By-CA Rajendra  Khandelwal

WHAT IS FOR YOUTH IN THIS BUDGET LET US HAVE A GLANCE

We are now in a position to conclude that this budget reduced the discretionary power that bureaucrats power or influence – especially in the tax department. By this budget we are hopeful that past tax cases which initiated due to introduction of retrospective provisions in earlier years will find a way to settle down. This Government again promised and also not made any retrospective laws again which ultimately increase investors confidence in Indian economy. Further this budget had also aimed doubling farmer incomes by 2022.

Similarly, the FM could have announced financial incentives for investment in waste to energy schemes. It would have encouraged the country to set up waste to methanation plants in cowsheds, near sugar factories, in cites and even in farms. This will also excite foreign investors as well.

After all, the budget is not just a financial exercise for balancing books. It is also one which is actually meant to excite investors and entrepreneurs alike with schemes that are financially viable, socially acceptable, and nationally beneficial.

Our Hon’ble Finance Minister Shri Arun Jaitley had announced  his budget for Fiscal Year 2016-17. From this I tried to pick some Announcements  which had direct impact on Indian Youths and entrepreneurs :

TAX INCENTIVES :

1. 100% Deduction of profits for 3 out of 5 years for startups setup during April 2016 to March 2019. However MAT will apply in such cases.
2. Deduction U/s 80JJA is proposed to be now available to all assessee’s covered under Audit, earlier it was available to assessee engaged in the business of Manufacture.

Further to Transform India, his budget Proposals are built on Nine  Pillars. In my opinion the following two pillars will have direct impact on Youth are  :-

1)  Fourth Pillar “Education, Skills and Job Creation : To make India a knowledge based and productive society ; and

2) Seventh Pillar “Governance and Ease of doing Business : To Enable the people to realise their full potential”

FOURTH PILLAR :

• EDUCATION :

Quality Education. However it is dream as Govt. had collected huge amount of Education Cess i.e. Rs. 35,976.15  in FY 14-15 and incurred Expenditure Rs. 26,423.37  on General and Technical Education thus Rs. 9,552.78 remain unutilized or utilized in other heads. However it is worth noting that Govt. had in FY 16-17 made a budget for collection of Education Cess Rs. 30,273.60  and Expenditure on Education at Rs. 31,223.29  i.e. Rs. 949.69  more than the Collection by Education Cess. How it will be done is a question mark ? The CAG report, tabled in Parliament on 22.12.2015, has found that a whopping Rs. 64,288  collected during 2006-15 under the Secondary and Higher Education Cess (SHEC) is lying unutilised. The SHEC is levied on all tax payers at the rate of 1 per cent.

STEPS PROPOSED TO BE TAKEN BY GOVT. :

1. Now in this budget it is proposed to make further increment in allocation to Sarva Shiksha Abhiyan. New 62 Navodaya Vidhyalaya is proposed to be opened in next two years in uncovered areas.
2. Steps to convert Ten Public and Ten Private Institutions to enable them to emerge as World Class Teaching and Research Institutions by providing Regulatory Architecture. Resulting access to high quality education for Ordinary Indians.
3. Set up of Higher Education Financing Agency (HEFA) with Initial Capital base of Rs. 1,000 . This will be NOT FOR PROFIT ORGANISATION. HEFA will borrow funds from Market and supplement them with DONAITONS AND CSR FUNDS.
4. Establish DIGITAL DEPOSITORY for School Leaving Certificates, College Degrees, Academic Awards and Mark Sheets on the pattern of a securities depository. Resulting authenticity, safe storage and easy retrieval.

1. SKILL DEVELOPMENT :

STEPS PROPOSED TO BE TAKEN BY GOVT. AS PER BUDGET SPEECH :

1. 76 lakhs youth had been imparted with skills through National Skill Development Mission.
2. Bringing entrepreneurship to the doorsteps of YOUTH through PRADHAN MANTRI KAUSHAL VIKAS YOJNA (PMKVY). Initially 1500 Multi Skill Training Institute across the country proposed to be set up. For this Rs. 1,700 had been set aside.
3. It is proposed to further scale up PMKVY to skill ONE CRORES YOUTH over the next 3 years.
4. It is proposed to provide Entrepreneurship Education and Training to 2200 colleges, 300 schools, 500 Govt. ITI’s and 50 Vocational Training Centres through MASSIVE OPEN ONLINE COURSES.
5. Allocation for skill development – Crores.
6. National Board for Skill Development Certification to be setup in partnership with the industry and academia.

1. JOB CREATIONS :

STEPS PROPOSED TO BE TAKEN BY GOVT. AS PER BUDGET SPEECH :

1. National Career Service was launched in July, 2015 and 35 Million job seekers already Registered on this platform.
2. It is proposed to make 100 Model Career Centres Operational by the end of 2016-17.
3. Also proposed to INTER LINK State Employment Exchange with National Career Service Platform.
4. Model Shops and Establishments Bill to be circulated to States so that Seven days Shop working can be done.

SEVENTH PILLAR :

1. GOVERNANCE AND EASE OF DOING BUSINESS :

STEPS PROPOSED TO BE TAKEN BY GOVT. AS PER BUDGET SPEECH :

1. Proposed to amend Companies Act, 2013 which would improve the enabling environment for start-ups.
2. Registration of companies will be done in ONE DAY.
3. “Ek bharat Shreshtha Bharat” Programme will be launched to link states and Districts that connects people through exchanges in areas of language, trade, culture, travel and tourism. This will be done through mutual agreement with participating states and Districts.

OTHER IMPORTANT PRONOUNCEMENTS :-

1. Motor Vehicle Act is proposed to be Amended which will facilitate opening up the road transport sector in the passenger segment.
2. Total Investment of Rs. 97,000 is proposed to be made in road sector during 2016-17.
3. Government will approve nearly 10,000 kms of National Highways in 2016-17.
4. Allocation of 55,000 Crores in the Budget for Roads.  Through issue of NHAI Bonds additional  15,000 Crores is proposed to be raised.
5. It is proposed to spent Rs. 2,21,246  for infrastructure.
6. To overcome the deficiencies and hurdles in credit rating system specially for Infrastructure Project a New credit rating system is proposed to be introduced.
7. In marketing of food products produced and manufactured in India — 100% FDI to be allowed.
8. Now Retail participation can be done in Government Securities and for this RBI will play a facilitator role.
9. In the Commodity Derivatives Market a responsibility has been casted on SEBI to launch New derivative products.
10. Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to 1,80,000 .
11. Now shares of the General Insurance Companies owned by the Government will be traded in the stock exchanges.

It is perhaps hoped that higher private investment will pull the economy towards more growth. Reduction in the corporation tax burden suggests that the government is trying to incentivise private investment. Concessions have been made to foreign direct investment as well. Instead of business visa, foreign investors would be granted residency status. Upper limit on foreign portfolio investment to buy central public sector enterprises’ shares has been raised from 24% to 49%. The government is hoping that by granting “ease to do business” to domestic and foreign capital private investment would be stimulated.

“HAVE A GOOD JOURNEY TOWARDS ACHIEVEMENT OF FUTURE TARGETS”