Union Budget 2016-17 has made reasonable provision for the expected increase in salaries, allowances and pensions due to the recommendations of the pay commission (CPC) and implementation of the one rank, one pension (OROP) for ex-military personnel in the coming financial year.
As per the proposes amendment, any payment in commutation of an annuity purchased out of contributions made on or after the 1st day of April, 2016, which exceeds forty per cent of the annuity, shall be chargeable to tax. Until now withdrawal of EPF corpus after 5 years of continuous service was fully tax exempt.
The Hon’able Finance Minister in the parliament on 29th Feb 2016 has stated that the next financial year 2016-17 will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence OROP.
Based on Budget Speech in parliament the change in taxation with regard to EPF was interpreted to the effect that 60% of Employee subscription in EPF and PPF would be subjected to income tax
It is time for the government to introduce a liberal standard deduction scheme for the salaried class and link increases in this deduction to inflation once in two years. This is the only way the taxpayer can counter street inflation and the various cesses that hit him in some form or the other.
Finance Minister Arun Jaitley raised the tax surcharge on the super-rich, but used a googly to sneak in an unkind cut for the salaried class, whose retirement savings are parked in the Employees’ Provident Fund (EPF).
“There is no big idea in the budget. One virtue of the budget is that it has left every section of people equally disappointed. This budget is a wasted opportunity,” Chidambaram said.
Contrary to the previous budget, there was almost nothing for the salaried class to read up on in the Finance Minister’s annual budget this year.
Finance Minister Arun Jaitley spoke to A K Bhattacharya, Editor, Business Standard, at a show today on Lok Sabha TV, shortly after presenting the Union Budget 2016-2017. Here are the transcripts.
Finance Minister Arun Jaitley presented his third Union Budget. With an eye on supporting the small tax-payers and the small investors.
No change in Income Tax Rate and Income Tax Slab – Income Tax rebate under Section 87A increased to Rs. 5000/- for tax payers with taxable income not more than Rs. 5 Lakh.
Finance Minister Arun Jaitley will present his third General Budget today. There are enough indications to suggest that the Union Budget for 2016-17 will primarily focus on stimulating growth without deviating too much from the fiscal deficit target set by Mr. Jaitley in his previous Budget.
The government has launched a new health insurance scheme for senior citizens in the below poverty line (BPL) families. Finance Minister Arun Jaitley in his Budget speech said this scheme will offer a health cover of up to Rs 1 lakh for senior citizens of 60 years and above.
With the Union Budget approaching, Finance Minister Arun Jaitley will be inundated with requests from all sections. Everyone would want sops. If the minister would simply enhance the existing limits for many outdated exemptions, consumers would stand to gain immensely.
Staggering the pension under the 7th Pay Commission recommendation is estimated to provide government with 0.3 per cent of the GDP. Deferring the HRA will provide the government with fiscal space of 0.15 per cent of the GDP.