Budget Highlights : 2016

Budget Highlights :

Relief under Section 87A proposed to be increased from Rs. 2,000 to Rs. 5,000

Tax proposals will bring additional revenue of Rs. 19,610 crores to Govt. exchequer: FM

No higher withholding tax if non-resident does not have PAN but furnishes an alternative document

FM proposes to rationalize TDS provisions

FM proposes to amend Section 14A; disallowance under Sec. 14A should not increase the actual expenditure

FM proposed to introduce limited period compliance window for domestic taxpayer to declare domestic black Money

11 news benches of CESTAT proposed to be setup

FM has announced introduction of one time dispute resolution Scheme for cases already pending due to retro-amendment

Services provided by EPFO exempted from service tax: FM

A new dispute resolution scheme is introduced, no penalty upto disputed amount of 10 lacs

Services provided by EPFO exempted from service tax: FM

FM proposes to increase excise duty on tobacco products from 10% to 15%

Excise duty on branded ready made garments rised to 6% without input credit from Nil

Surcharge raised from 12% to 15% on incomes above 1 Crore

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

Krishi Kalyan Cess 0.5%to be levied on all taxable services

FM has proposed to provide tax exemption on withdrawal of 40% from national pension Scheme at the time of retirement

40% Withdrawal from Super Annuation Funds proposed to be tax exempt

POEM proposed to be deferred by 1 year
Complete pass through proposed for trust of ARCs

Capital gain exemption proposed for investment in start-up

Corporate tax reduced to 29% for small business having turnover less than 5 crores

Reduction in corporate tax - New manufacturing companies after March 1, 2016 have to pay tax at 25%

Presumptive taxation scheme introduced for all professionals with receipts up to Rs. 50 lakhs.

FM increases the turnover limit of presumptive taxation Scheme to 2 crores

Deduction under Section 80GG for individuals paying rent but not receiving HRA proposed to be increased from Rs. 24,000 to Rs. 60,000.

Registration of Companies should be given in one day - Companies Act proposed to be amended

RBI Act to be amended to give statutory backing for monetary policy: FM

Comprehensive Code to be introduced to provide a specialised resolution mechanism for bankruptcy of banks/insurance companies: FM

Direct transfer of subsidies to farmers account will be introduced on pilot basis for fertilizers

RBI Act to be amended for providing framework for Monetary Policy Code: FM

SEBI Act proposed to be amended to provide more numbers of Securities Appellate Tribunal
Amendments proposed to SAFRAESI Act to tackle problem of stressed assets in ARCs

FM proposes various amendments to SARFAESI Act

A comprehensive code to provide bankruptcy resolution mechanism will be presented: FM proposes

100% FDI to be allowed in marketing of food products manufactured and produced in India
Public utility distribution bill to be introduced for resolution of dispute in construction contracts and PPP projects

Amendments to be made in Motor Vehicles Act; Entrepreneurs can ply buses on various routes subject to safety norms

Sec. 80JJAA deduction extended from only manufacturing units to all assessees who are subject to tax audit

Deduction under Section 80JJAA proposed to be extended to all assessee who are subject to tax audit

Govt. will pay 8.33% provident fund for new government employees for first 3 years, 1,000 crore budget proposed

Rs. 1700 crores allocated for Skill India Mission under Pradhan Mantri Kaushal Vikas Yojna
Regulatory framework will be provided to 10 public and 10 private institutions to become world class educational institutions

National SC/ST hub will be created to provide professional support to SC/ST entrepreneurs

Stand up India scheme to promote SC & ST entrepreneur: FM

Certain Dialysis equipment are proposed to be exempted from Basic Custom Duty, Excise Duty and CVD

Govt will launch new health protection scheme to provide health cover of Rs. 1 Lakh

National Dialysis Service program is proposed in all district hospitals

Health Insurance of Rs. 1,00,000 with top up of Rs. 30,000 proposed for senior citizen

New mission to provide LPG connection in name of female poor members, Scheme for 2 years

2,000 Crores allocated to provide LPG connections to poor families: FM

Digital India initiatives - Digital literacy mission for rural India to cover 6,000 additional households: FM

Till Feb 23, 5542 villages have been electrified, which is higher than the work done in last 3 years in aggregate: FM

Rs. 38000 crore proposed to be spent on MANREGA in FY 16-17

Union Budget 2016 built on 9 pillars 1) Agri/Farm and welfare 2) Rural Focus 3) Social Healthcare 4) Education and Job creation 5) Investments to improve quality of Life 6) Infratructure Focus 7) Ease of Business 8) Fiscal discipline

Provision of Rs. 15,000 crores is proposed to reduce burden of farmers loan: FM

Unified agriculture e-market platform will be provided: FM

Finance Minister proposes twofold increase in fund allocation for Pradhanmantri Sadak Yojna

FM: Nominal premium and highest ever compensation in case of crop loss under PM 'Fasal Bima Yojana'

Farm, rural sector, infra, social sector to have more Government expenditure, says FM

We need tax reforms to reduce tax compliances: FM

Govt to focus on passing of GST and Bankruptcy laws: FM Arun Jaitley

Govt. will start initiative to provide free gas connection to BPL families: FM

FM Arun Jaitley: We have bridged the trust deficit created the previous government

Forex reserves at highest level and fiscal deficit has declined: Arun Jaitley

Growth of GDP accelerated, CPI inflation come down: FM

-Regards
CA. C. V. PAWAR