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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