Mission Growth India: Promises Budget 2015-16
Finance Minister Arun Jaitley (C) poses as he leaves his office to present the 2015/16 budget in New Delhi February 28, 2015.
CREDIT: REUTERS/VIJAY MATHUR
Finance Minister Arun Jaitley has announced the Budget for 2015-16. this Saturday, 28th Feb’2015. He now focuses intensely on Growth, slowing the pace on fiscal deficit cutting, with the aim to boost investments and ordinary people benefits.
Patanjali Associates Lays down the key highlights of the fiscal budget this year, beginning April 1.
- National Investment Infrastructure Fund proposed.
- Introduction of tax free infrastructure bonds for irrigation, road and rail projects.
- 5 ultra mega power projects each of 4000 MW to be set up with transparent bidding in future.
- 25,000 crore allocation for rural infrastructure development Fund.
- Government to provide 79.4 billion rupees capital infusion to state-run banks.
- Proposal to do away with different types of foreign investment caps and replace them with composite caps.
- To allow foreign investment in alternative investment funds.
- Proposal to do away with distinction between FII’s and FDI’s.
- FEMA to be amended to check black money and foreign assets illegally stashed abroad.
- Proposal to create a universal social security system for all Indians.
- Key pension schemes for the poor.
- To create senior citizens fund via unclaimed provident fund.
- Health insurance scheme increased from Rs.15,000 to Rs. 25,000
- Senior citizens health insurance scheme increased to Rs. 30,000
- Monthly Transport Allowance doubled from Rs 800 to Rs 1600 .
- Employees EPF contribution may become optional.
- 10% TDS on Provident Funds – withdrawal allowed before five years
- To raise visa-on-arrival facility to 150 countries from existing 43 countries.
- Raising threshold for application of transfer pricing rules to 200 million rupees from current 50 million rupees.
- New stringent Black Money law proposed to be introduced in which concealment of income & assets in foreign account to be awarded 10 year rigrous imprisonment and penalty for concealment of assets at 300% of asset value.
- Public Contract Resolution of Disputes bill to be brought in.
- New Regulatory Reform Law in Infrastructure.
- Wealth tax to be abolished and be replaced with additional 2% surcharge on individuals (super rich) with annual income over Rs. 1 crore.
- Corporate Tax reduced from 30% to 25% for the next 4 years starting April 2016.
- Net gain from tax proposals viewed at 150.68 billion rupees.
- Tax ease on royalty fee on technology services reduced to 10% from 25%.
- Proposal to rationalize capital gains tax regime for real estate investment trusts.
- Implementation of Goods and Services Tax (GST) by April 2016 expected.
- Tax deduction limit under personal income tax raised to Rs.4,44,200.00
- General Anti-Avoidance Rules (GAAR) deferred by 2 years and proposed to be started April 2017.
- Custom duty on 22 items to be reduced.
- Basic custom duty on commercial vehicle doubled to 20%.
- Custom duty on commercial vehicles hiked to 40 percent from 10 percent.
- Proposal to waive excise duty on electric and hybrid vehicles
- No education cess on petroleum products
- To have 100% tax deduction for SukanyaSamridhi scheme, Swachh Bharat and Clean Ganga Projects.
- Import tax on iron and steel increased to 15 percent from 10 percent.
- Import tax on metallurgical coke increased to 5 percent from 2.5 percent.
- Additional deduction of Rs. 50,000 under section 80CCD.
Gold Policy Reforms
- New gold monetization scheme to be introduced.
- Proposal to introduce sovereign gold bond with fixed interest rate.
- Proposal to introduce gold monetization scheme (gold bonds) to allow depositors to earn interest.
- Proposal to introduce Indian-made gold coin (carrying Ashoka chakra sign) to reduce demand for foreign gold coins.
Connect with Service Provider
Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities