Friends..As you all know, Union Finance Minister Arun Jaitley today (28 February 2015) presented the Union Budget 2015-16 in Parliament. Questions related to this budget will surely be asked in upcoming competitive Exams and mainly in Bank Exams. So in this post, we are sharing with you the highlights of the Union Budget 2015-16.
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--> No change in personal Income Tax * Health Insurance Premium deduction hiked from Rs. 15,000 to Rs. 25,000; for senior citizens to Rs. 30,000
--> Transport allowance exemption hiked to Rs. 1,600, from Rs. 800 per month
--> Additional 2% surcharge on people earning over Rs. 1 cr; to fetch Rs. 9,000 cr
--> Wealth tax abolished
--> Direct Taxes Code (DTC) dropped
--> Rs. 50,000 deduction for contribution to New Pension Scheme
--> To lower Corporate Tax to 25% over next four years
--> GAAR implementation deferred by 2 years to April 2017
--> Service Tax rate hiked to 14%, from 12.36%
--> Tax free bonds for roads, railways, irrigation projects
--> 2015—16 growth between 8—8.5%, double digit growth feasible
--> Retail inflation close to 5% by March, room for monetary policy easing
--> To achieve fiscal deficit of 3% of GDP by 2017—18
--> Fiscal Deficit target 3.9% in 2015—16, 3.5% in 2016—17
--> Revenue Deficit to be 2.8% in 2015—16
--> Current Account Deficit for 2014—15 to be below 1.3% of GDP
--> To introduce comprehensive law to deal with black money
--> Benami property transaction bill to tackle black money transaction in real estate soon
--> 100% deduction for contribution to Swachh Bharat, Clean Ganga projects
--> GST to be put in place by April 1, 2016
--> Internationally competitive direct tax regime to be put in place to incentivise saving
--> Incentivise use of credit, debit cards; disincentivise cash transaction to curb black money.
Here are sector-wise highlights:
* Abolition of Wealth Tax.
* Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
* Rate of corporate tax to be reduced to 25% over next four years.
* No change in tax slabs.
* Total exemption of up to Rs. 4,44,200 can be achieved.
* 100% exemption for contribution to Swachch Bharat, apart from CSR.
* Service tax increased to14 per cent.
* Rs. 25,000 crore for Rural Infrastructure Development Bank.
* Rs. 5,300 crore to support Micro Irrigation Programme.
* Farmers credit - target of 8.5 lakh crore.
* Rs. 70,000 crores to Infrastructure sector.
* Tax-free bonds for projects in rail road and irrigation
* PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.
* Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.
* Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.
* AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
* IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.
* PG institute of Horticulture in Amritsar.
* Kerala to have University of Disability Studies
* Centre of film production, animation and gaming to come up in Arunachal Pradesh.
* IIM for Jammu and Kashmir and Andhra Pradesh.
* Allocation of Rs. 2,46,726 crore; an increase of 9.87 per cent over last year.
* Focus on Make in India for quick manufacturing of Defence equipment.
* GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.
* Six crore toilets across the country under the Swachh Bharat Abhiyan.
* MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.
* Housing for all by 2020.
* Upgradation 80,000 secondary schools.
* DBT will be further be expanded from 1 crore to 10.3 crore.
* For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.
* New scheme for physical aids and assisted living devices for people aged over 80 .
* Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
* Rs. 5,000 crore additional allocation for MGNREGA.
* Govt. to create universal social security system for all Indians.
* Rs. 75 crore for electric cars production.
* Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro.
* Develpoment schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.
* Visa on Arrival for 150 countries.
* Forward Markets Commission to be merged with the Securities and Exchange Board of India.
* NBFCs registered with the RBI and having asset size of Rs 500 crore and above to be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses
* Permanent Establishment norms to be modified to that mere presence of offshore fund managers in the country does not lead to “adverse tax consequences.”
Courtesy in preparing this article: The Hindu