Finance Minister Arun Jaitly presented the annual budget for 2016-17 in Parliament today. Mr. Arun Jaitly kept his focus on boosting the rural economy, announcing higher spending in the sector to fire demand as he presented his second full budget.
Here are 10 things that should absolutely know about the budget-
1. Though there is no change in income tax slabs but for tax payers earning below Rs 5 lakh, ceiling on tax rebate has been increased from Rs 2,000 to Rs.3000.
2. Excise duty on most tobacco products raised by 10-15%.
3. From now on a 15 % surcharge on income tax for those with incomes exceeding 1 crore per annum.This surcharge was 12 percent until now.
4. First time home buyers get additional Rs 50,000 deduction for houses up to Rs 50 lakh, loan up to Rs 35 lakh
5. Excise duty on tobacco increased by 10-15%, except for beedi.
6. Fiscal deficit for Financial Year 2016-’17 targeted at 3.5%
7. Govt is committed to 100% electrification by 1 May, 2018. 542 villages will be covered in Feb 2016.
8. Start-ups to get 100% tax exemption for 3 years except MAT.
9. Govt to levy 1 % infra cess on small cars, 2.5 % on diesel and 4 percent of SUVs for anti pollution.
10. Jaitley also announced a new health protection scheme with health cover up to Rs 1 lakh per family. Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme.
Sadly, the union budget failed to cheer the SENSEX and NIFTY.