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Economy

Watch Live Updates of Indian Budget 2016

12:37:15 PM: 96 minutes into the Budget. @arunjaitley continues with the tax reforms; 13 different cesses of various ministries removed.; Non residents with no pan have higher TDS, if alternate doc give, high rate will not apply.; Nothing on LTCG for listed securities yet.

12:27:52 PM: #Budget2016 #startup 100% deduction of profits for 3 out of 5 years; Withdrawal upto 40% if corpus, tax-free – Pension Scheme; Enhanced access to information and technology drive has reduced tax evasion; Krishi Kalyan Surcharge for declaring the undisclosed Income; #Budget2016 3L tax cases pending of about 5.5L crore.Effective penalties will come down. for direct and indirect taxes. We dont know the details yet.

12:26:49 PM: 1% CESS on petrol, 2.5% on diesel and 4% on SUVs for pollution tax #Budget2016

12:22:56 PM: 50,000 extra deduction for loans upto 35 lakh for houses<50L. Jeez.; DDT now exists, but extra 10% tax on dividend for div > 10 lakh !; Dividend Distribution Tax: In addition 2 DDT, Tax at 10% of gross amount of dividends in excess of 10L p.a. for certain sections; STT for options from 0.017% to 0.05%; Rate of STT for options increased from 0.017% to 0.05% Whoa! #Budget2016

12:20:49 PM: This is not a big budget. But the annexes may have the real details. #Budget2016; NPS withdrawal of 40% of corpus on retirement – tax free!; Tax benefit of employer contrib is limited to 1.5lakh pa? Not sure where this goes.

12:17:42 PM: LTCG for unlisted cos down from 3 to 2 years.; NBFCs 5% of their income as provision for Bad and Doubtful Debts; GAAR will come in FY18.; Refrigeration containers – excise and customs duty down to 5% from 6%.; Why are you tinkering with customs/excise rates Mr. Jaitley, rather than work it through GST? #Budget2016

12:13:49 PM: Turnover limit increased to 2 crore from 1 crore for MSME; Less than 2 cr. = presumptive income of 8% (versus 1 cr earlier); Exemptions on acc depreciation to be limited to 40%! #Budget2016; Exemptions ending in 2020 – many of them. #Budget2016; Corp tax: new manufacturing cos (after 1 march 2016) option of being taxed at 25% if no profit linked deductions; New startups between 2016 and 2019 get some tax exemptions. #Budget2016; Startups do not need to pay Capital Gains if invested in regulated notified funds

12:09:13 PM: Now for tax reforms! #Budget2016; Modernization of land records; under Centre from April 2016; 150 cr allocation; Thrust of taxes in small taxpayer relief, employment, make in india, pensions, housing, agri resource mobilization, simplification, tech.; Tax Proposals:categories – Relief to small tax player, Make in India, Promoting affordable housing, Use to Technology; Ceiling of Tax Rebate from 2k to 5k for below Rs.5L; Income < 5 Lakh gets Rs. 3,000 higher as rebate. #Budget2016; Relief for renters – 80GG rent exemption to 60K pa; 

12:09:02 PM: #Budget2016 15,000 cr towards interest subvention of farm loans

12:08:11 PM: 7.67 on the 10 year. #Budget2016

12:06:01 PM: 15% increase in non-plan exp.#Budget2016; 2026 down to 7.73%!!! Fall of about 10bps! #Budget2016; Plan and non-plan classification to be removed. Thank you!!!! #Budget2016

12:05:04 PM: Prudence: We will hit only 3.5% on the deficit! #Budget2016

12:03:57 PM: Fiscal situation coming #Budget2016

12:02:55 PM: Buffer stock of pulses through mkt prices. This year price will fall big time! #Budget2016

12:02:23 PM: Registration of companies in ONE DAY!!!! #Budget2016

12:00:05 PM: Undertake national roll out of ATMs and Micro ATMs; General Insurance Companies owned by the government will be listed on the stock exchange; Task force constituted for rationalizing the human resources in every ministry.; Introduction of targeted delivery of subsidies using AADHAR framework.; Targeted delivery of subsidies through Aadhaar. #Budget2016#Budget2016 DBT on pilot basis for fertilisers< /p>

