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Key union budget 2015 16 points by das sir 8961556195

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Key union budget 2015 16 points by das sir 8961556195

  1. 1. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com KEY UNION BUDGET 2015-16 POINTS BY DAS SIR 8961556195 Union Budget 2015-16 is being presented by Finance Minister Mr. Arun Jaitley in the Parliament today. We are bringing you the highlights and key announcements of Budget 2015-16. Union Budget 2015-16: Highlights & Key Announcements The objective of this Budget is to improve quality of life and to pass benefits to common man. Indian Govt has 3 major achievements: Jan Dhan Yojana, Coal Auction and Swacch Bharat programme Incremental change is not going to take us anywhere, will need to think in terms of quantum jump Under Swacch Bharat Yojana, 50 lakh toilet already built, 6 crore toilet targeted Government will encourage new start ups and entrepreneurship Government is still firm on achieving fiscal deficit target of 3 % of GDP eventually Real GDP expected to accelerate to 7.4% Current FOREX reserves $340 bn, Second best stock market in Asian economy Govt will utilize vast postal network for increasing access to institutional banking Roadmap to achieve Fiscal deficit of 3% of GDP in three years: Target is 3.9% in 2015-16, 3.5% in 2016-17, 3% in 2017-18. National Insurance scheme called PM Suraksha Bhima Yojana, offering coverage of 2 lakh rupees for just premium of Rs.12 per year. [WOW!] Rs. 5300 crore allocated for micro irrigation Target of 8.5 lakh crores credit to be given to farmers in 2015-16 Target of 8.5 lakh crore of credit for agricultural sector
  2. 2. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com Unclaimed deposits of Rs 3,000 crore in PPF and Rs 6000 crore in EPF; to create senior citizens welfare fund from this corpus Atal Pension Yojana to provide defined pension according to contribution ; 50% contribution to be from Govt. Increased Budgetary allocation to Roads & Railways 5 Ultra Mega power projects, of 4000 MW announced Initial sum of Rs 150 Cr to create world class IT hub to take advantage of our competitiveness Start-ups: mechanism for techno-financial incubation for start ups; govt sets aside Rs 1000 crore National Infrastructure Fund will try to leverage Infrastructure companies ; Tax free bonds for Roads , Railways & irrigation Renewable energy target will be increased to 1,75,000 MW Highest ever allocation for MGNREGA, by increasing it this year by 5,000 crore rupees Ports in public sector will be encouraged to corporatize & become companies under companies act EPF & ESI has hostage rather than client ; ESI should be made optional to employees GST will be put in place state of art internationally indirect tax system by April 1st 2016: FM An addition of 1,000 crores for Nirbhaya Fund Govt proposes to increase visa-on-arrival to 150 countries to increase tourism Initial outlay of Rs 75 crore for development of electric vehicles For better regulation a merger of FMC & SEBI is being currently worked out National Skill Mission to be launched through skill development and entrepreneurship ministry, to develop employability of youth, especially below 25 years of age Section 6 of FEMA to be amended
  3. 3. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com Committee to be set up to plan the celebration of the 100th birth anniversary of Deen Dayal Upadhyaya Propose to set-up an IT based student financial aid system under PM Vidya Laxmi scheme The new Pradhan Mantri Vidya Lakshmi Programme will ensure no student misses out on higher education opportunities due to lack of funds Govt announces AIIMS institutions in J& K , Punjab , Himachal Pradesh and Assam. ISM Dhanbad will be upgraded to full IIT Government is pursuing policy of #MakeInIndia in defense not only to cater our needs but also for export Defense budget has been enhanced to 2,46,727 crore rupees, an approx. increase of Rs. 25,000 crore Unplanned expenditure for 2015-16 is estimated at 13 lakh 12 thousand and 200 crores Budget Estimates of Expenditure: Rs. 17 .77 lakh crore of which Non Planned is Rs. 13.12 lakh crore and Plan is 4.65 lakh crores Direct Tax collection is going to be 14.49 lakh crore rupees Basic rate of Corporate Tax to be reduced from 30% to 25% in next 4 years and will be accompanied by reducing exemptions. Exemptions to individual tax payers will remain Non-filing of returns, or filing of returns with inadequate information may attract 10 year Jail term. Even concealment of income will be prosecutable with rigorous imprisonment Government to enact a comprehensive law on black money stashed abroad Benami property transaction bill will be introduced to tackle black money transaction in real estate soon Quoting of PAN is mandatory for any purchase made more than Rs. 1 Lakh. Defer the applicability of GAAR for 2 years ; will only apply prospectively after Apr 2017.
