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Union Budget 2016-17 Live Updates: No change in Income Tax slabs, rent relief increased to Rs 60,000
Jaitley also proposed to increase the limit of deduction of rent paid from Rs 24,000 per annum to Rs 60,000 spelling respite to those who don’t own any house and live in rented accommodation.
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New Delhi: While making no change in personal Income Tax slabs in the Union Budget 2016-17, Finance Minister Arun Jaitley on Monday announced deduction for additional interests of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first time home buyers, where house costs does not exceed Rs 50 lakh.
Jaitley also proposed to increase the limit of deduction of rent paid from Rs 24,000 per annum to Rs 60,000 spelling respite to those who don’t own any house and live in rented accommodation.
For those earning less than Rs 5 lakh per annum, FM announced to raise the ceiling of tax rebate from Rs 2000 to Rs 5000 giving an additional relief of Rs 3000 in their tax liability.
Stay tuned as we bring you live updates from the Budget.
-No change in Income Tax slabs
-First time home buyer – Rs 50,000 deduction for upto Rs 35 lakh loan provided house cost not more than Rs 50 lakh
-Reduction of Rs 60,000 per annum for those who don’t own house and pay rent
-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts
-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt
-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt
-FM announces 9 objectives for tax reforms
-Tax rebate for those earning less than 5 lahk per annum
-Under 5 lakh income – rebate increased from 2000 to 5000
-Corporate Tax – New manufacturing companies registered on/post March 01, 2016 – option of tax 25% surcharge + cess
-Lower Corporate tax for small companies at 29% surcharge + cess
-National Pension scheme – withdrawal of 40% of corpus at time of retirement tax exempt
-Presumptive tax extended for professional earning up to Rs 50 lakh
-New grading system of imposing penalties - on the basis of under reporting or concealment of income
-Excise duty on Tobacco products increased by 10-15%
-Net impact of taxation proposals is an increase in Govt revenue by Rs 19,610 cr
-Scope of e-assessment to be expanded to 7 mega cities
-Income tax department will expand e-sahyog to assist small taxpayers
-Income tax dept. will expand e-sahyog to assist small taxpayers:
-Start-ups to get 100% tax exemption for 3 years except MAT which will apply from April 2016-2019
-Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties
-Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts
-Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases
-Monetary limit for cases to be decided by 1-member bench up from 15 lakh to 50 lakhs
-Incentives for new manufacturing companies and smaller enterprise companies
-11 new benches of tax tribunals to be established to reduce pendency
-To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs 50 Cr a year abolished
-Companies Act to amended for ease of doing business; to enable registration of companies in a day
-Service tax exempted for housing construction of houses less than 60 sq metres
-15% surcharge on income tax for those with incomes exceeding 1 crore pa
-I propose to lower corporate IT rate for next financial yr of relatively small enterprises companies with turnovers nt exceeding 5cr
-Krishi Kalyan Cess of 0.5% on all taxable services
-Tax evasion will be countered strongly:
-Service tax on single premium annuity to be reduced to 1.5 percent from 3.5 percent.
-10% dividend on earnings over earnings over 10 lakhs
-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.
-Limited tax compliance window from Jun 1 - Sep 30 2016 for declaring undisclosed income at 45% including surcharge and penalties. There shall be no scrutiny or prosecution in this regard
-Clean energy cess increased from RS 200 per tonnne to 400 per tonnne on coal, lignite and peat
-Move towards a low tax regime with non litigious approach
-Committed to provide a stable and predictable taxation regime
-PM Awas Yojna: 100% deduction for profits of undertakings from housing projects in cities during June 2016 - March 2019
-MAT will apply for such undertakings
-Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India
-Incentives for new manufacturing companies and smaller enterprise companies
-Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana
-Hike in to limit from 1 to 2 crore on small business assess in MSME category.
-Presumptive income of 8% Committed to increase investment in asset reconstruction companies
-Special Patent Regime proposed to power innovation and research
Corporate income tax:
-Incentives for new manufacturing companies and relatively small enterprise companies
-Committed to implementing GAAR from April 1, 2017
-Presumptive income tax scheme to be extended to all professionals with income of Rs 50 lakh with a presumption of 50 percent profit.
