not exceed ₹ 50 lakh
Tax exempt 40% of withdrawal from NPS at retirement
Propose 100% deduction to undertakings for construction of affordable housing
DDT exempted from REITs
Propose to make some changes in customs, excise duty rates
Propose to implement GAAR from April 1, 2017
Propose complete passthrough of IT to trusts of ARCs
Govt to open up the road transport sector in the passenger segment
Abolition of permit raj to be our medium term goal
Approve 10K Km of National Highways in FY17
RBI act to be amended to provide framework for monetary policy code
Bankruptcy code to be introduced in parliament in FY17
Total investment in road sector at 97000 cr in FY17
Encourage CPSEs to divest non-core assets like land etc
Propose further FDI reforms for stock exchanges, ins, pension
Duty drawback schemes to be widened
Propose 31,300 cr of infra bonds to be issued by various agencies
To issue guidelines for renegotiation of PPP contracts
To introduce public utility resolution bill
Calibrated market prices for gas based on landed price of alt fuels
Propose to develop 10 of 25 non-functional airstrips
To incentivise gas production from deep sea & ultra deep waters
To partner state govts to rejuvenate regional airports
To amend motor vehicle act to open up road passenger sector
Necessary amendments to open up road transport for passenger seg
Allocate 55,000 cr for roads highways; excl 15,000 cr nhai bonds
Need to derive greater benefit from demographic advantage
Launching 2 schemes to promote digital literacy
To pay 8.33% for new employees towards EPFO contribution for 3 years
75 lk households have voluntarily given up cooking gas subsidy
3000 Stores For Generic Drugs Will Be Opened In FY17
Stand up india scheme allocated ₹ 500 cr for SC, ST and women entrepreneurs
To set up high education financing agency with 1,000 cr capital
Additional 30,000 cr coverage to be provided for senior citizens above 60 years
Propose to exempt parts of dialysis equipment from basic customs duty
Propose to launch new health care scheme with 1 lk as cover per family
Need to adopt prudent fiscal strategy
Must rely on domestic demand since foreign mkts are weak
Allocate ₹ 2,000 cr for initial cost of LPG connection to women members
Mission to provide LPG gas connection to women household members
Embark on a mission to give LPG connection to women in poor households
Looking at reforming dispute redressal mechanism in PPP projects
Propose 87,765cr for rural dvpt in FY17
28.5 lk hectares to be brought under PM's Krishi Sinchai Yojana
89 irrigation projects will be fast tracked
368 cr provided for National soil health and fertility program
Allocate 9,000cr towards Swachh Bharat Mission
Govt committed to achieve 100% village electrification by May 1, 2018
Krishi Vikas Yojana will bring 5lk acres under organic farming
12 states have already amended their APMC acts
38,500 Cr allocation to MNREGA
Urgent need to focus on areas rural distress
Propose ₹ 2.87 lakh cr as grants to rural local bodies in FY17
Rs.2.87 lac cr to be given as grants to aid gram panchayats
Propose ₹ 5,500 cr for crop insurance scheme for FY17
4 new schemes to enhance dairy farming in India at ₹ 850 cr
To implement online procurement system under Food Corp of India
Target of Agri credit at all-time high of ₹ 9 lakh cr
Rs.15,000 cr to be allocated for interest subvention for agri loans
Sadak Yojana allocation at ₹ 19,000 Cr for FY17
Unified agri market scheme to enhance farmer access to markets
To set up e-platform to enhance farmer access to markets
Propose to spend ₹ 86,500 Cr on irrigation projs in 5 years
Allocation for AIBP at ₹ 17,000 Cr for FY17
Create new infra for irrigation, value addition to farm-mkt connectivity
Have to give farmers income security, aim to double farmer income
Allocation to farming sector at ₹ 35,984 Cr
Proposed to double farmers' income in 5 years
Propose to tax reforms to reduce compliance burden
Budget focus on infra & enhancing quality of life
To enact law to give statutory backing to Aadhaar
Focus on social sector especially health care, education & skill dvpt
Will pursue implementation of GST, reform measures pending before parliament
Budget focus on tax reforms to reduce burden of compliance
Budget to focus on rural employment & infrastructure
Focus to pass GST, bankruptcy code
Will Give Statuatory Backing To Aadhar Platform
Priority To Provide Addl Resource To Vulnerable Sections In Rural Areas
Will Focus On Areas Of Utmost Importance To Govt
Will focus on areas of utmost importance to govt
To Make Provision For Bank Recap, Farm & Social Sector In FY17
New Initiative To Support BPL Families With Cooking Gas Subsidy
Additional burden on account of 7thpay comm & OROP
Increase plan expenditure for FY16