Page 8 - Union Budget 2016

I would rather be conservative in my targets and improve: Arun Jaitley

Interview with Finance Minister Arun Jaitley on Budget 2016

Budget in 2 minutes

A road map for lowering of corporate tax rateAs part of the plan to reduce corporate tax from 30 per cent to 25 per cent: Accelerated depreciation will be limited to 40 per cent from April 1, 2017; deductions for research to 100 per cent from April 1, 2020; Section 10AA for new SEZ units will be available to units that start activity by March 31, 2020.Reduced corporate tax for new manufacturersNew manufacturing companies incorporated on or after March 1, 2016, are to be given an option to be taxed at 25 per cent plus surcharge and cess, provided they do not claim profit-linked or investment-linked deductions and do not avail of investment allowance and accelerated depreciation.Incentives for setting up of start-upsTo encourage start-ups, 100 per cent deduction of profits for three out of five years will be allowed for units set up over April 2016-March 2019. But, MAT will apply. Capital gains will not be taxed if invested in notified 'fund of funds' and by individuals in start-ups in w

Presumptive taxation: Compliance route eased for small biz

Professionals can do away with the need to maintain account books and audits

My Budget: Tarun Tahiliani

What is the best thing about the Budget?It is fiscally responsible in a very difficult environmentThe worst?There is a lot of micro-level tinkering involved and faint elaboration on the issue of bank recapitalisationWill it lead to acchhe din for the common man?The rural and infrastructure reforms and their chain of events will eventually help the common manWill BJP gain politically from the Budget?Its impact needs to be seen over a period of time before hazarding a guess. But, I can say that politics is economicsIf you were finance minister, what would you change?I would have addressed the GST Bill and made some tangible announcements that would re-affirm the government's commitment to the liberalisation processTarun Tahilianifashion designer

Sticking to its priorities: Sam Ghosh

For the govt's Make in India initiative, support to small sector enterprises in the form of robust programmes for providing skilled manpower will be a big boost

'Budget is not the last word on PSU banks' recapitalisation'

Finance Minister Arun Jaitley addressed a post-Budget press conference, along with Minister of State for Finance Jayant Sinha, all secretaries in the finance ministry and Chief Economic Advisor Arvind Subramanian. Later, he also had a separate interaction with reporters. Excerpts from both events:On consolidation of state-owned banksJaitley: The first and immediate agenda is to strengthen the banks. We will strengthen them by recapitalising the banks. Thereafter, we are willing to look at consolidation among subsidiaries, consolidation of subsidiaries with the principal bank, consolidation of a weak bank with a strong bank subject to an overall 52 per cent discipline that we have laid down for ourselves.On further capitalisation of banksJaitley: What I have announced today (Monday) is not the last word or last amount as far as recapitalisation is concerned. Therefore, something more will happen.On tax rebatesRevenue Secretary Hasmukh Adhia: Tax rebate has been increased from Rs 2,000 t

Budget gets a thumbs up from infrastructure companies

Higher fund allocation towards roads, electrification, coupled with revised dispute mechanism system, augur well for the sector

It is a big enough boost for banks: S Naren

The announcement on operationalising the Banks Board Bureau to streamline public-sector banks will further help the banking system

For economy, it is more of the same: Satya Poddar

The world over, the principal objectives of tax reform are promotion of investment and economic growth, efficiency and simplicity

Ashok Lahiri: It's important to spend all that money well

In the Budget for 2016-17, Jaitley, for the second consecutive year, maintained capital outlay at more than 20 per cent of such outlays in 2014-15.

Missing out on faster growth: N R Bhanumurthy

The Budget attempts to strike a balance between growth by boosting infrastructure investments and development through increases in allocations to agriculture and rural development. While it looks like a fine balance, it perhaps missed the opportunity of achieving a 8 to 10 per cent potential growth - as suggested by the Economic Survey - in the medium term. To achieve this, one should have increased public investments this year itself. But what we really see is a decline in public investment from 1.4 per cent to 1.3 per cent (as a ratio to GDP).This is expected to increase to 2.4 per cent in 2017-18 and 3 per cent in 2018-19, which could be a difficult proposition. This Budget has clearly focused more on agriculture and rural India. This could create additional demand that is required for reviving growth. Based on the gaps between the budgeted and revised numbers for 2015-16, one can clearly say that the government had mis-judged the role that existing rural development programmes, say

Room for monetary easing: Aditi Nayar

The Budget has crucially reinforced the government's commitment to fiscal consolidation. It did not deviate from the fiscal deficit target of 3.9 per cent in the Budget Estimate for 2015-16, despite lower-than-expected gross domestic product, or GDP, growth and a substantial shortfall in disinvestment inflows and direct tax revenues.Despite additional outgo on account of higher pay, the Budget stuck to the previously announced fiscal deficit target of 3.5 per cent. This would dampen bond yields and improve the likelihood of monetary easing, although we expect it to be restricted to 25 bps in 2016.The growth projections for tax revenues in the Budget appear realistic. The estimates for proceeds from disinvestment and spectrum sales, though, may prove optimistic. At the same time, increased allocations for the rural and infrastructure sectors are likely to support economic growth. A healthy 12 per cent rise in resources to be transferred to the states in 2016-17 is a positive, although i

Budget 2016: Little cheer for upstream industry

The much-awaited demand from exploration & production industry to reduce Oil Industry Development Board cess from Rs 4,500 per tonne to ad valorem has been met this Budget

Small taxpayers are big gainers in Jaitley's Budget

FM takes a protectionist stance in favour of domestic companies, increases customs duty on certain products

Debashis Basu: A delayed hit for the salaried class

This the first time that PF withdrawal is being taxed. A saving grace is that the tax is only on contributions made after April 1, 2016

My Budget: Prasad Bidapa

What is the best thing about the Budget?Fiscal deficit being contained at 3.5 per cent is a great achievement. Ease of doing business and dispute resolution is a welcome step. Food security is a good reform for children.The worst?There are too many new cesses and not enough provision for OROP and the Finance Commission impact.Will it lead to acchhe din for the common man? Corporate taxes not reduced and no benefit for aam aadmi.Will BJP gain politically from the budget?With a larger focus on providing rural reform, there seems to be some impact of Rahul Gandhi's "suit-boot ki sarkar" comment.If you were finance minister, what would you change?The government's performance record is not impressive so far. But, I am hoping for the best.Prasad Bidapafashion consultant

Four-month window to come clean on black money

The taxpayers will have the option to pay the tax within two months of disclosing the income

Employer's contribution to provident fund beyond Rs 1.5 lakh to be taxed

The government has also increased the tax exemption on employer contribution to the superannuation scheme

S Mahendra Dev: Budget, a win-win for rural economy; implementation a challenge

The finance minister has not disappointed in focusing on rural India, despite several fiscal challenges in 2016-17

Bottom-up development, the way to go: Shashank N D

The Union Budget 2016-17 is a clear indicator that the government wants to bring development at grass-roots level for its people. Finance Minister Arun Jaitley's focus on health as one of the key pillars shows that everyone has the right to a healthier life.The common man often is burdened with heavy health care costs and is frequently devoid of quality and timely health care facilities. Universal insurance enabling the elderly and the poorest to get access to good-quality health care is a fantastic step. Too often, a single serious health care event can have serious financial implications on people's lives.Lack of proper sanitation and cleanliness in rural India is one of the major causes of diseases in the country. Nearly 600,000 deaths a year are caused owing to diarrhoea - a big reason for this is improper sanitation. So, the faster we can solve this, the faster we can help people live healthier. As a preventive measure, the allocation of Rs 9,000 crore towards the Swachh Bharat Ab