-Accelerated depreciation to be limited to 40% wef from Apr 1, 2017
-Relief to those who living on rent - Rent deduction raised from Rs 24,000 to Rs 60,000
-Revenue deficit estimate for FY 2015-16 down to 2.5% from earlier estimates
Fiscal deficit for Financial Year 2016-'17 targeted at 3.5%
-Govt acknowledges role of tax payer in nation building
-Taxation is a major tool to remove poverty and inequality in the society'
-Tax ceiling has been raised from 2000 to 5000 rupees for those earning less than Rs 5 lakh ruppes pa
-Relief to those who living on rent - Rent deduction raised from Rs 24,000 to Rs 60,000
-The fiscal target will be retained at 3.9 for 2015-16, and 3.5 for 2016-17
-Plan and non-plan classification of govt expenditure will be done away with
-FRBM Act has been under implementation for the past decade, a school of though now feels that instead of a fixed figure, there should a range based target for managing fiscal deficit
-Direct benefit transfer scheme will be implemented for disbursal of fertilizer subsidy on a pilot basis
-Govt stands firmly behind public sector banks, Rs 25k crore for bank recapitalisation
-Buffer stock of pulses will be created; 900 crore rupees for Market Stabilization Fund for Pulses
-Govt stands firmly behind public sector banks Rs25k crore for bank recapitalisation
-Govt will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in passenger segment
-Public Money should reach the poor and deserving without any leakage
-A bill on targeted delivery of financial services using Aadhar to be introduced
-SEBI act to be amended to provide more benches on the security appellate tribunal
-Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill in 2017
-Number of measures to be undertaken to deepen corporate bond market
-RBI Act being amended to provide statutory basis for monetary policy framework
-Process of transformation of IDBI has already started, govt will reduce its stake below 50%
-PM Mudra Yojna amount snactioned has reached Rs 1 Lakh crore, next year's target is 1,80,000 crore
-Nationwide of ATMS, micro-ATMs across the country
-General Insurance companies owned by the govt will be listed in the stock exchanges
-Task force has been constituted to rationalize the human resources in various ministries has been instituted
-AADHAR NO will not be a proof of citizenship or domicile
-Public Utility Resolution of Disputes Bill for resolution of disputes in infra sector
-Guidelines of renegotiating PPP contracts will be introduced
-New credit rating system for infrastructure
-Considering to incentivize gas production from deep sea, ultra deep water and high temp. areas
-3000 crore rupees earmarked for nuclear power generation
-100% FDI through FAPB route in marketing of food products produced and manufactured in India
-Will encourage CPSEs to sell their assets like land
-Dept of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
-RBI Act being amended to provide statutory basis for monetary policy framework
-Financial Data Management Centre for integrated data collection and analysis
-3,500 medical stores to be opened under Pradhan Mantri Jan Aushodi Yojana
-Retail trade is largest service sector employer in country. Many more jobs are created in this, provided the regulations are simplified:
-Shops will be given an option to remain open on all seven days
-85% of stalled road projects back on track
-Total of Rs 97000 crore will be spend on roads and highways
-Rs 218000 crore investment in roads and railways in 2016-17
-10000 kms of national highways in 2016-17
-Additional 50000 kms of state highways will be taken up for up gradation as national highway
-Series of measures to modernize ports
-800 cr for inland waterways
-Action plan for revival of unserved and underserved airports
-Will partner with state govt to develop some of these airports to enhance regional connectivity
-Focus will be quality education
-62 new Navodaya Vidyalas will be opened
-Higher education financing agency will be set up with an initial capital of Rs 1000 crore
-Digital depository for school and college certificates will be set up
-National skill development mission has trained 76 lakh youth
-1500 multi-skill institutes will be set up across the country
-1 crore youth will be imparted skills in the next 3 years
