Arun Jaitley presents The Union Budget


Budget Highlights (Round-up)

* To reduce multiplicity of taxes and cascading, 13 taxes with collections of less than Rs.50 crore a year abolished

* Income tax deptartment will expand e-sahyog to assist small taxpayers

* Scope of e-assessment to be expanded to seven mega cities to simplify compliance for taxpayers


* Taxation proposals to increase government revenue by Rs.19,610 crore

* Penalty to be 50 percent of tax in income under-reporting cases, 200 percent in misreporting of facts

* Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases

* Direct Benefit Transfer in fertilisers on pilot basis in few districts

* Limited tax compliance window from June 1 – September 30 for declaring undisclosed income at 45 percent including surcharge and penalties

* Clean energy cess increased from Rs.200/tonne to Rs.400/tonne on coal, lignite and peat

* Moving towards a low tax regime with non-litigious approach

* Committed to provide a stable and predictable taxation regime

* Relief of Rs.3,000 per year to taxpayers with income below Rs.5 Lakh per year to benefit one crore taxpayers

* Surcharge on income tax for incomes exceeding Rs.1 crore per annum raised from 12 percent to 15 percent

* Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana

* Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

* Plan, Non-Plan distinction to be removed from 2017-18

* For income below Rs.5 lakh per annum, tax ceiling has been raised from Rs.2,000 to Rs.5,000

* Relief to those in rented houses: Deduction raised from Rs.24,000 to Rs.60,000 under Section 88G

* Corporate income tax: Incentives for new manufacturing companies and relatively small enterprise companies

* Fiscal deficit for 2016-17 targeted at 3.5 percent

* Committed to implementing General Anti-Avoidance Rules (GAAR) from April 1, 2017

* New policy for managing assets of public enterprises

* Comprehensive approach to be adopted for government investment in central public sector enterprises

* Three initiatives for better delivery of public services

* Increased allocation of Rs.1,80,000 crore under PM MUDRA Yojana

* Market Stabilization Fund for Pulses gets Rs.900 crore

* Financial Data Management Centre for integrated data collection and analysis

* RBI Act being amended to provide statutory basis for monetary policy framework

* 100 percent FDI to be allowed through FIPB route in food products produced and marketed in India

* Department of Disinvestment to be renamed Department of Investment and Public Asset Management

* Comprehensive plan being drawn up to be implemented in the next 15-20 years for exploiting nuclear energy

* Government to provide health insurance of up to Rs.1 lakh per family; 300 generic drug stores to be opened under PM Jan Aushadhi Yojana

* Roads and highways allocated Rs.55,000 crore, 50,000 km of state highways to be taken up for upgradaing to national highways

* Stand Up India scheme allocated Rs.500 crore for SCs, STs women entrepreneurs

* Government to incentivise gas production from deep sea and other unutilised deep sources

* Public Utility Resolution of Disputes Bill for resolution of infra sector disputes

* Pradhan Mantri Kaushal Vikas Yojan gets Rs.1,700 crore

* Digital depository for school leaving certificates

* Higher education financing agency to be set up with fund of Rs.1,000 crore

* National Skill Development Mission has imparted training to 76 lakh youth; 1,500 multi-skill training institutes to be set up

* Model Shops and Establishments Bill to be circulated for voluntary adoption by states

* Current account deficit down to $14.4 billion

* Rs.2.87 lakh crore for rural and urban local bodies

* Animal welfare programme, animal health card, e-marketing platform for connecting breeders

* 100 percent village electrification to be achieved by May 1, 2018

* Appreciation for 75 lakh middle class and lower middle class families for willingly giving up LPG Subsidy

* Rs.19,000 crore allotted for PMGSY

* Rs.8.5 lakh crore of agricultural credit targetted in 2015-16; and Rs.9 lakh crore in 2016-17

* Rs.35,984 crore allocated for agriculture in 2016-17

* Five lakh acres to be brought under organic farming over three-year period

* MGNREGA to get Rs.38,500 crore

* Recapitalisation of banks during next fiscal

* Prudent fiscal policy needed, domestic demand should be raised, reforms need to be carried out

* Farm, rural sector, infra and social sector to get more funds

* Need to prioritise expenditure given recommendations of 7th Pay Commission and OROP implementation

* Nine pillars for reforming India, among them agriculture, social sector, education, infra, fiscal discipline, and tax reforms

* Presenting budget when global economy in a serious crisis

* Amidst global headwinds, the Indian economy has held its own

* Converted challenges we inherited into opportunities

* CPI inflation down to 5.4 percent from 9 percent-plus, bringing big relief to the public

* Forex reserves at highest-ever level

12.34 pm: Committed to stable taxation regime. No more retrospective amendments.

12.29 pm: 4% high capacity tax for SUVs.

12.28 pm: Limited period compliance window for domestic taxpayers to declare undisclosed income. Declarations to have immunity from prosecutions.

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12.26 pm: No changes have been made to existing income tax slabs.

