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| Union Budget 2016 |
⦁ No change in personal Income Tax slabs
* 4-month Compliance Window for domestic black money holders; tax, interest on them at 45%
* Relief for tax payers who earn below Rs 5 lakh; ceiling of rebate u/s 87A raised to Rs 5,000 from Rs 2,000
* House rent deduction raised from Rs 20,000 to Rs 60,000
* One-time dispute resolution scheme for retro tax cases, penalty, interest waived
* High level committee headed by Revenue Secretary to oversee creation of fresh liability using retro tax law
* Corporate Tax for new manufacturing units fixed at 25%
* Clean energy cess increased from Rs 200/ton to 400/ton on coal, lignite and peat
* First home buyers to get addl deduction of Rs 50,000 on interest for loan up to Rs 35 lakh; cost of house should not be more than Rs 50 lakh
* To achieve fiscal deficit of 3% of GDP by (2017-18)
* Fiscal Deficit target 3.9% in 2015-16, 3.5% in 2016-17
* Revenue Deficit to be 2.8% in 2015-16
* Current Account Deficit for 2015-16 at $14.4 billion or 1.4% of GDP
* Forex reserves at highest at $350 billion
* Budget lists 9 transformative pillars including doubling farm income by 2022, infrastructure, investment, reforms
* Highest ever allocation of Rs 38,500 cr for MGNREGA
* Certain equipment for dialysis exempt from basic customs duty, excise CVD
* Govt to circulate Model Shops and Establishment Bill, small retail shops may remain open for 7 days
* 100% rural electrification by May 1, 2018
* Govt to pay EPF contribution of 8.33% of new employees for first 3 years.
* Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019
* To give statutory status to Aadhaar programme
* Infrastructure outlay at Rs 2.21 lakh cr
* Rs 35,984 crore earmarked for farmer welfare; to spend Rs 86,500 crore on irrigation in 5 years
* Rs 20,000 crore irrigation fund to be set up under NABARD
* Rs 2,000 crore for LPG connection to poor; scheme for MPG connection for women
* Stand Up India allocated Rs 500 crore
* Roads and highways allocation at Rs 55,000 crore; NHAI can issue tax free bonds.
* Long term capital gains for unlisted companies to be reduced from 3 to 2 years
* Rs 9,000 crore allocated to Swachh Bharat Abhiyaan
* Targets 10,000 km national highways, upgradation of 50,000 kms of state highways
* Incentivise gas production from deep sea, other unutilised deep sources
* Rs 31,300 cr Infra Bonds to be issued by various agencies -- NHAI, IREDA, NABARD
* Further relaxation of FDI rules in insurance, pension, stock exchanges, asset reconstruction companies
* 100% FDI in food products made domestically
* Department of Disinvestment renamed Department of Investment & Public Asset Management
* NITI Aayog to identify CPSEs for strategic sale
* To design framework for PSU bank consolidation
* To consider lowering govt stake in IDBI to below 50%
* Health insurance scheme to provide Rs 1 lakh per family
* Senior citizens to get additional healthcare cover of Rs 30,000 under the new scheme
* Comprehensive Code for providing specialised resolution mechanism for bankruptcy of banks/insurance firms
* To amend Companies Act for registration of firms in a day
* GAAR to be implemented from April 1, 2017.
* Legislation to deal with the menace of illicit deposit taking schemes
* Place of Effective Management rules deferred by a year
* Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of NPS
* Steps to re-vitalise Public-Private-Partnership mode
* Public Utility (Resolution of Disputes) Bill to be introduced, Guidelines for renegotiation of PPP Concession Agreements
* New credit rating system for infrastructure projects
* Interest rate setting Monetary Policy Committee in 2016.
*Krishi Kalyan Cess at 0.5% on all taxable services from June 1, 2016
* Infrastructure cess at 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles, SUVs
* Excise duties on various tobacco products other than beedi raised by about 10 to 15%
* RBI to facilitate retail participation in G-Secs
* New derivative products to be developed by SEBI
* PSU General Insurers to be listed in stock exchanges
* Review and rationalisation of Autonomous Bodies
* Amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs 1.80 lakh crore
* Govt to increase ATMs, micro-ATMs in post offices
* Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme.
* DBT to be used to transfer subsidy on fertiliser in select districts on pilot basis
* Plan, non-Plan distinction to be done away with; a Committee to review FRBM
* Service tax on Single premium Annuity Policies reduced from 3.5% to 1.4% of the premium paid in certain cases
* 10% tax rate on income from worldwide exploitation of patents developed and registered in India by a resident
* NBFCs to get deduction of 5% of its income in respect of provision for bad and doubtful debts
* Basic custom and excise duty on refrigerated containers reduced to 5% and 6%
* 100% deduction for profits in housing project for flats up to 30 sq metres in four metros; 60 sq mts in other cities, approved during June 2016 to March 2019 and completed in 3 years. MAT to apply.
* Agriculture credit target highest at Rs 9 lakh crore
* Unified agriculture market e-platform will be dedicated to the nation on the birthday of B R Ambedkar