11:57:46 AM: Defrauded by illicit deposit schemes. Operation of such schemes across India. SEBI Act to be amended for this; Bank board issues – very important. Banks not gnna be interfered with. #Budget2016; 25,000 cr. towards recap of banks. If additional capital needed, we will find.;  Indra Dhanush – Stress Assets in Public Sector Banks. Structural Issues addressed in Power, Coal, Sugar, Highways.; Allocation of 25k crore towards re-capitalization of public sector banks.; Banking Board Bureau and a road for consolidation of public sector banks will be spelled out in FY 2017. #Budget2016

11:55:39 AM: #Budget2016 Financial Data management centre to be setup; Need to deepen corp bonds, all details in annex. Oye. #Budget2016#Budget2016 New products to be developed by SEBI in the Derivatives market; Comprehensive anti-ponzi legislation. Watch out P2P lenders! #Budget2016

11:53:59 AM: PSUs to Divest land and other assets ! Wow, we mentioned this on our slack room for premium members! #Budget2016#Budget2016 Department of Disinvestment to be renamed as DIPAK; Bankruptcy in fin firms an issue. Resolution through a code, in bill in parliament. Means: it won’t get passed. #Budget2016; Monetary policy committee instead of only RBI gov doing decisions. Okay, let’s see. #Budget2016

11:51:11 AM: New credit rating system for infra: will have inbuilt credit enhancements etc. So you don’t trust rating agencies. #Budget2016;  FDI reforms in Insurance and Pension, ARCs, Stock Exchanges etc.; Reforms of Stock exchagnes insurance etc: in an annexure. Meaning: it’s big and don’t want to say it here. #Budget2016; 100% FDI in marketing of food products produced in India. Nice. #Budget2016

11:51:01 AM: Resolution of disputes in infra – some kind of guidelines for renego, and for resolution: #Budget2016

11:49:24 AM: #Budget2016 Oil & Natural Gas discovery has been below expectations. Rising demand, stagnation in production.; Highest coal production in 2 decades, highest distribution of LED bulbs. #Budget2016. Looks like some new orders for #Eveready & #Havells; More tax free bonds – probably 50000 cr. in FY17. #Budget2016

11:48:34 AM: Jain irrigation from +4% down to +0.4% . #Budget2016; Revival of under served airports. 160 airports to be revived. 10/25 of AAI airstrips will be redeveloped.; 10 non functional airstrips to be developed; #Budget2016

11:42:57 AM: Road Sector: 70 Projects (8300 km with 1L cr) languishing at the beginning of the year. 85% of these projects put back on track; Infra: 85% of road projects back on track. Higher ever new kms of highways awarded. So, you can take the high road. #Budget2016; 55,000 cr. for roads and highways. Topped up by 15,000 cr. raised by NHAI in bonds.; India’s highest ever production of motor vehicles achieved in 2015.; Proposed to allocate 55k cr for roads & highways with a top of 15k cr to be raised by NHAI bonds.; 97,000 cr on roads including gram sadak yojana.; Outlay on roads and rails in 2016-17 will be 2.18L cr.; 15k km of state highways will be taken for updation as national highway; Passenger traffic on the roads made more beneficial for common man and middle class.; Abolishment of Permit Raj will be the goal. Open up the road transport sector #Budget2016; Passenger road traffic unreformed. Startups can run buses! Ola and Uber should get in? Highest ever traffic and capacity at major ports. New green field ports.

