Budget 2015 Highlights

Union Budget 2015-16 is being presentedUnion Budget 2015-16 is being presented
by Finance Minister Mr. Arun Jaitley in theby Finance Minister Mr. Arun Jaitley in the
Parliament on Feb.28th. We are bringingParliament on Feb.28th. We are bringing
you the highlights and keyyou the highlights and key
announcements of Budget 2015-16.announcements of Budget 2015-16.
Madan KumarMadan Kumar

The objective of this Budget is to improveThe objective of this Budget is to improve
quality of life and to pass benefits toquality of life and to pass benefits to
common man.common man.
Indian Govt has 3 major achievements:Indian Govt has 3 major achievements:
Jan Dhan Yojana, Coal Auction andJan Dhan Yojana, Coal Auction and
Swacch Bharat programmeSwacch Bharat programme

Incremental change is not going to take usIncremental change is not going to take us
anywhere, will need to think in terms ofanywhere, will need to think in terms of
quantum jumpquantum jump
Under Swacch Bharat Yojana, 50 lakhUnder Swacch Bharat Yojana, 50 lakh
toilet already built, 6 crore toilet targetedtoilet already built, 6 crore toilet targeted
Government will encourage new start upsGovernment will encourage new start ups
and entrepreneurshipand entrepreneurship

Government is still firm on achieving fiscalGovernment is still firm on achieving fiscal
deficit target of 3 % of GDP eventuallydeficit target of 3 % of GDP eventually
Real GDP expected to accelerate to 7.4%Real GDP expected to accelerate to 7.4%
Current FOREX reserves $340 bn,Current FOREX reserves $340 bn,
Second best stock market in AsianSecond best stock market in Asian
economyeconomy

Govt will utilize vast postal network forGovt will utilize vast postal network for
increasing access to institutional bankingincreasing access to institutional banking
Roadmap to achieve Fiscal deficit of 3% ofRoadmap to achieve Fiscal deficit of 3% of
GDP in three years: Target is 3.9% inGDP in three years: Target is 3.9% in
2015-16, 3.5% in 2016-17, 3% in 2017-18.2015-16, 3.5% in 2016-17, 3% in 2017-18.

National Insurance scheme called PMNational Insurance scheme called PM
Suraksha Bhima Yojana, offeringSuraksha Bhima Yojana, offering
coverage of 2 lakh rupees for justcoverage of 2 lakh rupees for just
premium of Rs.12 per year. [WOW!]premium of Rs.12 per year. [WOW!]
Rs. 5300 crore allocated for microRs. 5300 crore allocated for micro
irrigationirrigation

Target of 8.5 lakh crores credit to be givenTarget of 8.5 lakh crores credit to be given
to farmers in 2015-16to farmers in 2015-16
Target of 8.5 lakh crore of credit forTarget of 8.5 lakh crore of credit for
agricultural sectoragricultural sector
Unclaimed deposits of Rs 3,000 crore inUnclaimed deposits of Rs 3,000 crore in
PPF and Rs 6000 crore in EPF; to createPPF and Rs 6000 crore in EPF; to create
senior citizens welfare fund from thissenior citizens welfare fund from this
corpuscorpus

Atal Pension Yojana to provide definedAtal Pension Yojana to provide defined
pension according to contribution ; 50%pension according to contribution ; 50%
contribution to be from Govt.contribution to be from Govt.
Increased Budgetary allocation to RoadsIncreased Budgetary allocation to Roads
& Railways& Railways
5 Ultra Mega power projects, of 4000 MW5 Ultra Mega power projects, of 4000 MW
announcedannounced

 Initial sum of Rs 150 Cr to create world class ITInitial sum of Rs 150 Cr to create world class IT
hub to take advantage of our competitivenesshub to take advantage of our competitiveness
 Start-ups: mechanism for techno-financialStart-ups: mechanism for techno-financial
incubation for start ups; govt sets aside Rs 1000incubation for start ups; govt sets aside Rs 1000
crorecrore
 National Infrastructure Fund will try to leverageNational Infrastructure Fund will try to leverage
Infrastructure companies ; Tax free bonds forInfrastructure companies ; Tax free bonds for
Roads , Railways & irrigationRoads , Railways & irrigation

Renewable energy target will be increasedRenewable energy target will be increased
to 1,75,000 MWto 1,75,000 MW
Highest ever allocation for MGNREGA, byHighest ever allocation for MGNREGA, by
increasing it this year by 5,000 croreincreasing it this year by 5,000 crore
rupeesrupees
Ports in public sector will be encouragedPorts in public sector will be encouraged
to corporatize & become companies underto corporatize & become companies under
companies actcompanies act

EPF & ESI has hostage rather than client ;EPF & ESI has hostage rather than client ;
ESI should be made optional toESI should be made optional to
employeesemployees
GST will be put in place state of artGST will be put in place state of art
internationally indirect tax system by Aprilinternationally indirect tax system by April
1st 2016: FM1st 2016: FM
An addition of 1,000 crores for NirbhayaAn addition of 1,000 crores for Nirbhaya
FundFund

Govt proposes to increase visa-on-arrivalGovt proposes to increase visa-on-arrival
to 150 countries to increase tourismto 150 countries to increase tourism
Initial outlay of Rs 75 crore forInitial outlay of Rs 75 crore for
development of electric vehiclesdevelopment of electric vehicles
For better regulation a merger of FMC &For better regulation a merger of FMC &
SEBI is being currently worked outSEBI is being currently worked out

