The long awaited and much expected Budget planned by the new government of India is finally out. With lots of expectations and hopes in the minds of people and organisations, here is a brief analysis of the Budget of 2015.

Annual Budget 2015-16 Highlights:-

1) Reduction in rate of Corp. tax from 30% to 25% for next 4 years.

2) Increment in Service tax from 12.36% to 14%

3) Increment in Excise duty from 12.36% to 12.50%.

4) Abolition of wealth tax. Instead increment in 2% additional surcharge on super rich people.

5) Contribution to P.F by employee share optional to certain class of labor.

6) Yoga related services are under charitable services.

7) Individual taxpayer can get benefits up to Rs. 4,44,200.

8) Transport allowance exemption increased 800 pm to 1600/- pm

9) Super senior citizens – 30k deduction on expenses

10) Additional deduction of 50k in NPS

11) Increase in limit of deduction of health insurance premium of Rs. 15,000 to Rs. 25,000. For senior citizens, limit will be Rs. 30,000. Very senior citizens – Rs. 30,000 deduction on expenses incurred.

12) GAAR – applicability to be deferred by two years.

13) All contributions to Sukanya Samridhi Scheme to be tax free.

14) 100% deduction for contribution to swachch Bharat and clean Ganga schemes

15) Retrospective tax provisions to be avoided.

16) 150 Crore set aside to create world class IT hub in India

17) AIIMS in J&K, Punjab, TN, HP and Assam.

18) Another AIIMS like institute in Bihar. IIT in Karnataka. Postgrad institute of horticulture in Punjab. IIM in J&K and AP.

19) Rs 15,000 crore scheme to skill rural India. Poor students get fund aid through PM scheme.

20) Public Sector Ports to be made firms under Companies Act.

21) NBFCs registered with RBI above Rs. 5,000 crore to be considered financial institutions.

22) Pradhan Mantri Jeevan Jyoti Bima Yojana – Rs. 1 per day premium, Rs. 2 lakh coverage.

23) Bankruptcy law reform has been identified as a key to ease of doing business. Bring comprehensive Bankruptcy code in 2015-16.

24) The latest CPI inflation is 5.1 % and whole sale price inflation is negative

25) Current Account Deficit For FY15 To Be Below 1.3% Of GDP

26) Embraced States As Equal Partners Of Growth

27) Union Budget 2015-16 GST To Be In Place By April 1 2016

28) Union Budget 2015-16 12.5 Cr Families A Part Of Jan-Dhan Yojana Already

29) Economy set to grow in double-digits in coming days

30) GDP growth will accelerate to 7.4 per cent

31) We will achieve the target of 6 crore toilets in India

32) 3 achievements of Govt: #JanDhanYojana, Coal auctions and #SwachhBharat

33) Our objective is to keep inflation below 6 per cent & work towards substantial reduction of poverty

34) To meet Fiscal Deficit of 4.1% in FY15

35) Will Need To Build Additional 1 Lk km Of Roads

36) To make India a manufacturing hub and support starups. Youth need to be from job seekers to job creators

37) To See 6 Cr Units Of Rural & Urban Housing By 2020

38) Rs. 80,000 deduction for serious diseases for senior citizens

39) Agriculture incomes are under stress; public investment needs to step in to catalyse investment

40) To Achieve 3.6% Fiscal Deficit in FY17

41) To Achieve 3% Fiscal Deficit in 3 Years

42) To Meet Fiscal Deficit of 4.1% in FY15

43) Transfer To States To Be 62% Of Total Receipts

44) To Allocate Rs 5,300 Cr For Micro-irrigation

45) Direct Transfer Of Benefits To Be Further Expanded

46) To Look At Divestment Of Strategic & Non-strategic Cos

47) To Allocate Rs.20,000 Cr For Mudra Bank For SMEs

48) Committed To Rationalising Subsidies

49) Target of 8.5 lakh crore of credit for agricultural sector

50) To Allocate Rs 25,000 Cr For Rural Infrastructure

51) FM says expect CPI to remain near 5% by year-end, have concluded monetary policy agmt with RBI

52) Propose Rs. 1.25 lakh CR. Public Investment for FY 16

53) To Allocate Rs 34,699 Cr For MNREGA

54) To create senior citizens welfare fund via unclaimed PPFs

55) proposes to give Rs. 2 lakh accidental insurance to the poor for a monthly premium of Re. 1

56) Atal Pension plan launched; aimed at Indians above 60. Govt will contribute 50% towards the scheme

57) To utilize vast postal network for banking venture

58) PM Surakhsha Bhima Yojana to increase the access to insurance

59) Tax free infrastructure bonds for projects in Railways and roads: Finance Minister

60) To Allocate Rs 1,000 Cr For Support To Start-ups

61) Investment in Infrastructure to go up by 70,000 crores in 2015-16 over 2014-15.

