29 Feb, 2016 1:04p.m.

Budget 2016 : FM dissaponts, I-T slabs, most deductions remain unchanged

It is yet another disappointment for the tax payers. The Finance Minister has kept the I-T slabs untouched.

Here are some of the highlights for the employees
  • The maximum deduction available under section 80GG has been raised to Rs 60,000 per annum from existing Rs 24,000 per annum. The deduction is available to an assessee who does not receive any HRA component as a part of his salary. Deduction is available in respct of the rent paid by assessee for his own accommodation in a particular year. 
  • Provident fund of 8.33 per cent for new governmnet emplyoyees will be paid by the government for first 3 years.
  • The deduction limit under Section 87A of the Income Tax Act has been raised from Rs. 2,000 to Rs. 5,000 per annum. Under Section 87A, taxpayers first reduce Rs. 2,000 from their total tax payable. This section applies to those with total income of less than Rs. 5 lakh.
  • An additional deduction of Rs. 50,000 was announced on interest paid by first-time home buyers on home loans of up to Rs. 35 lakh, provided the house value doesn't exceed Rs. 50 lakh.
  • 1 per cent infrastructure cess on small cars.
Other general highlights 
  • Start-ups to get 100 per cent tax exemption for 3 years except minimum alternate tax which will apply from April 2016-2019 for creation of jobs. 
  • No change in income tax slabs.
  • Jewellery prices to go up.
  • Clean energy cess increased from Rs 200/ton to 400/ton on coal, lignite and peat.
  • Excise duty on tobacco products increased by 10-15 per cent.
  • Surcharge on income tax for incomes exceeding Rs.1 crore per annum raised from 12 percent to 15 percent.
  • Corporate income tax: Incentives for new manufacturing companies and relatively small enterprise companies.
  • SUVs, luxury cars to be more expensive.
  • Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana.
  • 1 per cent infrastructure cess on small cars.
  • Government to increase ATMs, micro-ATMs in post offices in next 3 years.
  • Rs 25,000 crore to be allocated for re-capitalisation of Public Sector Banks.
  • RBI Act to be amended to give statutory backing for monetary policy.
  • 100 per cent FDI in marketing of food products made in India.
  • Fiscal deficit for 2016-17 targeted at 3.5 percent.
  • Prudence lies in adhering to fiscal targets.
  • Total allocation of road and rail in 2016-17 is Rs 2.18lakh crore.
  • Stand Up India scheme allocated Rs.500 crore for SCs, STs women entrepreneurs.
  • Rs 1 lakh countrywide health cover and 2000 medicine shops to control medicine prices.
  • 3,000 stores to be opened under Jan Aushadhi Scheme in 2016-17.
  • 62 more Navodaya Vidyalayas to come up under Sarva Siksha Abhiyan.
  • Rs 1000 cr set aside for higher education financing.
  • Provident fund of 8.33 per cent for new governmnet emplyoyees for first 3 years.
  • Govt is launching a new initiative to provide cooking gas to BPL families with state support.
  • 28.5 lakh hectares will be brought under irrigation under the Pradhan Mantri Krishi Sichai Yojna.
  • Govt to set apart Rs 412 crore to encourage organic farming.
  • National Skill Develoment Mission has been imparted training to 76 lakh youth. 1500 multi-skill training inititutes to be set up.
  • We plan to launch digital literacy mission scheme for rural India to cover around 6 crore additional household in next 3 years.
  • Rs 19,000 crore allocated for Pradhan Mantri Gramin Sadak Yojana in 2016-17. In all, Rs 27000 crore after state contribution. 
  • Will help reduce pollution, increase employment.
  • CPI inflation declined to 5.4 per cent.
  • 5 lakh acres to be brought under organic farming.
  • PM Fasal Bima Yojana allocated Rs 5,500 crore.
  • Agricultural e-market platform on Dr BR Ambedkar's birthday
  • Government to allocate Rs 5,500 crore for crop insurance scheme.
  • Rs 9,000 crore allocated for Swachh Bharat Abhiyan Yogana.
  • 5,500 villages electrified by February 2016. 100 per cent electrification of villages by May 2018.
  • Focus on drought-affected areas.
  • Rs 20,000 crore fund allocated for NABARD.
  • Target to complete PM Gram Sadak Yojana by 2019. Rs 19,000 crore allocated for the project. 
  • 3 projects to ensure farmers get MSP benefit.
  • Rs 17,000 crore allocated for Irrigation
  • We will undertake significant banking reforms.
  • Created new infrastructure for agriculture
  • Our external situation is robust.
  • Health insurance scheme to bear 1/3rd hospital expenses.
  • Will ensure farm incomes are doubled.
  • Global growth has slowed down, markets have fallen.
  • Will bring fiscal discipline in governance.
  • Growth has now accelerated to 7.4 per cent
  • Increase earnings to farmers by 2020.
  • Priority to provide funds to poorer section of the society
  • Global ecomomy is in serious crisis: Arun Jaitley
  • Indian economy has held his ground firmly.
  • Forex Reserves are at its highest value, 360 billion dollars.
  • Converted difficulties to oppurtunity.
  • We have to spend public funds wisely.
  • Growth despite pay commission suggestions.
  • Inflation has come down.
  • Increased planning expenditure.
  • Pace of reforms must continue.
  • We inherited a weaker economy.

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