Today, Finance Minister Arun Jaitley announced a 5 % reduction in corporate tax over next four years, abolished wealth tax and replaced it with an additional 2 per cent surcharge on super-rich individuals, while increasing service tax that will result in higher cost of variety of services.
Highlights of Arun Jaitley’s Budget for 2015 is as follows:
• Additional deductions of NRS contributions of Rs 50000, Transport allowance doubled to Rs 1600
• Rebate on health insurance premium rise to Rs 25000
• To increase Service Tax at 14 % from 12.36%
• Excise duty on leather upper shoes cut by 6%
• To rationalise MAT provisions for FIIs
• Replaces wealth tax with additional 2 pct surcharge on super rich
• Reduced taxes on Technical Services to 10% from 25%
• Proposes customs duty in certain items
• Proposes to rationalise capital gains tax regime for real estate investment trusts
• PAN number must for transaction above Rs 1 lakh
• Tax Pass Through to be allowed in Category 1 and 2
• To curb benami transactions in property deals
• FEMA to be amended to incorporate black money provisions
• Penalty at 300% of asset value in case of concealment of asset, income
• Jail upto 10 years for tax evasion
• To enact new law on black money stashed abroad
• Corporate tax deduction to start from next year
• Cut in taxes accompanied by cut exemptions
• Corporate tax to be cut to 25 % in next 4 years
• A regime of exemptions have led to loss of revenue,propose to reduce rate of corporate tax from 30% to 25%
• 14.5 lakh crore by Gross Tax collection
• 4.56 lakh crore Plan expenditure for FY16
• 13.12 lakh crore for Non-Plan expenditure
• 31,500 cr allocation for health sector
• Indian School of Mines, Dhanbad to be upgraded to a full-fledged IIT
• Allocation of 4173 cr for water resources
• Allocation of 10,351 cr for women,child developmental programs
• Assistance to Bihar and West Bengal as the govt is providing Andhra Pradesh
• AIIMS type of institution in Bihar
• WorldCup2015: The teams are walking out for the national anthems #INDvsUAE
• Setting up of IIMs in J&K and Andhra Pradesh
• Public procurement law to be introduced
• Visa On Arrival facilitiy to be raised to 150 Countries
• To launch Nationl Skill Mission to boost jobs
• 75 crore for electric vehicle manufacturing
• Provisions to implement 7th Pay Commission in next year
• Gold Coins with ‘Ashok Charkra’
• Sites from Goa,Gujarat (Rani Ki Wav), J&K for global heritage
• To allocate Rs 1000 crore for Nirbhaya fund
• FPI & FDI will not be differentiated
• Allow Foreign Investment in Alternate investment Funds
• To discourage cash transactions in cash;Indian Gold Coin to recycle local gold
• GST to bring greater transparency and tax inflows
• Plans to introduce direct tax regime that is internationally competitive on rates without exemptions
• Public Debt Mgmt Office to be setup this year
• To amend section 6 of FEMA
• Govt to setup 5 UMPPS; investment of 1 lakh crore
• Public sector posts to be made Companies under Cos Act ; Rs 1000 crore for IT sector
• To take up job creation in software sector
• Proposing the ‘Nayi Manzil’ program for the youth minorities
• Investment in infrastructure to go up by Rs. 70,000 crores
• Seen major sleepage in infra sector in last 10 years ; national infra fund 24,000 crore for road,rail;tax free infra bond
• NBFCS with Rs 500 cr to be institution under SARFAES
• Create senior citizens fund via PPF funds
• Universal Social-Security System for all Indians
• Govt to bring a comprehensive bankruptcy code for the ease of doing business by 2015-16
• Postal department will be engaged in the Jan Dhan scheme, PM Suraksha Yojna at premium of 12.5 % of Rs 2 lakh insurance
• Allocating 5300 crore for micro irrigation
• To allocate 34,700 crore to MNREGA
• MUDRA banks to loan of Rs 20K crore unfunded low income group
• 8.5 lakh crore credit growth target for FY 15-16
• Commitment to farmers run deep,an ambitious soil health card has been introduced to improve soil fertility
• FY18 Fiscal deficit targetted at 3%
• Direct Transfer of Subsidies to cut subsidy leakage
• Subsidies needed for poor, to cut subsidy leakage
• Fiscal target 3.9% in FY 2015-16 3.5% FY 16-17
• Agricultural incomes have to be increased investment in infrastructure
• To boost manufacturing which has declined from 18% to 17% of the GDP : Arun Jaitley,FM
• 2/3 rd of our population is below 35,to ensure employment we have to aim to make India the manufacturing hub
• We have also to encourage new start ups and entrepreneurship:Arun Jaitley
• Will need to build additional 100,000 km of road :Arun Jaitley.
• Providing medical facilities to each one of village and city is essential: Arun Jailtey
• To construct,sanction 1 lakh km of new roads
• FY 2016 GDP growth expected to be between 8-8.5%
• Govt has to think in terms of quantum jump
• Amending RBI Act for setting up Monetary Policy Plan
• Expect CPI inflation below 5% this year
• Govt will achieve target of making 6 crore toilets in its rule
• Action taken on allocating natural resources, creating jobs
• CAD for this year expected to be 1.3% of GDP
• ‘Make In India’ drive will make India the fastest growing economy at
• Credibility of Indian Economics have been re-established
• Yoga is India’s well acknowledged gift to the world