62) 5 Ultra mega power projects announced

63) To allocate 1000 cr to enable IT start ups

64) 2nd unit of Kudankulam nuclear power station to be commissioned in 2015/16

65) FMC to be merged in SEBI, long intended now implemented

66) To Set Up Public Debt Management Agency

67) Bring Bond Market as world Class Equity Market

68) Will set up 5 UMPPs in the pug-and-play mode

69) FM to put in place direct tax regime

70) Sovreign Gold Bond Alternative to Gold

71) New gold monetization scheme

72) To Amend Section 6 Of FEMA To Control Capital Flows

73) We plan to introduce direct tax regime that is internationally competitive on rates without exemptions

74) To Incentivise Credit, Debit Card Transactions

75) Indian gold coins with Ashok chakra on its face to be launched

76) Gold monetization scheme to allow depositors to earn interest

77) Gold monetisation scheme to replace deposit and metal loans

78) Employees can opt for EPF or new pension fund; for employees below certain threshold EPF should be optional from his side

79) FPI and FDI will not be differentiated

80) To support heritage sites, Churches Goa, Hampi, Elephanta in Mumbai, Sarnath, Jallianwalla Bag

81) To introduce Indian made gold coin to reduce demand for foreign gold coins

82) Propose to Allow Foreign Investment in alternative investment funds.

83) After success of visas on arrival in 43 countries, proposal to increase the countries covered under this scheme to 150

84) To Allocate Rs 75 Cr For Electric Vehicles

85) To Introduce Regulatory Reform Law For Infrastructure

86) Renewable energy target revised to 1,75,000 MW

87) IIMs to be setup in J&K and Andhra Pradesh

88) IIT in Karnataka

89) AIIMS to be set-up in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam

90) To set up educational loan scheme for higher education

91) Bank Board Bureau An Interim Step In Forming A Bank Holding Co

92) To Set Up Autonomous Bank Board Bureau For Selecting Bk Executives

93) To allocate Rs 10,351 cr for Women and Child Development

94)To set up holding investment company for #PSU banks

95)National Skill Mission to be launched, to develop employability of youth, especially below 25 years of age

96) Allocate Rs.2.46 lakh Cr. for defence in FY16

97) Earmarking Rs 1,200 Cr For DMIC Projects

98) Allocate Rs 33,150 Cr Towards Healthcare

99) Total Expenditure at Rs. 17.77 lakh Cr. in FY16

100) NPS 1 lakh limit revised to 1.5 lakh

101) clean energy cess increased from 100 to 200 Rupees per metric ton of coal to finance Green Energy Fund

102) Service Tax exemption for Varishta Bima Yojana

103) An individual tax payer can now get exemptions up to Rs 4.4 lakh

104) Exemptions For Individual Tax Players To Continue

105) To Enact New Law For Black Money

106) Concealment of income will attract 10 yrs of rigorous imprisonment

107) Stringent penalties and jail for Black Money holders and evaders

108) Yoga institutes to get charitable status.Budget speech end

109) Foreign Exchange Management Act To Allow For Seizure Of Foreign Assets

110) FEMA Act to be amended to incorporate Black Money provisions: Finance Minister

111) To Allow Tax Pass-through For Alternative Investment Funds

112) To Tighten Reporting Of Cash Transactions

113) To Have Benami Transaction Prohibition Bill For Domestic Black Money

114) Quoting PAN a must for all purchases above One Lakh

115) proposes to rationalise capital gains tax regime for real estate investment trusts

116) Tax pass through to be allowed in alternative investment funds to boost small firms, startups

117) Propose To Rationalise Capital Gains Regime For REITs/InvITs

118) To reduce customs duty in 22 Items

119) Rental Income from REITS to have pass through facility

120) Income Tax On Royalty Fees For Technical Reduced To 10%

121) Service Tax Exemption Extended To Pre-cold Storage Warehousing

122) Reduced taxes on Technical Services to 10% from 25%

123) Tax dept to put out a clarification on indirect transfer of assets and dividend paid by foreign firms

124) Propose To Exempt SAD On All Items

125) Excise duty on leather upper shoes cut to 6%

Thus, with so many innovative plans and new schemes, this year’s budget can be rightly said as the “People’s Budget” Now it remains to be seen how these are implemented for the betterment of our economy.

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