FM Arun Jaitley disclosed the General Budget for 2016-17 on 29th of Feb 2016. The Budget got the mixed response from the people of various political parties and from all walks of life. But most of the people admit that it is pro-poor, pro-farmer budget. Many schemes have been announced by the Union Minister for the poor people especially farmers and low salaried people.
Some people have stated called him the Indian Robinhood for collecting money from the rich and distributing it to the poor. Let’s share some of the highlights which are important for the candidates preparing for the upcoming written exams for recruitment and admissions.
Key Points of Union Budget for 2016 -17
- 2 New Cesses have came in to being –
- New Agriculture Cess on all taxable services
- Purchase on cars and SUVs
- Rs 1 lac health cover –
The Govt has launched a new Health Protection Scheme that shall cover Rs 1 lac for each family.
Besides around 3,000 medical stores shall be opened across the country which shall provide quality medicines at affordable prices.
Dialysis Equipment will be cheaper now as duty exemptions shall be given on them.
EPF Deposits shall be taxed at the time of final withdrawal on 60 % of contribution made after April 1. So far there is no tax on this retirement related scheme.
But the govt has earmarked Rs 1,000 crore to pay 8.33 % of the EPF given to the new employees for the first three years.
Another chance to the Black money holders. There is the 4 month black money window for the domestic black money holders to disclose their black money by paying 45% penalty. The Window will open from 01/06/2016 to 30/09/2016.
Rs 50,000 exemption on interest for new home buyers for loan up to 35 lac and the cost of the house must not exceed Rs 50 lac.
Money earmarked for major projects –
Rs 2.21 lac cr for Infrastructure
Rs 87, 765 cr for Rural Sector with major chunk goes to MGNREGA
Rs. 44, 485 cr for Agriculture
Things getting costlier in 2016-17 Union Budget
Cars – There shall be infrastructure cess be imposed up to 4% on vehicles. It will certainly increase the price from Rs 3,000 to Rs 1 lac.
Air Travel goes dearer –
Excise duty on ATF has been increased from 8 % to 14 %. Krishi Kalyan Cess has also been imposed.
Cigarettes, tobacco except biri, jewellery, smart watches, eating out, watching movies, desktops, tablets all shall be costlier now.
Things getting cheaper in 2016-17 budget –
Footwear, solar lamps, Broadband Modems, Braille Paper, CCTV Cameras, Dialysis Equipment.
Some more Highlights –
Finance Minister has increased the tax deduction limit for Rs 60,000 per annum from the current Rs 24,000 crore.
Income Tax Updates –
No change in the tax- slab for the people having income up to Rs 1 crore. For the people earning more than 1 crore, there is 3% more surcharge from the present 12% to 15% for all citizens of India. There is the tax relief if Rs 5,000 from the existing Rs 2,000 on income that falls between Rs 2.5 lac and Rs 5 lac.
If there is any update related with this General Budget for 2016-17 and if you want to give any opinion regarding this budget, you are welcome to do the same in the Comment Box below. We shall include your comments in our post. Your comments must be grammatically correct without error of spellings. Thanks.