TOP HEADLINES

Budget’s handling of Fiscal Deficit to decide next round of Rate Cuts

India Infoline News Service  | Mumbai February 10, 2016 14:39 IST

 

The ground reality is that consumer demand has not risen as expected. This has resulted in corporates postponing their expansion and investment plans, which further reduces demand for credit. Read More

Budget Analysis


Union Budget 2015-16: Balancing Act

The finance minister has delivered a practical budget that addresses many crucial areas topping the government agenda. The Budget would please rating agencies given its visibly significant control over the twin deficits and inflation with growth targeted at 8-8.5%. The GAAR applicability deferment by two years and the commitment to prospective taxation would certainly win the confidence of foreign investors.Read more
 

 

Budget Preview 

Union Budget Preview 2015-16: Laying the Cornerstone 


FM Says: Long Term Capital Gains Period in Unlisted Cos reduced to 2 years
FM Says: FY17 Fiscal deficit target at 3.5%.
FM Says: Propose to make amendments in SARFASI Act (Asset Reconstruction companies).
FM Says : Re-capitalization of Banks to be Rs25000cr - No increase.
FM Says: Would allow startups to register as companies in one day.
FM Says: FDI Policy reforms in Pension, Insurance, Stock exchanges, etc.
Introduction of Bankruptcy code in FY17 would be positive for PSU banks.
FM Says: Propose to make amendments in SARFASI Act (Asset Reconstruction companies).
FM Says:Propose to allocate Rs. 55,000 cr for roads and highways.
FM Says: Increase in farm spending. Positive for M&M and Escorts from medium term perspective.
FM Says: Introducing of generic Drug Stores. Negative for Pharma Sector from medium term perspective.
FM Says: Propose to set up Higher Education Financing Agency.
FM Says: Increase in farm spending. Positive for M&M and Escorts from medium term perspective.

 

Janta Expectation

  • Rs 38,500 crore allocated for MGNREGA
  • Rs 38,500 crore allocated for MGNREGA
  • some help for the startups could be benefecial for us
  • to increase the limit of tax exemption for the salaried class
  • to increase the limit of tax exemption for the salaried class

Janta Reaction

  • “The Finance Minister has managed to carve out a well-balanced budget proposition with a good spread of focus across major sectors while addressing issues of business and economic relevance. The 9-pillar approach lays specific focus on industry sectors while slicing out timely and feasible objectives with clarity for execution.”
  • Am happy the budget has accepted the proposition that MSMEs and small entrepreneurs could pay tax at lower rate of 29%, which is a definite move towards progressive taxation in the corporate sector. This has been our long standing recommendation since many years. Further a key move is to tax new companies at 25% which reiterates to move towards lower corporate tax rates of 25% one day, which will make us more internationally competitive. By sticking to discipline on fiscal deficit at 3.5% the government has paved the road for reduction in interest rates by the RBI hopefully very soon
  • Am happy the budget has accepted the proposition that MSMEs and small entrepreneurs could pay tax at lower rate of 29%, which is a definite move towards progressive taxation in the corporate sector. This has been our long standing recommendation since many years. Further a key move is to tax new companies at 25% which reiterates to move towards lower corporate tax rates of 25% one day, which will make us more internationally competitive. By sticking to discipline on fiscal deficit at 3.5% the government has paved the road for reduction in interest rates by the RBI hopefully very soon
  • Am happy the budget has accepted the proposition that MSMEs and small entrepreneurs could pay tax at lower rate of 29%, which is a definite move towards progressive taxation in the corporate sector. This has been our long standing recommendation since many years. Further a key move is to tax new companies at 25% which reiterates to move towards lower corporate tax rates of 25% one day, which will make us more internationally competitive. By sticking to discipline on fiscal deficit at 3.5% the government has paved the road for reduction in interest rates by the RBI hopefully very soon
  • “With a specific focus on improving the livelihood of India’s soul, its rural population, the Union Budget 2016-17 seems to be aimed at putting more money in the hands of the citizens. Three specific initiatives that I think will go a long way in creating an educated, healthier and stronger India are the government’s aim to double income of farmers in five years; new initiatives to increase irrigation access, and its objective to skill 1-crore youth in the next three years. On the other hand, healthcare has finally taken the center stage in the Budget. The Health Protection Scheme of Rs 1 lakh to cover unforeseen illness in poor families with an additional Rs 30,000 for senior citizens is a long-awaited and welcome step in deepening access. In addition, the government’s plan to add 3,000 pharmacies under the Jan Aushadhi Yojana to provide generic drugs at affordable rates is a commendable move. Moreover, the announcement of a National Dialysis Services Programme could not have

Economic Survey 2014-15

A flagship annual document of the Ministry of Finance, Government of India, Economic Survey 2014–15 reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. This document is presented to both houses of Parliament during the Budget Session..Read more

 

 

Budget Documents

All About The Budget - The Union Budget this time makes a good attempt to guide the economy in the right direction: it raised outlay on infra spend by 33% including on roads, railways and rural infra, made minimal increase in tax rates and yet targets to lower the fiscal deficit (FD) to 3.9% of GDP in FY16. Read the complete details of Union Budget FY16 here...Read more

 

 

 
Company Price % Gain
BASF India 966.3 4.31
Federal Bank 48.85 4.16
V-Guard Inds. 995.8 3.46
Techno Elec. 537.85 3.42
Cholaman.Inv.&Fn 874.9 3.4
 

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Budget Glossary

AD-VALOREM DUTIES These are the duties determined as a certain percentage of price of the product.

AD-VALOREM DUTIES It is a statement of receipts and expenditure of states for the financial year, presented to Parliament by the government. It is divided into three parts: Consolidated Fund, Contingency Fund and Public Account.