TaxTMI 
TaxTMI 
Birds eye view - What Budget says
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....irds eye view - What Budget says <br>Budget<br>Dated:- 29-2-2016<br><BR>* 19,610 cr of net revenue gain from direct & indirect taxes * High-level Committee Chaired To Allay Fears Of Retro Tax * Corp tax to be cut to 29% from FY18 for cos with turnover less than ₹ 5 cr * Creating 11 new benches of Indirect Tax tribunal * Propose to rationalise norms for tax deducted at source * Dividend Tax rate of 10% for individuals/HUF if dividend in excess of 10 lk/annum * Propose to abolish 14 different cesses levied by ministers * Skill development reforms to boost MII * To lower penalty to 50% of tax in case of under-reporting of income * Propose 1-time Scheme w.r.t Dispute Resolution Provided Case Withdrawn * STT increase in....
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.... options * New cos will not be allowed to seek any exemption * LTCG period for unlisted companies reduced to 2 years * New mfg cos after March 1, 2016 to be taxed at 25% plus cess+surcharge * Accelerated depreciation limited for R&D to 150% from FY18 * Accelerated depreciation limited to 40% from FY18 * Number of measures will be undertaken to deepen corporate bond market * Raise personal I-T house rent exemption to 60,000 from 24,000/yr * To enable non institutional investors to invest in ARCs * Turnover limit of 2 cr for SMEs * Department of Disinvestment to be renamed as Department of Investment and Public Asset Management * Govt stands firmly behind public sector banks * Will undertake massive nationwide of ATMs ....
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....in the next 3 years * To propose introduction of DBT in fertilizer on pilot basis * Total resources allocated to states 99681 cr more than 2015-16 RE * To do away with plan & non-plan classification from FY18 * 2.5% revenue deficit target for FY16 vs budgeted est of 2.8% * Committee To Review FRBM * Non-plan classification from FY18 * Non-plan expenditure at ₹ 14.28 lk cr * 15.3% increase in plan expenditure to to ₹ 5.5 lk crore * FY17 fiscal deficit target at 3.5% * To adhere to fiscal deficit target * Aadhaar bill to be introduced in current session of parliament * Govt has option to reduce stake in IDBI below 50% * Amend SEBI act to increase benches in SAT * 25,000 cr for bank recap * Comprehensi....
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....ve framework to deal with CIS schemes * 100% FDI through FIPB route in marketing of food products marketing will be allowed * To announce 3 initiatives in reinvigorate pvt sector * SEBI to bring new derivative pdts for commodity markets * Tax of 10% in the hands of dividend recipients above 10 lk * Propose New Dispute Resolution Scheme * Offering limited period compliance window for undisclosed income * Voluntary disclosure of income for blackmoney * To raise excise duty on most tobacco products by 10-15% * Clean energy cess for coal ₹ 400/ tonne * To levy 1% infra cess on small gasoline cars * Increase limit for rent paid * Deduction amount under 80GG increased from 24,000 pa to 60,000 pa * Deduction to rent....
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.... payers under 80 GG increased from ₹ 24k cr to 60k cr * Benefits of research will be 150% by 1st April 2017 and 100% by 1st April 2020 * Lower corporate tax rates from co with Rev under ₹ 5cr to 29% + surcharge + cess * First home buyers an additional deduction of interest of 50,000 provided value of house does not exceed ₹ 50 lakh * Tax exempt 40% of withdrawal from NPS at retirement * Propose 100% deduction to undertakings for construction of affordable housing * DDT exempted from REITs * Propose to make some changes in customs, excise duty rates * Propose to implement GAAR from April 1, 2017 * Propose complete passthrough of IT to trusts of ARCs * Govt to open up the road transport sector in the pass....
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....enger segment * Abolition of permit raj to be our medium term goal * Approve 10K Km of National Highways in FY17 * RBI act to be amended to provide framework for monetary policy code * Bankruptcy code to be introduced in parliament in FY17 * Total investment in road sector at 97000 cr in FY17 * Encourage CPSEs to divest non-core assets like land etc * Propose further FDI reforms for stock exchanges, ins, pension * Duty drawback schemes to be widened * Propose 31,300 cr of infra bonds to be issued by various agencies * To issue guidelines for renegotiation of PPP contracts * To introduce public utility resolution bill * Calibrated market prices for gas based on landed price of alt fuels * Propose to develop 10 of 25....
