1. Budget
Expectations
2016

2. Contents
Real Estate..............................................................................................................................................3
Health Care Sector..................................................................................................................................4
Renewable Energy..................................................................................................................................5
Ease of doing Business ...........................................................................................................................6
Trade and Infrastructure........................................................................................................................7
Corporate Taxation ................................................................................................................................8
Personal Tax ...........................................................................................................................................9
Service Tax............................................................................................................................................10
Education..............................................................................................................................................11
Make In India........................................................................................................................................12
Defence & OROP...................................................................................................................................14
Start-Ups & Rural Development ..........................................................................................................15

3. Real Estate
The Union budget FY16-17 is expected to pass the Real estate (Regulation and
Development) Bill 2013 providing retail investor protection form fraud along with
hope in terms of faster project approvals and taxation policies. It could be granted
its industry status which would bring cheaper funds for developers and dealers. With
GST bill expected to be passing by this session, multiple taxation would be avoided
for purchasing flats especially under construction flats. For home buyers, what this
budget could bring are more tax relief on home loans, increase in House Allowance
Rent deduction limit and some relief from tax deduction on payment of interest due
to delayed projects. Single window clearance for real estate sector is the demand for
faster approvals of projects. Dividend distribution tax can be removed along with
the chances of REIT funds being listed on stock for attracting funds from India as
well as abroad. Strategic investment, easing the procedures and introducing legal and
regulatory reforms are the need of the hour. The budget should provide incentives
to encourage developers as well as buyers for their involvement in green and
sustainable real estate.
R K Shanmukhan Chetty, who served as the finance minister in Jawaharlal Nehru's
Cabinet between 1947 and 1949, presented the first Budget of independent India on
November 26, 1947.

4. Health Care Sector
Healthcare is one sector which has been always disappointed due to the
disproportionate allocation to it. With respect to achieving the goal of universal,
affordable healthcare for all, some key suggestions and expectations are outlined
below:
 Improving Accessibility and Affordability- Government should aspire for
optimal spending to enhance healthcare coverage.
 Providing exemptions on technical assistance- The clinical research industry
will get a huge boost if the exemption which was withdrawn in the earlier
budget was made available to services of technical testing of newly developed
drugs on human participants by a clinical research organization approved to
conduct clinical trials by the Drug Controller General of India.
 Customs Duty exemption to life saving drugs- Currently, 5% basic Customs
Duty is levied on certain drugs/vaccine. These drugs are exempted from the
excise duty/additional customs duty. If lifesaving drugs are made available to
the patients at reduced prices, it would bring down the cost of treatment.
Also, reduction in import duty on medical devices would further reduce the
overall cost of treatment.
 Cluster development & technology up gradation- Government support to
SMEs is required for technology up gradation capacity building in terms of
quality compliance to GMP norms and investments in increasing scale of
operations. This can help industry sustain its competitive edge and boost the
growth.
Of 17 Budgets since 1991-92, on 10 occasions the stock markets fell in the one
month following the Budget.

5. Renewable Energy
Budget 2015 had meted out a Luke warm response to the Renewable Energy Sector.
Considering that the current prime minister has repeatedly alluded to the importance
of this sector in maintaining the Indian growth story, the expectation of the industry
is really high.
However, going forward certain structural changes need to be made and some
ambiguities need to be removed. There is an urgent need to solve the problem of
inverted duty structure in this sector due to which taxes are levied on the input side
with the output being exempt. For this tax exemption for service procurements in
power industry as well as to those companies that are involved in providing power
backup facilities in renewable energy sector can be provided.
From a long term perspective, the government needs to facilitate access to low cost,
long term financing for renewable energy sector ,for example through tax free bonds
which so far have not been proposed. Carbon credits are another important tool that
allows businesses to compensate for their emissions and at the same time provide
necessary financing to the government. But in order for them to be completely
effective any associated tax costs with regards to trading of these instruments need
to be removed.
Another reform that the sector could benefit from is the rationalization of MAT
(Minimum Applicable Tax). Although some sops are provided to the industry in
form of accelerated tax depreciation and other incentives but a very high MAT (upto
18% for renewable energy companies) effectively neutralizes them all.
Thus, apart from capacity expansion hopefully the new budget would address these
issues as well. The business community on the whole is optimistic that the budget
2016 would provide the much needed thrust this sector needs.
Manmohan Singh introduced the concept of Service Tax as Finance Minister.

