Budget 2015-16: Announcements | Whats costlier & cheaper

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swatkats

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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.
Source:trak.in


Following is a list of what will be costlier:

  • Service tax to 14% from 12.36%
  • Cigarettes and other tobacco products
  • Completely built imported commercial vehicles
  • Cement Aerated, flavoured drinks and packaged water
  • Plastic bags and sacks
  • Business and executive class air travel
  • Visit to amusement parks
  • Music concerts
  • Liquor
  • Chit fund and lottery
Following is a list of what is cheaper:
  • Leather footwear priced above Rs 1,000 per pair
  • Locally made mobile phones, LED/LCD panels, LED lights and LED lamps
  • Solar water heater
  • Pacemakers, ambulance and ambulance services
  • Computer tablets
  • Microwave ovens
  • Refrigerator compressors
  • Packaged fruits and vegetables
http://www.livemint.com/Politics/mIMgRfzE1Ig6XKNiLTWyjN/Budget-2015-Smoking-eating-out-air-travel-to-be-costlier.html
 
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I was waiting for this..Thanks man!
I wish they would make the internet cheaper...one of the best things that can be virtually free in a few years :p
The post had a good overview.
Any idea on how to analyze this budget in order to understand it for someone without a background in finance?
 
There was some talk on removing SAD on imports, any update on that. Will importing laptops / phones / computer components more expensive ?
 
I just happened to read the Service tax thing in budget document in detail, I realized their tax cut to the corporates isn't doing any help to the Companies in the "Online Service" thing because they increased the service tax which will impact the sales and overall customers will choose the companies registered outside india which need not to pay Service tax in India, they just get away with corporate tax.

Arun jaitley, You have made a mess.
 
^^ I cannot agree more. It is the same story every year. What little taxes that govt gets from individuals is from the middle class category and every year, the no matter who is in power, the govt will try to squeeze more from this category. The excuse given is that there is that there is no room in the budget to make any relaxations for the middle class.

Majority taxes currently comes from the people who fall into the 20 and 30% brackets even though the taxes from the 10% category should be 100's or even 1000's of fold more considering the crores of people who fall into this category. Nothing is ever done to fix this situation because parties fear loosing their vote bank.

Even otherwise, If the govt really wants to get tax revenues, I say tax all income that religious trusts get from donations at 30% and all income from political donations at 50%. There is no need for them to be exempt from taxes for the receiver. Only medical and non religious charitable trusts should have exemptions.
 
Thats a nice idea @Lord Nemesis . If we were to implement such idea then,
1) Most political leaders/ parties have their black money funneled to party fund, from which they can spend at ease, hence that tax initiative will be killed in the budget session itself.
2) Religious trusts & Political trusts will transfer their portfolio to Medical & other trusts. Keep in mind that most religious trusts have affiliation or have founded a sub trusts which is their medical wing and other support NGO.
 
New Service Tax Rate of 14% to Come Into Effect From June 1 : Finance Ministry
The new service tax rate of 14 per cent will come into effect from June 1, the Finance Ministry notified on Tuesday, in a move that will make eating out in restaurants, insurance and phone usage expensive, among many other things.

Service tax is levied on all services except a small negative list. Advertising, air travel, services of architects, certain type of constructions, credit cards and event management are some of the services which attract this tax.
Click to expand...


 
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