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.... non-functional airstrips * To incentivise gas production from deep sea & ultra deep waters * To partner state govts to rejuvenate regional airports * To amend motor vehicle act to open up road passenger sector * Necessary amendments to open up road transport for passenger seg * Allocate 55,000 cr for roads highways; excl 15,000 cr nhai bonds * Need to derive greater benefit from demographic advantage * Launching 2 schemes to promote digital literacy * To pay 8.33% for new employees towards EPFO contribution for 3 years * 75 lk households have voluntarily given up cooking gas subsidy * 3000 Stores For Generic Drugs Will Be Opened In FY17 * Stand up india scheme allocated ₹ 500 cr for SC, ST and women entrepreneur....
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....s * To set up high education financing agency with 1,000 cr capital * Additional 30,000 cr coverage to be provided for senior citizens above 60 years * Propose to exempt parts of dialysis equipment from basic customs duty * Propose to launch new health care scheme with 1 lk as cover per family * Need to adopt prudent fiscal strategy * Must rely on domestic demand since foreign mkts are weak * Allocate ₹ 2,000 cr for initial cost of LPG connection to women members * Mission to provide LPG gas connection to women household members * Embark on a mission to give LPG connection to women in poor households * Looking at reforming dispute redressal mechanism in PPP projects * Propose 87,765cr for rural dvpt in FY17 * 2....
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....8.5 lk hectares to be brought under PM's Krishi Sinchai Yojana * 89 irrigation projects will be fast tracked * 368 cr provided for National soil health and fertility program * Allocate 9,000cr towards Swachh Bharat Mission * Govt committed to achieve 100% village electrification by May 1, 2018 * Krishi Vikas Yojana will bring 5lk acres under organic farming * 12 states have already amended their APMC acts * 38,500 Cr allocation to MNREGA * Urgent need to focus on areas rural distress * Propose ₹ 2.87 lakh cr as grants to rural local bodies in FY17 * Rs.2.87 lac cr to be given as grants to aid gram panchayats * Propose ₹ 5,500 cr for crop insurance scheme for FY17 * 4 new schemes to enhance dairy farmi....
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....ng in India at ₹ 850 cr * To implement online procurement system under Food Corp of India * Target of Agri credit at all-time high of ₹ 9 lakh cr * Rs.15,000 cr to be allocated for interest subvention for agri loans * Sadak Yojana allocation at ₹ 19,000 Cr for FY17 * Unified agri market scheme to enhance farmer access to markets * To set up e-platform to enhance farmer access to markets * Propose to spend ₹ 86,500 Cr on irrigation projs in 5 years * Allocation for AIBP at ₹ 17,000 Cr for FY17 * Create new infra for irrigation, value addition to farm-mkt connectivity * Have to give farmers income security, aim to double farmer income * Allocation to farming sector at ₹ 35,984 Cr * P....
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....roposed to double farmers' income in 5 years * Propose to tax reforms to reduce compliance burden * Budget focus on infra & enhancing quality of life * To enact law to give statutory backing to Aadhaar * Focus on social sector especially health care, education & skill dvpt * Will pursue implementation of GST, reform measures pending before parliament * Budget focus on tax reforms to reduce burden of compliance * Budget to focus on rural employment & infrastructure * Focus to pass GST, bankruptcy code * Will Give Statuatory Backing To Aadhar Platform * Priority To Provide Addl Resource To Vulnerable Sections In Rural Areas * Will Focus On Areas Of Utmost Importance To Govt * Will focus on areas of utmost importanc....
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....e to govt * To Make Provision For Bank Recap, Farm & Social Sector In FY17 * New Initiative To Support BPL Families With Cooking Gas Subsidy * Additional burden on account of 7thpay comm & OROP * Increase plan expenditure for FY16<BR> News - Press release - PIB....