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February 28, 2015

Summary of Union Budget 2015-2016

Honbl Finance Minister, Shri Arun Jaitely today on 28th February, 2015 introduced the first full Union Budget of Modi Government. Here we provide our readers with summary of the whole budget.

BUDGETARY FIGURES:

CPI Inflation Index Estimates: 5.00%
Wholesale Price Inflation Index: Negative
Current Account Deficit: 1.6% of GDP
GDP Growth Estimate: 7.40% Estimate
GDP Growth Estimate 2015-16- 8-8.5%
Foreign Inflow: 340 billion Foreign

ESTIMATES For 2015-16
Non Planned Expenditure- 1312200 crores
Planned Expenditure- 465277 crores

Tax Collection- 1449490 crores
Non Tax Collection-221733 crores


OTHER BUDGETARY CHANGES

1. Rs. 63335 crores has been transferred as LPG subsidy

2. Rs. 5300 crores to support Micro Irrigation project and Pradhanmantri Krishi Yojna

3. Micro Units Development, Mudra Bank will refinance and micro finance to finance SC and ST to become entrepreneurs.

4. Pradhanmantri Bima Yojna will be launched with an accidental insurance of Rs. 200000.00 with a premium of Rs. 12 only.

5.Physical Aids and Hearing Devices to Below Poverty line Senior Citizen.

6.  Fund Allocation for:
    SC-             30851 crores
    ST-              19980 crores
    Women-      79258 crores

7 MANREGA Fund Allocation- 5000 crores

8. Attal Penion scheme will be launched

9.Public Debt Management Agency will be established to manage Domestic Bond market, to make it world class as Equity Market

10. Gold Schemes:
Introduce the Gold monetize scheme. A new scheme will help depositors to deposit gold and earn interest.
Gold Bond will be introduced, so that people will not have to hold gold.
Indian Gold coins will be minted, with Ashok Chakra.

11. Visa on Arrival to be increase to 150 in different stages

12. An All india Institue of Medical Sciences in Jammu & Kashmir, Punjab, Tamil Nadu and Assam.

13. IIM in Jammu and Kashmir and Andhra Pradesh

14.A center for Animation, Film Production and Gaming in North East.


TAX REFORMS:


DIRECT TAX

1. A stable Taxation policy is to be established. We have to fight against Black money.

2. Corporate Tax- Will be reduced to 25% for next 4 years. Exemptions to be rationalized and removed in phased manner.

3.  New Law for Black Money will be Introduced-
Salient Features
Punishment upto 10 years for having Black money and doing Tax evasion.
Date of Foreign Account will have to be shown in Return of Income
FEMA will be ammended to make Foreign Exhange and Asset is held abroad in contravention to law, the same can be  forfieted

4. Quoting For PAN number is mandatory for purchase above Rs. 1 lakh

5. No cash for purchasing immovable property above Rs. 20000

6. Fund Manager of Offshore Fund in India will not result in adverse tax regim.

7. GAAR will be deferred for 2 years.

8. Reduce Rate on Royalty and Technical Fees from 25% to 10%.

9. Wealth Tax to be removed and replace it with a Addition 2% surcharge on Superich with income of Rs. 1 crore. Information to be mentioned in Wealth Tax will be given in Income Tax return.

10.100% deduction in Income Tax for Contribution to Swach Bharat Mission and Clean Ganga Mission.

11. Increase in Limit of deduction under 80D (health premium) from Rs. 15000 to Rs. 25000 for senior citizen it will be Rs. 30000, for very senior citizen a medical treatment expenses of Rs. 30000 will be allowed.

12. In case of serious diseases will be increased from 60000 to Rs. 80000

13. Pension fund and New Pension fund deduction will be increased from Rs. 1 lakh to 1.50 lakh.

14. Rs. 50000 is proposed to be provided under section 80CCD.

15.Transport allowances will be increased to Rs. 1600 per month

16. Yoga will be Charitable Activity under Definition of Charitable Activities.

17. No Changes in Tax Slabs. Previous year budget and this year budget will provide a maximum net tax advantage income of Rs. 444,200.00

SERVICE TAX

1. GST should be implemented till next year.

2. Service Tax to be increased to 14% from 12.36%

3. Service Tax exemption to Cold Storage to certain fruits.


CUSTOMS & EXCISE

1. Custom duty to be reduced on 22 items to reduce manufacturing cost .for Make in India movement.

2. Central Excise duty will be revised.

3. Excise duty on Footwear of leather will be reduced to 6% for Rs. 1000 or more

4. Excise registration to be done online in 2 days.









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