HIGHLIGHTS OF BUDGET

 

** For all 2 Mn+ cities, metro planning to start through the PPP route. INR 1 Bn set aside for this

** Additional tax incentive for housing – INR 40 Bn allocated to NHB for the same

** Slum development to be included in CSR of corporate

** Maintain allocation for MNREGA

** Soil Health Card for every farmer

** Target for RIDF increased by INR 50 Bn to INR 300 Bn

** INR 50 Bn set aside for warehousing of farm produce

** Definition of MSME to be revised for high capital ceiling

** Investment into road sector of INR 380 Bn. 22 Kms/Day to be achieved

** Coal to be supplied to all power plants – Very motherhood statement again, no specific measure

** Mining impasse to be ended shortly. Changes to Metals and Minerals Act will be done if needed

** Royalty will be increased to ensure better revenues to state governments

** Develop Bond Market, Liberalise ADR market, allow international settlement of Indian Debt, FX Derivatives

** Clarify the tax treatment of Indian funds whose FMs sit out of India

** One single operating Demat Account

** Govt in principle approves with consolidation of PSU Banks

** Bank will be allowed to raise long term foreign money to fund infrastructure without the costs of SLR, CRR and PSL

** PPF scheme to be increased from INR 100k to INR 150k

** Defense Spend – INR 2.3 Tn

** River linking project to be initiated

** NRI fund for Ganga clean up to be set up!

** Non-Plan at INR 12.2 Tn (Interim – INR 12), Plan Funds – INR 5.75 Tn (Interim – INR 5.5). Total at 17.94 Tn (Interim at 17.6 Tn)

** Tax Receipts – 13.6 Tn (Interim – INR 13.8), Non Tax at INR 2.12 Tn (Interim – INR 1.8). Fiscal Deficit at 4.5%

** Retain the lofty targets tax collection of Interim Budget (18% YoY)

** Relief to small and marginal tax rates – Raise Personal Income Tax limit to INR 200k to INR 250k

** Section 80 C relief to be increased from INR 100k to INR 150k

** Increase the deduction limit of housing loan from INR 150k to INR 200k

** Investment allowance of 15% for manufacturing companies for all companies above INR 250 Mn for 3 Years!

** 10 Year Tax Holiday to commence power production, distribution and transmission until FY2017

** FII portfolio income to be treated as capital gains

** Propose to increase rate of capital gains tax on mutual funds from 10% to 20%

** Anomaly of DDT to be rectified

** Impose customs duty of 10% on Telecom Equipment, Education Cess on Imported Electronic Goods