Union Budget 2016 Highlights and Takeaways from FM Arun Jaitley's Speech

Key Highlights of Union Budget 2016

KEY HIGHLIGHTS

-- GDP growth at 7.6% despite slowdown in global economy from 3.4% to 3.1%. CPI inflation down to 5.4%

-- CAD from $18.4 billion in first half of last year to $14.4 billion this year

-- To double income of farmers by 2022, sets aside Rs 35,984 crore for the purpose; to bring 28.5 lakh hectare under irrigation at a cost of Rs 17,000 crore

-- Only 46% of 141 hectares of net cultivable area is irrigated, target to bring 28.5 lakh ha under irrgation, at Rs 17,000 cr next year 

-- Rural Sadak Yojana allocation at Rs 19,000 cr for FY17 representing 60% of central funding, rest 40% to come from states, taking total allocation to Rs 27,000 cr; 100 km road construction per day currently to be stepped up

-- Provision of Rs 15,000 crore to ease burden on loan repayment in form on interest subvention for farmers

-- Proposed Rs 5,500 cr for crop insurance scheme

-- Rs 2.87 lakh crore as aid to Gram Panchayats, as recommended by Finance Commission; quantum jump of 228%

-- Rs 38,500 cr allocated for MGNREGA, highest amount ever under the scheme

-- Rs 25,000 crore allocated for recapitalisation of PSU Banks 

-- Fiscal deficit to be retained at 3.9% of GDP; FY17 fiscal deficit target at 3.5% 

-- 15.3% increase in Plan Expenditure to Rs 5.5 lakh crore, this is the last year of the 12th Plan.

-- Plan vs non-plan distinction to be erased in FY2017. Every new scheme to have sunset date and outcome review

-- Relief to small tax payer earning less than 5,00,000 p.a., additional relief u/s 87A from Rs 2,000 to Rs 5,000

-- Relief to those living in rented houses and not getting HRA from employers to go up from Rs 24,000 to Rs 60,000

-- Corporate tax: Effective rate of tax comes to 24.8%. Accelerated depreciation limited to 40% for first year. IT rate for FY17 of relatively small enterpises, with turnover of less than Rs 5 crore limited to 29% plus cess

-- 10% tax on dividends in excess of Rs 10 lakh received by individuals, HUFs; this will be in addition to DDT; LTCG period for unlisted firms reduced to 2 years

-- Withdrawal up to 40% of corpus from Pension to be made tax-exempt

-- For first-time homebuyers, addl Rs 50,000 tax exemption for houses under Rs 50 lakh

-- Infra cess of 1% on all diesel cars of certain capacity, SUVs, some other cars as part of pollution control measure

-- 45% tax (including surcharge and penalty) on undisclosed income declared under new window between June 1- September 30, with no provision of scrutiny of books

-- Retrospective Tax: High level committee headed by Revenue Secretary to allay fears

-- Net revenue gain from direct and indirect tax proposals: Rs 19,600 cr