6. Ease of doing Business
India is 2nd largest economy in the world and growing effectively in current time.
This is very crucial time for India from a global perspective as well as internal
perspective. As GDP is increasing, inflation is under control and socio economic
environment is stable it is a very good time to look at the growth perspective. It is
favourable time for the country to take a step forward in each direction that would
result in sustainable growth of the country. In that case, budget plays a crucial role
in deciding the direction in which government wants to take the economy. So is the
case with the 2016 budget. So many expectations are there with the budget. So, let’s
try to analyse expectations of people of the country in the vertical of “Ease of doing
businesses”.
Year 2015 was very significant for India in terms of ease of doing business.
Government took many initiatives to improve the condition of doing all kind of
businesses. Several improvements were made such as welcoming FDI, eliminating
requirements for paid-in minimum capital, ease of permissions for start-ups.
According to the World Bank report, India now ranks to 130 out of 189 countries
in ease of doing business. Though this number is not that much significant, and there
is a long way to go but still there are positive signs that we have started along the
way of improvements.
The shortest ever Interim Budget Speech was given by HM Patel in the year 1977.
This speech was 800 words long.

7. Trade and Infrastructure
Trade and infrastructure play important role in deciding financial health of the
country. In this age of global competition it is very necessary that we form strong
trade and infrastructure network. People are expecting more ease in trade conditions.
There should be minimal restrictions in starting and closing of any business and
trade relation. Trade with other countries should be made easy. Import and export
duty should be lowered as it will help in both the ways; People can export more
which will result in currency appreciation, which is up to a certain limit expected and
acceptable. Also we need to revise and revisit our import duties, taxation and
conditions, if we are easing the conditions for foreign trade to certain extent, it will
help the economy itself, as people would be having multiple options and increase in
healthy competition up to a certain extent would result in both the improvement of
quality and price of goods which would be beneficial for general public itself.
Initiatives of government like Make in India, Digital India, Start-up India are really
appreciable and in this budget also people are expecting for more such initiatives.
Also, important individual industries should be given higher attention like
healthcare, which is one of the largest growing service sectors, which nearly
contributes to 10% of GDP and gives employments to around 4 million people. It
exports 70% of its drugs. So some ease should be given in that regard which will in
turn help people at bottom level. Also R& D conditions should be improved and
encouraged. Agri business is also important and it should be encouraged more. Apart
from that IT industry is also one of the fastest growing industries and it is need of
the hour. It should be given attention in the budget. Apart from that government
should look on encouraging PPP (Public Private Partnership) project. More capital
should be allocated towards improving the conditions of road and highways in the
country. Apart from road and rail, it should look after digital highways: Providing
high bandwidth network and increasing internet penetration.
In an election year, Budget may be presented twice - first to secure vote on account for
a few months and later in full.

8. Corporate Taxation
The Modi government at the centre has been successful in creating an image of a
positive business environment in India for both domestic and foreign businessmen
and investors. Budget 2016 will decide the future course of yearlong efforts in
promoting the ‘Ease of doing business’ and ‘Make in India’ campaigns. The Union
budget of India 2016 is set to be announced by the incumbent Finance Minister of
India Shri. Arun Jaitley on 29th February 2016. According to popular opinion this
year’s budget is looked upon as a reformist budget over a populist one.
The budget is expected to prioritize on facilitating expansion of Indian corporates
and start-ups, attracting foreign investment to India and providing opportunities for
export-led growth. Last year budget saw the Finance Minister announcing a phased
reducing in corporate taxes from 30 percent to 25 percent in 4 years. The key areas
of corporate tax benefits in budget 2016 are
 Simplification of tax regime and clarity in taxation laws, deferring
GAAR and CFC
 Reduction of 1-1.25 percent in corporate taxes and streamlining of
minimum alternate tax and dividend distribution tax
 Tax-breaks and exemptions for start-ups and key industries like
telecom, power and infrastructure.
In addition, there are several other areas like government spending, revenue
generation, income tax, pensions, welfare schemes etc. under purview of Finance
Minister that will be revealed with the Union Budget 2016.
The term 'Budget' is said to have come from the old French word bougette, which means
'little bag.'

