Union Budget for the financial year 2016-17
- Union Budget is the statement of the estimated receipts and expenditure of the Government of India in a financial year.
- Finance Minister Arun Jaitley presented his third budget on 29th of February, with more benefits to farmers, the poor and vulnerable sections of society while raising taxes on the incomes of the super-rich and introducing new cesses on services and cars to fund farmer welfare projects and infrastructure, respectively.
- This budget is targeting more on reduction of Revenue Deficit from 2.8 to 2.5 and despite higher expenditure owing to the 7th Central Pay Commission and the OROP norm for defence forces, the government stick to the fiscal consolidation road map to reduce Fiscal Deficit from existing 3.9 to 3.5. aiming on the cut short of non-plan expenditure through the reduction of interest payments and subsidies.
- As Mr. Jaitley said, the budget is looking for the enhancement of expenditure in the farm and rural sector, the social sector, the infrastructure sector and provide for recapitalisation of the banks.
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.
- Limited tax compliance window from Jun 1 – Sep 30 for declaring undisclosed income at 45% incl. surcharge and penalties.
- Dividend in excess of Rs. 10 lakh per annum to be taxed at additional 10 per cent.
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.
Swacch Bharat Abhiyan allocated Rs.9,500 crores …