Financial Sector Reforms
- Comprehensive code on resolution ,of financial firms to be introduced.
- Statutory basis for a monetary policy froinewoik and a monetary policy committee.
- Deepening of corporate bond market.
- Financial data management centre to be set-up lot data aggregation and analysis.
- Amendments in SARFAESi Act 2002 to enable sponsor of an ARC to be hold up to 100% stake in ARC.
Governance and Ease of Doing Business
- Creating a social security platform-bill for targeted delivery of subsidies, benefits and services using aadhar framework.
- Introduce DBT on pilot basis for fertilisers.
- Automation facilities in 3 lakh fair price shops by March, 2017.
- Companies act amendment to improve enabling environment for start ups.
- Price stabilisation fund to help maintain stable price of pulses.
Fiscal Discipline
- Fiscal Deficit in 2016-17 at 3.5%.
- Setting-up of a committee to review implementation of the FRBM Act.
- Every new scheme sanctioned to have sunset date and outcome review.
- Plan expenditure-Rs 5.50 lakh crore, increase of 15.3%.
- Plan/non-plan classification to be done away with from 2017-18.
- Rs 1000 crore allocated for new Employees’ Provident Fund (EPF) scheme.
- The government will pay EPF contribution of 8.33% for all new employees for first three years.
- Deduction for rent paid will be raised from Rs 20000 to Rs 60000 to benefit those living in rented houses.
- Additional exemption of Rs 50000 for housing loans up to Rs 35 lakh, provided cost of house is not above Rs 50 lakh.
- Service tax exempted for housing construction of houses less than 60 sq m.
- 15% surcharge on income above 1 crore.
Tax Reforms
- Excise duty raised from 10% to 15% on tobacco products other than bcedis.
- 1% service charge on purchase of luxury cars over Rs 10 lakh and in-cash purchase of goods and services over f 2 lakh.
- luxury tors to be more expensive. 4% high capacity tax for SUVs.
- Companies with revenue less titan Rs 5 crore to be taxed at 29% plus surdtarge.
- Limited lax compliance window from June 1 to September 30 for declaring undisclosed income at 45% inclusive surcharge and penalties.
- Excise 1% imposed on articles of jewellery, excluding silver.
- 5% Krishi Kalyan Cess to be levied on all services.
- Pollution cess of 1% on small petrol, LPG and CNG cars; 2.5% on diesel cars of certain specifications; 4% on higher-end models.
- Dividend in excess of Rs 10 lakh per annum to be taxed at additional 10%.
- A small relief of Rs 3000 to individuals having an annual income of less than Rs 500000.
- Ceiling of tax rebate under Section-87A of the Income Tax Act has been proposed to be increased to Rs 5000 from Rs 2000.
- The limit of deduction of house rent paid under Section-80GG has also been raised to Rs 60000 from the existing Rs 24000 per annum.
- Tax relief for MSME sector turnover limit under presumptive taxation scheme in Section-44AD of IT Act increased to 2 crore.
- 13 cesses levied by various minislrics to be exempted.
- MAT will be applicable lor startups that qualify for 100% lax exemption.
- Direct tax proposals result in revenue loss of Rs 1060 crore, indirect tax proposals result in gain of Rs 20670 crore.
Energy
- Rs 3000 crore earmarked for nuclear power generation.
- The government drawing comprehensive plan to be implemented in next 15-20 years for exploiting nuclear energy.
- The government to provide incentive for deep water gas exploration.
- Deep water gas new disc to get calibrated market freedom, pre-determined ceiling price based on landed price of alternate fuels.
Banking
- Banks get a big boost : Rs 25000 crore towards recapitalisation of public sector banks.
- Target of disbursement under MUDRA increased to 180000 crore.
- Process of transfer of government stake in IDBI Bank below 50% started.
- General Insurance companies will be listed in the stock exchange.
- The government to increase ATMs, micro-ATMs in post offices in next three years.
