Union Budget 2015-16: Highlights & Key Announcements

Union Budget 2015-16 is being presented by Finance Minister Mr. Arun Jaitley in the Parliament today. We are bringing you the highlights and key announcements of Budget 2015-16.

Union Budget 2015-16: Highlights & Key Announcements

• The objective of this Budget is to improve quality of life and to pass benefits to common man.
• Indian Govt has 3 major achievements: Jan Dhan Yojana, Coal Auction and Swacch Bharat programme
• Incremental change is not going to take us anywhere, will need to think in terms of quantum jump
• Under Swacch Bharat Yojana, 50 lakh toilet already built, 6 crore toilet targeted
• Government will encourage new start ups and entrepreneurship
• Government is still firm on achieving fiscal deficit target of 3 % of GDP eventually
• Real GDP expected to accelerate to 7.4%
• Current FOREX reserves $340 bn, Second best stock market in Asian economy
• Govt will utilize vast postal network for increasing access to institutional banking
• Roadmap to achieve Fiscal deficit of 3% of GDP in three years: Target is 3.9% in 2015-16, 3.5% in 2016-17, 3% in 2017-18.
• National Insurance scheme called PM Suraksha Bhima Yojana, offering coverage of 2 lakh rupees for just premium of Rs.12 per year. [WOW!]
• Rs. 5300 crore allocated for micro irrigation
• Target of 8.5 lakh crores credit to be given to farmers in 2015-16
• Target of 8.5 lakh crore of credit for agricultural sector
• Unclaimed deposits of Rs 3,000 crore in PPF and Rs 6000 crore in EPF; to create senior citizens welfare fund from this corpus
• Atal Pension Yojana to provide defined pension according to contribution ; 50% contribution to be from Govt.
• Increased Budgetary allocation to Roads & Railways
• 5 Ultra Mega power projects, of 4000 MW announced
• Initial sum of Rs 150 Cr to create world class IT hub to take advantage of our competitiveness
• Start-ups: mechanism for techno-financial incubation for start ups; govt sets aside Rs 1000 crore
• National Infrastructure Fund will try to leverage Infrastructure companies ; Tax free bonds for Roads , Railways & irrigation
• Renewable energy target will be increased to 1,75,000 MW
• Highest ever allocation for MGNREGA, by increasing it this year by 5,000 crore rupees
• Ports in public sector will be encouraged to corporatize & become companies under companies act
• EPF & ESI has hostage rather than client ; ESI should be made optional to employees
• GST will be put in place state of art internationally indirect tax system by April 1st 2016: FM
• An addition of 1,000 crores for Nirbhaya Fund
• Govt proposes to increase visa-on-arrival to 150 countries to increase tourism
• Initial outlay of Rs 75 crore for development of electric vehicles
• For better regulation a merger of FMC & SEBI is being currently worked out
• National Skill Mission to be launched through skill development and entrepreneurship ministry, to develop employability of youth, especially below 25 years of age
• Section 6 of FEMA to be amended
• Committee to be set up to plan the celebration of the 100th birth anniversary of Deen Dayal Upadhyaya
• Propose to set-up an IT based student financial aid system under PM Vidya Laxmi scheme
• The new Pradhan Mantri Vidya Lakshmi Programme will ensure no student misses out on higher education opportunities due to lack of funds
• Govt announces AIIMS institutions in J& K , Punjab , Himachal Pradesh and Assam.
• ISM Dhanbad will be upgraded to full IIT
• Government is pursuing policy of #MakeInIndia in defense not only to cater our needs but also for export
• Defense budget has been enhanced to 2,46,727 crore rupees, an approx. increase of Rs. 25,000 crore
• Unplanned expenditure for 2015-16 is estimated at 13 lakh 12 thousand and 200 crores
• Budget Estimates of Expenditure: Rs. 17 .77 lakh crore of which Non Planned is Rs. 13.12 lakh crore and Plan is 4.65 lakh crores
• Direct Tax collection is going to be 14.49 lakh crore rupees
• Basic rate of Corporate Tax to be reduced from 30% to 25% in next 4 years and will be accompanied by reducing exemptions.
• Exemptions to individual tax payers will remain
• Non-filing of returns, or filing of returns with inadequate information may attract 10 year Jail term. Even concealment of income will be prosecutable with rigorous imprisonment
• Government to enact a comprehensive law on black money stashed abroad
• Benami property transaction bill will be introduced to tackle black money transaction in real estate soon
• Quoting of PAN is mandatory for any purchase made more than Rs. 1 Lakh.
• Defer the applicability of GAAR for 2 years ; will only apply prospectively after Apr 2017.
• Reduced Royalty fees on Technical Services to 10% from 25%.
• Wealth Tax Abolished, instead super rich will pay extra 2% extra surcharge for people with income over 1 Crore. This will lead to additional 9,000 cr to Tax kitty.
• Custom duty on raw materials and intermediaries to be reduced
• Excise duty on Leather footwear reduced to 6%
• Fuel excise duty will remain unchanged; change in tobacco excise duty.
• Consolidated Service Tax increased from 12.36% to 14%!
• Increased in deduction for Health insurance from Rs. 15000 to Rs. 25000. For senior citizens increased to 30,000.
• Additional deduction of Rs 50,000 for contribution to pension fund and new pension scheme
• Tax exemption for transport allowance increased from Rs 800 to Rs 1600 per month.
• Individual tax payer will benefit to the extent Rs.4,44,200/- from the exemptions announced
• Direct tax proposals will lead to 8315 cr loss and an increase of Rs. 23,000 cr in indirect tax gains.