-Govt will pay EPF contribution of 8.33% for all new employees for 1st three years for those with salaries upto Rs 1500 pm
-LPG connection in the name of women members of poor connections, Rs 2000 crore earmarked for the scheme
-The mission will cover a total of 5 crore BPL families
-75 lakh middle class and lower middle class have voluntarily given up subsidy on LPG
-New health protection scheme – cover of Rs 1 lakh per family, senior citizens will get an additional cover of Rs 30000
-National dialysis service programme will be started to provide dialysis service in all district hospital
certain dialysis will get tax subsidy
-'Stand up scheme' to promote entrepreneurship in SC/ST and women
-The scheme gets Rs 500 cr
-National hub will be created to help SC/ST entrepreneurs
-300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
-5542 villages have been electrified Feb 23, 2016, this is more than the total combined achievement of the past three years
-100% electrification by May 1, 2018
-Swatch Bharat gets Rs 9000 crore
-Need to spread digital literacy in rural areas
-National digital literacy mission to cover 6 crore rural households
-Rs 87765 cr for rural sector as a whole
-E-pashudhan haat for connecting farmers and breeders of livestock
-Honey production has been increased to 86500 mt tonne
-Rs 2.87 Lakh Crores to be given as aid to Gram Panchayats as recommended by Finance Commission, a jump of 128%
-Average assistance of rs 80 lakh for gram panchayats, Rs 21 crore for each local body
-New projects to be taken for dairy procurement, will issue animal health card, e-marketing portal for contacting breeders
-Rs 38,500 crore has been allocated to MNREGA. This will be highest amount spent on NREGA
-Rs 500 crore under food security mission earmarked for cultivation of pulses
-Unified agricultural market scheme being envisaged
-Unified market e-platform will be dedicated to the nation on April 14 – Ambedkar's birthday
-PM GRAM SADAK Yojna to get RS 19000
-NDRF fund norms revised
-All time high, Rs 9 lakh crore for agricultural loans
-Rs 5500 cr for PM Fasal Bima Yojna
-Online procurement systems under FCI to ensure that farmers get a fair price for their produces
-Will continue with reform to ensure the passage of GST Bill
-Recapitalization of banks will be done during next FY
-Current account deficit has declined from 18.4 billion US dollars in 1st half of last year to 14.4 billion this year
-Farmers are backbone of our food security
-Govt working to double the income the famers
-Only 46% of cultivated land is fed with irrigation
-Rs 17000 cr next years and rs 86500 cr in the next five years to increase area of irrigation
-Rs 60000 cr to harness ground water
-Soil health card scheme is being implemented with greater vigour, all farmers will be covered by March 2017
-Working to Increase crop yield in rain fed areas
-Money with the government belongs to the people
-Increased our plan stage in the RE stage in 2015-16
-Risk of global slowdown is mounting
-Three serious implications: Improve the firewall against these conditions, domestic demand must pick up and reform process should continue
-GDP growth at robust 7.6%
-Govt has prioritise expenditure
-More spending in priority sectors - farm, social and infra sectors
-PM Fasal bIMA yOJNA
-New Health insurance
-Cooking gas for BPL families
All smiles, before presentation of #Budget2016.@RashtrapatiBhvn pic.twitter.com/SF9hn7RfWr
— PIB India (@PIB_India) February 29, 2016
PM Modi arrived for cabinet meet in the Parliament, meet underway (earlier visual) pic.twitter.com/ZwrkPKUlhL
— ANI (@ANI_news) February 29, 2016
Copies of #UnionBudget2016 brought to Parliament pic.twitter.com/yUmWjUVQxF
— ANI (@ANI_news) February 29, 2016
FM Arun Jaitley and MoS Jayant Sinha at North Block, leave for Rashtrapati Bhawan
Also read: Union Budget 2016-17: What to expect from FM Jaitley
We have worked very hard on Budget 2016, under guidance of PM and FM Jaitley, says MoS Finance Jayant Sinha
Also read: Budget 2016 is my exam, 125 crore people will test me: PM Narendra Modi
Prominent sand artist Sudarsan Pattnaik's sand art on #Budget2016 pic.twitter.com/97THHdsYsj
— ANI (@ANI_news) February 29, 2016
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