100 Key Highlights of Union Budget 2016 presented by Arun Jaitely

Union Budget is presented by Arun Jaitely Today. Following are the Key Changes in The Budget from the Finance Minister Speech.

1. Relief under Section 87A proposed to be increased from Rs. 2,000 to Rs. 5,000. Ceiling of tax rebate raised from Rs 2000 to Rs 5000 for income below Rs 5 Lacs
2. Sec. 80 GG rent deduction increased from 24,000 to 60,000. House rent deduction increased from Rs 24000 pa to Rs 60000 pa
3. Presumptive Tax Scheme of 8% Limit Increase for income of Rs 2 Crore from previous of Rs 1 Crore
4. proposes deduction of addl sum of Rs 50000/- for interest payment in case of Housing Loan
5. Withdrawal upto 40% from NPS to be tax exmpt. Proposed to withdrawal upto 40 % of corpus under National Pension scheme to be tax free. Annunity also to be tax free.
6. In addition to Divident Distribution Tax, 10% dividend tax in hands of recepient
7. 1% TCS to be applicable on purchase of luxury cars above 10Lakh
8. 15% - surcharge on income tax for those with incomes exceeding 1 crore per annum:
9. FM announces Compliance/Amnesty scheme for domestic taxpayers. Limited period compliance window for domestic taxpayers to declare past transgressions at total 45% tax, Limited tax compliance window from June 1st to September 30th for declaring undisclosed income proposed to introduce compliance window to declare domestic black money.
10. CENVAT credit rules to be rationalised.
11. E-assessments for all taxpayers in 7 mega cities
12. GAAR will come into effect on 1st April, 2017
13. LTCG period for Unlisted Cos reduced to 2 years. Long term capital gains tax period for unlisted companies reduced to 2 years.
14. Corp tax rate to be 29% for cos with turnover less than Rs.5 crore
15. Corp Tax Benefits Accelerated dep ltd to max 40% from Apr 1 2017. Accelerated depreciation to be limited to 40% from Apr 2017 - Benefit of weighted R&D to be limited to 150% & then 100%
16. New manufacturing companies to be taxed at 25% plus surcharge
17. New tax regime for New manufacturing Cos + 100% deduction for Startups for 5 years + no capital gains for startups
18. For start-ups - 3 year tax holiday if incorporated between 2016 - 2019 but MAT to apply
19. Weighted deduction u/s 35CCD to continue till 2020
20. Withdrawal of 40% at the time of retirement exmpt
21. Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana: FM
22. FM proposes withholding tax for e-commerce entities having no PE but earning ad revenue in India
23. No retrospective taxation to be undertaken.
24. Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts. Entire scheme of penalty revisited. Different penalty rate for different classes of mis-demeanors. Discretion of AOs to be reduced.
25. Center share of taxes reduced from 68% to 58%.
26. CPI inflation has come down to 5.4% under our government, despite two poor monsoons
27. Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojana
28. Law to ensure statutory backing on AADHAR platform
29. 9 pillars  - Agri &farmer welfare ,rural sector ,social sector ,Education skills and Job creation, infrastructure ,financial services reforms, Government Reforms and ease of doing business,tax reforms, fiscal discipline
30. Proposed to double income for farmers, allocation to Farming Sector Rs 35,984 Crs Organic farming to be promoted 5 lakh acres to be brought under organic farming over a three year period
31. A long-term irrigation fund will be crated at Nabard. Corpus of Rs. 20,000 crore
32. Cenvat Credit Rules, 2004 to be amended to allow credit to sectors like tour operators
33.  Budget 2016: 28.5 Lakh hecatres of land to be brought under irrigation, Farm, rural sectors to have more spending,
34. Pradhan Mantri Grameen Sadak Yojana to get 19,000 cr. Along with states total outlay at Rs 27,000 cr Rs 27,000 crore to be spent on roadways
35. Soil health card implemented with greater vigour. Target to cover all 14 crore farm holdings by March 2017
36. 28 lakh hectares to be brought under new farm irrigation plan
37. Aim to double the income of farmers in five years. Rs. 35,984 crores total allocation for farmers'welfare
38. 12 states are already on board for the agricultural e-platform initiative:
39. Allocation to PM Fasal Bima Yojana for 2016/17 is Rs. 5500 crores
40. Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojana
41. 4 new projects to be taken for dairy procurement, will issue animal health card, e-marketing portal for contacting breeders
42. Govt to spend Rs 60,000 Cr on water management system
43. 65 eligible habitats to be connected via 2.23 lakh kms of road|Current construction pace is 100 kms/day
44. Quantum jump of 228% in grants to gram panchayats and urban local bodies in accordance with FFC recommendations
45. Urgent need to focus on rural distress' Rs 38,500 cr for MNREGS
46. Agri credit target is Rs 9 trillion for 2016-17; provision of Rs 15000 crore for interest subvention in :FM
47. 300 rurban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
48. 100% village electrification by 1 May, 2018
49. Rs 9,000 cr has been provided for Swachh Bharat Abhiyan
50. Rural electrification schemes get RS 8500 cr Rural electrification:5542 villages in Feb 2016, more than total combined achievement of previous three years:
51. Modernization of Land Records - Central Sector Scheme w..e.f. April 1, 2016
52. 6 crore additional households to be covered under Digital Literacy scheme in next 3 years
53. Health protection scheme will provide 1 lakh rupees for each family with a top up of Rs. 30,000
54. Supply of generic drugs to be streamlined! Dialysis, critical illnesses on focus!
