Make In India Budget 2015-16

Make In India Budget 2015-16

“Following are the highlights of the Union Budget 2015-16 presented by Finance Minister Arun Jaitley”

  • No change in personal Income Tax
  • Health Insurance Premium deduction hiked from Rs 15,000 to Rs 25,000; for senior citizens to Rs 30,000
  • Transport allowance exemption hiked to Rs 1,600, from Rs 800 per month
  • Additional 2% surcharge on people earning over Rs 1 Cr; to fetch Rs 9,000 Cr
  • Wealth tax abolished
  • Direct Taxes Code (DTC) dropped
  • Rs 50,000 deduction for contribution to New Pension Scheme
  • To lower Corporate Tax to 25% over next four years
  • GAAR implementation deferred by 2 years to April 2017
  • Service Tax rate hiked to 14%, from 12.36%
  • Tax free bonds for roads, railways, irrigation projects
  • 2015-16 growth between 8-8.5%, double digit growth feasible
  • Retail inflation close to 5% by March, room for monetary policy easing
  • To achieve fiscal deficit of 3% of GDP by 2017-18
  • Fiscal Deficit target 3.9% in 2015-16, 3.5% in 2016-17
  • Revenue Deficit to be 2.8% in 2015-16
  • Current Account Deficit for 2014-15 to be below 1.3% of GDP
  • To introduce comprehensive law to deal with black money
  • Benami property transaction bill to tackle black money transaction in real estate soon
  • 100% deduction for contribution to Swachh Bharat, Clean Ganga projects
  • GST to be put in place by April 1, 2016
  • To reduce custom duty on 22 items
  • Propose to merge commodities regulator FMC with SEBI
  • To bring a new bankruptcy code
  • Jaitley says will move to amend the RBI act this year, and provide for a monetary policy committee
  • Will need to build additional 100,000 km of road
  • Plan expenditure estimated at about 4.65 trillion rupees
  • Non-plan expenditure seen at about 13.12 trillion rupees
  • Allocates 2.46 trillion rupees for defence spending
  • Allocates 331.5 billion rupees for health sector
  • To develop a sovereign gold bond
  • Finance Minister also said India is the largest consumer of gold in the world, I propose to introduce a gold monetization scheme.
  • To introduce gold monetisation scheme to allow depositors to earn interest
  • To introduce Indian-made gold coin to reduce demand for foreign gold coins
  • Internationally competitive direct tax regime to be put in place to incentivise saving
  • Incentivise use of credit, debit cards; disincentivise cash transaction to curb black money

FINANCE MINISTER'S COMMENTS

  • "We inherited a sentiment of doom and gloom. The investment community had almost written us off. We have come a long way since then."
  • "We have turned around the economy, dramatically restoring macroeconomic stability and creating the conditions for sustainable poverty elimination, job creation, durable double digit economic growth."
  • "While being mindful of the challenges ... this gives us reason to feel optimistic."
  • "Domestic and international investors are seeing us with renewed interest and hope."
  • Mr. Jaitley said “good health is a necessity for quality of life, so providing medical facilities in each city and village is too essential”.
  • He also said about black money “tracking black money and bringing it back is top priority”.