Budget simplified for you: Highlights of Union Budget 2015-16

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The following are the salient features of the Union Budget for 2015-16 presented by the Union Finance Minister, Shri Arun Jaitley in Lok Sabha today.

General Provisions

  1. The latest CPI inflation is 5.1% and wholesale sale price inflation is negative
  2. Government’s objective is to keep inflation below 6%
  3. CAD (Current Account Deficit) for this year is expected to be 1.3% of the GDP (Gross Domestic Product)
  4. GDP expected to accelerate to 7.4%
  5. Aiming for double digit rates seems feasible soon
  6. Rupee has gained by 6.4%
  7. Jana dhan, Aadhar, mobile and GST are game changing reforms
  8. Foreign exchange reserves at record 340 billion dollars
  9. 80,000 secondary schools to get upgrade
  10. All the schemes have to cater around the poor
  11. Will meet 4.1% fiscal deficit target
  12. Electrification of all villages by 2020
  13. Will ensure employment to our youth
  14. Aim to make India a manufacturing hub
  15. A roof for each family in India by 2022
  16. Key challenge is agricultural income is falling. Focus to be on per drop, more crop
  17. Govt firm in meeting 3% fiscal target in medium term
  18. MNREGA scheme is to stay. Will be financed by allocation of Rs. 5,000 crores
  19. Total transfer of States will be 62% of the centre’s receipts
  20. Disinvestment needs to be scaled up
  21. Committed to the process of rationalisation
  22. Rural infrastructure development fund to be created with corpus of Rs. 25,000 crores
  23. Fiscal target of 3% by FY 2018
  24. LPG direct transfer subsidy to be expedited
  25. Time is not for incremental changes but big bang
  26. Transfer for Rs. 8.5 lakh crore credit for the agricultural sector targeted
  27. Universal social security system for all Indians
  28. Focus on banking the unbanked, funding the unfunded
  29. New bankruptcy code to be brought in
  30. To utilise vast postal network for banking ventures
  31. National agri market to increase the income of the farmers
  32. New pension scheme for the poor, aimed at people over 60 years of age
  33. To create senior citizens welfare fund via unclaimed PPFs
  34. Infrastructure to match growth ambitions
  35. Rs. 70.000 crores boost to infrastructure
  36. Rs. 1,000 crores boost for self employment schemes
  37. Public sector ports to be made companies under the Companies Act
  38. Each power projects to be of 4,000 MWs
  39. Power projects to unlock investments worth 1 lakh crores
  40. Rs. 5,000 crores for national infrastructure
  41. To set up public debt management authority
  42. Vision in place for direct tax regime
  43. To amend section 6 of FEMA
  44. Promises tax free infrastructure bonds
  45. Indian gold coin to recycle local gold. New gold monetisation scheme
  46. Sovereign gold bond scheme announced. This scheme will cut overseas gold demand
  47. Allow foreign investment in alternate investment funds
  48. Another Rs. 1,000 crores for Nirbhaya fund
  49. To promote cashless transactions to curb black money
  50. Plan to incentivise debit card and credit card transactions
  51. Boost for global heritage sites at Goa, Gujarat, J&K and Mumbai
  52. To boost visa on arrival plans to 150 nations from the present 43
  53. FPI and FDI won’t be differentiated
  54. Public contract resolution of disputes bill to be brought in
  55. New regulatory reforms law for infrastructure
  56. Renewable energy target to be raised to 1.75 lakh MW
  57. Proposed Rs. 75 crores outlay for electric vehicles manufacturing
  58. Education loan schemes for higher education
  59. A full IT based student financial body to be set up
  60. AIIMS at Punjab, J&K, HP, Assam and TN
  61. IIT in Karnataka, upgrading Dhanbad College to IIT
  62. Apprentice training institute for women in Uttarakhand
  63. IIM in J&K and Andhra Pradesh
  64. PSU Banks Board Bureau to be set up this year itself
  65. Film centre and a gaming institute in Arunachal
  66. Special assistance to Bihar and West Bengal
  67. Rs. 68,960 crores for education and mid day meals
  68. Rs. 10,351 crores for women and child development
  69. Rs. 22,407 crores for housing development
  70. Rs. 4,173 crores for water resources
  71. Rs. 2,46,727 crores for defence
  72. Rs. 1,200 crores for fast track corridor between Ahmedabad and Mumbai
  73. Rs. 3,31,500 crores boost for the health sector. Allocation more than that for defence
  74. Non plan expenditure expected at Rs. 13.12 lakh crores
  75. Planned expenditure expected at Rs. 4.56 lakh crores
  76. Gross tax receipts estimated at Rs. 14.50 lakh crores
  77. Fiscal deficit seen at 3.9% revenue deficit at 2.8%
  78. Aiming at non adversarial tax administration
  79. 2016 has been set as deadline for GST. To implement it from next year
  80. Non tax revenue receipts at Rs. 2.2 lakh crores
  81. New stringent law for black money slashed abroad. 10 years punishment for black money holders
  82. FEMA to be amended to accommodate black money
  83. To curb benami transactions in property deals
  84. Implementation of GAAR (General Anti Avoidance Rules) deferred by two years. To be prospectively applied from April 2014
  85. Rich and wealthy must pay more taxes

Proposed amendments in the Direct Taxes

  1. Corporate tax rate cut to 25% from 30% over four years. Major relief for corporate sector
  2. Corporate tax cut to start from next year
  3. Cut in tax to be accompanied by cut in exemptions
  4. Working on phased eliminations of exemptions from next financial year
  5. Prosecution proceedings made more stringent. Concealment of income, assets to get 10 year imprisonment
  6. Penalty for concealment at 300% of the income/asset value
  7. Tax pass throughs to be allowed in categories 1 & 2
  8. Rental income from REITS to have pass through status
  9. Quoting pan mandatory for all purchases above Rs.1 lakh
  10. To cut income tax on royalty service on technical fees to 10%
  11. To abolish wealth tax completely
  12. Additional 2% surcharge on income over Rs. 1 crore
  13. Govt to get additional Rs. 9,000 crores via this surcharge
  14. To rationalise MAT provisions for FIIs
  15. 100% tax deduction on contribution to clean Ganga
  16. Health insurance exemption upped for senior citizens to Rs. 30,000
  17. Health insurance limit increased to Rs. 25,000 from Rs. 15,000
  18. Additional deduction of Rs. 50,000 for investment in National Pension Scheme
  19. Additional deduction of Rs. 50,000 for social safety net payments
  20. Transport allowance doubled to Rs. 1,600 per month
  21. Individual tax payer gets benefit up to Rs. 4,44,200 per year
  22. Yoga to come under charitable organisations

Proposed amendments in the Indirect Taxes

  1. Cut in customs duty on 22 items
  2. Revision of excise duty on some items
  3. Excise duty on leather shoes upper to be cut to 6%
  4. Changes in excise duty on tobacco products, as expected
  5. Service Tax rate increased to 14% from 12.36%
  6. Negative list under Service Tax to be pruned

Compiled by

CA Sanjay Thampy
FCA, Grad. CWA, CS, DBM

For Kerala Biz News

About the Author: Sanjay is a Chartered Accountant based in Mumbai and can be reached at sthampyca@gmail.com

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