Showing posts with label General Budget 2016-17. Show all posts
Showing posts with label General Budget 2016-17. Show all posts

Tuesday, 1 March 2016

Key Features of Budget 2016-2017

Key Features of Budget 2016-2017

INTRODUCTION : Growth of Economy accelerated to 7.6% in 2015-16

CHALLENGES IN 2016-17 : Risks of further global slowdown and turbulence.

ROADMAP & PRIORITIES :  ‘Transform India’ to have a significant impact on economy and lives of people

AGRICULTURE AND FARMERS’ WELFARE : Allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore

RURAL SECTOR : Allocation for rural sector – Rs.87,765 crore.

SOCIAL SECTOR INCLUDING HEALTH CARE : Allocation for social sector including education and health care – Rs.1,51,581 crore.

EDUCATION, SKILLS AND JOB CREATION : 62 new Navodaya Vidyalayas will be opened

SKILL DEVELOPMENT : Allocation for skill development – Rs. 1804. crore.

JOB CREATION : GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs. 1000 crore for this scheme

INFRASTRUCTURE AND INVESTMENT : Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during 2016-17.

FINANCIAL SECTOR REFORMS  : A comprehensive Code on Resolution of Financial Firms to be introduced.

GOVERNANCE AND EASE OF DOING BUSINESS : A Task Force has been constituted for rationalisation of human resources in various Ministries

FISCAL DISCIPLINE : Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%

RELIEF TO SMALL TAX PAYERS : Raise the ceiling of tax rebate under section 87A fromRs. 2000 to Rs. 5000 to lessen tax burden on individuals with income upto Rs.5 laks

BOOST 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.

MAKE IN INDIA : Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry

MOVING TOWARDS A PENSIONED SOCIETY : Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS).

PROMOTING AFFORDABLE HOUSING : 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

RESOURCE MOBILIZATION FOR 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 annum

PROVIDING CERTAINITY IN TAXATION : Committed to providing a stable and predictable taxation regime and reduce black money.

SIMPLIFICATION AND RATIONALIZATION OF TAXES : 13 cesses, levied by various Ministries in which revenue collection is less than ` 50 crore in a year to be abolished.

TECHNOLOGY FOR ACCOUNTABILITY : Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.

Authority: www.indiabudget.nic.in

Monday, 29 February 2016

Measures for moving towards a pensioned society

Measures for moving towards a pensioned society

While presenting the General Budget 2016-17 in Lok Sabha today, the Union Finance Minister Shri Arun Jaitley said that pension schemes offer financial protection to senior citizens. He proposed to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme(NPS). 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 after 1.4.2016. Further, the annuity fund which goes to the legal heir after the death of pensioner will not be taxable in all three cases.

He also proposed a monetary limit for contribution of employer in recognized Provident and Superannuation Fund of Rs. 1.5 lakh per annum for taking tax benefit.

He proposed to exempt from service tax the Annuity services provided by the National Pension Scheme (NPS) and Services provided by EPFO to employees. Also, he proposed to reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.

PIB

Reducing black money through a Scheme to declare undisclosed income by paying 45% tax in a given compliance window

Reducing black money through a Scheme to declare undisclosed income by paying 45% tax in a given compliance window.

While presenting the General Budget 2016-17 in Lok Sabha here today, the Union Finance Minister Shri Arun Jaitley proposed a Scheme to declare undisclosed income by paying 45% tax in a given compliance window.

Shri Jaitley proposed a limited period Compliance window for domestic taxpayers to declare undisclosed income or income represented in the form of any asset and clear up their past tax transgressions. This will include paying tax at 30% and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. Regarding income declared in these declarations, there will be no scrutiny or enquiry under the Income Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution. Immunity from Benami Transaction (Prohibition) Act, 1988 is also proposed subject to certain conditions.
The surcharge levied at 7.5% of undisclosed income will be called ‘Krishi Kalyan surcharge’ which will be used for agriculture and rural economy. Government of India plan to open the window under this Income Disclosure Scheme from 1st June to 30th September, 2016 with an option to pay amount due within two months of declaration.

Shri Jaitley today reiterated Government of India’s commitment to remove black money from the economy. He also suggested that as this one opportunity for evaded income to be declared once is given, government will be further focusing on bringing people with black money to books.

PIB

Tuesday, 19 January 2016

AIRF’s Suggestions for the General Budget 2016-17

AIRF’s Suggestions for the General Budget 2016-17

All India Railwaymen’s Federation(AIRF), representing more than 1.3 million Railwaymen, has submitted significant suggestions to Hon’ble Finance Minister on General Budget which is going to be presented on Feb 29, 2015. Budget leaves great impact on the lives of Railwaymen and their families including pensioners.

Therefore it becomes mandatory to bring core issues of Railwaymen at forefront so that Railwaymen find some relief…….
A.I.R.F.
All India Railwaymen’s Federation
4, State Entry Road,
New Delhi – 110055
No.AIRF/60
Dated: January 13, 2016
Hon’ble Finance Minister,
Ministry of Finance,
(Government of India),
New Delhi

Respected Sir,

Sub: Suggestions for the General Budget 2016-17

All India Railwaymen’s Federation(AIRF), representing more 1.3 million Railwaymen, wish to submit the following significant suggestions for consideration in the ensuing General Budget 2016-17:-

Provision of Rs.35,000 crore for implementation of VII CPC Report in the Railways – Indian Railways is broadly functioning as social entity; serving the vast spectrum of the society, majority of whom belongs to lower income group. Railways, is therefore, facing financial crunch on account of little flexibility in freight and fare. To implement report of the VII CPC Indian Railways require Rs.35,000 crore during the coming financial year 2016-17. Keeping in view total scenario and financial health of the Indian Railways as also the aspirations of the people of this country to modernize the Railways, provision of at least Rs.35,000 crore should be made for implementation of VII CPC report for the Railwaymen.

