OVERVIEW

OF

UNION BUDGET 2016 -17

Presented By-CA. Mohit Agrawal & CA. Mayank Mittal

(The Moderators)

 According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year.

Description: Union Budget keeps the account of the government's finances for the fiscal year that runs from 1st April to 31st March. Union Budget is classified into Revenue Budget and Capital Budget.

Revenue budget includes the government's revenue receipts and expenditure. There are two kinds of revenue receipts - tax and non-tax revenue. Revenue expenditure is the expenditure incurred on day to day functioning of the government and on various services offered to citizens. If revenue expenditure exceeds revenue receipts, the government incurs a revenue deficit.

UNION BUDGET 2016-17

Personal finance. Tax. Health. Education. Social. Agriculture. Investment & Infrastructure. Banking. Energy.

No Change in Tax Slabs but some relief for small tax payers.

First-time home buyers to get additional deduction of Rs 50,000 on    interest for loan upto Rs 35 lakh. The cost of house should not be more than Rs 50 lakh.

Surcharge on income tax for those with incomes exceeding 1 crore per annum raised from 12% to 15%.

Increase the limit of deduction of rent paid under section 80GG from Rs 24,000 per annum to Rs 60,000, to provide relief to those who live in rented house.

Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual come to be raised to Rs 5,000 from Rs 2,000 currently.

Govt. will pay EPF contribution of 8.33% for all new employees for first three years.

Infrastructure and agriculture cess levied.

Excise duty raised from 10% to 15% on tobacco products other than beedis.

1 % 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.

Companies with revenue less than Rs 5 crore to be taxed at 25% plus surcharge.

Excise 1 % imposed on articles of jewellery.

Increase the turnover limit under Presumptive taxation scheme under section 44AD to Rs 2 crore to bring big relief to a large number of assesses.

Extend the presumptive taxation scheme with profit deemed to be 50 %, to professionals with gross receipts up to Rs 50 lakh. 

Rs. 38,500 crore for MGNREGA.

Swacch Bharat Abhiyan allocated Rs.9,500 crore.

LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.

Total allocation for agriculture and farmer welfare at Rs 35,984 crore.

28.5 lakh hectares of land will be brought under irrigation.

5 lakh acres to be brought under organic farming over a three year period.

Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.

New greenfield ports to be developed on east and west coasts.

100 % FDI in marketing of food products produced and marketed in India.

MAT will be applicable for start ups that qualify for 100 % tax exemption.

Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore.

Rs. 27,000 crore to be spent on roadways.

Shops to be given option to remain open all seven days in a week across markets.

Rs. 55,000 crore for roads and highways. Total allocation for road construction, including PMGSY, - Rs 97,000 crore..

Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore.

Target of disbursement under MUDRA increased to 1,80,000 crore.

Govt to increase ATMs, micro-ATMs in post offices in next three years.

Rs. 3000 crore earmarked for nuclear power generation.

CONCLUSION

“Overall the budget is novel, reasonable and constructive with focus on agricultural and rural development. It has the capability to achieve twin objectives of economic growth, equitable distribution of benefits and resources at an accelerated pace. The key to success of this budget lies in its efficient and effective execution.”

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