Union Finance Minister Arun Jaitley has presented his third budget and has outlined the nine pillars on which the budget is prepared. 1. Agriculture and farmers welfare 2. Rural sector with focus on employment 3. social sector with healthcare 4. Educational skills and job creation 5. Infrastrucuture and investment 6. Financial sector reforms 7. Governance and ease of doing business to enable potential 8. Fiscal discipline 9. Tax reforms to reduce tax burden:
Union Finance Minister Arun Jaitley has presented his third budget and has outlined the nine pillars on which the budget is prepared. 1. Agriculture and farmers welfare 2. Rural sector with focus on employment 3. social sector with healthcare 4. Educational skills and job creation 5. Infrastrucuture and investment 6. Financial sector reforms 7. Governance and ease of doing business to enable potential 8. Fiscal discipline 9. Tax reforms to reduce tax burden:
In Timeline:
12.40 pm: To propose to expand e-assessment to all cities and mega-cities to all where unless the assessee himself wants to be assessed or the assessee officer want to judge the party, there will be no direct meeting between the IT department and the assessee. The assessment will be carried on the e-assessment platform
12. 35 pm: e- Sahyog platform to reduce compliance costs for poor tax payers. Govt to pay 9% as against the normal 6% in case the ruling is delayed by more than 90 days
12:32 pm :Tax of 10% in the hands of dividend recipients above 10 lakh
12:30 pm : Arun Jaitley increases excise duty on tobacco products except bidis by 10-15 per cent
-voluntary disclosure of income for blackmoney
-Offering limited period compliance window for undisclosed income
12:29 pm: To levy 1% infra cess on small gasoline cars; SUVs and luxury cars will become more expensive.
-Clean energy cess for coal Rs 400 per tonne
12:27 pm : First home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. Cost of house should not be more than Rs 50 lakh: Jaitley
12:26 pm: Benefits of research will be 150% by 1st April 2017 and 100% by 1st April 2020
-Deduction to rent payers under 80 GG increased from Rs 24k cr to 60k crore
12:25 pm: First home buyers an additional deduction of interest of 50,000 provided value of house does not exceed Rs 50 lakh
-Lower corporate tax rates from companies with Revenue under Rs 5cr to 29% + surcharge + cess
-Rs 900 cr provided to buffer fund created to moderate prices of pulses
-Service tax on single premium annuity to be reduced to 1.5 per cent from 3.5 per cent
12:23 pm: DDT exempted from REITs
-Propose 100% deduction to undertakings for construction of affordable housing
-Tax exempt 40% of withdrawal from NPS at retirement
12:19 pm: Propose complete passthrough of IT to trusts of ARCs
-Propose to implement GAAR from April 1, 2017
12:17 pm: New manufacturing companies after March 1, 2016 to be taxed at 25% plus cess+surcharge
-LTCG period for unlisted companies reduced to 2 years
12:15 pm: Raise personal I-T house rent exemption to 60,000 from 24,000 per year
12:13 pm:To undertake massive nationwide of ATMs in the next 3 years
-Department of Disinvestment to be renamed as Department of Investment and Public Asset Management
12:12 pm: Total resources allocated to states 99681 cr more than 2015-16
-To propose introduction of DBT in fertilizer on pilot basis
12:10 pm: Govt to allow 100 per cent FDI through FIPB in marketing of food products produced and manufactured in India
-Govt to bring new policy for strategic sale of CPSE assets
-2.5% revenue deficit target for FY16 vs budgeted est of 2.8%; FY17 fiscal deficit target at 3.5%
-15.3% increase in plan expenditure to to Rs 5.5 lk crore;to do away with plan & non-plan classification from FY18
12:05 pm: More FDI reforms proposed in insurance, pension, asset restructuring companies and stock markets
-A new credit rating system for infrastructure will be developed
-A Public Utility Resolution of Disputes Bill to be passed to solve problems in infrastructure contracts, PPP and public utilities
-Govt preparing a comprehensive plan for nuclear power generation and allocation could be up to Rs 3,000 crore per annum
-Govt considering to provide calibrated market freedom to new gas production from deep sea, ultra deep sea to boost stagnant domestic output
-160 airports and airstrips can be revived at a cost of Rs 50-100 crore each
12 noon: Aadhar framework to be used to ensure targeted subsidies. A new bill to be introduced to that effect;
-Propose to launch a pilot in few districts to introduce Direct Benefit Transfer (DBT) for fertiliser subsidy.
