The budget highlights the following key points: 1) Corporate tax rates will be reduced from 30% to 25% over the next 4 years. Service tax will increase from 12.36% to 14% and excise duty will increase slightly. Wealth tax will be abolished and a 2% surcharge will be added for high-income individuals. 2) Several deductions will be increased, including the health insurance deduction from Rs. 15,000 to Rs. 20,000 and the transport allowance exemption. Limits for health insurance premium deductions and senior citizen health expenses will also be raised. 3) Implementation of the Goods and Services Tax (GST) is targeted for April 2016.

1. Budget at a glance: 2015-16
 Budget Highlights:-
(1) Reduction in rate of Corp. tax from 30% to 25% for next 4 years.
2) Increment in Service tax from 12.36% to 14 %
3) Increment in Excise duty from 12.36% to 12.50%.
4) Abolition of wealth tax. Instead increment in 2% additional surcharge on super rich people
5) Contributions to P.F by employee share optional to certain class of labor
6) Increment in tax deduction in health insurance from Rs 15000 to Rs 20000
7) Yoga related services are under charitable services.
8) Individual taxpayer can get benefits up to Rs. 4,44,200.
9) Transport allowance exemption increased 800 pm to 1600/- pm
10) 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.
11) GAAR - applicability to be deferred by two years.
12) Section 6 of FEMA to be amended..
13) All contributions to Sukanya Samridhi Scheme to be tax free.
14) Additional deduction of Rs. 50k for pension contribution
15) 100% deduction for contribution to swachch Bharat and clean Ganga schemes
16) Retrospective tax provisions to be avoided.
17) Additional deduction of Rs. 50k for pension contribution
18) 150 Crore set aside to create world class IT hub in India
19) 2 per cent cess on services for Swachch Bharat.
20) Indiviual taxpayer can get benefits up to Rs. 4,44,200
21) AIIMS in J&K, Punjab, TN, HP and Assam.
22) Another AIIMS like institute in Bihar. IIT in Karnataka. Postgrad institute of horticulture in
Punjab. IIM in J&K and AP.
23) Rs 15,000 crore scheme to skill rural India. Poor students get fund aid through PM scheme.
24) Public Sector Ports to be made firms under Companies Act.
25) NBFCs registered with RBI above Rs. 5,000 crore to be considered financial institutions.
26) Pradhan Mantri Jeevan Jyoti Bima Yojana - Rs. 1 per day premium, Rs. 2 lakh coverage.
27) Bankruptcy law reform has been identified as a key to ease of doing business. Bring
comprehensive Bankruptcy code in 2015-16.
28) GST will be implemented by April 2016