Agriculture and Farmers
Allocation for Agriculture and Farmers’
welfare Rs. 35,984 Crores.
Pradhan Mantri Krishi Sinchai Yojana. 28.5 lakh hectares will be brought under irrigation.
89 irrigation projects under AIBP will be fast tracked
A dedicated Long Term Irrigation Fund will be created in NABARD with
an initial corpus of about Rs. 20,000 crore
Programme for sustainable management of ground water resources
with an estimated cost of Rs.6,000 crore
5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost
pits for production of organic manure will be taken up under MGNREGA Soil Health Card scheme will cover all 14 crore farm holdings by March
2,000 model retail outlets of Fertilizer companies during the next three years
farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain
Development in North East Region'.
Unified Agricultural Marketing ePlatform
to provide a common e- market platform for wholesale markets Allocation
under Pradhan Mantri Gram Sadak Yojana increased to
19,000 crore. Will connect remaining 65,000 eligible habitations by
loan repayment on farmers, a provision of
15,000 crore has been made in the BE 2016-17 towards interest
Allocation under Prime Minister Fasal Bima Yojana 5,500 crore.
for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul
Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for
Allocation for rural sector Rs. 87,765 Crores
Grant in Aid to Gram Panchayats and
Municipalities as per the recommendations of the 14th Finance
Commission Rs. 2.87 Lakh Core
Every block under drought and rural distress will be taken up as an
intensive Block under the Deen Dayal Antyodaya Mission
A sum of Rs. 38,500 crore allocated for MGNREGS.
300 Rurban Clusters will be
developed under the Shyama Prasad
Mukherjee Rurban Mission
100% village electrification by 1st May, 2018.
District Level Committees
under Chairmanship of senior most Lok Sabha
MP from the district for monitoring and implementation of designated
Central Sector and Centrally Sponsored Schemes.
A new Digital
Literacy Mission Scheme for rural India to cover around 6
crore additional household within the next 3 years.
National Land Record Modernisation Programme has been revamped. New scheme Rashtriya Gram Swaraj
Abhiyan proposed with allocation
of Rs. 655 crore.
Social and Health Care
Allocation for social sector including education and health care Rs. 1,51,581 Crore
Cost of providing LPG
connections to BPL families Rs. 2,000 crore
New health protection scheme will provide health cover up to Rs.
1 lac per family and top-up package up to Rs.
30,000 for Senior Citizens.
3,000 Stores under Prime Minister’s Jan Aushadhi
Yojana will be
opened during 2016-17. ‘National Dialysis Services Programme’ to be started
Health Mission through PPP mode
“Stand Up India Scheme” to facilitate at least two projects per bank
branch. This will benefit at least 2.5 lakh entrepreneurs.
Scheduled Caste and Scheduled Tribe Hub to be set up in
partnership with industry associations
celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru
Gobind Singh Rs. 100 Crore each.
Education, Job Creation & Skill Development
62 new Navodaya Vidyalayas will be opened
Sarva Shiksha Abhiyan to increasing focus on quality of education
Regulatory architecture to be provided to ten public and ten private
institutions to emerge as world-class Teaching and Research Institutions
Higher Education Financing Agency to be set-up with initial capital base
of Rs. 1000 Crores Digital Depository for School Leaving Certificates, College
Academic Awards and Mark sheets to be set-up.
Allocation for skill development Rs. 1804 Crore
1500 Multi Skill Training
Institutes to be set-up.
National Board for Skill Development Certification
to be setup in
partnership with the industry and academia
Entrepreneurship Education and Training through Massive Open Online
Contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment
will be paid by Government of India. Rs. 1000 crore for this scheme.
Deduction under Section 80JJAA of the Income
Tax Act will be available
to all assesses who are subject to statutory audit under the Act 100 Model
Career Centres to operational by the end of 2016-17 under
National Career Service.
Model Shops and Establishments Bill to be
circulated to States.
Infrastructure and Development
Total investment in the road sector, including PMGSY allocation Rs.
India’s highest ever kilometres of new
highways were awarded in 2015.
To approve nearly 10,000 kms of National Highways in 2016-17. Rs. 55,000 crore Budget for Roads.
