National News

Union Finance Minister, Mr. Arun Jaitley presented Union Budget 2016-17 in Lok Sabha sharp at 11.00 am with the following proposals:

  • Present Income Tax Slab rates to remain the same.
  • Proposed to increase Relief under Section 87A from Rs.2000/- to Rs.5000/- [Tax rebate for people with income Rs. 5.00 lakhs or less.]
  • Proposed to increase Relief under Section 88GG from Rs.24000/- to Rs.60000/- {Deduction for individuals neither having a house nor getting HRA from employer}.
  • Proposal to Raise limit of turnover under Section 44AD from 1Cr to 2Cr [presumptive income 8% N.P.] and 44 AD will now be applicable for Professionals with turnover upto Rs.50 Lacs [presumptive income 50% N.P.]
  • Additional Tax Relief for Rs.50000/- on interest on First Housing Unit.
  • No Service Tax for companies building Housing up-to 60Sq. Meters
  • 100% Tax Deduction for companies building houses up-to 30 Sq. Meters
  • New Manufacturing Companies shall pay tax @ 25% provided the new company does not claim any profit linked deduction, investment linked deductions or any investment allowance at accelerated depreciation etc.
  • Long Term Capital Gain on unlisted securities limited up-to 2 years
  • Proposal for companies having Turnover less than 5Cr with a corporate tax of 29% wef 01-04-2018
  • TCS of 1% for purchase of luxury cars over Rs.10 Lacs. [Department will automatically get data of luxury car buyers].
  • Compliance by disclosure of income scheme from 01-06-2016 to 30-09-2016 with 30% Tax + 7.5% surcharge + 7.5% penalty totaling 45%.
  • Penalty for concealment of income to be reduced from 100-300% to 50-200%
  • Rationalization of TDS provisions
  • Accelerated Depreciation to be limited up-to 40%
  • 11 New Income Tax Appellate Tribunal Benches to be created
  • Proposal for no face to face scrutiny
  • 35984 Crores proposed to be allocated for Farm Sector
  • 17000 Crores to be allocated for Irrigation projects
  • 5 Lac Acres of land to be used for 2 new Organic Farming Scheme
  • 19000 Crores to be allocated for Gram Sadak Yojana
  • Agriculture Credit Targets to be Rs.9 Lac Crores
  • MNREGA will get an allocation of Rs.38500 Crores (Highest Ever)
  • Overall Rs.287000 Crores to be spent on Rural up-liftment
  • Under Swatch Bharat Mission Central Government to spend Rs.9000 Crores
  • For Road Construction Rs.97000 Crores has been proposed to be allocated
  • Total outlay for Roads and Railway has been Rs.218000 Crores
  • Infrastructure Project shall get a boom with Rs.221000 Crores
  • NHAI Bonds will be issued to raise Rs.15000 Crores by NHAI
  • Like last year PSU Banks shall get a rehabilitation package of Rs.25000 Crores
  • Planned Expenditure to be raised by 15.3%
  • Non-planned Expenditure to be Rs.1428000 Crores
  • 100% FDI to be allowed in Food Processing Industry
  • Registration of company process time to be reduced to 1 day
  • SEBI Appellate Tribunal Benches to be expanded

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