12.25 pm: Infrastructure and agriculture cess to be levied.

12.23 pm: 1 per cent service charge on purchase of luxury cars over Rs. 10 lakh and in-cash purchase of goods and services over Rs. 2 lakh.

12.22 pm: Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.

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12.20 pm: 40% of withdrawal at the time of retirement under National Pension Scheme to be tax exempt.

12.19 pm: Tax holiday for startups for three of five years of setting up the company

12.13 pm: Lowering of Corporate IT rate for companies not exceeding Rs. 5 crore turnover to 25% plus surcharge.

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12.09 pm: Ceiling under 87A to be increased by Rs. 3,000. HRA deduction up from Rs. 24,000 to Rs. 60,000 p.a.

12.08 pm: Rs. 100 crore for Deendayal Upadhyay’s birthday celebrations and Guru Gobind Singh 300th birth anniversary.

12.07 pm: No more Classification of expenditure as plan and non-plan

12.06 pm: FIscal deficit at 3.5% of GDP in 2016-17.

12.04 pm: Introduction of a A bill on targeted delivery of financial services using Aadhar

12.03 pm: Companies Act to be amended to ensure speedy registration and boost start-ups

12.02 pm: For buffer stock of pulses – Rs. 900 crore

12.01 pm: Department of Disinvestment renamed as Dept of Investment and Public Asset Management.

12 noon: Direct Benefit Transfer for fertiliser subsidy.

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11.59 am: EPF at 8.33 per cent for new employees joining the scheme.

11.58 am: For recapitalisation of public sector banks Rs. 25,000 crore. General insurance companies owned by the govt to be listed in stock exchanges

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11.56 am: Amendmends to boost Asset Reconstruction Companies to manage NPAs of public sector banks.

11.55 am: RBI Act to be amended to set up monetary policy committee.

11:53 am: 100% FDI through FAPB route in marketing of food products produced and manufactured in India.

11.47 am: In the power sector, the govt is drawing up a plan for 15-20 years to augment investment in nuclear power. Rs. 3,000 crore per annum for this.

11.45 am: 160 airstrips which can be revived have been identified.

11.44 am: To enable entrepreneurship in the road transport sector, Motor Vehicles Act to be amended

11.43 am: Total outlay for infrastructure is at Rs. 2.31 lakh crore

11.42 am: A total of Rs. 97,000 crore for all roads. Total outlay on roads and rails will be Rs. 2.80 lakh crore. 10,000 km of national highways in 2016-17 and 50,000 km state highways to be converted to NH roads.

11.41 am: At the beginning of the year more than 70,000 road projects were languishing. Almost 85% of these projects have been rejuvenated.

11.39 am: The option to remain open on all 7 days for Small shops should be given.

11.37 am: Rs. 1,700 crore for 1500 multi-skill development centres.

11.35 am: 10 public and 10 private educational institutions to be made world-class. Digital repository for all school leaving certificates and diplomas. Rs. 1,000 crore for higher education financing.

11.34 am: Hub to support SC/ST entrepreneurs.

11.30 am: Insurance of Rs 1 Lakh per family to be provided by the Government. 3,000 generic drug stores to be opened

11.30 am: Rural sector allocation Rs. 87,769 crore.

11.27 am: The next three years will see two schemes for digital literacy for rural India covering 6 crore households.

11.26 am: Swachh Bharat Abhiyaan gets Rs. 9,000 crore 

11.25 am: A total of 5,542 villages have been electrified this year, more than the last three years combined.

11.24 am: MNREGA gets Rs. 38,500 crore for MNREGA. Highest ever for the rural employment scheme.

11.23 am: Rs. 2.87 lakh crore for gram panchayats as per recommendation of 14th finance commission.

11.22 am: Four schemes for animal welfare.

11.19 am: Agricultural credit target of Rs 9 lakh crore

11.19 am: Inauguration of Unified e-platform for farmers on Ambedkar’s birthday.

11.15 am: Paramparagat Krishi Vikas Yojana to bring 5 lakh acres under organic farming.

11.14 am: Irrigation will have an addition of 28.5 lakh hectares.

11.13 am: Agriculture Policy will be reorganized to double farmer income in five years

11.11 am: Nine pillars of Arun Jaitley’s Budget — Agriculture 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.

11.11 am: Aadhar will be backed statutorily to ensure delivery of benefits. New scheme for BPL families for gas connections.

11.10 am: CAD is 1.4% of GDP.

11.10 am: VII pay commission implementation and defence OROP will add stress in FY 16-17

11.08 am: FY 15-16 and 16-17 poses a challenge for the government

11.07 am: $350 billion Forex reserves are at the highest ever

11.05 am: GDP has seen accelerated growth to 7.6%. CPI inflation has come down to 5.4%.

11: 05 am: Union Finance Minister, Arun Jaitley says the Indian economy is strong despite a global slowdown.

*Foreign exchange reserves at highest ever level

*India’s GDP growth now at 7.6 percent

*India a bright spot in global economy