Highlights of Union Budget 2016-17

Finance minister Arun Jaitley presented Union Budget 2016-17 in Parliament on Monday. Here are the key highlights of his speech:


Agriculture and farmers’ welfare: 

•Look to double farmer income by 2020
•Govt will reorient interventions in farming sector; we need to optimally utilize water resources
•28.5 lakh hectares will be brought under irrigation
•A dedicated irrigation fund with Rs.20,000 crore under Nabard
•Major programme for sustainable groundwater management
•Govt to set apart Rs.412 crore to encourage organic farming
•Access to market is critical for farmers
•Implementing Pradhan Mantri Gram Sadak Yojana as never before—scheme to be allocated Rs.19,000 crore in FY17; Rs.27,000 crore in total—to advance completion target to 2019 from 2022
•To support farmers after calamities, special focus has been given to ensure timely flow of credit, target is Rs.9 trillion in FY17

Highlights of Union Budget 2016-17

Finance minister Arun Jaitley presented Union Budget 2016-17 in Parliament on Monday. Here are the key highlights of his speech:

Personal Finance

No changes have been made to existing income tax slabs

Rs 1,000 crore allocated for new EPF (Employees' Provident Fund) scheme

Govt. will pay EPF contribution of 8.33% for all new employees for first three years

Deduction for rent paid will be raised from Rs 20,000 to Rs 60,000 to benefit those living in rented houses.

Additional exemption of Rs. 50,000 for housing loans up to Rs. 35 lakh, provided cost of house is not above Rs. 50 lakh.

Gold bonds to be launched on Nov 5, at 2.75% interest

The Government has announced that Sovereign Gold Bonds will be issued from November 26. The Sovereign Gold Bonds will offer an interest rate of 2.75 per cent and will remain open for public subscription from 5 Nov to 20 Nov 2015. 

Details about Sovereign Gold Bonds:-

• Applications for the bond will be accepted from November 5, 2015 to November 20, 2015.
• The bonds will be issued on November 26, 2015.
• The bonds will be sold through banks and designated post offices as may be notified.

RBI guidelines for Gold Monetisation Scheme

The Reserve Bank of India (RBI) on Thursday issued directions for banks on implementation of the Gold Monetisation Scheme approved by the government.

  

• In gold monetisation scheme, customers can deposit their gold and earn interest on it. 

• Banks can accept a minimum of 30 grams of the precious metal of 995 fineness in the form of a bar, coin or jewellery under the scheme. There is no upper limit on the amount of gold deposit.  

• All scheduled commercial banks have been allowed to offer this scheme. The designated banks are free to fix the interest rates on these deposits.

Tax Benefits of Life and Health Insurance Policies in India

Insurance policies whether it is Life Insurance or Health Insurance, not only safeguard your life and health but also give you tax benefits for the premium paid and maturity amount received. The first step of a financial planning start with getting yourself adequately insured.

Life Insurance Policy is a traditional plan which includes term plans, ULIPS (unit linked insurance plans), money back and whole life cover plan. All the above plans are combination of investment as well as insurance except term plan which gives you pure insurance.