Union Budget highlights

Union Budget Highlights

No change in income tax slabs
13 types of cess imposed by different ministries abolished
First home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. Cost of house should not be more than Rs 50 lakh
One-time dispute resolution scheme for retro tax cases, payment of tax arrears to lead to waiving of penalty and interest
Govt to introduce Bill to amend Companies Act for ease of doing business; to enable registration of companies in a day
Clean energy cess increased from Rs. 200/ton to 400/ton on coal, lignite and peat
All tobacco products excluding beedi to be costlier-- excise duty on most tobacco products raised by 10-15%
Surcharge on income tax for those with incomes exceeding 1 crore raised to 15% from 12%
Withdrawal up to 40% of the Corpus to be Tax-Free at the time of Retirement
Deduction of Additional Interest of Rs.50,000 Per Annum for First-Time Home buyer
Penalty to be 50% of tax in income under-reporting cases, 200% in misreporting of facts
Limited period compliance window for taxpayers to declare undisclosed income
Krishi Kalyan Cess of 0.5% on all taxable services
One per cent cess on luxury cars; 2.5% on diesel cars; more on SUVs
Excise Duty on ready-made garments with retail price of Rs.1,000 or more hiked to 2% without input tax credit or 12.5% with input tax credit
Direct tax proposal to result in revenue loss of Rs 1060 cr;indirect tax proposals to raise Rs 20,670 cr; net gain of Rs 19,610 cr.
Excise 1 pc imposed on articles of jewellery excluding silver.
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
First home buyers to get addl deduction of Rs 50,000 on interest for loan up to Rs 35 lakh. Cost of house should not be more than Rs 50 lakh
ServiceTax exemption for construction of affordable housing upto 60 sq. m. under state and central housing schemes
Dividend in excess of Rs 10 lakh per annum to be taxed at additional 10 pc.
Service tax exempted for General Insurance Schemes under Niramaya Swasthaya Bima Yojana
Jaitley accepts Rahul Gandhi's suggestion of giving tax exemption to Braille paper
Service Tax Exemption for services under the Deen Dayal Gram Jyoti Yojana:
Service tax exemption for construction of affordable housing upto 60 sq. m. under state and central housing schemes
6% loans for houses costing up to 50 lakhs
Service tax on annuity schemes reduced
Start-ups to get 100 per cent tax exemption for 3 years except MAT which will apply from April 2016-2019
NBFCs to get tax reduction for non-performing assets
Corporation tax reduced to 29% plus surcharge for small enterprise companies.
New manufacturing companies to have option to pay tax at 25% plus surcharge.
Corporate tax exemptions to be phased out
Deduction for rent paid raise to Rs. 60000 a year
Ceiling of tax rebate under Section 87A of IT Act raised to Rs. 5,000 for individuals with income of less than Rs. 5 lakh a year
Non Plan, Plan classification to be done away with; Spending to classified in terms of revenue and capital expenditure
15.3 per cent increase in Plan Expenditure proposed
Automation in fair price shops
Social security platform based on Aadhar
3000 new generic drug stores to be set up
Legislation to check illicit deposit schemes
Govt. will pay EPF contribution of 8.33% for all new employees for three years
Govt. to augment investment in nuclear power; incentivise gas production from deep sea
MV Act to be amended to open up road transport sector in the passenger sector
55000 crores for roads and highways besides funding through bonds
Small and medium shops can remain open on all days of week-- law to be amended
Rs. 1000 cr for higher education financing
Rs. 1 lakh a year for health cover of poor families with Rs. 30000 top up for senior citizens
National dialysis service programme to be launched
Dialysis equipment to be exempt from excise duty
"Massive mission" to provide LPG connection to poor households
5 lakh acres to be brought under organic farming in 5 years
Modernisation of land records to be revamped as a Central sector scheme
Rs. 20000 for e-platform projects.
A dedicated long term irrigation fund will be created in NABARD with a corpus of Rs 20,000 cr
A unified agriculture market e-platform will be dedicated to the nation on the birthday of Dr. B.R. Ambedkar
5 lakh acres to be brought under organic farming over a three years
8.6 lakh ha to brought under irrigation. 23 project to be completed in a year
FM promises to double farmers income in five years
Statutory backing for Aadhar platform
Health insurance to cover one third of population
Government to enhance expenditure in agriculture, capitalisation of banks
Risk of global turmoil mounting. has to build firewalls against that
GDP growth of 7.6% despite contraction of exports