-Plan to automate 3 lakh fair price shops out of 5.35 lakh shops
-To launch a technology related platform to procurement of Govt goods and services by various ministries
11.57 am: Rs 55,000 cr allocated or road and highways, taking total road investments including Gram Sadak Yojna to Rs 97,000 cr during 2016-17
-Total outlay for infrastructure of 2016-17 stands at Rs 2,21,246 cr
-Abolition of Permit Raj to be medium-term goal
-Rs 800 crore for national waterways allocated
-Abolition of Permit Raj to be medium-term goal
11.55 am: PM has called for entrepreneurship amongst SC and ST. For this Cabinet has approved Rs 500 crore through ‘Stand Up India’ shceme to promote SC, ST and women entrepreneurs
-Propose to exempt part of dialysis equipments from customs duty
-Government to give 8.33 per cent interest to all new persons in EPFO in a bid to bring in unemployed person
-Small and medium shops should be given a choice to open on all 7 days.
-A model shop and establishment bill to be circulated which is to be adopted on a voluntary basis
-62 new Navodaya vidyalayas to be opened in next two years
11 53 am: Need to think beyond food security to income security for agri and farmers
-Rs 87,765 cr allocated for rural development in this Budget
-Rs 2000 cr to be allocated for LPG cylinders to women members of poor families
-75 lakh middle income people have given up LPG subsidy through ‘Give it Up’ scheme
-3,000 medicines stores under Prime Minister Jan Ausidhi Yojna to be started
11:52 am: There won’t be any hard copies of the budget this time, announces the Finance Ministry
11.51 am: Land Records Modernisation: The Government has taken the Integrated Land Transformation System (ILTS), as a central sector scheme. Funds of 150 cr will be allocated in this financial year
11.50 am: Digital literacy, 6 Cr. households to be covered under the National Digital Literacy Mission (NDLC) and Digital Saksharta Abhiyaan (DSA) in the next three years.
11:40 am: Rs 9,000 crore allocated for Swacch Bharat Abhiyan; and Rs 55,000 crore for roads and highways in this budget
11:35 am: Govt to develop 300 ‘rurban’ clusters.Rs 2.87 lakh crore will be given as grants-in-aid to village panchyats and municipalities to boost rural economy.
-Govt to spend Rs 850 crore in a few years on animal husbandry, cattle and livestock breeding
-States will be encouraged to take up decentralised procurement of foodgrains.
11.35 am: Jaitley aims for 100% village electrification by May 2018
11:30 am: Arun Jaitley allocates Rs 38,500 crore for MGNREGA (the highest ever) – a scheme that this government had once described as a living example of the failures of the Congress government.
11:20 am: We have to prudent fiscal policy, raise domestic demand, carry out reforms; 28.5 lakh hectares will be brought under irrigation; Will spend 60,000 crores for water resources management, says Jaitley. Also, 2.87 lakh crore as aid to gram panchayats
11:15 am: Aim to double farmers’ income by 2022; Govt is launching a new initiative to provide cooking gas to BPL families with state support.
11.15 am: Next financial year will cast an additional burden due to implementation of 7th Pay Commission and OROP, says Jaitley. Recapitalization of banks will be done in the next fiscal year, says Jaitly
11:10 am: Arun Jaitley outlines the nine pillars on which the budget is prepared. 1. Agriculture and farmers welfare 2. Rural sector with focus on employment 3. social sector with healthcare 4. Educational skills and job creation 5. Infrastrucuture and investment 6. Financial sector reforms 7. Governance and ease of doing business to enable potential 8. Fiscal discipline 9. Tax reforms to reduce tax burden
11:05 am: World Economic Forum says India’s growth is extraordinary, said Jaitley. He said that hope continues to build around India. CPI inflation has come down, GDP growth now 7.6 per cent. CAD declined to 14.4 per cent and will be 1 per cent of GDP by end of fiscal, says Jaitley
8.45 am: IT and telecom hardware makers expect the government to extend differential duty structure on mobile phones for 10 years while bringing personal computers under the regime to give a boost to domestic manufacturing.
8.30 am: “Hangout” with Arvind Panagariya, vice chairman of Niti Aayog and Amitabh Kant, CEO of NITI Aayog on Wednesday and Thursday as they explain the intricacies of Union Budget and explicate its real impact on various crucial sectors of the economy.
Watch Arun Jaitley presenting his third budget below
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