15,000 crore to be raised by NHAI through bonds.
Total outlay for
infrastructure - Rs. 2,21,246 crore.
Amendments to be made in Motor Vehicles
Act to open up the road
transport sector in the passenger segment
Action plan for revival of unserved and underserved airports to be
drawn up in partnership with State Governments.
To provide calibrated
marketing freedom in order to incentivise gas
production from deep-water, ultra deep-water and high pressure-high
Comprehensive plan, spanning next 15 to 20 years, to
investment in nuclear power generation to be drawn up. Steps to re-vitalise
Public Utility (Resolution of Disputes) Bill will be introduced during
Guidelines for renegotiation of PPP Concession Agreements will be
New credit rating system for infrastructure projects to be
Reforms in FDI policy in the areas of Insurance and Pension, Asset
Reconstruction Companies, Stock Exchanges. 100% FDI to be allowed through
FIPB route in marketing of food
products produced and manufactured in India.
A new policy for management of
Government investment in Public
Sector Enterprises, including disinvestment and strategic sale,
A comprehensive Code on Resolution of Financial Firms to be
Statutory basis for a Monetary Policy framework and a Monetary
Committee through the Finance Bill 2016.
A Financial Data Management Centre
to be set up.
RBI to facilitate retail participation in Government
New derivative products will be developed by SEBI in the
Amendments in the SARFAESI Act 2002 to enable the
sponsor of an ARC
to hold up to 100% stake in the ARC and permit non institutional
investors to invest in Securitization Receipts.
Legislation to be bought to deal with the
menace of illicit deposit taking schemes.
Increasing members and benches of
the Securities Appellate Tribunal.
Recapitalisation of Public Sector Banks Rs. 25,000 Crore
Target of amount sanctioned under Pradhan Mantri Mudra Yojana
increased to Rs. 1,80,000 crore.
General Insurance Companies owned by the
Government to be listed in
the stock exchanges.
Governance and Ease doing Business
A Task Force has been constituted for rationalisation of human
resources in various Ministries.
Comprehensive review and rationalisation of
Bill for Targeted Delivery of Financial and Other
Subsidies, Benefits and
Services by using the Aadhar framework to be introduced.
Introduce DBT on pilot basis for fertilizer.
Automation facilities will be
provided in 3 lakh fair price shops by
Amendments in Companies Act to improve enabling environment for
Price Stabilisation Fund with a corpus of Rs. 900 crore to help
maintain stable prices of Pulses.
“Ek Bharat Shreshtha Bharat” programme will be
launched to link
States and Districts in an annual programme that connects people
through exchanges in areas of language, trade, culture, travel and
Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.
Revenue Deficit target from 2.8% to 2.5% in RE 2015-16
Total expenditure projected at Rs. 19.78 lakh crore
Plan expenditure pegged at Rs. 5.50 lakh crore under Plan, increase of
Non-Plan expenditure kept at Rs. 14.28 lakh crores
Special emphasis to sectors
such as agriculture, irrigation, social sector
including health, women and child development, welfare of Scheduled
Castes and Scheduled Tribes, minorities, infrastructure.
Mobilisation of additional finances by
NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raising
Bonds Rs. 31.300 Crores.
Plan / Non-Plan classification to be done away with from 2017-18.
Every new scheme sanctioned will have a sunset date and outcome
Rationalised and restructured more than 1500 Central Plan Schemes
into about 300 Central Sector and 30 Centrally Sponsored Schemes. Committee
to review the implementation of the FRBM Act.
Relief to Small Tax Payers
Raise the ceiling of tax rebate under section 87A from Rs. 2000 to Rs.
5000 to lessen tax burden on individuals with income upto Rs. lakhs.
limit of deduction of rent paid under section 80GG from Rs.24000 per annum to
Rs.60000, to provide relief to those who live in
Employment and Growth
Increase the turnover limit under Presumptive taxation scheme under
section 44AD of the Income Tax Act to Rs. 2 crores to bring big relief to a
large number of assessees in the MSME category.
Extend the presumptive
taxation scheme with profit deemed to be 50%,
to professionals with gross receipts up to Rs. 50 lakh.
