Saturday 28 February 2015

Union Budget 2015: Highlights on February 28, 2015

Finance Minister Arun Jaitley presented India’s national budget for 2015-16 amid high expectations from all stakeholders in lifting overall growth, reinforced by the positive agenda set by the Economic Survey for “big bang” reforms.
Here are the highlights of his speech:
Cigarette, pan masala to be costlier
Yoga included in the ambit of charitable purposes under the Income Tax Act
 Individual tax payer will benefit to the extent Rs.4,44,200/- from the exemptions announced
100% tax exemption in CSR activities for Clean Ganga Fund and Swachh Bharat Kosh
Transport allowance exemption increased from 800 to 1,600 per month
Increase exemption on health insurance premium to Rs 25,000 from current Rs 15,000
Service tax rate hikes to 14% from 12.36%
central.excise duty rounded off to 12.5 percent
proposes an additional surcharge of 2% on those with taxable income of 1 cr
No change in income tax slabs
Reduced taxes on Technical Services to 10% from 25%
FM Arun Jaitley abolishes wealth tax and replaces it with additional 2% surcharge on income of Rs 1 Crore
PF contribution to be made optional
Govt defers roll out of anti-tax avoidance rules GAAR by 2 years
Penalty for holding black money will be 300% of the tax; tax offenders cannot go to tax settlement commissions
Undisclosed income to be taxed at max marginal rate, exemptions for such income won’t be allowed
PAN number mandatory for any purchase above Rs 1 lakh
Concealment of income will attract 10 yrs of rigorous imprisonment
Non-filing of returns, or filing of returns with inadequate information will attract RI
To enact a comprehensive law on black money stashed abroad
Propose to reduce the rate of corporate tax from 30% to 25%
It has been our endeavour in last 9 months to foster a stable taxation policy
We need to revive growth & investment to ensure more jobs are created for our youth
Taxation is an instrument of social economic engineering
Defence budget enhanced to 2,46,727 crore rupees.
ISM Dhanabad will be upgraded to full IIT
Special Assistance to Bihar and West Bengal
AIIMS-like institution to be setup in Bihar
AIIMS to be set up in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam.
IIT to be set up in Karnataka. IIMs to be setup in J&K and Andhra Pradesh
Govt to do away with distinctions between FII and FDI and replace it with composite caps
Employees can opt for EPF/new pension fund; EPF to be optional for employees below certain threshold
Rs 75 crore for development of electric vehicles
VISA on arrival increased to 150 countries.
Several measures will be put in place to make India a cashless society
Initial sum of Rs 150 Cr to create world class IT hub to take advantage of our competitiveness
Indian gold coins with Ashok chakra on its face to be launched
Sovereign Gold Bond to be launched
Nirbhaya fund gets Rs 1000 crore
This is just the beginning, I intend to create a direct tax regime which is internationally competitive on rates
To allocate Rs. 1000 Crore to enable IT startups
Rs 3000 crore for Krishi Sichai Yojana
Will merge Forward Market Commission and SEBI
Financial markets — will set up a public debt management agency — external and domestic borrowings under one roof
Will enhance the allocations to MNREGA by 5000 crore
Govt proposes to set up 5 ultra mega power projects
Ports in Public Sector to be encouraged to become companies
 Focussed to improve quality of employment under MNREGA
Govt is establishing a mechanism ‘self employment’ to support all aspects of start up business
PPP model has to be revised and revitalized
Tax free Infrastructure bonds for projects in Railways and roads
Scheme to provide physical aids for senior citizens living below poverty line
PM Surakhsha Bhima Yojana to be linked with Jan Dhan Yojana
Propose the ‘Nayi Manzil’ scheme for the youth minorities
Govt plans to create senior citizens’ welfare fund
Integrated education and livelihood scheme for minorities
Atal Pension Yojana to provide defined pension according to contribution ; 50% contribution to be from Govt
A large portion of population is without insurance of any kind,I propose to work towards universal social security system for all
Govt is committed to utilize the vast postal network spread across country
Govt. to bring a Comprehensive Bankruptcy code for the ease of doing business by 2015-16
Propose to work towards Universal Social Security for all Indians
To increase income of our farmers, we propose to create a national agriculture market
Target of 8.5 lakh crores credit to be given to farmers in 2015-16
Rural Infrastructure Development Fund to be 25000 crores
Allocating 5300 crore for micro irrigation
LPG direct transfer subsidy to be expanded
Target of 8.5 lakh crores credit to be given to farmers in 2015-16
We need a well targeted system of subsidies rather than to cut subsidies
Housing for all by 2020
Tax buoyancy is lower but still we will meet the promise of Fiscal deficit of 4.1% of GDP this year
States will now get 62%of the total revenue. Its unprecedented
 2/3 rd of our population is below 35,to ensure employment we have to aim to make India the manufacturing hub
Challenges – manufacturing has declined from 18% to 17% of the GDP
GDP growth for 2015-16 seen at between 8 – 8.5 pc
All schemes should focus on the poor
GST will put in place by April 1st 2016
Objective is to keep inflation below 6%
50 lakh toilets have been already constructed. Will achieve target of building 6 crore toilets
We expect the CPI inflation to remain close to 5% towards the end of year
One of the achievement of myGovt has been is to conquer inflation
Economic environment far more positive than before; we have turned around the economy: FM
3 major achievements of govt: Jan Dhan Yojana, Coal Auction and Swacch Bharat programme
The latest CPI inflation is 5.1 % and whole sale price inflation is negative: Jaitley
Current deficit reached 4.3% of GDP: Jaitley
Lok Sabha session begins, Finance Minister starts Union Budget 2015-16 speech

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