Main points of Union Budget 2016
The Union Budget for fiscal year 2016-17 has been presented yesterday by Finance Minister, Arun Jaitley. Here are the main points of the presentation.
- In order to simplify compliance for taxpayers, the e-assessment has been expanded to 7 mega cities.
- TDS will be rationalized. By submitting a certain document, NRIs need not pay excess TDS.
- There won’t be retrospective taxation in future says Jaitley.
- There have been no changes in the existing income tax slabs.
- To declare undisclosed income at 45 percent surcharge, the tax compliance window is from Jun 1-Sep 30.
- Excise duty on tobacco products (except beedi) has been increased by 10-15 percent.
- The dividend distribution tax for dividends in excess of Rs 10 lakhs each year is 10%.
- Increase in Securities Transaction Tax for options and futures.
- New startups will have 100% tax deduction for first three years.
- NPS to have withdrawal 40% of corpus tax free.
- Tax payers with up to Rs 5 lakh annual income has tax rebate increased to Rs. 5000.
- Deduction under rent paid has been proposed to be increased to Rs. 60000
- FRMB review panel proposed to be set up
- Target of disbursement under MUDRA increased to 1,80,000 crore.
- Better access through micro ATMS and ATMs.
- Running of buses by entrepreneurs to become easier.
- Proposed to let small shops have option of running all 7 days.
- R.s 2,21,247 crores allocated for the infrastructure sector.
- Rs. 1 lakh per family health insurance to be provided by government.
- Higher Education Financing Agency with fund of 1000 crores to be set up.
- Stand Up India scheme approved by cabinet.
- 9000 crores for Swach Bharat Abhiyan and 38,500 crores for MNREGA allocated.
- 20000 crores set up under NABARD as long term irrigation fund.
- Jaitley aims to double income of farmers in 5 years.
- 19000 crores allocated for Rural Sadak Yojana and 15,000 crores for farm loan interest subvention.
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