55. 3,000 medicine stores under Jan Aushadhi Yojana during 2016-2017
56. INR 500 crore- to benefit SC, ST entrepreneurs. Standup India for promotion of SC/ST entrepreneurs Rs 500 crore...to benefit 2.5 lakh entrepreneurs. 500 crores earmarked for by SC / ST. 2 projects to be promoted per bank branch per category
57. Lowered taxes for dialysis machines
58. To provide INR 1,30,000/yr for health cover for senior citizen
59. Decided to setup a Higher Education Finance Company, an amount of Rs 1000 Crores to be initial allocation
60. National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi skill training institutes to be set up. Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojana.
61. Govt to pay new subscribers' contribution to EPF for the first 3 years
62. Scope of Tax deduction for new employment extended u/s 80JJAA. All taxpayers subject to tax audit will now be eligible for tax incentive. Sec 80JJAA was earlier restricted only to manufacturing entities
63. Total outlay for infrastructure Rs. 2,21,246 crores in 2016/17. Total investment on railways and roads will be Rs. 2.18 lakh crore. Speeded up process of road construction, 55 cr allocated for road & highways, 97 cr total allocation for fy 16-17 Target of 10,000 kms of national highway and upgradation of 50,000 kms of state highways in 2016/17:
64. 160 airports & airstrips to be revamped. Action plan of revival of old airports a priority  Centre to partner with state govts to rejuvenate regional airports
65. Two schemes to promote digital literacy in the country
66. Rs 3,000 crore allocated for nuclear power Govt is drawing a comprehensive plan to be implemented in the next 15-20 years for exploiting Nuclear energy
67. 100% FDI through FIPB route for the food products produced in India FDI policy has also to address the issues of farmers and food-processing units
68. Comprehensive code of bankruptcy resolution of financial firms will be introduced as a bill in 2017. Comprehensive Code to be introduced to provide a specialised resolution mechanism for bankruptcy of banks/insurance companies
69. Strategic stake sale policy to be unveiled; Niti aayog to identify CPSEs for divestment
70. A comprehensive code for dealing with financial sector entities will be introduced as a bill in Parliament, Financial Data Management Center to be established, Number of measures to be undertaken to deepen corporate bond market. Comprehensive Code to be introduced to provide a specialised resolution mechanism for bankruptcy of banks/insurance companies. RBI act to be modified to include the Monetary Policy Committee. Ponzi schemes - central
71. legislation to be introduced to deal with this menance
72. FDI reforms in insurance, pension, ARCs, stock exchanges
73. Recapitalisation of PSBs high on agenda of the government
74. Amendmnt in Sarfaesi act to allow investors to hold 100% stake in ARCs;opens up securitization to non-institutional investors
75. Comprehensive code to provide specialised resolution mechanism for bankruptcy of banks/insurance firms
76. 25,000 crore for recapitalization of public sector banks
77. Will introduce targeted delivery of subsidy benefits via Aadhar to benefit the poor and vulnerable
78. After LPG DBT, we plan to introduce DBT for fertilizers in few areas of the country. DBT on pilot basis in fertilisers to be introduced in some districts.
79. Cos Act to be amended - enabling environment for start ups - registration of start up companies in a day. Propose to amend SEBI Act 1992 to provide for more number of benches of Securities Appellate Tribunal: Jaitley presenting.  We will introduce a bill to amend the Companies' Act
80. Fiscal target have been revised to 3.5% . Currently it stands at 3.9%
81. A time has come to review the FRBM act. A committee to review the implementation of FRBM to be set up
82. 3,00,000 fair price shops to be automated by March 2017
83. Revenue deficit estimate for FY 2015-16 down to 2.5% from earlier estimates: FM
84. 100% deduction for profits of undertakings from housing projects in cities during Jun '16 - Mar '19
85. Cigarettes to become expensive, to raise excise duty on most tobacco products by 10-15%
86. Green tax on SUVs and Large vehicles
87. 3lakh tax cases pending; dispute resolution scheme proposed
88. Life Insurance sector: Service tax on single premium annuity to be reduced to 1.5% from 3.5%
89. PAN not required for foreign companies, Foreing tax registration sufficient. No higher withholding tax if non-resident does not have PAN but furnishes an alternative document.
90. A new grading system of imposing penalties to be introduced on the basis of under reporting or concealment of income
91. Proposes to amend Section 14A; disallowance should not increase the actual expenditure.
92. To reduce the multiplicity of taxes and cascading - 13 taxes with collection less than Rs. 50 crores a year abolished
93. Small taxpayers can benefit in dispute resolution before CIT(A). Penalty rationalisation is good move.
94. Revenue loss of Rs 1,000 cr due to direct tax proposals. Revenue gain of Rs. 20,000 cr on account of indirect tax proposals
95. Introduces one-time dispute resolution scheme for retro tax cases, payment of tax arrears to lead to waiving of penalty and interest.
96. Budget proposes to streamline TDS provisions + relief for non-resident not having PAN
97. Announces 9% interest on refund ordered by appellate forum
98. Net revenue gain of Rs 19,610 crore due to surplus from indirect taxes
99. Lower TDS on small value transactions
100. Simplification Committee report accepted

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