2016-2017

By: Kamlesh Durgapal

MBA 2nd SEM.

Announced By:

Arun JaitelyFinance

MinisterGovt. Of

INDIADate of announcement : 29 feb 2016

Theme/ Focus of BUDGET

TRANSFORM INDIA It indicates that we are focusing to increase:1.Entrepreneurship. 2. Health. 3.Dialysis.4. Agriculture. 5. Irrigation.

BUDGET And Why BUDGET ?A budget is an annual financial statement of government expected estimated receipts and revenues in a financial year.

This budget is from 1st April 2016 to 31st March 2017

This is the Third Budget of MODI’s Government.

Predicition on Advance for the Year

TOTAL EXPENDITURE

Planned expenditur

e

UNPlanned expenditur

e5.50 Lakh

Crores

14.28 Lakh

Crores

19.78 Lakh Crores

Planned expenditure• Rise of 15.30% from previous year.

Planned expenditure is that expenditure that government know where to invest it.Example: like Banking sector, railway,etc

Unplanned expenditureExpenditure that we do in case of any economic

problem, lowdown, depression of economy or at the time of natural calamity.

Focus on 9 Sectors Agriculture and Farmer welfare Rural sector Social sector including Health Education , skills and job creation that

leads to Employment Infrastructure Financial sector reforms for Banking sector Government’s E-governance business

including startup INDIA Setup INDIA scheme

Fiscal Discipline (Fiscal Deficit) Tax reforms (Direct and Indirect )

AGRICULTURE SECTOR Double the income of farmer till 2022.

35,984 crore total allocated for agriculture sector during the budget.

Agriculture credit is Rs. 9 lakh crore. (In addition to 15000 crore has been kept as Intrest provision)

PRADHAN MANTRI PERSONAL BIMA YOGANA which was launched on 2015 again benefted with 5500 crore rupeees this year also.

Soil Health Card scheme coverage to 14 crore form holding by March 2017.

PKVY(PARAMPARAGAT KRISHI VIKAS YOJANA) UNDER THIS 5 Lakh acres of Rain Red area in given for organic farming.

Soil Helath= to check Productivity of Soil. E platform for selling agriculture products. Which is to

be launched on 14th April 2016 on B.R Ambedkar Jayanti.

IRRIGATIONPMKSY = 28.5 lakh hectares of land was provided total cultivated =141 million hectares where as only 65 hectares of land is properly irrigated. Rs. 20,000 crores for long term irrigation fundSuistanable management of ground water

resources 6000 crores.89 projects accelerated under irrigation benefit

programs from which 23 are going to complete till 31 st march 2017.

Price stablisation fund 900 crores

TAX REFORMS NO change in Income tax slab Surharge increases from 12% to 15% on those person whose income is

above 1 crore. STT= security transaction tax was 0.017% now it is increased to 0.05% If a person receive dividend in excess of 10 lakh per annum the he is

liable to pay 10 % tax on it. Equalition levi @ 6 % to be imposed if a person making payment in

excess to 1 lakh in a year for online advertisement. KRISHI KALYAN cess @0.05% on all taxable services is going to start

from 1st june 2016.TAX AT SOURCE: Imposed 1% on purchase of Luxury card exceeding value of 10 lakh. Goods and services in cash exceeding 2lakhINFRASTRUCTURE CESS: 1% on LPG, CNG, small petrol 2.5% on diesel cars 4% on higher engine capacity on SUV Clean energy cess is now replaced by clean environment cess which

was 200 per ton but now it is 400 per ton.

RELIEF ON TAXESCeiling of tax rebate under section 87A

increased from 2000 to 5000. relief of 3000 to those who reach upto 5lakh per annum.

Increase the limit of deduction of rent under section 80G from 24000 to 60000.

Increase in the turnover limit under preasumpted taxation scheme U/S GG AD of IT act to the turnover limit of 2000 crore from the current limit of 1000 crore.

Corporate taxes on manufacturing companies on or after 1st Jun 2016 25%+surcharge+cess.

New startups got 100% deductions of profit for 3 years.