Union Budget 2016 highlights pdf download, Features of Budget 2016-2017, Download Union Budget 2016 PDF:
Mr.Arun Jaitely, the finance minister of India has announced the Union Budget for the year 2016-17. The Sensex has gone down 59 points before the budget was announced.Earlier, the finance minister has made it clear to the people that he will not present the budget to gain the popularity but the Union budget will be totally based on the potential in economic growth and increase in taxes.While speaking on radio, In “Mann Ki Baat” program, the Prime Minister of India, Narendra Modi has said that the 125 crore people of India will take his examination on Monday when the budget will be declared by finance minister. Also read about Effect of Budget 2016 on Automobile Sector
There were speculations that the government will increase the Service tax from 14.5% to 16% but proving it wrong, the finance minister has announced that the service tax will be increased by 14.5% to 15% only. Also, the people were expecting that there will be increase in personal Income Tax slabs but it remains the same for the Union Budget 2016-17. But there is little relief for the people earning less than Rs 5 lakh per annum, they will be given relief of Rs 3000 in their tax liability.
There is good news for the for the first time buyers who are going to buy the home in 2016-17 . They will be given a discount of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 but the cost of home should not exceed Rs 50 lakh. In addition to this, the finance minister has provided respite to those who do not own their house and living in rented accommodation. Their limit of deduction of rent paid has been increased from Rs 24,000/- per annum to Rs 60,000/- per annum.
Download Union Budget 2016-17
There are many new announcements for social sector in the Union Budget for the financial year 2016-17 which includes LPG connection will be given to poor households (BPL) in the name of women members. The government has also allotted Rs 2,000 crore to meet this initiate.
Introduction: Before mentioning the roadmap and priorities included in the Union Budget 2016-17, the finance minister of India has started his presentation with the introduction speech:
- He claimed that the Growth of Economy for India has been accelerated to 7.6% in 2015-16.
- The Inflation rate has been reduced to 5.4% from 9 plus.
- Instead of slow global economy, the Indian Economy still holds its good position.
- The India economy has achieved the Robust growth instead of the conditions which are not very much suitable for its growth such as Shortfall in Monsoon by 13%
- Foreign exchange reserves touched highest ever level of about 350 billion US dollars.
- There are few challenges such as slowing down of global economy in near future such as meeting additional burden of implementing 7th Central Pay Commission and OROP, which the government has to meet in the year 2016-17.
Highlights of Union Budget 2016-17: We have presented below the highlights of Union Budget 2016-17 presented by Arun Jaitely in the Lok Sabha:
Changes in Tax:
- The government has raised the Excise on tobacco products from 10 to 15 per cent. The “Beedis” will be excluded from this increase in excise duty.
- The one per cent Excise will be imposed on the articles such as jewelry but the silver and the jewelry made of it will be excluded from this excise tax.
- The cess on Infrastructure and agriculture sectors to be levied.
- 0.5 per cent Krishi Kalyan Cess to be levied on all services.
- There is a bad news for the people who are planning to buy the high priced cars as the government will impose one per cent service charge on the purchase of cars which costs above Rs. 10 lakh. Also, the same will be applied for the in-cash purchase of goods and services which will costs above Rs. 2 lakh.
- There is not a good news for the SUV and Luxury car lovers as the govt. has imposed a 4% high capacity tax for both categories cars to make them more expensive.
- The companies which are generating the income less than Rs 5 crore will be taxed at 29% plus surcharge.
- There will be Limited tax compliance window from 1st June to 30th September when anyone declare his or her undisclosed income at 45% including surcharge and penalties.
- The Pollution cess of 1 per cent has been introduced on small petrol, LPG and CNG cars whereas for diesel cars, it is 2.5 per cent for certain models and 4 per cent on higher-end models.
- You will be taxed additional 10 per cent if you have Dividend in excess of Rs. 10 lakh per annum.
- There will be revenue loss of Rs. 1,060 crore through direct tax proposals whereas revenue gain of Rs. 20,670 crore will be seen through indirect tax proposals. There will be revenue gain of Rs 19,600 crore in annual budget 2016 proposals.
Related to Personal Finance:
- The people were expecting for the tax slabs to be increased but there has been no changes made to existing Personal Income tax slabs.
- The government has allotted Rs 1,000/- crore for new EPF (Employees’ Provident Fund) scheme.
- The new employees will be given the EPF contribution of 8.33% by the Govt. for first three years.
- As mentioned above, there is a good news for the people live in the rented houses. The deduction for rent paid has been raised from Rs 20,000 to Rs 60,000/-.
- The sum of Rs.50,000/- will be discounted for the buyers who will take housing loans up to Rs. 35 lakh but the cost of house should remain less than or equal to Rs. 50 lakh.
