New Delhi, Feb 28: Finance Minister Arun Jaitley received applause from Prime Minister Narendra Modi, but he is ready to defend his stand when he will be attacked by opposition parties over the Budget for this fiscal.
The most appreciable thing FM Arun Jaitley has presented in the budget that he has not compromised the interest of common people. There is no change in Individual Tax Rates and the corporate tax rate will be cut from 30% to 25% over the next four years. The tax payers will get benefit of Rs 4,44,200 per annum.
By keeping the individual tax rates unchanged and providing lots of incentives, the government has wooed the middleclass and poor. As per the current law of the individual tax slab, Individual Tax Payers up to the age of 60 years pay no tax having annual income Up to Rs 2,50,000. It is 10% for the tax payers under the category Rs 2,50,001 to Rs 5,00,000. 20% tax for the annual income from Rs 5,00,001 to Rs 10,00,000, and for above Rs 10,00,000, it is 30 per cent tax.
Similarly, the Senior Citizens above 60 years pay no tax for annual income upto Rs 3,00,000. The senior citizens having income of Rs 3,00,001 to Rs 5,00,000 pay 10 per cent tax, under the category Rs 5,00,001 to Rs 10,00,000 - 20 per cent tax and above Rs 10,00,000, it is 30 per cent tax.
He has proposed to increase Health Insurance Premium deduction from Rs 15,000 to Rs 25,000 and for senior citizens it will be now Rs 30,000. The Transport allowance exemption has been hiked to Rs 1,600 from Rs 800 per month.
He proposed to abolish the Wealth Tax replacing with it additional 2% surcharge on income above Rs 1 crore. He announced Rs 50,000 deduction for contribution to New Pension Scheme.
He proposed to hike service tax from 12.36% to 14%.
Here are the highlights of the budget.
- There is No change in individual Income Tax
- Health Insurance Premium deduction was hiked from Rs 15,000 to Rs 25,000; for senior citizens to Rs 30,000
- Transport allowance exemption was hiked to Rs 1,600, from Rs 800 per month
- Additional 2% surcharge on income over Rs 1 crore per annum to get Rs 9,000 crore.
- Wealth tax was abolished
- Direct Taxes Code (DTC) dropped
- Rs 50,000 deduction for contribution to New Pension Scheme
- Corporate Tax will be cut from 30% to 25% over the next four years
- GAAR implementation was deferred by 2 years to April 2017
- Service Tax was hiked to 14% from 12.36%
- Tax free bonds for roads, railways, irrigation projects
- 2015-16 growths will be over 8%
- Fiscal Deficit target will be 3.9% in FY 2015-16 and Revenue Deficit to be 2.8% in FY 2015-16
- Revenue Deficit will be 2.8% in 2015-16
- Current Account Deficit for 2014-15 will be below 1.3% of GDP
- Aim to complete electrification by 2020 in villages
- Focused to improve quality of employment under MNREGA
- Propose to create Mudra bank for enterprises led by SC/ST
- Rural Infrastructure Development Fund to be Rs 25000 Crore under NABARD
- Govt committed to increasing people's access to formal banking, to expand the postal system. At least one member of each family to get job
- Suraksha beema yojna to cover accidental death at the premium of Rs 12 per year
- Govt. is committed to increase the access of people to formal financial system
- Propose new scheme for senior citizens below poverty line. This shows our dedication to the senior citizens
- Atal Pension Yojna announced
- Major slippage in the last decade in the infrastructure. Major need to invest in the same. The figures are no match with the growth planned
- Make in India programme is aimed at raising share of manufacturing in GDP and creating jobs
- New scheme called Nayi Manzil to enable Minority youth without school leaving certificates to get the employment.
- Investment in Infrastructure to go up by 70,000 crore in 2015-16 over 2014-15.
- Govt provides Rs 5300 cr to support micro irrigation
- Aim to make India an Investment destination
- PPP model of Infrastructure to be revitalized and realigned
- Second unit of Kudankulam Nuclear Power station to be launched in 2016
- Rs 5000 crore to be allotted for MNREGA which will be the highest amount allocated ever to this project
- Ports in public sector will be encouraged to corporatize and become companies under Companies Act
- After a certain age, contributions to EPF should be optional. Intend to make changes in the same
- Govt to set up Five Ultra Mega Power Projects in Power and Play mode each with 4000 MW
- Indian Gold coins to have Ashoka chakra minted on it
- Announcement soon on making India a cashless society. More credit and debit cards to be announced
- Govt allocated Rs 1000 crore for Nirbhaya fund
- Work towards the improvement of heritage cites like Goa, Rajasthan, Leh, Jaliahwalah bagh, and others
- After the success os Visa on arrival, 150 countries to be included in the facility
- 100th birthday celebration committee to be announced for celebration of Mahatma Gandhi's birth anniversary
- No student will be dropped from studies due to lack of funds
- World class education for all. Propose to set up IIT in Karnataka
- AIIMS J&K, Tamil Nadu, Himachal Pradesh, Dhanbad, Assam
- Film production, animation institute to be set up in Arunachal Pradesh
- Institutions of science and educational research in Nagaland and Odisha
- Focus on will be on eastern and northeastern states in India
- National Skill Mission to be launched, to develop employability of youth, especially below 25 years of age
- Make In India to improve export system
- Taxation an instrument of social economic engineering
- GST expected to play a vital role in developing the economy: FM
- Focus on Promotion of make in India, removal of black money, minimum government maximum governance, benefit to tax payers, swacha bharat
- Tracking down black money and bringing it back to India will be prime focus
- Non filing of returns or filing of returns with undisclosed foreign interests an offence eligible for a 7 year term
- Measures to be taken to curb black money. Proposal not to allow use of more than Rs 20,000 in cash for purchase or sale of immovable property
- To enact a comprehensive law on black money stashed abroad
- Benami transaction prohibition Bill to be introduced to curb domestic black money to be introduced. Benami transaction prohibition Bill to tackle black money transaction in real estate soon
- PAN number mandatory for any purchase above Rs 1 lakh
- Royalty fees on technical service to be reduced
- Tax administration reforms commission recommendations in advance stages of examination
- Increase excise duty to 12.5%: FM
- Additional funds to be generated for Swachh Bharat and Clean Ganga
- 100% deduction to contributions to Swachh Bharat funds
- Investment in Sukanya Samridhi Scheme will be fully exempted from tax
- Enactment of Direct Tax code under consideration
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