Phasing out deduction
under Income Tax:
Accelerated depreciation wherever provided in Income Tax Act will
limited to maximum 40% from 1.4.2017
Benefit of deductions for Research would be limited to 150% from
1.4.2017 and 100% from 1.4.2020
Benefit of section 10AA to new SEZ units will be available to those
units which commence activity before 31.3.2020.
The weighted deduction under
section 35CCD for skill development
will continue up to 1.4.2020
Corporate Tax rate proposals
New manufacturing companies incorporated on or
to be given an option to be taxed at 25% + surcharge and cess
provided they do not claim profit linked or investment linked
deductions and do not avail of investment allowance and
Lower the corporate tax rate for the next financial year for
relatively small enterprises i.e companies with turnover not
exceeding Rs. 5 crore (in the financial year ending March 2015), to
29% plus surcharge and cess.
100% deduction of profits for 3 out of 5 years
for startups setup during
April, 2016 to March, 2019.
MAT will apply in such cases. 10% rate of tax on
income from worldwide exploitation of patents
developed and registered in India by a resident.
Complete pass through of
income-tax to securitization trusts including
trusts of ARCs.
Securitisation trusts required to deduct tax at source.
Period for getting benefit of long term capital gain regime in case of
unlisted companies is proposed to be reduced from three to two years.
Non-banking financial companies shall be eligible for deduction to the
extent of 5% of its income in respect of provision for bad and doubtful
Determination of residency of foreign company on the basis of Place
Effective Management (POEM) is proposed to be deferred by one year.
Commitment to implement General Anti Avoidance Rules (GAAR) from
Exemption of service tax on services provided under Deen Dayal
Upadhyay Grameen Kaushalya Yojana and services provided by
Assessing Bodies empanelled by Ministry of Skill Development &
Entrepreneurship. Exemption of Service tax on general insurance services
‘Niramaya’ Health Insurance Scheme launched by National Trust for the
Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and
Basic custom and excise duty on refrigerated containers
reduced to 5%
Make in India
Changes in customs and excise duty rates on certain inputs to reduce
costs and improve competitiveness of domestic industry in sectors like
Information technology hardware, capital goods, defence production,
textiles, mineral fuels & mineral oils, chemicals & petrochemicals,
paper, paperboard & newsprint, Maintenance repair and overhauling
[MRO] of aircrafts and ship repair.
Withdrawal up to 40% of the corpus at the time of retirement to be tax
exempt in the case of National Pension Scheme (NPS). Annuity fund
which goes to legal heir will not be taxable.
In case of superannuation
funds and recognized provident funds,
including EPF, the same norm of 40% of corpus to be tax free will apply
in respect of corpus created out of contributions made on or from
Limit for contribution of employer in recognized Provident and
Superannuation Fund of Rs. 1.5 lakh per annum for taking tax benefit.
Exemption from service tax for Annuity services provided by NPS and
Services provided by EPFO to employees. Reduce service tax on Single premium
Annuity (Insurance) Policies from
3.5% to 1.4% of the premium paid in certain cases.
100% deduction for profits to an undertaking in housing project for flats
upto 30 sq. metres in four metro cities and 60 sq. metres in other cities,
approved during June 2016 to March 2019 and completed in three
years. MAT to apply.
Deduction for additional interest of Rs. 50,000 per annum
for loans up to Rs. 35 lakh sanctioned in 2016-17 for first time home buyers, where
house cost does not exceed Rs. 50 lakh.
Distribution made out of income of SPV to the REITs and INVITs having
specified shareholding will not be subjected to Dividend Distribution
Tax, in respect of dividend distributed after the specified date.
from service tax on construction of affordable houses up to
60 square metres under any scheme of the Central or State
Government including PPP Schemes.
Extend excise duty exemption, presently
available to Concrete Mix
manufactured at site for use in construction work to Ready Mix
Agriculture, Rural Economy and Clean Environment
Additional tax at the rate of 10% of gross amount of dividend will be
payable by the recipients receiving dividend in excess of Rs. 10 lakh per
Surcharge to be raised from 12% to 15% on persons, other than
companies, firms and cooperative societies having income above Rs. 1
Tax to be deducted at source at the rate of 1 % on purchase of luxury
cars exceeding value of Rs. ten lakh and purchase of goods and services in
cash exceeding Rs. two lakh.
