Budget 2016: Who gained and who lost in Jaitley’s big rural push | union-budget | Hindustan Times
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Budget 2016: Who gained and who lost in Jaitley’s big rural push

HT, along with knowledge partner Deloitte, tells you how the finance minister’s budget proposals could affect individuals, investors, companies, farmers and the youth.

union budget Updated: Mar 01, 2016 09:34 IST
HT Correspondent
An office worker walks past a digital screen at the Bombay Stock Exchange (BSE) in Mumbai showing finance minister Arun Jaitley delivering the budget speech in Parliament.
An office worker walks past a digital screen at the Bombay Stock Exchange (BSE) in Mumbai showing finance minister Arun Jaitley delivering the budget speech in Parliament.(AFP Photo)

HT, along with knowledge partner Deloitte, tells you how the finance minister’s budget proposals could affect individuals, investors, companies, farmers and the youth.

Individuals

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# Less Tax - Tax rebate of Rs 5,000 for those earning up to Rs 5 lakh from Rs 3,000 earlier; sovereign gold bond and rupee- denominated bonds proposed to be exempt from tax

# More savings - Individuals residing in rented homes and not receiving HRA granted an additional exemption of Rs 36,000

# Home loans - First- time home buyers will get an additional deduction of Rs 50,000 on interests on loans up to Rs 35 lakh; time limit for acquiring/completion of house property to claim benefit on interest increased to 5 years from 3 years.

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# Aerated drinks, balloons, imitation jewellery could get costlier; services to get costlier due to of cess for agriculture welfare

# EPF withdrawal taxable for contributions made after April 1, 2016

Investors

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# Retro clarity - FM has clarified on the controversial retrospective tax. No more fresh cases. Implementation of tax avoidance rule GAAR deferred till 2017

# Private Equity pep talk - In continuation of earlier norms for fund managers in India, the benefits have been extended to funds registered outside India

# Infra and realty - Tax incentives for infra and realty investment trusts (REITS) in the form of exemption from dividend distribution tax; clarification on non-applicability of MAT provisions on FIIs

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# Changes announced in laws to make country-by-country reporting mandatory for Indian multinationals to adopt global base erosion and profit shifting (BEPS) norms. Indian companies with global operations and minimum revenues of 750 million euros will be affected

Companies

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# Start up India - Tax breaks and incentives to newly set up domestic manufacturing companies; corporate income tax rates for such companies reduced to 25% against general rate of 30%

# Patent push - To boost R&D, income from royalty on patent developed in India to be taxed at 10% against the general 30%

Read | Jaitley’s rural mural: Budget 2016 focusses on agriculture, social sectors

# Tax aid - Presumptive taxation scheme for professionals; presumptive tax threshold doubled to Rs 2 cr

# Increase in tax audit limit for professionals from Rs 25 lakh to Rs 50 lakh

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#10% dividend distribution tax (exceeding Rs 10 lakh) received by individuals, HUFs and Indian firms

# Minimum Alternate Tax (MAT) made applicable on start-ups

# General corporate income tax rate remains unchanged at 30%

Farmers

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# More irrigation - Pradhan Mantri Krishi Sinchai Yojana to be implemented in mission mode; 2.85 million hectares will be brought under irrigation

# Loan relief - Govt to subsidise farm loan repayment; a provision of Rs 15,000 crore has been made for interest subvention

# Marketing - Unified agricultural e-platform to provide a common e-market platform for wholesale markets

# New Digital Literacy Mission Scheme for rural India

Arun Jaitley’s speech delved into agriculture early as the budget promised to double farm incomes in just over five years. (Reuters Photo)

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# Weather-induced supply shocks remain key concern; benefits of most measures could take several months to reach the farmer

# State governments would have to be co-opted for implementing many of the schemes

Youth

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# Skill development - National Board for Skill Development Certification to be set up with industry and academia to standardise curiculla

# Open learning - Entrepreneurship Education and Training through massive open learning courses

# Multi-skilled - 1,500 Multi Skill Training Institutes to be set up

# Digital depository of school & college degrees

# Stand up India to help entrepreneurship

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# Skill enhancement initiatives unlikely to yield immediate results

# Unless the persistent slide in exports is arrested, employment creation in key sectors could remain sluggish

# Most hopefuls may not match the skill demand required for jobs

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