Union Budget 2016-17: highlights

India Economy Finance Minister Arun Jaitley arrives at parliament house to present federal budget 2016-17, in New Delhi on Monday | AP

Finance Minister Arun Jaitley on Monday unveiled General Budget for 2016-17, making several announcement to give a push to reforms in India's rural pockets.

Here are the highlights

  • To reduce multiplicity of taxes and cascading, 13 taxes with collections of less than Rs.50 crore a year abolished

  • Income tax deptartment will expand e-sahyog to assist small taxpayers

  • Scope of e-assessment to be expanded to seven mega cities to simplify compliance for taxpayers

  • Taxation proposals to increase government revenue by Rs.19,610 crore

  • Penalty to be 50 percent of tax in income under-reporting cases, 200 percent in misreporting of facts

  • Tax arrears can be paid in lieu of interest liabilities in retrospective taxation cases

  • Direct Benefit Transfer in fertilisers on pilot basis in few districts

  • Limited tax compliance window from June 1 - September 30 for declaring undisclosed income at 45 percent including surcharge and penalties

  • Clean energy cess increased from Rs.200/tonne to Rs.400/tonne on coal, lignite and peat

  • Moving towards a low tax regime with non-litigious approach

  • Committed to provide a stable and predictable taxation regime

  • Relief of Rs.3,000 per year to taxpayers with income below Rs.5 Lakh per year to benefit one crore taxpayers

  • Surcharge on income tax for incomes exceeding Rs.1 crore per annum raised from 12 percent to 15 percent

  • Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana

  • Suitable changes to be made in customs and excise duty rates to improve competitiveness and boost Make In India

  • Plan, Non-Plan distinction to be removed from 2017-18

  • For income below Rs.5 lakh per annum, tax ceiling has been raised from Rs.2,000 to Rs.5,000

  • Relief to those in rented houses: Deduction raised from Rs.24,000 to Rs.60,000 under Section 88G

  • Corporate income tax: Incentives for new manufacturing companies and relatively small enterprise companies

  • Fiscal deficit for 2016-17 targeted at 3.5 percent

  • Committed to implementing General Anti-Avoidance Rules (GAAR) from April 1, 2017

  • New policy for managing assets of public enterprises

  • Comprehensive approach to be adopted for government investment in central public sector enterprises

  • Three initiatives for better delivery of public services

  • Increased allocation of Rs.1,80,000 crore under PM MUDRA Yojana

  • Market Stabilization Fund for Pulses gets Rs.900 crore

  • Financial Data Management Centre for integrated data collection and analysis

  • RBI Act being amended to provide statutory basis for monetary policy framework

  • 100 percent FDI to be allowed through FIPB route in food products produced and marketed in India

  • Department of Disinvestment to be renamed Department of Investment and Public Asset Management

  • Comprehensive plan being drawn up to be implemented in the next 15-20 years for exploiting nuclear energy

  • Government to provide health insurance of up to Rs.1 lakh per family; 300 generic drug stores to be opened under PM Jan Aushadhi Yojana

  • Roads and highways allocated Rs.55,000 crore, 50,000 km of state highways to be taken up for upgradaing to national highways

  • Stand Up India scheme allocated Rs.500 crore for SCs, STs women entrepreneurs

  • Government to incentivise gas production from deep sea and other unutilised deep sources

  • Public Utility Resolution of Disputes Bill for resolution of infra sector disputes

  • Pradhan Mantri Kaushal Vikas Yojan gets Rs.1,700 crore

  • Digital depository for school leaving certificates

  • Higher education financing agency to be set up with fund of Rs.1,000 crore

  • National Skill Development Mission has imparted training to 76 lakh youth; 1,500 multi-skill training institutes to be set up

  • Model Shops and Establishments Bill to be circulated for voluntary adoption by states

  • Current account deficit down to $14.4 billion

  • Rs.2.87 lakh crore for rural and urban local bodies

  • Animal welfare programme, animal health card, e-marketing platform for connecting breeders

  • 100 percent village electrification to be achieved by May 1, 2018

  • Appreciation for 75 lakh middle class and lower middle class families for willingly giving up LPG Subsidy

  • Rs.19,000 crore allotted for PMGSY

  • Rs.8.5 lakh crore of agricultural credit targetted in 2015-16; and Rs.9 lakh crore in 2016-17

  • Rs.35,984 crore allocated for agriculture in 2016-17

  • Five lakh acres to be brought under organic farming over three-year period

  • MGNREGA to get Rs.38,500 crore

  • Recapitalisation of banks during next fiscal

  • Prudent fiscal policy needed, domestic demand should be raised, reforms need to be carried out

  • Farm, rural sector, infra and social sector to get more funds

  • Need to prioritise expenditure given recommendations of 7th Pay Commission and OROP implementation

  • Nine pillars for reforming India, among them agriculture, social sector, education, infra, fiscal discipline, and tax reforms

  • Presenting budget when global economy in a serious crisis

  • Amidst global headwinds, the Indian economy has held its own

  • Converted challenges we inherited into opportunities

  • CPI inflation down to 5.4 percent from 9 percent-plus, bringing big relief to the public

  • Forex reserves at highest-ever level

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