Union Budget 2015-16

1. BUDGET 2015-2016
HIGHLIGHTS
Presented By,
CA Shrikrishna Barure

2. DIRECT TAXES
Individual
 No change in tax slabs.
 Total exemption of up to Rs. 4,44,200 can be achieved.
 Limit of deduction of health insurance premium increased from `15000
to ` 25000,for senior citizens limit increased from `20000 to `30000.
 Wealth-tax replaced with additional surcharge of 2 per cent on super
rich with a taxable income of over `1 crore annually..
 Limit on deduction on account of contribution to a pension fund and
the new pension scheme increased from ` 1 lakh to `1.5 lakh

3. DIRECT TAXES
Individual
 Transport allowance doubled from Rs 800 to Rs 1600 per month.
.
 EPF-Employees contribution to the EPF should be optional.
 Corporate Tax:
As a major boost to industry, reduced corporate tax rate to 25 percent from 30
percent earlier for the next 4 years. The FM said he will rationalise & remove
exemptions for corporates in the next 4 years

4. Income tax slabs for individual
(Male/Female)/HUF taxpayers:
Income slab
( 2014-15)
Income slab
( 2015-16)
Rates of
Income Tax
Upto Rs. 2,50,000 Upto Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs.
5,00,000
Rs. 2,50,001 to Rs. 5,00,000 10%
Rs. 5,00,001 to Rs.
10,00,000
Rs. 5,00,001 to Rs.
10,00,000
20%
Above Rs. 10,00,000 Above Rs. 10,00,000 30%

5. Income tax slabs for senior citizens:
Age Group
60-80yrs
Age Group
80yrs and above
Rates of
Income Tax
Upto Rs. 3,00,000 Upto Rs. 5,00,000 Nil
Rs. 3,00,001 to Rs.
5,00,000
10%
Rs. 5,00,001 to Rs.
10,00,000
Rs. 5,00,001 to Rs.
10,00,000
20%
Above Rs. 10,00,000 Above Rs. 10,00,000 30%

6. INDIRECT TAXES
SERVICE TAX
 Service Tax Rate:
The rate of Service Tax is being increased from 12% plus Education Cesses to
14%. The ‘Education Cess’ and ‘Secondary and Higher Education Cess’ shall
be subsumed in the revised rate of Service Tax. Thus, the effective increase
in Service Tax rate will be from the existing rate of 12.36% (inclusive of
cesses) to 14%, subsuming the cesses.
The new Service Tax rate shall come into effect from a date to be notified by
the Central Government after the enactment of the Finance Bill, 2015.
 Enabling provision for levy of “Swachh Bharat Cess”:
The Central Government to impose a Swachh Bharat Cess on all or any of the
taxable services at a rate of 2% on the value of such taxable services. This cess shall
be levied from such date as may be notified by the Central Government after the
enactment of the Finance Bill, 2015.

7.  Goods Transport Agency(GTA):-
At present, service tax is payable on 30% of the value of rail transport for goods and
passengers, 25% of the value of goods transport by road by a goods transport
agency and 40% for goods transport by vessels. The conditions prescribed also
vary.
A uniform abatement is now being prescribed for transport by rail, road and vessel
and Service Tax shall be payable on 30% of the value of such service subject to a
uniform condition of non-availment of Cenvat Credit on inputs, capital goods and
input services.
Abatements

8. Manpower supply and security services when provided by an individual,
HUF, or partnership firm to a body corporate are being brought to full
reverse charge. Presently, these are taxed under partial reverse charge
mechanism.
Reverse Charge Mechanism

9.  Rule 4(7) is being amended to allow Cenvat Credit of Service Tax paid
under partial reverse charge by the service receiver without linking it
to the payment to the service provider. This change will come into effect
from 1.4.2015.
 The period for taking Cenvat Credit is being extended from six months
from the date of invoice to one year from the date of invoice.
Changes to CENVAT Credit Rules

10. EXCISE DUTY
AMENDMENTS IN THE FIRST SCHEDULE TO THE CENTRAL EXCISE TARIFF
ACT, 1985:
Education Cess and Secondary & Higher Education Cess leviable on excisable
goods are being fully exempted.
Simultaneously, the standard ad valorem rate of duty of excise (i.e. CENVAT) is
being increased from 12% to 12.5%.

11. General
GST to be in place by April 1, 2016.
Quoting PAN Made
mandatory for any sale
exceeding Rs.1 lakh.

12. BUDGET HIGHLIGHTS PRESENTATION BY :-
CA.Shrikrishna Barure
Pune | Maharashtra | India
E-mail; shribarure@gmail.com