-By CA Deepak Valecha – Sr. Manager Audit, UJA
During the period of 3 years of Government, India has achieved an average growth of 7.4% in GDP.
Allocations of funds to various sectors:
- To allocate Rs. 2,000 Crore fund to set up agriculture market and infra fund to strengthen the market connectivity
- To allocation in food processing ministry is being doubled to Rs 1,400/- Crore from Rs. 715 Crore. State-of-the art facilities to be set up in 42 mega food parks
- To has been set at 1.5 times of the produce price Kharif MSP. Centre will work with states so that farmers get a fair price.
- To allocate Rs. 1,290/- Crore to promote bamboo sector, calling bamboo the green gold.
- To allocate Rs 1,000/- Crore to promote Fisheries & aqua culture, animal husbandry fund.
- To allocate Rs. 500/- Crore for Operation Green.
- To allocate Rs. 200 Crore for cultivation and associated industry.
- MSMEs sector gets Rs 3,794 Crores in the form of capital support and interest subsidy by 2022. Every block with more than 50% of ST population will have Eklavya Schools
- Target for loan disbursement under Mudra scheme set at Rs 3 lakh Crore for next fiscal
- Government is working with different agencies at root level to promote online credit facilities, overdraft and CC facilities to be extended to MSME.
- Considerations are also given to setting up a mechanism for ease of decision making over NPAs belonging to MSME.
Health care & Pharma
- Flagship National Healthcare protection scheme, with approximately 50 Crore beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalization.
- Government allots Rs 9,975 Crore for social security schemes
- Government to develop 35,000 KM under phase 1 of Bharatmala Project with an outlay of Rs. 5.35 lakh Crore.
- Out of 100 smart cities 99 cities have been selected with an outlay Rs. 2.04 lakh Crore
1.Government will expand PM Jan Dhan Yojana to 16 Crore accounts under micro-insurance and pension schemes.
- The government has approved a comprehensive textile package providing an outlay of Rs. 7,148 Crores for the textile sector.
- Government will spend Rs 16,000 Crore under PM Saubhagya Yojana. 4 Crore poor population of the country will get power connection.
Change with respect to Employees Provident Fund
- Under EPF Government will contribute 12% to PF for all employees.
- Government to allots Rs. 9,975 Crore for social security schemes
Amendments in Rates of Tax, Exemptions, and deductions under Income tax Act 1961.
- No changes in personal income tax slab.
- Education Cess increased to 4 % from 3 % to collect additional Rs 11,000 Crores.
- Corporate tax rate of 25% extended to companies with turnover of up to Rs 250/- Crore for FY 16-17.
- Standard Deduction of Rs. 40,000/- for medical reimbursement & Transport allowance for salaried class.
- For senior citizens, exemption of interest income on bank deposits raised to Rs 50,000/- per annum.
- Senior citizen limit for investment in interest-bearing LIC schemes currently Rs 7.5 lakh doubled to Rs 15 lakh.
- 10 % tax on long term capital gains in excess of Rs 1 lakh.
- Cash payments exceeding Rs 10,000 by trusts and institutions will be disallowed in a bid to curb cash economy.
- Tax on distributed income of equity oriented mutual funds at the rate of 10 per cent announced.
- Government to reduce hardships faced in realty deals; no adjustment to be made in case circle rate does not exceed 5% of sale consideration.
- To allow 100% deduction to Farmer producer companies set up along the lines of Co – operative societies having annual turnover of Rs.100/- Crores for a period of 5 years. Further in order to improve TDS compliances by these entities, non-deduction of TDS on such payments shall attract 30% disallowances of such expenditure.
- Customs duty on mobile phones to be hiked to 20 per cent from 15 percent.
- Customs duty on Televisions to be hiked to 12 per cent from 15 percent.