11:41:56 AM: 100 models career centres by the end of 2016-17. Interlink State Employment services with national platform #Budget2016; Retail trade needs simpler regulation. Small/medium shops can remain open 7 days/wk, model shops/est act coming #Budget2016; Circulate a Models Shops & Establishmen
t bill

11:36:46 AM: Removal of APMC is a great idea! Higher Education Financing Agency started with 1000 cr. Can get CSR, and borrow from mkts. Digitial repository of all marksheets, school leaving cert etc. so employers can access it securely. New jobs in formal sector: Employees Pension Fund of new employees – govt will pay 8.33% of salary. Govt will pay for salaries up to Rs. 15,000 pm. (the EPF part) #Budget2016

11:34:36 AM: 500 cr. to promote SC/ST entrepreneurships. Reservaton in startups 🙂 #Budget2016; Celebrating 125 anniversary of BR Ambedkar. Proposed to constitute a SC/ ST hub for professional support to SC/ST; There will a SC/ST hub in the MSME program. What’s your surname again? #Budget2016

11:33:22 AM: #Budget2016 Government will launch a new health protection scheme upto Rs.1 lakh for 60+ yrs with additional 30k topup; Dialysis National Service program through a PPP mode in all district hospitals

11:30:45 AM: Key element of social sector proposal: LPG earlier considered not-poor. Open fire for poor – but it’s like 400 cigs per hour. #Budget2016; Poor do not have access to cooking gas. Cooking in an open kitchen without gas = burning 400 cigarettes in an hour; Empower women = additional 2 years of LPG subsidy; 2000 cr. for gas cylinders for poor is AWESOME idea.

11:29:02 AM: Digital literacy mission so that villagers can buy from Flipkart. #Budget2016

11:26:17 AM: 38,500 for MNREGA. Much lesser than we expected. Thank goodness. #Budget2016; 100% village electrified by may 2018. 18000 cr. for that. #Budget2016; 9000 cr. for Swach bharat mission. #Budget2016 (Nice)

11:22:27 AM: 1. Remaining states to take decentralized procurement 2. prior reg of farmers with FCI 3. pulses procurement happen. #Budget2016; Rural economy: 2.27 lakh cr grant to municipalities. Massive jump of 228%. #Budget2016; 80 lakh per gram panchayat. Whatay

11:21:32 AM: Interest subvention for farmers continues. Crop insurance too. Probably adds to 22,000 cr.

11:14:43 AM: Will double farmer income by 2022. #Budget2016; 35,000 cr for farmers; Irrigation to get 17000 cr. next year. Jain irrigation didn’t respond well to the irrigation plan huh?

11:12:50 AM: 9 different pillars – Agriculture & Farmer welfare; Rural Employment & Infrastructure; Education skills and job creation, Infrastructure and Investment for enhancing the quality of life; Prudent management of government finances; Increasing Outlay of various social schemes; LPG subsidies

11:11:49 AM: #Budget2016 Will provide statutory backing to the Aadhaar platform. Significant changes to the FDI policy. 

11:11:14 AM: #Budget2016 Government will ensure passage of GST, Bankruptcy and Insolvency Act.

11:10:51 AM: Opportunity for the government to outline its priorities for the year to come

11:10:17 AM: Increase in farm, rural, infra, and bank recap expenses.

11:09:57 AM: FY 2015-16 and 16-17 will be challenging for government expenditure

11:09:33 AM: Focus on domestic growth! Awesome.

11:08:48 AM: #Budget2016 We must rely on Domestic Demand in Indian markets to ensure Indian growth does not slow down

11:08:12 AM: #Budget2016 We have increased our planned expenditure in contrast to the usual process of reducing it

11:07:46 AM: Forex reserves are at $350bn highest ever. And then, more poetry. #Budget2016

11:07:17 AM: CPI inflation has come down to 5.4%.

11:06:53 AM: Growth is now at 7.6% even through contracted growth in world exports.

11:06:12 AM: #Budget2016 In haalatoh mein bhi aata hai hame dariya paar karne @arunjaitley

11:05:03 AM: #Budget2016 India’s growth is extra ordinarily high – World Bank

11:03:41 AM: Budget 2016 starts with a lot of noise. Lots of noise. This is both Jaitley day, and hate Smriti Irani day in Parliament.

10:58:32 AM 02/29/2016 – We are getting ready to bring you Budget 2016. Follow us on Twitter @capitalmind_in. We update this post all through the budget session so you get an understanding on what’s going to happen.

India Budget 2016

 

  • Raghu says:

    Think there is a tax hike on provident funds . Para 138 of the budget speech. 100% Tax exempt provident funds become only 40% on contributions from 1.4.2016 onwards. Anyone knows the details?