- There will not be any Service tax on housing construction in which the total area of the house will be less than 60 sq. m.
- The people will face the surcharge of 15 per cent whose income is above Rs. 1 crore.
Related to Social Schemes:
- The sum of Rs.9,500 crores will be allotted for Swacch Bharat Abhiyan allocated.
- The government has announced the sum of Rs 2000 crore which will meet the initial cost of providing LPG connections to BPL families. Also in case of BPL families, the LPG connection will be provided only in the name of women members of family.
- For the MGNREGA programme, the govt. has allotted the sum of Rs. 38,500 crore for the financial year 2016-17.
- The full support will be provided to SC/ST and women entrpreneurs who want to start up their businesses. Under the Stand Up India scheme, the government has allocated Rs 500/- crore for the SC/ST and women entrepreneurs.
- There is a huge jump of 228% in the allotment of grants for panchayats and municipalities which is around 2.87 lakh crore.
- For Shyama Prasad Mukherji Rurban Mission, the govt. will set up 300 urban clusters.
- Four new schemes will be introduced for animal welfare.
Related to Health:
- The government will start National Dialysis Services Programme under the National Health Mission through PPP mode.
- The new health protection scheme will be introduced soon which will provide health cover up to Rs one lakh per family.
- Under the new Health Cover scheme, an additional health cover of Rs 30,000 will be provided in case of senior citizens.
- Under the Pradhan Mantri Jan Aushadhi Scheme, the 3000 new generic drug stores to be opened.
Related to Education
- In the annual budget, the finance minister has announced 10 public and 10 private educational institutions will be made world-class.
- A Digital repository will be set up for all the school leaving certificates and diplomas so that students will be able to download it online at anytime. Also, the govt. will set up higher education financing agency with the initial capital base of Rs 1000 Crores.
- 1500 multi-skill development centres will get the benefit of Rs. 1,700 crore allotted to them in this annual budget.
- To provide quality education to students from different backgrounds, 62 new Navodaya Vidyalayas will be opened up in the 62 new districts where it has been not setup earlier.
- Under the Digital literacy mission, the government will start a new scheme for rural areas which will cover around 6 crore additional rural household within the next 3 years.
- The entrepreneurship training will be provided across schools and colleges. Also, the new online courses will be introduced.
- Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the govt. will set up its objective to skill one crore youth in the next three years.
- Under the National Skill Development Mission, the Rs 1804 crore has been allocated and also 1500 skill training institutes has to be set-up.
Related to Energy:
- In the Union Budget 2016-15, the government has announced the package Rs 3,000 crore per annum for Nuclear sector. It will boost up the on-going atomic power projects.
- The incentives will be introduced for deepwater gas exploration.
- The Foreign Investment Promotion Board (FIPB) will allow 100% FDI in marketing of food products which will be produced and manufactured in India.
- The govt. has allotted total of Rs 97,000 crore for road constructions which also includes Highways and Pradhan Mantri Gram Sadak Yojana (PMGSY) as well.
- Now, the small retail shops will be allowed to open up all seven days in a week.
- New greenfield ports to be developed on east and west coasts
- Revival of underserved airports. Centre to Partner with States to revive small airports for regional connectivity
- The Moving Annual Total (MAT) will be applicable for the startups which qualifies the 100 per cent tax exemption.
Related to Agriculture:
- As per the Pradhan Mantri Fasal Bima Yojana (Prime Minister’s Crop Insurance Scheme), the nominal premium and highest ever compensation in case of crop loss will be provided to the farmers.
- The sum of Rs 35,984 crores has been allotted for agriculture and farmer welfare.
- As per the “Pradhan Mantri Krishi Sinchai Yojana”, 28.5 lakh hectares of land will be brought under irrigation.
- The government will promote Organic farming through its “Parmparagat Krishi Vikas Yojana” and “Organic Value Chain Development in North East Region”. The 5 lakh acres of land will be brought up over a three year period.
- Rs 60,000 crore will be allotted for for recharging of ground water as it’s an alarming situation to focus on drought hit areas. There will be more focus on the cluster development for water conservation.
- The govt. will introduce total of 89 Irrigation projects under Accelerated Irrigation Benefits Programme (AIBP) scheme and the focus will be on the fast track implementation of projects.
- The sum of Rs.20,000 crore will be provided for Dedicated irrigation fund in National Bank for Agriculture and Rural Development (NABARD).
Related to Banking:
- The public sector banks has been boosted with the amount of Rs 25,000 crore towards recapitalization of them.
- Target of disbursement under Mudra Bank Loan Scheme (MUDRA) has been increased to 1,80,000 crore
- All the general insurance companies will be listed in the stock exchange
- The no. of ATMs will be increased and also the micro-ATMs will be set up in the post offices in next three years.
