What are the Key Budget Highlights of 2015-16?
Mr.Arun Jaitley, Finance Minister has presented Union Budget of 2015-16 today. Govt. of India has announced several things to boost the Indian economy. While there are no changes in person income tax slabs, some of the changes in budgets would benefit for employees, business men etc. What are the key budget highlights of 2015-16. This article provides only key highlights.
What are the Key Budget Highlighs of 2015-16?
- Transport allowance exemption increased from Rs 800 per month to Rs 1,600 per month. Cheer up employees.
- Interest on Sukanya Samridhi Account is exempted from tax.
- Pension fund tax exemption increased from Rs 1 Lakh to Rs 1.5 Lakhs.
- Wealth Tax is abolished and replaced with 2% surcharge on super rich (whose annual taxable income is above Rs 1 Crore).
- Corporate tax would be reduced from 30% to 25% over a period of 4 years.
- Health insurance limit has been increased from 15,000 to Rs 25,000 per annum. For senior citizens, it is increased to Rs 30,000 per annum.
- Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of Rs 30,000 towards medical expenditures.
- Additional deduction of Rs 50,000 for contribution to the new pension scheme u/s 80CCD.
- You may face imprisonment if you do not file income tax return or filed tax returns with incomplete details.
- Pradhan Mantri Suraksha Bhima Yojana introduced where one can get accidental insurance cover of Rs 2 Lakhs at Rs 12 premium per annum.
- Tax free infra bonds are back. These would be issued again for roads, railways and infra projects.
- Allocation of Rs 1,000 Crore to Nirbhaya Fund. This would increase security measures for women.
- New GST to be implemented from this fiscal year.
- Increase visa on arrival facilities from 43 countries to 150 countries
- No change in person income tax slab.
- GAAR deferred by 2 years.
- Central excise duty increased to 12.5%.
- Weave excise duty on electric and hybrid vehicles to promote clean energy drive.
- Plan to set-up 5 ultra mega power projects of 4,000 MW.
- Merge commodities regulator FMC with SEBI.
- NBFC’s will be treated at par with banks if the size of such NBFC is > 500 Crores.
- Yoga instructors / yoga institutions would get special tax exemption.
- In a bid to further cut down on imported gold, Finance Minister Arun Jaitley said the government will introduce India-made gold coins. These will be branded with Ashok Chakras.
- Monetize gold through securitization. Government is proposing to develop a gold bond. This would likely be similar to gold funds or e-gold schemes where returns would track the price of the yellow metal.
- GDP growth seen at between 8 percent – 8.5 percent.
- Service tax increased from 12.36% to 14%. This would provide Rs 30,000 Crores to Govt.
- To keep inflation below 6%.
- Foreign investments in Alternate Investment Funds to be allowed.
- Rental income of REITs from their own assets to have pass through facility.
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What are the Key Budget Highlights of 2015-16
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