Highlights of Arun Jaitley’s Union Budget 2016 - H&R Block

Highlights of Union Budget 2016

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Budget 2016: Highlights

 

  1. On home loans worth upto Rs. 35 lacs, you can claim additional deduction of Rs. 50,000 if you are a first time home buyer.
  2. Professionals like doctors, freelancers, etc. can now file an ITR-4S if your income is less than 50 lakhs. Tax filing has been simplified for them (ITR-4S is 2 pages vs. 30 pages for ITR-4).
  3. As a tax payer, if your income is less than 5 lakhs, you will get tax benefits of up to Rs. 5,000 (under section 87A).
  4. Under Section 80GG, you can get deduction of Rs. 60,000 on rent paid if your company does not provide you any house rent allowance. This was earlier set to 24,000.
  5. The rate of surcharge on income tax has been increased to 15% from 12% for income above Rs. 1 crore.
  6. Business owners also get a benefit. They can file ITR-4S up to Rs. 2 crore in revenue. Earlier limit was Rs. 1 crore.
  7. 40% NPS withdrawal at time of retirement will be exempt from tax.
  8. For taxpayers with dividend income exceeding Rs. 10 lakhs, an additional tax of 10% will be charged.
  9. Govt. proposes to pay EPF contribution of 8.33% for all new employees for first three years with salary less than Rs. 15,000.
  10. Good news for all who are subject to tax audit as they will now be eligible for deductions under section 80JJAA. It was earlier restricted to only manufacturing companies.

Other Budget 2016 Updates

  • Start-ups can now register in a day, thanks to amendments in the Companies Act.
  • INR 55,000 Cr for roads and highways have been allocated in budget 2016, summing up to a total investment of INR 97K crores in Road Sector.
  • A new credit rating system will be developed for infrastructure.
  • Government allocates INR 19,000 Cr in Gram Sadak Yojna.
  • 500 Cr will be allocated to Stand-Up India for SC/ST and Women entrepreneurs.
  • Rs. 100 crores will be provided for higher education financing.
  • INR 30,000 Crore coverage to be provided for senior citizens (above 60 years).
  • Government proposes to launch a new health care scheme for the poor with families getting Rs. 100K as medical cover.
  • A new Krishi Kalyan cess to be imposed on all taxable services.

Mr. Arun Jaitley says, Budget 2016 will focus on infrastructure and enhancing quality of life. According to him Budget 2016 aims to work on tax reforms to reduce burden of compliance. He further added that the Indian economy has held its strong ground despite a global economic slowdown. GDP growth rate has accelerated to 7.6%.

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33 Comments

  1. Ritika says:

    Thanks H&R Block for the quick update.

  2. Aishwarya says:

    Helpful!! 🙂

  3. Apurva says:

    Informative

  4. Vibha says:

    Very informative!

  5. Abhishek S says:

    Thanks for Summerise helpful update….

  6. Yogesh Baijal says:

    Budget is good for development in India but some rebate on income tax must be given to medium class person whose salary is less than 10 lacks

  7. jitendra singh jandu says:

    Good sharing.

  8. Ashish says:

    Thanks for sharing this quick updates, informative

  9. Raviraj Barike says:

    Thanks for the update…. 🙂

  10. Prashant Banakar says:

    Thanks for good info.

  11. Neeraj says:

    Basically common man was having high hopes from FM …Overall decent budget

  12. V Srikanth says:

    Thanx H & R for a quick overview of relevant updates

  13. Rajesh Kumar says:

    Good sharing

  14. Judy says:

    Very useful information and timely

  15. LD Thakur says:

    Thanks for info

  16. kasireddy sudhakara reddy says:

    very useful for taxpayers

  17. Zoher R says:

    H&R thank you for the update .
    Taxes seem to be increasing each year. Last year, the government urged citizens to give up their LPG subsidy and imposed the Swacch Bharat cess of 0.5% on all taxable services. In Budget 2016-17, the finance minister announced infrastructure cess on cars, and a Krishi Kalyan cess of 0.5% on all taxable services.

  18. Vasundhara says:

    Thanks for the informative budget highlights.

  19. K GANESAN says:

    We are highly thankful to HRBlockIndia for the wonderful services. I am utilizing & depending / following – the services of HRBlock , as I am fully unaware of Economic Subjects & more over we don’t have confident that what we are submitting to Government. Therefore, it is highly helpful to complete the formalities.
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    9025195414

  20. Edwin says:

    This is a good information…!!!

  21. vikash kumar says:

    Thanx H & R for a quick overview of relevant updates………………………………………………………….

  22. Raghubir Sharma says:

    Thanks a lot HRBLOCKINDIA for this excellent service, provided so promptly.
    What are other ways ,you are providing help regarding incometax . guidance & esp. for NRI’S interest .
    Grateful,
    Raghubir Sharma

  23. Raghubir Sharma says:

    Thanks a lot ” HRBLOCKINDIA” for great help. Any guide for NRI’S interest ,please.
    Grateful,
    Raghubir Sharma .

  24. Vishakha Bhattad says:

    Thank you guys for sharing the above information. It is very helpful to get updated at a glance.

  25. Vishakha Bhattad says:

    Filing taxes with H&R Block is very easy. It is a very good organisation with client focused.

  26. romesh says:

    Thanks for Summerise helpful update….

  27. chalapathi says:

    Good synopsis

  28. k.premkumar says:

    help me to resolve my problem

  29. suresh says:

    No comments on controlling of price hike, no allocations for 7 th CPC. No discounts for truly tax payers . Poorer become poorer and richest become more richest. why cant go for green card for money exchange to control the block money.

  30. RAGHU NAIK says:

    Thanks for the information……

  31. Patrick A Kempu says:

    thank you.
    valid points are highlighted in simple terms,

    Patrick

  32. Jagadeesh Kumar says:

    Thank you H&R Block for updating the information on General Budget and important highlights.. There is no point of 7th pay commission announcement or its highlights. Genuine tax payers like govt. employees are not considered for enhancement on the principal amount. All private practitioners and consultancies should be looked into by the Government where black money is flowing like anything without any maintenance of account.

  33. Poonam Upreti says:

    Thank u H&R Block for periodically updating on related issues

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