2. Pensions get boost with NPS benefits tax free upto 40%.Retirement savings boost begins, MF arbitrage continues though. Move to boost retirement savings,
3. Long term capital gains tax on equities seems like it is untouched.Biggest worry for the markets till this morning moves away
4. Tax on dividends in excess of Rs. 10 lakhs introduced at 10%. Double tax again?
5. TDS rationalization introduced. Details awaited.
6. A recent survey shows job application fraud at 5 year high -digital repository of certificates should help.Big benefits for biz
7. New Health Protection scheme upto 1 lakh & additional topup of Rs. 30000 for senior citizens.Good initiative -implementation key
8. Section87A rebate increase from Rs. 2000 to Rs. 5000 practical solution. Cost of compliance possibly higher than tax revs there
9. EPFO & NPS choice gets more complex for employers & employees,with new subsidies on EPS contribution for 3 yrs for new employees
10. First time home buyers – loans upto Rs 35 lkhs – for value of house Rs 50 lkhs – additional tax deductions announced.
11. NRI without pan to get relief. Customs baggage rules for passengers to be simplified.
12. Surcharge for incomes above Rs. 1 cr enhanced to 15%. Very much on expected lines. Clearly not a onetime levy as earlier promised.
13. Voluntary disclosure of domestic undisclosed income with payment of 45%.Hope the fine print does not dissuade disclosures.
14. Central legislation to deal with illicit schemes duping investors
15. Relief for MSMEs with turnover Rs. 2 cr or less – presumptive income
16. Comprehensive code -for resolution mechanism to deal with bankrupty situations. Banks to benefit.
17. Presumptive tax at 50% for professionals earning upto 50 lakhs seems too high. Not sure this works.
18. Deepening of corporate bond market big boost for corporates & Debt mkts. Steps to build retail participation in long term bonds needed
19. NHAI,etc to raise 15000 crore in 2016 to give impetus to infra -more tax free bonds? Good for retirement portfolios if continued.
20. 100% electrification in villages with a target date in 2018 is a big step. Greater confidence on back of past performance.
21. Rs. 55,000 cr for roads n highways – huge investment in road and infra rs 97,000 cr in the coming yearr, togethr with rail @ Rs 218k cr
22. Continued focus on road building is good long term step. Focus on what has a worked well is good mgmt. Build on what has worked.
23. Doubling of farmers income in 5 years will depend on the real income increase i.e. post inflation inc. Hope inflation is controlled.
24. CSR funds & donations for higher education capital fund creation -is Rs 1000 crores good enough for an initiative of this scale?
25. Digital literacy creates equal access, but self help requires intrinsic motivation & job access. Can enough new jobs be created?
26. Fiscal discipline, tax reforms & financial sector reforms as part of 9 pillars of 2016.
27. Fiscal target to be maintained at 3.5% – good news for bond markets & positive for India rating. Fiscal prudence wins for now.
28. Fiscal target range as a strategy to be reviewed through a committee to factor ext. environment changes. Hope range is narrow.
29. Govt gross borrowings and net borrowing numbers seem lower than expectations – positive for bond markets.