No change in Income Tax; cars and SUVs to become costlier; No word of support for rubber farmers

Monday, Feb 29, 2016,13:26 IST By metrovaartha A A A

New Delhi | Finance Minister Arun Jaitley on Monday presented Union Budget 2016-17, with no change in income tax for the salaried class.

Price of petrol, diesel cars and SUVs will be increased, while luxury cars will be more expensive. The budget proposes 1 percent cess for petrol cars, 2.5 percent cess for diesel cars and 4 percent cess for SUVs.

All tobacco products, excluding beedis, will become costlier as tobacco tax goes up from 10 to 15 percent.

Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual income will be raised to Rs 5000 from Rs 2000.

The plantation sector in Kerala, which was expecting favorable announcement from the FM, was disappointed as there was no mention of any measures to support the crisis-hit rubber farmers in the state.

Other main budget proposals:

- First-time home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. Cost of house should not be more than Rs 50 lakh.

- Govt to introduce bill to amend Companies Act for ease of doing business; to enable registration of companies in a day.

- Service Tax to be exempted on general insurance schemes under NIRMAYA Scheme.

- Target delivery of financial, other intermediary services will be introduced using Aadhar in this Budget session.

- Govt to increase ATMs, micro-ATMs in post offices in next three years.

- Consolidation roadmap for public sector banks to be spelt next year.

- Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.

- Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual come to be raised to Rs 5000 from Rs 2000 currently.

- Govt to allow 100 per cent FDI through FIPB in marketing of food products produced and manufactured in India.

- More FDI reforms proposed in insurance, pension, asset restructuring companies and stock markets.

- Total allocation for road and rail in 2016-17 is Rs 2.18 lakh crores.

- To allocated Rs 55,000 crore for roads and highways; total investment in road sector would be Rs 97,000 core.

- Shopping malls to be allowed to open on all seven days of week; a model shops and establishment bill to be circulated to states.

- Certain parts of dialysis machines to be exempt from all forms of customs duty; national dylasis service programme to be launched in all district hospitals.

- 3,500 medical stores will be opened under Pradhan Mantri Jan Aushodi Yojana to make quality medicine available.

- Rs 1000 crore provided for LPG connection to rural households in name of women; scheme to go on for 2 yrs to cover 5cr BPL households.

- Rs 87,765 crore allocated for rural development.

- Govt to allocate Rs 5,500 crore for crop insurance scheme.

- 2.87 lakh crore to be given grant-in-aid for grama panchayats and municipalities; it is quantum jump of 228 per cent.

- A fund of Rs 900 crore started for stabilising market crisis of pulses.