Union Budget 2015

Union Budget 2015

 

Finance Minister, Arun Jaitley  presented the Union Budget 2015 in the Lok Sabha.

 

Highlights of The Budget are:

  • Yoga – included under charitable activites.
  •   Indiviual taxpayer can get benefits up to Rs. 4,44,200.
  •  Transport allowance exemption to be increased to Rs. 1,600 per month.
  •  Rs. 50,000 contribution to new pension scheme. “To make India a pensioned society.”
  •  Additional deduction of Rs. 25,000 for differently abled persons.
  •  Increase in limit of deduction of health insurance premium of Rs. 15,000 to Rs. 25,000. For senior citizens, limit will be Rs. 30,000. Very senior citizens – Rs. 30,000 deduction on expenses incurred.
  •  2 per cent cess on services for Swachch Bharat.
  •  100 per cent deduction for contribution to Swachch Bharat and Clean Ganga schemes.
  •  Service Tax rate increased to 14 per cent.
  • Educational cess and higher educational cess to be subsumed as a part of GST.
  •  Wealth tax – Rs. 1,008 crore in 2013-14. Wealth tax to be abolished and replaced with a super-rich tax for those with income of over Rs. 1 crore.
  •  Basic custom duty rate reduced for 22 items.
  •  GAAR – applicability to be deferred by two years.
  •  Allocation for renewable energy
  •   First proposal is to deal with black money. In the last 9 months, a major breakthrough was achieved when a delegation of the Revenue Department visited Switzerland.
  •   Exemption to individual taxpayers will continue.
  •   Taxation;
  •  Basic rate of corporate tax in India is now 30 per cent. But rate of collection is 23 per cent. A regime of exemptions has led to loss of revenue.
  •  Coporate tax rate will be reduced to 25 per cent over the next four years.
  •  Budget estimates:
  • Non-plan expenditure – Rs. 13,12,200 crore
  •  Plan expenditure – Rs. 4,65,277 crore
  •  Fiscal deficit – 3.9% of GDP
  • Make in India policy for defence equipment – Rs. 2,46,727 crore allocation for defence.
  •  Rs. 68,968 crore for education sector.
  •  AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Assam. AIIMS-like institution in Bihar. IIT in Karnataka. IIMs in Jammu and Kashmir, and Andhra Pradesh. Centre for Film Production and Animation in Arunachal Pradesh.
  •  Fully IT based student financial aid scheme for higher education.
  • National Skills Mission for skill development and entrepreneurship – Rs. 1,500 crore.
  •  Procurement law for public contracts. Govt. to introduce Public Contracts (Resolution of Disputes) Bill. Regulatory reform law to be introduced.
  •  Rs. 75 crore for electric cars production.
  •  Visa on arrival scheme – increased to 150 countries in different stages.
  •  World Heritage Sites – churches and convents of old Goa, Hampi, Elephanta caves, Leh palace, Varanasi temple town, Jallianwala Bagh etc., will be developed to make them more tourist-friendly.
  • Rs. 1,000 crore additional allocation to the Nirbhaya fund.
  •  Will do away with different types of foreign investment — like FPI and FDI — and replace them with a comprehensive type.
  •  EPF – Employee may opt for EPF or new pension scheme, employee’s contribution to EPF below an income threshold will be optional without reducing employer’s contribution.
  •  Direct Tax regime which will be internationally competitive on rates.
  •  Rs. 5,000 crore additional allocation for MGNREGA.
  •  Ports will be encouraged to corporatise and become companies under Companies Act.
  •  The govt. is establishing a mechanism for techno-financial incubation and facilitation programme – Rs. 1,000 crore set aside for this.
  •  Investment in Infrastructure will go up by Rs 70,000 crore in 2015-16. Annual inflow of Rs. 20,000 crore by way of a trust, to use this extra equity to leverage investment in infrastructure. PPP model to be revisited and revitalised. Atal Innovation Mission – for entrepreneurs and researchers to foster a culture of innovation: R.s 150 crore for this purpose.
  •  Nayi Manzil scheme – to enable minority youth to obtain school leaving certificate and gain better employment.
  •  Assisted living devices for senior citizens living below the poverty line.
  •  Pradhan Mantri Jeevan Jyoti Bima Yojana – Rs. 1 per day premium, Rs. 2 lakh coverage.
  •  Accident death risk – Rs 2 lakhs for a premium of Rs. 12 per year. Atal Pension Yojana – defined pension depending on contribution. Govt. will contribute 50 per cent of the amount.
  •  NBFCs registered with RBI above Rs. 5,000 crore to be considered financial institutions.
  •   Will create Mudra Bank with corpus of Rs. 20,000 crore for microfinance.
  •  In order to improve soil health, the Agriculture Ministry’s organic farming programme, Rs. 5,300 crore for micro-irrigation watershed projects.
  •  Gross disinvestment in loss-making units will be undertaken. DBT will be further expanded from 1 crore to 10.3 crore.
  •  Government will continue all social sector programmes like MNREGA, rural schemes etc.

 

Note:

For more updates on topics asked in CLAT, keep visiting CLAT Gurukul which is a knowledge sharing initiative of The Knowledge Tree, Patna’s premier coaching institute for CLAT and for other law entrance exams like AILET, SET, LSAT etc.

 

 

 

 

Comments

comments