Finance Minister says:
Govt. has to prioritize expenditure. Focus on the rural and social sectors, infrastructure and recapitalization of banks
Agenda for next year is to undertake transformative measures based on 9 pillars for India - Agriculture, rural sector, social sector, edu skills/job creation, infra investment, financial sector reforms, governance, ease of doing business, fiscal & tax reforms


  • PSU Insurance Companies To Be Listed
  • Statutory backing for Aadhar soon
  • A unified agriculture market e-platform will be dedicated to the nation on the birthday of Dr. B.R. Ambedkar
  • 100% rural electrification of Indian villages by May 2018
  • Rs 9,000 crores allocated to Swaccha Bharat Abhiyaan
  • 3,000 new Jan Aushadhi stores to come up for quality medicines
  • 100% FDI to be allowed through FIPB route in Food Products Produced and Marketed in India
  • Fiscal deficit target retained at 3.5 per cent of GDP


Education:
  • National Skill Development Mission has imparted training to 76 lakh youth. 1500 Multi skill training institutes to be set up
  • Digital depository for academic certificates to help reduce the issue of fake degrees
  • Rs. 1000 cr set aside for higher education financing
  • We will interlink state employment exchanges with national service career platform
  • Objective to skill 1 crore youth in next 3 years under the PM Kaushal Vikas Yojana


Infrastructure:
  • Rs 55,000 crore set aside for roads and highways in FY17
  • 85% of stalled road projects back on track Total allocation to road sector including PMGSY: Rs. 97,000 crores
  • A mammoth total outlay of Rs 2,18,000 crore for railways and roads in FY17
  • Total outlay for infrastructure Rs. 2,21,246 crores in 2016/17
  • Target of 10,000 kms of national highway and upgradation of 50,000 kms of state highways in 2016/17
  • Rs 3,000 crore allocated for nuclear power
  • Private Entrepreneurs to be allowed to run bus services on various routes, subject to efficiency
  • 50% of tax as penalty for income under-reporting cases, 200% for misreporting facts



Finance:
  • Growth of GDP has accelerated to 7.6% .Retail inflation declined to 5.4%
  • Forex Reserves have reached their highest mark at $350 billion
  • FY16 CAD seen at 1.4% of GDP
  • New Financial Data Management Centre to facilitate integrated data analysis
  • Department of Disinvestment to be renamed as Department of Investment and Public Asset Management
  • Asset-reconstruction companies' sponsors to be allowed to hold 100%; Sarfaesi Act to be amended
  • RBI Act to be amended to give statutory backing for monetary policy
  • Comprehensive code to provide specialized resolution mechanism for bankruptcy of banks/insurance firms
  • 25,000 crore for recapitalization of public sector banks
  • An increased allocation of Rs 1,80,000 Crores under PM MUDRA Yojana
  • More no. of benches of Security Appellate Tribunal to be introduced by amending SEBI Act to reduce pendency
  • Plan Non-plan distinction to be removed from 2017/18
  • Revenue gains of Rs 19,600 cr from indirect and direct tax changes


DIRECT TAX:

Individuals:
  • Tax Slabs remain unchanged at:
  • Income up to Rs 2.5 lakh: NIL tax
  • Income between Rs 2.5-5 lakh: Tax at 10%
  • Income between 5-10 lakh: Tax at 20%
  • Income above Rs 10 lakh: Tax at 30%
  • Ceiling of tax rebate for tax payers with up to Rs 5 lakh annual income to be raised to Rs 5000 from Rs 2000
  • HRA deduction increased to Rs 60,000 per annum from Rs 24,000 per annum
  • Presumptive I-T scheme extended to all professions
  • Krishi Kalyan Cess of 0.5% on all taxable services
  • Tax compliance window from Jun 1-Sep 30 for declaring undisclosed income
  • To reduce multiplicity of taxes and cascading - 13 taxes with collection less than Rs. 50 Crores a year abolished
  • 11 new benches of tax tribunals to be established to reduce pendency



Corporate:
  • Corp tax rate cut to 29% from FY18 for firms with turnover of less than Rs 5 cr
  • 100% deduction on profits for start-ups for 3 out of first 5 years; MAT to apply
  • Capital gains not to be taxed on investments in regulated Fund of Funds for start-ups
  • 100% deduction on profits to undertakings for construction of affordable housing



INDIRECT TAX:
  • Service tax exemption for construction of affordable housing upto 60 sq.m. under state and central housing schemes
  • STT in options to be increased to 0.05 percent
  • Excise duty on most tobacco products raised by 10-15%