• Finance Minister Arun Jaitley presented the Union Budget for fiscal 2015-16 in the Lok Sabha. Budget 2015 • A legendary budget catering to people belonging to all categories of society, with Insurance for poor at Rs. 12 premium as well as reduction of corporate tax.

1. Budget at a glance: 2015-16
 Finance Minister Arun Jaitley presented the Union Budget for fiscal 2015-16 in the Lok Sabha.
Budget 2015:
 A legendary budget catering to people belonging to all categories of society, with Insurance for poor at
Rs. 12 premium as well as reduction of corporate tax.
 1. No change in tax slabs. However Surcharge on super rich (ie income > 1crore) will be increased by
2% with the bold and brave step of abolition wealth tax. However, information about Wealth tax will be
captured in the Income Tax return.
 2. Corporate tax rate reduced to 25%.(With removal of few exemptions)
 3. Scheme to curb tax evasion:
a. Concealment of income or wealth related to foreign exchange asset will be an offence punishable
with prosecution of 10 years. The offence will be non compoundable. Assessee will not be allowed to
approach Income Tax Settlement Commission.
b. Not mentioning forex asset in Income tax return will be punishable with 7years imprisonment.
c. Such concealed amountwill be taxed at maximum marginal rate and no exemption/deduction shall
be available from such income.
d. It will be mandatory to file income tax return even if there is no taxable income
e. Date of opening foreign bank account has to be mentioned in income tax return.
f. Such offences will also be covered under Prevention of Money Laundering Act and Foreign Exchange
Management Act, to enable confiscation.
g. Confiscation of Benami properties and prosecution
h. For purchase of immovable property in respect of advance paid of 20,000 or more cash payment will
not be allowed
i. Quoting of PAN is mandatory in respect of sale> 1, 00, 000
j. CBDT & CBEC will have a joint database
 4. Rental income of REITs will get pass through treatment. The sponsor will get capital gains benefit.
 5. GAAR deferred by 2 years.
 6. Rate of tax on Royalty and Fees for Technical Services reduced to 10%
 7. Deduction for employing new regular workmen will be available by employing 50 employees instead
of 100
 8. Basic Customs Duty will be reduced on some Raw materials to enable Make in India.
 9. Threshold limit for applicability of Domestic Transfer Pricing raised to 20crore from 5crore.
 10. Rate of excise duty 12.5%. However, on leather goods with Retail price of > 1, 000 it will be 6%.
 11. Registration under Excise and Service tax can be done online within 2 working days.
 12. Service Tax increased to 14%
 13. 100% income tax deduction for contribution to Swachh Bharat and Clean Ganga.
 14. Deduction for mediclaim premium increased from 15, 000 to 20, 000 and for Senior Citizens from 20,
000 to 30, 000. For Very Senior Citizens (80 years and above) there will be deduction of expenditure for
medical treatment as they dont get medical insurance policies.
 15. Deduction u/s 80DDB for expenditure on treatment of life threatening diseases for Senior Citizens
increased from 60, 000 to 80,000
 16. Additional deduction of Rs. 20, 000 u/s 80U and 80DD for differently abled.
 17. Deduction for investment in New Pension Scheme increased by 50, 000 to Rs. 1, 50, 000
 18. Payments to beneficiaries(ie girls) from Sukanya Samriddhi Scheme along with interest will be
exempt. Also contribution to this scheme will entitle the assessee for 80C deduction.
 19. Exemption of Transport Allowance received by employees increased from 800 per month to 1, 600
per month.
 20. No Service Tax on insurance premium paid by Senior citizens
 21. Activity of Yoga to be considered as a Charitable purpose u/s 2 (15).