9. Personal Tax
Now that Seventh pay commission has put additional burden on the govt. exchequer
and there will be enough criticism when Govt overshoots the fiscal deficit target, the
govt. may be left with very few options other than increasing the personal taxes.
However, there are contradictory opinions that the govt must raise the tax slabs in
view of growing costs of living. Currently people with annual income 2.5l-5l income
come under 10% category,5l-10l come under 20% category,>10l come under 30%
category. This budget session is likely to exempt below 5l category from taxes.
People in 5l-10l income levels may be taxed 10%,10l-20l may be taxed 20% and
above 20% may be taxed 30%.This is also in view to increase the income disclosures
by the personnel as the tax levels have come down thereby further increase in the
money through taxes.
A recent survey by Economic times said that about 40% people want a fourth tax
slab of 40% for people in the >40l annual income category and about 27% wanted
inheritance taxes on people inheriting wealth above a certain threshold. However, it
is unlikely that this budget session answers them.
This budget session is likely to see a rationalization of Taxes on Direct Sources
(TDS) policies, given the confusion and the onerous tasks involved in it. Interests
paid on houses may be made tax deductible completely keeping in mind” Housing
for All scheme”. Currently tax deduction can’t be beyond 2 lakh and if the house is
under construction, the deduction can’t be made beyond Rs30000 that too if the
houses are completed after 3 years from the date of disbursement of loan.
The first Budget of the Republic of India was presented by John Mathai on February
28, 1950, the same time when Planning Commission of India.

10. Service Tax
One of the key words buzzing around the Indian economy is GST. This budget
session is more likely to make changes to the current service taxation regimes in
alignment with GST.A clarity in the taxation policies through GST is expected
through this budget session. In view of growing ecommerce in the country, logistics
has gained more prominence in the recent times. Warehouse locations and
distribution chains are optimized taking the existing service taxation structures into
account. They are expected to be overhauled once a clarity on the GST is achieved.
In the past, the service tax has been changed ample number of times with 5% in
1994 to the current 14.5%. This 14.5% includes 0.5% swach bharath cess which was
implemented from November 2015.An estimated 17-18% service tax will be levied
in order to bridge the gap between existing rates and GST rates.
With the launch and huge boost given to the Start-up India program, small and
medium enterprises are expected to have higher cap on service tax exemptions.
Currently, the cap is 10 lakhs. This cap is assumed to go to 25 lakhs providing relief
to the SMEs. Industry experts wish special service tax exemptions for women
entrepreneurs but it is not likely to find place in this budget session.
Online medium of payment, credit cards and debit card usages are expected to have
a Phillip as there may be a slight relief on the service tax rates levied on them.
Tourism industry in India is growing at a low rate in the current times in view of
depreciating rupee and higher currency fluctuations. So, the industry is lobbying hard
for few tax benefits on the services they provide to give a boost to the falling tourism
domain. Intermediary services, which arrange sourcing of goods and services are
considered as exports globally but service tax is being levied on them in India. The
budget should keep them in exports category in line with the global practices to
reduce the complexity in the taxing regime.
.
Independent India’s first Budget spanned a period of seven & half months.

