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Tuesday, 1 March 2016

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Key Features of Budget 2016-2017

Babloo - 08:46:00
INTRODUCTION : Growth of Economy accelerated to 7.6% in 2015-16

CHALLENGES IN 2016-17 : Risks of further global slowdown and turbulence.

ROADMAP & PRIORITIES :  ‘Transform India’ to have a significant impact on economy and lives of people

AGRICULTURE AND FARMERS’ WELFARE : Allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore

RURAL SECTOR : Allocation for rural sector – Rs.87,765 crore.

SOCIAL SECTOR INCLUDING HEALTH CARE : Allocation for social sector including education and health care – Rs.1,51,581 crore.

EDUCATION, SKILLS AND JOB CREATION : 62 new Navodaya Vidyalayas will be opened

SKILL DEVELOPMENT : Allocation for skill development – Rs. 1804. crore.

JOB CREATION : GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs. 1000 crore for this scheme

INFRASTRUCTURE AND INVESTMENT : Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during 2016-17.

FINANCIAL SECTOR REFORMS  : A comprehensive Code on Resolution of Financial Firms to be introduced.

GOVERNANCE AND EASE OF DOING BUSINESS : A Task Force has been constituted for rationalisation of human resources in various Ministries

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

RELIEF TO SMALL TAX PAYERS : Raise the ceiling of tax rebate under section 87A fromRs. 2000 to Rs. 5000 to lessen tax burden on individuals with income upto Rs.5 laks

BOOST EMPLOYMENT AND GROWTH : Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to Rs. 2 crores to bring big relief to a large number of assessees in the MSME category.

MAKE IN INDIA : Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry

MOVING TOWARDS A PENSIONED SOCIETY : Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS).

PROMOTING AFFORDABLE HOUSING : 100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities

RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN 
ENVIRONMENT : Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs.10 lakh per annum

PROVIDING CERTAINITY IN TAXATION : Committed to providing a stable and predictable taxation regime and reduce black money.

SIMPLIFICATION AND RATIONALIZATION OF TAXES : 13 cesses, levied by various Ministries in which revenue collection is less than ` 50 crore in a year to be abolished.

TECHNOLOGY FOR ACCOUNTABILITY : Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.

Authority: www.indiabudget.nic.in

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