Source: The Hindu
Union Budget 2016: what will get costlier & what will get cheaper?
Here is a list of things which are expected to get costlier and cheaper following the Budget —
|» Cars (specifically SUVs)
|» Refrigerated containers
|» Low cost houses with less than 60 sq mt carpet
|» Clothes (ready made and branded apparel over Rs 1000)
|» Routers, broadband
|» Modems, set-top boxes
|» Aerated drinks
|» Mineral water
|» Sanitary pads
|» Air travel
|» AC restaurants
|» e-reading devices
|» Aluminium foils
|» Legal services
|» Rope way, cable car
FM not given assurance for reviewing the retrograde recommendations of 7th CPC – NFIR
NFIR National Federation of Indian Railwaymen 3, Chelmsford Road, New Delhi 110 055 Press Statement of M.Raghavaiah, General Secretary Finance Minister Arun Jaitley’s Budget (2016-17) failed to address the genuine aspirations of working class. The Income Tax Exemption limit for serving and retired Central Government employees has not been revised. The Fixed Medical Allowance for Retired Central Government employees has not been raised to Rs. 2000/- p.m. from the existing Rs. 500/- p.m., resulting continued hardship to Retired Central Government employees who live in remote places and small towns where medical facilities not provided. The Finance Minister has not spoken on the employees’ demand for abolition of New Pension Scheme. It is sad to note that the Finance Minister has not given assurance for reviewing the retrograde recommendations of 7th Central Pay Commission although he said that a Committee has been constituted. The Workers’ of Government Sector, Private as well Unorganized Sectors are disappointed over the Budget announcements. Mr.Raghavaiah, General Secretary, NFIR has urged upon the Prime Minister to accept Railway Minister’s proposal sent in November, 2015 and see that Railway Employees are exempted from New Pension System.
Budget 2016: Tax rebate for persons with income less than or equal to Rs 5 lakh increased by Rs 3000
|FM has increased the tax rebate given to individuals with net income equal to or less than Rs 5 lakh under section 87A from Rs 2000 to Rs 5000.
NEW DELHI: In the budget 2016, the finance minister has increased the tax rebate given to individuals with net income equal to or less than Rs 5 lakh under section 87A from Rs 2000 to Rs 5000. Currently, under this section a resident individual with income up to or equal to Rs 5 lakh can get a rebate in tax equal to 100 per cent of the income tax payable or Rs 2000 whichever is less. This low cap of Rs 2000 has now been increased to Rs 5000. This is expected to provide a relief of Rs 3000 in tax to over 2 crore tax payers, according to the finance minister.
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Highlights of Union Budget 2016-27
Affirming that the economy is right on track, Finance Minister Arun Jaitley presented the Union Budget for 2016-17. Citing that the CPI inflation has come down to 5.4% from 9 plus, he said it is huge relief for the public.
Infrastructure and agriculture cess to be levied.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis
1 per cent 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 29% plus surcharge
Limited tax compliance window from Jun 1 - Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties
Excise 1 per cent imposed on articles of jewellery, excluding silver.
0.5 per cent Krishi Kalyan Cess to be levied on all services.
Pollution cess of 1 per cent on small petrol, LPG and CNG cars; 2.5 per cent on diesel cars of certain specifications; 4 per cent on higher-end models.
Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.
No changes have been made to existing income tax slabs
Rs 1,000 crore allocated for new EPF (Employees' Provident Fund) scheme
Govt. will pay EPF contribution of 8.33% for all new employees for first three years
Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.
Service tax exempted for housing construction of houses less than 60 sq. m
15 per cent surcharge on income above Rs. 1 crore
Rs. 38,500 crore for Mahtma Gandhi MGNREGA for 2016-17
Swacch Bharat Abhiyan allocated Rs.9,500 crores.
Hub to support SC/ST entrpreneurs
Government is launching a new initiative to provide cooking gas to BPL families with state support.
LPG connections to be provided under the name of women members of family: Rs 2000 crore allocated for 5 years for BPL families.
2.87 lakh crore grants to gram panchayats and municipalities - a quantum jump of 228%.
300 urban clusters to be set up under Shyama Prasad Mukherji Rurban Mission
Four schemes for animal welfare.
2.2 lakh renal patients added every year in India. Basic dialysis equipment gets some relief.
A new health protection scheme for health cover upto 1 lakh per family.
National Dialysis Service Prog with funds thru PPP mode to provide dialysis at all district hospitals.
Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
PM Jan Aushadhi Yojana to be strengthened, 300 generic drug store to be opened
Scheme to get Rs.500 cr for promoting entrepreneurship among SC/ST
10 public and 10 private educational institutions to be made world-class.
Digital repository for all school leaving certificates and diplomas. Rs. 1,000 crore for higher education financing.
Rs. 1,700 crore for 1500 multi-skill development centres.
62 new navodaya vidyalayas to provide quality education
Digital literacy scheme to be launched to cover 6 crore additional rural households
Entrepreneurship training to be provided across schools, colleges and massive online courses.
Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojna-FM Jaitley
National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi-skill training institutes to be set up.
Rs. 3000 crore earmarked for nuclear power generation
Govt drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy
Govt to provide incentive for deepwater gas exploration
Deepwater gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.
Investments and infrastructure
Rs. 27,000 crore to be spent on roadways
65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms/day
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
India's highest-ever production of motor vehicles was recorded in 2015
Total outlay for infrastructure in Budget 2016 now stands at Rs. 2,21,246 crore
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
100 per cent FDI in marketing of food products produced and marketed in India
Dept. of Disinvestment to be renamed as Dept. of Investment and Public Asset Management
Govt will amend Motor Vehicle Act in passenger vehicle segment to allow innovation.
MAT will be applicable for startups that qualify for 100 per cent tax exemption
Direct tax proposals result in revenue loss of Rs.1060 crore, indirect tax proposals result in gain of Rs.20,670 crore
Total allocation for agriculture and farmer welfare at Rs 35984 crores
28.5 lakh heactares of land wil be brought under irrigation.
5 lakh acres to be brought under organic farming over a three year period
Rs 60,000 crore for recharging of ground water recharging as there is urgent need to focus on drought hit areas cluster development for water conservation.
Dedicated irrigation fund in NABARD of Rs.20.000 cr
Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojna.
Banks get a big boost: Rs 25,000 crore towards recapitalisation of public sector banks. Jaitley says: Banking Board Bureau will be operationalised, we stand solidly behind public sector banks.
Target of disbursement under MUDRA increased to 1,80,000 crore
Process of transfer of government stake in IDBI Bank below 50% started
General Insurance companies will be listed in the stock exchange
Govt to increase ATMs, micro-ATMs in post offices in next three years