Highlights Of Union Budget 2016

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Finance Minister, Arun Jaitley presented his first full Union Budget for fiscal year 2016-17. Here are quick highlights from the Union Budget 2016.

  • Scope of e-assessment to be expanded to 7 mega cities, to simplify compliance for taxpayers: FM
  • TDS to be rationalized. NRIs on submitting a certain document will not pay excess TDS. 
Highlights Of Union Budget 2016
  • India will not resort to retrospective taxation in future: Jaitley
  • No changes have been made to existing income tax slabs
  • Tax compliance window from Jun 1-Sep 30 for declaring undisclosed income at 45% inc surcharge, penalty.
  • Increase in excise duty on tobacco products (except beedi) by 10-15%.
  • Dividend distribution tax for dividends received in excess of Rs 10 lakhs each year is 10%.
  • Securities Transaction Tax for options and futures hiked.
  • 100% tax deduction for new startups for first three years.
  • Withdrawal of 40% of corpus tax free for NPS. 
  • Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual income to be raised to Rs 5000 from Rs 2000 currently.
  • Proposed increase in deduction under rent paid for non home owners under HRA hiked to Rs 60,000.
  • Propose to set up a panel to review the FRBM.
  • Target of disbursement under MUDRA increased to 1,80,000 crore
  • Planned expenditure to rise 15.3 per cent at Rs. 5.5 lakh Crores.
  • Fiscal deficit target of 3.5% for 2016-17.
  • Provide better access through micro ATMs and ATMs.
  • Rs 25,000 crores for re-capitalization of PSU banks.
  • RBI Act will be ammended for Monetary Policy Committee.
  • Motor Vehicles Act to see major revamp, entrepreneurs will be able to run buses more easily.
  • Small shops should be given the choice to remain open on all 7 days a week: Jaitley. 
  • Rs 2,21,247 crores allocated for the infrastructure sector.
  • Govt to provide health insurance of up to Rs 1 lakh per family.
  • A Higher Education Financing Agency to be set up, with a fund of 1000 crores: Jaitley
  • 1500 multi skills development centre
  • A National Dialysis Service across district hospitals, to be funded on PPP
  • Cabinet has approved Stand Up India scheme. Rs. 500 crore has been provided for SC/SCT through the scheme.
  • Health Protection Scheme of Rs 1 lakh per family, additional cover for Senior Citizens.
  • Farm, rural sector, infra, social sector to have more Government expenditure : FM
  • Rs 9000 crores allocated for Swach Bharat Abhiyan.
  • Rs. 38,500 crores allocated to MNREGA. 
  • Growth is up, inflation is down, forex reserves are robust at a time of global headwinds, Jaitley.
  • Dedicated long term irrigation fund under NABARD of Rs 20,000 Crores
  • Aim to double the income of farmers in 5 years. Rs 35,984 crores total allocation for farmers' welfare: FM
  • Rural Sadak Yojana allocation is Rs 19,000 crores. Rs 15,000 crore farm loan interest subvention.
  • 5 eligible habitats to be connected via 2.23 lakh km of road. Current construction pace is 100 km per day: Jaitley

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Story first published: Monday, February 29, 2016, 12:20 [IST]
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