National Skill Mission to be launchedNational Skill Mission to be launched
through skill development andthrough skill development and
entrepreneurship ministry, to developentrepreneurship ministry, to develop
employability of youth, especially below 25employability of youth, especially below 25
years of ageyears of age
Section 6 of FEMA to be amendedSection 6 of FEMA to be amended

 Committee to be set up to plan the celebration ofCommittee to be set up to plan the celebration of
the 100th birth anniversary of Deen Dayalthe 100th birth anniversary of Deen Dayal
UpadhyayaUpadhyaya
 Propose to set-up an IT based student financialPropose to set-up an IT based student financial
aid system under PM Vidya Laxmi schemeaid system under PM Vidya Laxmi scheme
 The new Pradhan Mantri Vidya LakshmiThe new Pradhan Mantri Vidya Lakshmi
Programme will ensure no student misses out onProgramme will ensure no student misses out on
higher education opportunities due to lack ofhigher education opportunities due to lack of
fundsfunds

Govt announces AIIMS institutions in J& KGovt announces AIIMS institutions in J& K
, Punjab , Himachal Pradesh and Assam., Punjab , Himachal Pradesh and Assam.
ISM Dhanbad will be upgraded to full IITISM Dhanbad will be upgraded to full IIT
Government is pursuing policy ofGovernment is pursuing policy of
#MakeInIndia in defense not only to cater#MakeInIndia in defense not only to cater
our needs but also for exportour needs but also for export
Defense budget has been enhanced toDefense budget has been enhanced to
2,46,727 crore rupees, an approx.2,46,727 crore rupees, an approx.
increase of Rs. 25,000 croreincrease of Rs. 25,000 crore

Unplanned expenditure for 2015-16 isUnplanned expenditure for 2015-16 is
estimated at 13 lakh 12 thousand and 200estimated at 13 lakh 12 thousand and 200
crorescrores
Budget Estimates of Expenditure: Rs. 17 .Budget Estimates of Expenditure: Rs. 17 .
77 lakh crore of which Non Planned is Rs.77 lakh crore of which Non Planned is Rs.
13.12 lakh crore and Plan is 4.65 lakh13.12 lakh crore and Plan is 4.65 lakh
crorescrores
Direct Tax collection is going to be 14.49Direct Tax collection is going to be 14.49
lakh crore rupeeslakh crore rupees

 Basic rate of Corporate Tax to be reduced fromBasic rate of Corporate Tax to be reduced from
30% to 25% in next 4 years and will be30% to 25% in next 4 years and will be
accompanied by reducing exemptions.accompanied by reducing exemptions.
 Exemptions to individual tax payers will remainExemptions to individual tax payers will remain
 Non-filing of returns, or filing of returns withNon-filing of returns, or filing of returns with
inadequate information may attract 10 year Jailinadequate information may attract 10 year Jail
term. Even concealment of income will beterm. Even concealment of income will be
prosecutable with rigorous imprisonmentprosecutable with rigorous imprisonment

 Government to enact a comprehensive law onGovernment to enact a comprehensive law on
black money stashed abroadblack money stashed abroad
 Benami property transaction bill will beBenami property transaction bill will be
introduced to tackle black money transaction inintroduced to tackle black money transaction in
real estate soonreal estate soon
 Quoting of PAN is mandatory for any purchaseQuoting of PAN is mandatory for any purchase
made more than Rs. 1 Lakh.made more than Rs. 1 Lakh.
 Defer the applicability of GAAR for 2 years ; willDefer the applicability of GAAR for 2 years ; will
only apply prospectively after Apr 2017.only apply prospectively after Apr 2017.

 Reduced Royalty fees on Technical Services toReduced Royalty fees on Technical Services to
10% from 25%.10% from 25%.
 Wealth Tax Abolished, instead super rich willWealth Tax Abolished, instead super rich will
pay extra 2% extra surcharge for people withpay extra 2% extra surcharge for people with
income over 1 Crore. This will lead to additionalincome over 1 Crore. This will lead to additional
9,000 cr to Tax kitty.9,000 cr to Tax kitty.
 Custom duty on raw materials andCustom duty on raw materials and
intermediaries to be reducedintermediaries to be reduced
 Excise duty on Leather footwear reduced to 6%Excise duty on Leather footwear reduced to 6%

Fuel excise duty will remain unchanged;Fuel excise duty will remain unchanged;
change in tobacco excise duty.change in tobacco excise duty.
Consolidated Service Tax increased fromConsolidated Service Tax increased from
12.36% to 14%!12.36% to 14%!
Increased in deduction for HealthIncreased in deduction for Health
insurance from Rs. 15000 to Rs. 25000.insurance from Rs. 15000 to Rs. 25000.
For senior citizens increased to 30,000.For senior citizens increased to 30,000.

 Additional deduction of Rs 50,000 forAdditional deduction of Rs 50,000 for
contribution to pension fund and new pensioncontribution to pension fund and new pension
schemescheme
 Tax exemption for transport allowance increasedTax exemption for transport allowance increased
from Rs 800 to Rs 1600 per month.from Rs 800 to Rs 1600 per month.
 Individual tax payer will benefit to the extentIndividual tax payer will benefit to the extent
Rs.4,44,200/- from the exemptions announcedRs.4,44,200/- from the exemptions announced
 Direct tax proposals will lead to 8315 cr loss andDirect tax proposals will lead to 8315 cr loss and
an increase of Rs. 23,000 cr in indirect taxan increase of Rs. 23,000 cr in indirect tax
gains.gains.

Budget 2015 Highlights

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Budget 2015 Highlights