Union Budget 2016-2017

Union Budget 2016-2017 :: Highlights
Union Budget 2016-2017 :: Highlights 
Finance Minister Arun Jaitley a forecast that India would grow by 7.6% in the fiscal year that is drawing to a close. He said the government wanted to spread the benefits of growth more widely among India's 1.3 billion people, but that he would stick to the government's existing fiscal deficit target for the coming year.

Important points of budget 2016-2017

Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP.

'Forex reserves are at highest level at $350 billion'

Total outlay for infrastructure - Rs 2,21,246 crore.

Jaitley announces the nine pillars of his BudgetAgriculture and farmers' welfare, rural sector, social 
sector including healthcare, education, skills and job creation, infrastructure, financial sector reforms, ease of doing business, fiscal discipline, tax reforms to reduce compliance burden.


Focus on Vulnerable sections through:

a) Pradhan Mantri Fasal Bima Yojana

b) New health insurance scheme to protect against hospitalisation expenditure

c) facility of cooking gas connection for BPL families

Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. Declarators will have immunity from prosecution.

New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to `Rs10 lakh. Cases with disputed tax exceeding `Rs 10 lakh to be subjected to 25% of the minimum of the imposable penalty. Any pending appeal against a penalty order can also 14 be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition.

Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from Rs 15 lakhs to Rs 50 lakhs.

11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

Allocation for Agriculture and Farmers’ welfare is Rs 35,984 crore
‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.

Implementation of 89 irrigation projects under AIBP, which are languishing for a long time, will be fast tracked

A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore

Pro gramme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore will be implemented through 3 multilateral funding.

Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.

Revenue Deficit target from 2.8% to 2.5% in RE 2015-16

Total expenditure projected at ` 19.78 lakh crore

Plan expenditure pegged at ` 5.50 lakh crore under Plan, increase of 15.3%

Non-Plan expenditure kept at ` 14.28 lakh crores.

Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and    child development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure.

Mobilisation of additional finances to the extent of ` 31,300 crore by NHAI, PFC, REC, IREDA, NABARD  and Inland Water Authority by raising Bonds.

Plan / Non-Plan classification to be done away with from 2017-18. Every new scheme sanctioned will have a sunset date and outcome review.

“Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.

National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations

Allocation of ` 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru 5 Gobind Singh.

A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.

National Land Record Modernisation Programme has been revamped.

New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of 655 crore.

“Ek Bharat Shreshtha Bharat” programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.

62 new Navodaya Vidyalayas will be opened

Guidelines for renegotiation of PPP Concession Agreements will be issued

New derivative products will be developed by SEBI in the Commodity Derivatives market.

Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC and permit non institutional investors to invest in Securitization Receipts. 7. Comprehensive Central Legislation to be bought to deal with the menace of illicit deposit taking schemes.

Sarva Shiksha Abhiyan to increasing focus on quality of education.

Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. Declarants will have immunity from prosecution.

Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions

increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to ` 2 crores to bring big relief to a large number of assessees in the MSME category.

Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross    receipts up to Rs 50 lakh.

Higher Education Financing Agency to be set-up with initial capital base of Rs 1000 Crores.

Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.

2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission.

A sum of Rs 38,500 crore allocated for MGNREGS.

300 Rurban Clusters will be developed under the Shyama Prasad4 Mukherjee Rurban Mission

100% village electrification by 1st May, 2018.

Allocation for skill development – Rs 1804. crore
1500 Multi Skill Training Institutes to be set-up.

Comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation to be drawn up.

National Board for Skill Development Certification to be setup in partnership with the industry and academia.
10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.

Entrepreneurship Education and Training through Massive Open Online Courses

New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to `Rs10 lakh. Cases with disputed tax exceeding `Rs 10 lakh to be subjected to 25% of the minimum of the imposable penalty. Any pending appeal against a penalty order can also 14 be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition.

High Level Committee chaired by Revenue Secretary to oversee fresh cases where assessing officer applies the retrospective amendment.

One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.
Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts.

No Service Tax for houses built under 60 square metres.

4% high capacity tax for SUVs.

100 Model Career Centres to operational by the end of 2016-17 under National Career Service.

Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.

Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.

Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.

Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.

Automation facilities will be provided in 3 lakh fair price shops by March 2017.

Amendments in Companies Act to improve enabling environment for start-ups.

Price Stabilisation Fund with a corpus of ` 900 crore to help maintain stable prices of Pulses.

Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework to be introduced.

MAKE IN INDIA

Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair.


Union Budget 2016-2017  Union Budget 2016-2017 Reviewed by SSC-IBPS on 19:15:00 Rating: 5
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