Highlights of the Indian Union Budget for the Financial year 2016-17

The following are the Highlights of the Union Budget for the Financial year-2016-17,  presented by the Indian Union Finance  Minister Arun Jaitley on 29th February in the Lokh Sabha of the Indian Parliament:-

  • There will be NO CHANGE in the  existing Slabs and Rates of Personal Income Tax
  • The Surcharge on income above Rs 1 Crore will be 15%
  • For a new Employees’ Provident Fund/ EPF Scheme, Rs 1000 Crores have been allocated
  • The Government of India will pay the EPF of 8.33% for the new employees for the first 3 years
  • Tax Deduction for rent paid will be raised from Rs 20,000/- to Rs 60,000/-
  • For housing loans below Rs 50 lakhs, additional exemption of Rs. 50,000/- will be allowed for loans upto Rs 35 Lakhs
  • For construction of houses of less than 60 sq.m. the Service Tax will be exempted construction of houses less than 60 sq. M
  • Companies with revenue less than Rs 5 crore to be taxed at 29% plus surcharge
  • Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.
  • Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
  • 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.
  • SUVs, Luxury cars to be more expensive. 4% high capacity tax for SUVs.
  • Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
  • Excise 1 per cent imposed on articles of jewellery, excluding silver
  • Total allocation for agriculture and farmer welfare IS  Rs 35,984 Crores
  • 28.5 lakh heactares of land wil be brought under irrigation
  • 5 lakh acres will be brought under organic farming over a 3  years  period
  • For recharging ground water Rs 60,000 Crores have been allocated as it urgently necessary to focus on drought hit areas cluster development for water conservation
  • Dedicated irrigation fund in NABARD is Rs.20.000 Crores
  • Under the PM Fasal Bima Yojna Insurance Scheme, there will be nominal premium and highest ever compensation in case of crop loss.
  • For recapitalization of Public sector Banks Rs 25,000 Crores have been allocated
  • The’ Banking Board Bureau’/BBB will be operationalised to stand solidly behind public sector banks
  • Target of disbursement under MUDRA has been  increased to  1,80,000 Crores
  • Process of transfer of government stake in IDBI Bank below 50% has started
  • General Insurance companies will be listed in the stock exchange
  • In the next 3 year the number of  ATMs &, micro-ATMs in post offices will be increased
  • A Scheme for promoting entrepreneurship among the SC/ST people will be launched at a cost of Rs.500 Crores
  • 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
  • 1500 Multi Skill Development Centres will be set up at a cost of Rs. 1,700 crores
  • 62 new navodaya vidyalayas will be opened to provide quality education
  • Digital literacy scheme will be  launched to cover 6 crore additional rural households
  • Entrepreneurship training will be provided across schools, colleges and massive online courses
  • In the next 3 years 1 Crore of youth will be skilled under the PM Kaushal Vikas Yojna
  • National Skill Development Mission has imparted training to 76 lakh youth and  1500 Multi-skill training institutes will be  set up.
  • For Nuclear Power Generation Rs. 3000 crores have been earmarked
  • For exploiting nuclear energy comprehensive plans to be implemented in the next 15-20 years will be drawn by the Union Government of India
  • For Deep water Gas exploration incentives will be provided by the Union Government of India
  • Deepwater gas new disc will  get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels
  • The basic dialysis equipments will be given some tax relief, as in India every year about 2.2 lakhs of  renal patients are  added  and dialysis will be provided at all the district hospitals under the ‘National Dialysis Service Program’.
  • A new health protection scheme will be launched  for health cover upto 1 lakh per family
  • Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
  • Under the ‘PM Jan Aushadhi Yojana’ which will be further  strengthened, 300 generic drug stores will be  opened
  • On Roadways Rs 27,000/- Crores will be spent
  • 65 eligible habitats will be connected via 2.23 lakh kms of road and the current construction pace is 100 kms/day
  • Shops will be  given option to remain open all the 7 days in a week across markets
  • For Roads &Highways Rs. 55,000 Crores is allocated and the total amount allocated for roads constructions,  including PMGSY is  Rs 97,000 Crores
  • The Total outlay for infrastructure in Budget 2016is  Rs. 2,21,246 Crores
  • New greenfield ports will be developed on east and west coasts
  • The Union Government of India will partner with the State Governments to revive small and underserved Airports for Regional connectivity
  • 100 per cent FDI in marketing of food products produced and marketed in India
  • For the ‘Mahtma Gandhi MGNREGA’ for  the year 2016-17 Rs 38,500 Crores is allocated
  • For the ‘Swacch Bharat Abhiyan’ Rs 9500 Crores is  allocated
  • Hub to support SC/ST entrepreneurs will be formed
  • A new scheme with the support of the State Governments will be launched to provide ‘Cooking Gas’ to the families ‘Below the Poverty Line’/ BPL for which Rs 2000 Crores have been allocated for 5 years
  • ‘LPG-Cooking Gas  connections will be provided under the name of women members of family
  • The Grants to the Gram Panchayats and Municipalities will be Rs 2.87 lakh crores

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