Budget 2016: Arun Jaitley’s numbers decoded; from 7th Pay Commission to tax revenue, top 7 facts to know
Union Finance Minister Arun Jaitley told Rajya Sabha that “the bribe-giver has been convicted and now the bribe-taker has to be identified”. (PTI)
2. Budget 2016 decoded: Rs 206 cr is the amount the government will get after hiking the securities transaction tax (STT) on options not exercised to 0.05% from 0.017%. Going by the annualised premium turnover of Rs 4.11 lakh crore, this is just Rs 135.9 crore more than what was being collected earlier.
3. Budget 2016 decoded: Rs 40,000 cr is the amount Economic Affairs Secretary Shaktikanta Das expects to get from various dispute and litigation that the telecom industry is embroiled in. This number is critical since, based on the annual license fees of Rs 20,000 cr and installments of Rs 10,000-12,000 crore due from previous auction rounds, the budget target of Rs 99,000 crore would have required the next round of telecom auctions to get bids of Rs 240,000 crore as opposed to the Rs 109,000 crore fetched in the last auction. The problem, of course, is that the amounts Das is talking of have been stayed by courts.
4. Budget 2016 decoded: Rs 160 cr is the expected tax revenue from dividend distribution tax on individuals, HUFs, and firms earning more than Rs 10 lakh annually, based on FY15 data. To arrive at this estimate, firms that paid out dividends of more than Rs 500 crore in FY15 were considered and it was assumed all 143 individual investors with more than a 1% stake in these companies and received over Rs 10 lakh as dividend have a resident status and so can be taxed.
5. Budget 2016 decoded: Rs 25,000 cr allocated to recapitalise state-owned banks, seen as inadequate. Finance MoS Jayant Sinha clarified the RBI’s new rules for capital calculation, issued on Tuesday, would give banks another Rs 25,000 crore. He said of the Rs 1.8 lakh crore needed to capitalise banks, Rs 70,000 crore would be provided by the government, though whether the remaining Rs 1.1 lakh crore can be raised from the market was a question mark.
6. Budget 2016 decoded: 10-12 p/unit is the rise in power tariff due to the coal cess, while halving of the accelerated depreciation and withdrawing IT exemption for new plants could bump up renewable tariffs by 10 paise per unit.
7. Budget 2016 decoded: 6% is the ‘equalisation levy’ on specified services used by Indian residents from non-resident providers, and may hurt local start-ups. Digital platforms like Facebook, Google or Yahoo, not resident in India, do not pay taxes if a resident company advertises on them. Domestic firms advertising on such channels will now have to withhold tax at 6% of the gross amount and paid, on a monthly basis, provided the sum being paid to the non-resident exceeds or is going to exceed Rs 1 lakh in the relevant financial year.
More from this section
- Bihar TET Result 2017: Teacher Eligibility Test scores declared at bsebonline.net, biharboard.ac.in; visit official website to check
- Amazon Great Indian Sale: Day 1, Top 10 mobiles from Samsung, Apple, Lenovo, with best offers, discounts
- In pics: Rahul Gandhi dares Narendra Modi in US, hopes to create ripples in India
- IBPS PO Preliminary Online Exam 2017 Call Letter now available at ibps.in, visit official website to download now!
- An entire country goes dark: Puerto Rico without power as Hurricane Maria strikes; take a look
- SSC CGL 2017: Candidates find level of test difficult, demand normalisation of scores
- HBSE Open Admit Card 2017 for class 10th, 12th now available at bseh.org.in, visit official website to download
- Swach Bharat Abhiyan! Indian Army carries out cleanliness drive at Siachen, world’s highest battlefield; see pictures
- India’s big diplomacy push in Middle East! Indian submarine, warships & reconnaissance aircraft on deployment
Home loans: Additional Rs 50,000 tax benefit for first-time home buyers starts April 1
Bullion markets shut for 30th day over excise duty protest
Congress rues Narendra Modi silence on Pathankot and more, but looks to take credit for passage of several bills
Narendra Modi reveals 7-point strategy to double farmers' income: Key takeaways
ANALYSIS / EXPERT COMMENTS
- Meghnad Desai
India needs a body like the UK’s Office of Budget Responsibility
- Anita Rastogi
In addition to simplifying the taxation structure, implementation of the GST regime will help eliminate most indirect tax issues
- Nirvikar Singh
Repressive regimes fail to deliver inclusive and substantive economic growth
- Anwar Shirpurwala
Extend duty incentives for mobile phones and tablets to all Information Technology Agreement goods
- Eric Mehta
Will this Budget be an enabler for ‘Make in India’, ‘Make for India’ and, most importantly, ‘Make India’ is something that will soon be answered