Highlights Of Union Budget 2016

Posted By:

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


Read more about: union budget 2016
Story first published: Monday, February 29, 2016, 12:20 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?