BUDGET PREDICTION: 2016-17

·        Looking at the Govt.’s keenness on implementation of Swach Bharat Abhiyan at every corner of India we can expect the SBC to increase from 0.5 % to 1%.

·        Excise on tobacco, liquor, SUVs and imported luxury items will be increased but Service tax rates are likely to remain same.

·        There may be slight increase in the Tax Exemption Limit from Rs. 2.5 lakhs to Rs. 2.75/3.00 lakhs.

·        To promote first time entrepreneurs, particularly startups, Govt. may insert additional deductions u/s 80 for such individuals/entities apart from the tax soaps announced earlier.

·        To promote Make in India initiative Govt. will also give tax soaps and rebates on Indian made goods.

·        After burning their fingers due to El Nino and farmer’s agitation during summer of 2015 Govt. is most likely to introduce loan waiver and relaxation schemes for farmers and increase its allocation for drought relief fund.

·        Govt. may also introduce some schemes to link Startup India and Make in India initiative for the ultimate benefit of Agriculture and Rural Development.

·        Apart of above it may also be expected that excise on agricultural equipment and tools will be decreased and rebate on seeds and urea will be increased.

·        With UP Assembly Elections in mind the Govt. is most likely to bring some good news for sugarcane farmers.

·        To promote clean energy Govt. is expected to give tax soaps for manufacturing of solar cells and equipments.

·        Loans for horticulture and animal husbandry will be provided at cheap rates.

·        More funds will be awarded for inland waterways port.

·        Announcement of some new Agriculture Universities and Research Institutes is also expected.

·        There may be announcement of projects like GIFT city.

·        Considering the immediate requirement of banks to comply with Basel lll norms it is also expected that Govt. will announce some steps to help banks raise their capital.