Securities Transaction tax in case of ‘Options’
is proposed to be
increased from .017% to .05%.
Equalization levy of 6% of gross amount for
payment made to non- residents exceeding Rs. 1 lakh a year in case of B2B
Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1
Proceeds would be exclusively used for financing initiatives for
improvement of agriculture and welfare of farmers. Input tax credit of
this cess will be available for payment of this cess.
of 1% on small petrol, LPG, CNG cars, 2.5% on diesel
cars of certain capacity and 4% on other higher engine capacity vehicles
and SUVs. No credit of this cess will be available nor credit of any other
tax or duty be utilized for paying this cess.
Excise duty of 1% without
input tax credit or 12.5% with input tax
credit’ on articles of jewellery [excluding silver jewellery, other than
studded with diamonds and some other precious stones], with a higher
exemption and eligibility limits of Rs. 6 crores and Rs. 12 crores
Excise on readymade garments with retail price of Rs. 1000 or
raised to 2% without input tax credit or 12.5% with input tax credit. ‘Clean
Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean
Environment Cess’ and rate increased from `200 per tonne to `400 per
Excise duties on various tobacco products other than beedi raised by
about 10 to 15%. Assignment of right to use the spectrum and its transfers
deducted as a service leviable to service tax and not sale of intangible
Certainty in Taxation
Committed to providing a stable and predictable taxation regime and
reduce black money.
Domestic taxpayers can declare undisclosed income or
represented in the form of any asset by paying tax at 30%, and
surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the
undisclosed income. Declarants will have immunity from prosecution.
Surcharge levied at 7.5% of undisclosed income will be called Krishi
Kalyan surcharge to be used for agriculture and rural economy.
Resolution Scheme to be introduced.
No penalty in
respect of cases with disputed tax up to Rs. 10 lakh.
Cases with disputed
tax exceeding Rs. 10 lakh to be subjected to 25% of the minimum of the
imposable penalty. Any pending appeal against a penalty order can also
be settled by paying 25% of the minimum of the imposable penalty and
tax interest on quantum addition.
High Level Committee chaired by Revenue
Secretary to oversee fresh
cases where assessing officer applies the retrospective amendment.
scheme of Dispute Resolution for ongoing cases under
retrospective amendment. Penalty rates to be 50% of tax in case of
underreporting of income and
200% of tax where there is misreporting of facts.
Disallowance will be
limited to 1% of the average monthly value of
investments yielding exempt income, but not exceeding the actual
expenditure claimed under rule 8D of Section 14A of Income Tax Act.
limit of one year for disposing petitions of the tax payers seeking
waiver of interest and penalty. Mandatory for the assessing officer to grant
stay of demand once the
assesse pays 15% of the disputed demand, while the appeal is pending
before Commissioner of Income-tax (Appeals).
Monetary limit for deciding an
appeal by a single member Bench of
ITAT enhanced from Rs. 15 lakhs to Rs. 50 lakhs.
11 new benches of Customs,
Excise and Service Tax Appellate Tribunal
Simplification and Rationalization of Taxes
13 cesses, levied by various Ministries in which revenue collection is
less than Rs 50 crore in a year to be abolished.
For non-residents providing
alternative documents to PAN card, higher
TDS not to apply.
Revision of return extended to Central Excise assesses.
Additional options to banking companies and financial institutions,
including NBFCs, for reversal of input tax credits with respect to non-
Customs Act to provide for deferred payment of customs
importers and exporters with proven track record.
Customs Single Window
Project to be implemented at major ports and
airports starting from beginning of next financial year.
Increase in free
baggage allowance for international passengers. Filing
of baggage only for those carrying dutiable goods.
Expansion in the scope of e-assessments to all assessees in 7 mega
cities in the coming years.
Interest at the rate of 9% p.a against normal
rate of 6% p.a for delay in
giving effect to Appellate order beyond ninety days.
‘e-Sahyog’ to be
expanded to reduce compliance cost, especially for