Corporate Updates – 01-03-2016 – HIGHLIGHTS OF UNION BUDGET 2016 – 17


The Hon’ble Finance Minister Shri. Arun Jaitley on 29.02.2016 presented Union Budget for the year 2016-17. We are pleased to present the highlights of the budget presented by Finance Minister Arun Jaitley.


· 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.

Personal Finance

· 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.

. 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. 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.

News from NIRC of ICSI

NIRC jointly with ICSI is organising a program on Union Budget – 2016 by Dr. Girish Ahuja & CS. Bimal Jain, on Tuesday, the 1st March, 2015 from 5.30 PM onwards at Shri Satya Sai Auditorium, Lodi Road, Near JLN Stadium, Metro Station, New Delhi-110 003. No Participation Fees; PCH: 2.

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