2. Exemption of the Railwaymen from the purview of National Pension System(NPS) – Successive Hon’ble Minister for Railways, accepting the established fact that the Indian Railways is the second line of defence of this country, and the Railwaymen have always proved their worth during all wars, may be 1962, 1965 and 1971, have already recommended for exemption of the Railwaymen from the purview of National Pension System(NPS). Since Railways is an operational department, Railwaymen have to work round-the-clock throughout the year and also have to stay away from their families for long period time while performing duties in the areas where adequate facilities are not available. Railwaymen have to work throughout the year in all weather conditions and their duties are of such complex and critical as well as hazardous in nature and they have to sacrifice their lives, while performing duties, in large number every year, as already accepted by the High Power Committee constituted by the Ministry of Railways under the Chairmanship of Dr. Anil Kakodkar. Therefore, Railwaymen deserve exemption from the purview of National Pension System(NPS), irrespective of their date of appointment on par with armed forces. It would also be pertinent to point out here that, the Indian Railways is the only government department which is shouldering total burden of payment of Pension/Family from its own resources.

3. Raising the limit of exemption from Income Tax deduction – Despite several announcements, one of the major issues in the election manifesto, limit of exemption from Income Tax, could not be raised during the last General Budget(2015-16) as per aspiration of the people of this country. It would not be out of context to submit that, value of the Rupees has substantially devaluated over the years, as a result of which, Dearness Allowance, which is paid to compensate this devaluation of money, has already crossed 119% w.e.f. 1st July, 2015 and is further likely to be increased during this year. This largely justifies that, limit of exemption from Income Tax deduction should be raised to at least 5 lakh per annum. AIRF, therefore, urges that, this aspect needs to be considered in the ensuing General Budget.

4. Provision of adequate allocation of funds for Education and Healthcare – Education and medical facilities in the market have become quite costly, as such gradually going out of reach of the common man because of business type educational institutes and private hospitals. Public Education System and medical facilities have drastically deteriorated over the year due to paucity of funds being allocated under these heads. This is also creating huge imbalance in the Indian Society. There is, therefore, urgent need of augmenting education and healthcare for the common man of this country, for which allotment of funds under these heads needs to be raised to 6% and 4% respectively of the GDP.

5. Allotment of funds for Skilled India Mission of the Hon’ble Prime Minister – A number of railway stations are proposed to be developed for skill development of the youth, as already announced by the Hon’ble Prime Minister of India, for which, substantial fund would be required. Since this is a National Mission and the Indian Railways is not in a position to bear this burden due to financial crunch, adequate fund needs to be allotted for this purpose in the ensuing General Budget.

6. Budgetary support for modernization and augmentation of Indian Railways – Indian Railways is the cheapest and most convenient mode of transport for common man of this country and is virtually lifeline of the nation. To fulfill the aspirations of the rail users, services of the Indian Railways need to be augmented to run this organization more safely and efficiently. It may be appreciated that the Indian Railways is a government organization. As such, Dividend and Lease Charges need not be recovered from the Railways, rather budgetary support, which has drastically declined over the year, should be increased adequately for modernization and augmentation of the Indian Railways. It has been observed that, Service Charges are also being taken on many materials and components manufactured or purchased by the Railways. Being government organization, Service Charges must not be taken from the Indian Railways.

7. Implementation of “Own Your House Scheme” for the Railwaymen – Indian Railways is employing more than 13 lakh employees who work round-the-clock in all weathers throughout the year. Only a marginal number of railway staff is provided with railway quarters while others have to starve badly for residential accommodation or are forced to reside as tenant. Former Hon’ble Minister for Railways, considering this apathy of the railwaymen, had made announcement in the Rail Budget regarding “Own Your House Scheme”, which has not seen light of the day due to paucity of funds. AIRF, therefore, urges that, necessary funds be allotted for this purpose, which will not only help in providing accommodation to needy railwaymen, but also in rapid growth in construction industry and boost the GDP of the country.

8. Refund of Pension Charges born by the Indian Railways – Indian Railways is the only government organization which takes care of entire Pension/Family Pension and Retirement benefits to the Railway employees, whereas for the whole lot of government employees, Government of India owns responsibility. At present, Indian Railways is disbursing around Rs.28,000 in the form of retirement benefits, including Pension/Family Pension to their employees and their dependents. It would be appreciated, if this money should be refunded to Indian Railways to improve economic health, and by this way there will be at least some provision for improvement in the safety standard and passenger care of the Indian Railways.

9. Refund of subsidy – Indian Railways is spending around Rs.26,000 crore for the subsidized fare, being given to the passengers. It is cross subsidy from freight to passengers. It would be in all appropriateness if this amount should be refunded to Indian Railways, so that it could take various important projects pending since years.

AIRF earnestly hope that its aforementioned suggestions would be given due consideration while preparing ensuing General Budget 2016-17 by the government.

With kind regards!
Yours faithfully,
sd/-
(Shiva Gopal Mishra)
General Secretary
Source: AIRF

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