Finance

Highlights of the 2015-2016 Union Budget

Mr. Arun Jaitely – the Finance Minister presented the Budget for 2015-2016 in the Indian Parliament. Modi’s government has suggested several changes to boost the Indian economy. While there has been nohttp://naidunia.jagran.com/business/commodity change in the income tax slabs of an individual taxpayer, nevertheless the Budget seeks at benefitting the employees and businessmen community too. Here are the key highlights of this Budget that was presented on 28th February, 2015:-

•    Income tax slabs of an individual to remain the same.

•    Interest on Sukanya Samridhi Account is exempted from tax.

•    Exemption on transport allowance has been raised to Rs. 1,600 from Rs. 800.

•    Exemption on Pension Fund increased to Rs. 1.5 lakhs from Rs. 1 lakh.

•    Wealth tax is abolished. Instead 2 percent surcharge on super rich.

•    Corporate tax has been reduced to 25% from 30% for a period of 4 years.

•    GAAR has been deferred for 2 years.

•    GST to be implemented in this fiscal year.

•    Exemption on Health Insurance limit has been raised to Rs. 25,000 per annum from Rs. 15,000 per annum.

•    Health insurance limit for senior citizens increased to Rs. 30,000 per annum. Deduction of Rs. 30,000 towards medical expenditures is applicable for those senior citizens who are 80 years of age and not covered by health insurance.

•    Under the 80CCD scheme, an additional deduction of Rs. 30,000 is permissible to the new pension scheme.

•    Those who file income tax returns with incomplete details or do not file income tax returns at all may face imprisonment for about 12 years.

•    Tax free infra bonds would be issued against for road, infra and railway projects.

•    By paying a premium of Rs. 12 per annum, persons can avail accidental insurance cover of Rs. 2 lakhs under the Pradhan Mantri Suraksha Bhima Yojana.

•    Service tax has been increased to 14 percent from 12.36 percent.

•    Central excise duty to increase to 12.5%.

•    5 mega projects of 4,000 MW to be set up by the government.

•    Allocation of Rs. 1,000 crore to Nirbhaya Fund for adequate security measures for women.

•    Gold bond has been proposed. Similar to e-gold schemes and gold funds, these gold bonds will monetize the price of gold.

•    GDP growth targeted between 8 and 8.5 percent.

•    Inflation to be kept as low as 6 percent.

Here is what just got cheaper and expensive after the Union Budget 2015-2016 was rolled out:-

Cheaper:-

•    Leather footwear

•    LED, LCD panels

•    Steel products

•    Pacemakers and ambulance services

•    Solar water heater

•    Refrigerator compressors

•    Visit to museums, zoo and national park

•    Microwave Ovens

•    Agarbattis

•    Computer tablets

•    Peanut butter

•    Packaged fruits and vegetables

Expensive:-

•    Eating out at restaurants

•    Visiting beauty parlour

•    Certain tobacco products

•    Aerated, flavored and packaged water

•    Plastic bags and sacks

•    Cigarettes

•    Mobile bills

•    Air travel

•    Cement

•    Imported Commercial Vehicles

There are mixed opinion about the budget rolled out by Modi’s government. While some experts believe that it could hit the common man with the increase in service tax, others feel that overall it is a good budget at least better than what the Congress had presented when they were in power.

Pranab Dutta (have 72 posts in total)

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