11. Education
Make in India and Start-up India- the two ambitious programs of NDA cannot
fructify without talent pool in the country. Education sector has a long bearing on
the country’s GDP than any other sector. Higher education has effect on the life of
about 30 million youth in the country. The budget allocation for the education sector
has gone down by 2% in the previous budget session. The allocation to education
as a percentage of GDP is around 4%, much less than the global average of 10%
and BRICS average of 5%. Recent interviews by industry experts clamour at the low
employability of the Indian youth .Hardly any university of India figure in the global
top 100 rankings. Improving access to technical skills is a must to realize Modi’s
ambitious target of 40 crore skilled youth by 2020.
One important problem plaguing our country is Brain drain. Since our universities
are not matching global standards, a lot of Indian students are moving out of the
country for higher studies and continue their jobs there for a decent return on
investment.
Paying child’s education is the 3rd biggest burden in a family after food and rent.
Only about 1.5% get their education loans owing to high interest rates and hectic
procedures involved. There is a need for the government to address this problem.
There should be larger tax deductions for education fee and interest breaks. Micro
financing and easy loans should be available to at least meritorious students to
improve the employability. It is recommended that as a part of their CSR activity,
companies should be mandated to contribute to the education sector and provide
training and internship to the students. Lot of schools and colleges in the country
still teach outdated syllabus. In order to counter the problem of lower employability,
special contributions to modernizations, research and innovations at both school
and university level is expected. The time is now ripe to look beyond the basic skills
like reading and writing. Special sops like midday meals have to be provided to
decrease the drop out ratios. Contributions to programs which encourage school
enrolment, especially girls, should be given in the budget.
Indian Institutes of Technologies have risen their fee this current year. The reason
being-establishment of 6 new IITs last year but no proportional increase in the
budget to all the IITs. There is a need to increase it proportionally at least through
this budget session. On the whole, university representatives and experts clamour
for a 10% contribution of the GDP to the education sector.
.
Morarji Desai has presented the maximum number of budgets i.e. 10 budgets.

12. Make In India
Story of make in India spreading across the world. On the eve of Independence Day,
in 2015, the honourable Prime Minister of India gives a call for “Startup India, Stand
up India!! “ The current ecosystem is supportive as well as promoting for indigenous
recommendations to a country which is home to the world's largest second largest
population.
The working age population ranges around the 700 million bracket. India is expected
offer demographic bonus showing a higher growth rate in terms of working age
population compared to the exceeding population growth. The infant stage of the
infrastructure scenario creates a huge gap between reality and huge opportunity.
Meanwhile, the digital journey is still on. The most striking feature has been the
evident boldness visible in the entrepreneurs’ spirit of the people of this country.
Evident adaptability to taking risks and still continuing has boosted of the moral of
many to come. Companies like Flipkart are hiring exhaustively the Indian talent for
example Punit Soni Chief Product Officer, former Google and Motorola employee;
Dun Rawson as Customer logistics and supply chain ecosystem Head, formerly an
Amazon employee; and many more.
As per the Nasscom report around 80% startups are ready to pay above the market
median with the majority of them providing stock options as long term incentives.
The budget 2015 boosted the e-biz portal which would enable prompt clearances
for business setting up. The upcoming budget is expected to give reality to the make
in India initiative by promoting domestic manufacturing and investments in
technology and amending commodity tax as custom policies. The ever-growing
smartphone education and health care requires initiatives to grow fearlessly leading
to overall development.
Indira Gandhi has been the only woman Finance Minister in India.

13. Defence FDI
The bold Union budget of 2015-16 did not come with as glamour as expected. The
last budget allocated rupees 2.46 lakh crore for defence in the fiscal year 2016. The
one rank one pension policy was shown sign of implementation. The key issue with
defence is the lack of harmonic policy environment to promote defence
manufacturing. Another issue is the absence of basic infrastructure and superior raw
materials which are comparable to the international standards. The current
government realises the urgent need of creating a strong-in-country manufacturing
base. What evidently is absent, is the inflow of sophisticated technology. The
concept of “Raksha Udyog Rathna” should be prioritised. The government should
promote creation of a habitable conducive environment with minimum red tapism,
lesser controlled monitoring and providing higher incentives to promote in country
manufacturing. The upcoming budget need to realise the demand for less stringent
policy making that allows scope for influx of technology with in the country.
Shankar Acharya has been the Chief Economic Advisor for the maximum number
of budgets – seven union budgets & two interim budgets.

