Finance Minister Arun Jaitley on Monday presented the union budget for 2016-17. Here are the key highlights.
Scope of e-assessment to be expanded to 7 mega cities, to simplify compliance for taxpayers.
Income tax department will expand e-sahyog to assist small taxpayers.
11 new benches of tax tribunals to be established to reduce pendency.
To reduce multiplicity of taxes and cascading – 13 taxes with collection less than Rs. 50 crores a year abolished.
Levy of heavy penalty for non payment of tax has led to high litigation. Proposal to modify scheme for penalties.
Limited tax compliance window: 45 percent including surcharge and penalties and immunity from prosecution on undisclosed income under new scheme.
Govt to introduce bill to amend Companies Act for ease of doing business; to enable registration of companies in a day.
Krishi Kalyan Cess of 0.5 per cent on all taxable services.
Limited period compliance window for taxpayers to declare undisclosed income. Declarations to have immunity from prosecutions.
Clean energy cess increased from RS. 200/ton to 400/ton on coal, lignite and peat.
Earlier: 12 percent, now on 15 percent- surcharge on income tax for those with incomes exceeding 1 crore per annum.
Krishi Kalyan Cess to be imposed on all taxable services for agricultural sector.
Service tax exempted for general insurance schemes under Niramayi Swasthya Bima Yojana.
100 per cent deduction for profits of undertakings from housing projects in cities during Jun ’16 – Mar ’19.
Service tax exempted for housing construction of houses less than 60 sq. m.
Services provided by EPFO exempted from service tax.
Service tax exemption for construction of affordable housing upto 60 sq. m. under state and central housing schemes.
HRA deduction up from 24,000 to 60,000 per annum.
Service Tax Exemption for services under the Deen Dayal Gram Jyoti Yojana.
Committed to implementing GAAR from April 1, 2017.
Suitable changes to be made in customs & excise duty rates to improve competitiveness and boost.
Deduction for rent payers raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.
Relief of Rs 3000 per year to taxpayers with income below Rs. 5 Lakh per year;1 cr tax payers to benefit.
Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual income to be raised to Rs 5000 from Rs 2000.
Govt to provide health insurance of up to Rs.1 lakh per family. 300 generic drug stores to be opened PM Jan Aushadi Yojana.
Objective to skill one crore youth in the next 3 years under the PM Kaushal Vikas Yojana.
National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi skill training institutes to be set up.
Stand Up India scheme allocated Rs.500 Crores for SC, ST and women entrepreneurs-2 projects to be promoted per bank branch per category.
100 percent village electrification to be achieved by 1st May, 2018.
Quantum jump of 228 percent in grants to gram panchayats and urban local bodies.
A dedicated irrigation fund worth Rs 20,000 crore to be set up under NABARD.
Aim to double the income of farmers in five years. Rs. 35,984 crores total allocation for farmers’ welfare.