“Only yesterday Prime Minister Narendra Modi had said that the budget was like an exam for him. I must say he and his Finance Minister Arun Jaitley have passed the examination very well.
I compliment both of them,”
said Swraj Paul, Chairman and Founder, Caparo Group.
The 2016-17 Union Budget has a clear thrust for the rural economy while taxing urban and the top of the pyramid consumption.
Finance Minister Arun Jaitley on Monday provided relief to small taxpayers and dug the affluent to shell out more while focusing on the rural economy with much higher fiscal outlays, as he presented India’s national budget for 2016-17 in the Lok Sabha. Key notes that stand out in this year’s budget are:
Finance Minister has also proposed nine pillars to transform India:
There are eight takeaways for individual taxpayers including the increase in tax rebate who are earning below 5lakhs to save additional Rs 3,000 in taxes. Finance Minister proposed extending the capital gains tax exemption to merger of different plans in the mutual fund scheme.
Mobile phone bills might see a marginal increase as a result of the announcement of additional 0.5% tax on all taxable services under the new Krishi Kalyan Tax aimed at benefiting the farming community. This means users will have to pay additional 0.5% tax on their mobile bills.
More to it, Mobile phones and tablets prices are set to rise about 5% after the government proposed to levy special additional duty on components such as populated printed circuit boards PCBs) and basic customs and countervailing duties on batteries, chargers, headsets and speakers.
However, Budget 2016-17 is a disappointing one for the Indian automotive industry. There were no bold steps announced for the revival of the sector, which has been struggling with declining growth rates. Like the corporate tax rate has been reduced marginally from 30% to 29% for domestic companies whose turnover doesn’t exceed Rs 5 crore.
Following are the items that will turn costlier: Cars, Gold, Imported Imitation Jewellery, Mineral Water & Aerated Water, Cigarettes & Tobacco, Bill Payments, Eating Out, Air Travel, Readymade Garments & Branded Apparel, Plastic Bags & Sacks, Aluminium Foil, Industrial Solar Water Heater, Lottery Tickets, Ropeway/Cable Car Rides, Legal Services, Hiring of Packers & Movers, E-reading Devices, Instruments for VoIP, Imported Golf Cars, Gold Bars.
Following are the items that will turn cheaper: Footwear, Solar Lamp, Router, Broadband Modems & Set Top Boxes, Digital Video Recorder & CCTV Cameras, Hybrid Electric Vehicles, Low Cost Houses With Less Than 60 sq. mt. Carpet Area, Sterilised Dialyser, Refrigerated Containers, Pension Plans, Microwaves & Ovens, Sanitary Pads, Braille Paper.
“FY17 Budget has provided a strong growth direction to the Indian Economy.
The Finance Minister has managed to balance the need to prioritize social sector requirements with economic and business imperatives.
The segmented 9-Pillar approach with well carved out deliverables will ensure execution clarity and focus,”
said Rana Kapoor, MD & CEO, YES Bank.
(Any information needs to be added, please let us know in the comments below).
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