14. Defence & OROP
Maybe a not so lucky news for the Indian and foreign investors the upcoming budget
is not expected to be another show from the pompous Modi government as always
seen. It's supposed to go in line with the current initiatives of the government that
demand policy changes in the basic roots of the system which would be really helpful
in the long run for the country. As per a Japanese financial service, the current
scenario is really a tight situation. With the heavy money outflow towards the 7th
pay commission, with ample amount of arrears to be distributed specially for the
one rank one pension scheme. The ongoing agitations the government is inner really
close space. With high hopes from the defence population the government is
expected to live up to their promises. The common man is in favour of the demands
of the retired defence employees owing to the Rising inflation and expenses for the
common man.
R Venkataraman has been the only Finance Minister to have risen to the post of
President of India.

15. Start-Ups & Rural Development
India has been trying hard for the last two years to bring in a credible tax system to
our country so that it will attract more investors from inside as well as outside India.
For a developing country like India, with a huge pool of human resource, it necessary
to promote startups and create more job opportunities. Our country is not able to
generate enough number of job opportunities equivalent to the number of graduates
passing out each year from colleges. Government should focus more on rural areas
and try to replace the subsidy policies to a productive initiatives like encouraging
rural entrepreneurship, skill development etc. This would benefit the nation in long
term and will create more employment opportunities.
Another area where the budget should focus is to bring the young professional with
entrepreneurial skills to the light. Provide ample support to the new innovative ideas
of the youth and encourage them. For that government should fund more on
incubators/ accelerators. This would help them with financial support as well as a
single window access to all the facilities. Giving more financial support to the project
ideas that adds to the sustainability of nature and environment, like go green initiative
projects, organic farming related ideas etc. would fetch huge ROI in long term. For
the existing start-ups and those, which are yet to start can be given a tax break or tax
holidays till the process become stable. Supporting start-up in turn is equivalent to
supporting the economy.
.
Jaswant Singh held the Finance Minister’s portfolio for the shortest span of time of 13
days.
*Images have been sourced from Google

16. The IdeasMakeMarket Team:
Amber, IIM Raipur Ankit, SJMSOM Mumbai
Arpan, IIFT Delhi Aksh, FMS Delhi
Lakshmi , IIM Raipur Pankaj, IIM Indore
Rinisha, FMS Delhi Sandeep, DOMS IIT Madras

17. Who are we?
This site was started in December 2010 to serve as a platform for young bright minds
and experienced brains in the world of business. This site focuses on creating a
knowledge portal and providing a learning ground for professionals and
entrepreneurs.
Vision:
-To emerge as the single point of connect for students, colleges and companies
Mission:
-To provide a platform for students, colleges and companies
– To provide guidance and preparation for all major examinations and jobs
Why IdeasMakeMarket.com is a great platform to advertise?
IdeasMakeMarket.com is one of the leading management portals in India. Started in
2010, the site offers unique and quality business content and value for readers all
across the globe. Some of our articles have also been referenced by consulting firms
like PwC and business magazines like Forbes.
Advertising in our portal gives you access to reach a user base that consists of:
1. Dynamic and Entrepreneurial individuals
2. B-school aspirants, students and alumni
3. Working professionals
4. Research analysts
We offer a wide array of advertising options, including (but not limited to),
-Article promotion
-Email promotion
-Advertorials
-Banner Advertisements in various sizes
-Advertisements in E-magazine
-Event sponsorship
In addition to this, we can customize our offering based on your requirements. If
you have an interesting product/solution that you wish to promote, kindly reach us
at sales@ideasmakemarket.com. For any other queries, reach us at
admin@ideasmakemarket.com