Sectoral Analysis of Union Budget 2016

1. BUDGET 2016

2. AGRO-CHEMICAL SECTOR
Pre-Budget Post-Budget
1)Excise Duty
2)Krishi Kalyan
Cess
12.5%
Nil
12.5%
0.5%

3. AUTOMOBILE
Pre-Budget Post-Budget
1)Infrastructure
Cess on Cars
2)Tax on cars
above 10lakhs
Nil
Nil
1-4%
1%

4. AVIATION SECTOR
Pre-Budget Post-Budget
1) Excise duty
on
Aviation Turbine
Fuel
2) Benefits
related
to maintenance
8%
-
14%
Excise/Customs
exempted

5. BANKING SECTOR
Pre-Budget Post-Budget
1) Net market
borrowing
2) FDI in Asset
Reconstruction
Cos.
3) Additional
deduction
Under Income from
House Property
4.40 lakh crore
74%
Rs.0.20mn
4.25 lakh crore
100%
0.20mn+0.05mn

6. CAPITAL GOODS
Pre-Budget Post-Budget
1) Custom Duty
on
Specified capital
Goods
2) Custom Duty
on
Defence Imports
7.5%
0%
10%
7.5%

7. CEMENT SECTOR
Pre-Budget Post-Budget
Coal Cess Rs. 200 per
tonne
Rs.400 per tonne

8. CONSTRUCTION & DEVELOPMENT
Pre-Budget Post-Budget
1)Higher
allocation for
Roads.
2)NABARD
Rs. 43,000 cr.
Rs. 25000 cr to
the corpus of
Rural
Infrastructure
Development
Rs. 97,000 cr.
A dedicated long
term irrigation
fund with an
initial corpus of
Rs.20,000 cr.

9. TOBACCO
Pre-Budget Post-Budget
Excise Duty on
cigarettes
Increased by
25%
Increased by
10%

10. INFO TECH
• Phase out of Section 10AA – No exemption for IT
Companies operating in SEZ from 1st April 2020
• Royalty from patent to be taxed at 10%
• Tax benefit to start ups – Deduction of 100% of
Profit & Gains by an eligible start up

11. MEDIA
Pre-Budget Post Budget
1)Change in
Service Tax
2)Changes in
Duties for Set-
Top Box
1)Components
of Set-top Box
14.5%
12.5%
12.5%
15%
4% (Excluding
CENVAT)
12% (Including
CENVAT)
Nil

12. METALS & MINING
Pre-Budget Post-Budget
1)Custom Duty
on Primary
Aluminum
2)Custom Duty
on Other
Aluminum
products
5.0%
7.5%
7.5%
10%

13. OIL & GAS
Pre-Budget Post-Budget
1) Oil Industries
Development
Cess
Rs.4500 per
metric tonne
Increased by
20%

14. PAINTS
Pre-Budget Post-Budget
Housing Projects No Deduction 100% deduction
on profits

15. PHARMACEUTICALS
Pre-Budget Post-Budget
1) R&D
weightage
Average
deduction
200% 150%
2) Tax on
Royalty Income
Consolidated
Tax Rate
10%

16. POWER UTILITIES
Pre-Budget Post-Budget
Cess on Coal 200 bn 400 bn

17. REAL ESTATE SECTOR
Pre-Budget Post-Budget
Low Cost
Housing
Nil 100% deduction
on profits
allowed for
projects
measuring
30sqm in metro
cities and 60
sqm in other
cities