Sectoral Analysis of Union Budget 2016.
Finance Minister, Arun Jaitley presented the Union Budget for 2016 -17 on February 29th, 2016. The PowerPoint presentation below contains a brief sectoral analysis of the same.
sectoral-analysis-of-budget-2016
EPF has been tax exempt in all three stages: investing, interest accumulation and withdrawal. This budget sought to impose tax on 60% of the corpus of the withdrawal. Concerns were raised regarding the same and the government issued statements saying ‘40% of the corpus withdrawn shall not be taxed, and it is expected that employees will keep the remaining 60% as annuity out of which they will get pension. This annuity is not taxed making the entire amount tax free.’ This is introduced to bring about parity in tax treatment of different pension plans. You will find all the relevant information HERE.
Over all, the budget has been all inclusive, Finance Minister, Arun Jaitley increased spending on farm and social sectors in order to boost rural India. He curbed capital expenditure yet stuck to reducing fiscal deficit to 3.5% of gross domestic product.
‘The problem with the budget is that it is hard to fill up one hole without digging another’ – Dan Benntt
Picture Courtesy: YouTube
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