  4. 4. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com Reduced Royalty fees on Technical Services to 10% from 25%. Wealth Tax Abolished, instead super rich will pay extra 2% extra surcharge for people with income over 1 Crore. This will lead to additional 9,000 cr to Tax kitty. Custom duty on raw materials and intermediaries to be reduced Excise duty on Leather footwear reduced to 6% Fuel excise duty will remain unchanged; change in tobacco excise duty. Consolidated Service Tax increased from 12.36% to 14%! Increased in deduction for Health insurance from Rs. 15000 to Rs. 25000. For senior citizens increased to 30,000. Additional deduction of Rs 50,000 for contribution to pension fund and new pension scheme Tax exemption for transport allowance increased from Rs 800 to Rs 1600 per month. Individual tax payer will benefit to the extent Rs.4,44,200/- from the exemptions announced Direct tax proposals will lead to 8315 cr loss and an increase of Rs. 23,000 cr in indirect tax gains. The minister said CPI inflation is expected to remain close to 5% by the end of the year which will allow further easing of monetary policy. Jaitley said a Monetary Policy Framework Agreement has been concluded with the RBI to keep inflation below 6%. The JAM Trinity-Jan Dhan, Aadhar and mobile will allow transfer benefits in a leakage-proof, well-targeted and cashless manner. Budget estimates Non-Plan expenditure estimates for the Financial Year are Rs. 13,12,220 crore and Plan expenditure is estimated to be Rs. 4,65,277 crore. Total Expenditure has accordingly been estimated at Rs. 17,77,477 crore. Gross Tax receipts are estimated to be Rs. 14,49,490 crore. Devolution to the States is estimated to be Rs. 5,23,958 crore. Share of Central Government will be Rs. 9,19,842 crore. Non Tax Revenues for the next fiscal are estimated to be Rs. 2,21,733 crore. With the above estimates, fiscal deficit will be 3.9 percent of GDP and Revenue Deficit will be 2.8 percent of GDP.
  5. 5. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com Central govt spendings Rs. 68,968 crore to the education sector, including mid-day meals, Rs. 33,152 crore to the health sector and Rs. 79,526 crore for rural development activities, including MGNREGA, Rs. 22,407 crore for housing and urban development, Rs. 10,351 crore for women and child development, Rs. 4,173 crore for Water Resources and Namami Gange, has been allocated by the central government. Team India Vision The minister underlined that India has to think in terms of a quantum jump. He said the year 2022 will be the Amrut Mahotsav, the 75th year, of India’s independence. The vision called ‘Team India’ led by the States and guided by the Central Government should include a roof for each family which will require to complete two crore houses in urban areas and four crore houses in rural areas with each house having 24 hour power supply, clean drinking water, a toilet and road connectivity. He said the vision includes that at least one member from each family should have access to the means of livelihood, substantial reduction in poverty, electrification of the remaining 20,000 villages, including off-grid solar power by 2020, connecting each of the 1,78,000 un-connected habitation, providing medical services in each village and city and ensuring a Senior Secondary School within 5 km reach of every child. 5 major challenges The Finance Minister counted five major challenges faced by the Indian economy which are: agricultural income under stress, weak private sector investment in infrastructure, decline in manufacturing, resource crunch in view of higher devolution in taxes to states and maintaining fiscal discipline. Jaitley assured that the country will meet the challenging fiscal deficit target of 4.1% of GDP which the new government had inherited. Talking about the fiscal roadmap he said that the government is firm to achieve fiscal target of 3% of GDP. He added that the journey for fiscal deficit target of 3% will be achieved in three years rather than two years.
  6. 6. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com Agriculture He also proposed allocation of Rs. 5,300 crore to support micro-irrigation, watershed development and the Pradhan Mantri Krishi Sinchai Yojana. In order to support the agriculture sector with the help of effective agriculture credit and focus on small and marginal farmers, there’s a proposal to allocate Rs. 25,000 crore to the corpus of Rural Infrastructure Development fund (RIDF) set up in NABARD, Rs. 15,000 crore for Long Term Rural Credit Fund; Rs. 45,000 crore for Short Term Cooperative Rural Credit Refinance Fund; and Rs. 15,000 crore for Short Term RRB Refinance Fund. Jaitley said that the Government has set up an ambitious target of Rs. 8.5 lakh crore of agricultural credit. The minister proposed an initial allocation of Rs. 34,699 crore for the MNREGA programme. For SMEs Permanent Establishment (PE) norm will be modified to encourage fund managers to relocate to India. General Anti Avoidance Rule (GAAR) will be deferred by two years. It will apply to investments made on or after 01-04-2017, when implemented. In order to facilitate young entrepreneurs rate of income tax on royalty and fees for technical services will be reduced from 25 per cent to 10 per cent. To generate greater employment opportunities the benefit of deduction for employment of new regular workman to all business entities will be extended. The eligibility threshold of minimum 100 regular workmen will be reduced to 50. Basic custom duty on certain inputs, raw materials, intermediates and components in 22 items is proposed to be reduced to minimize the impact of duty evasion. All goods except populated printed circuit boards for use in manufacture of ITA bound items are proposed to be exempted from SAD. The Finance Minister proposed to create a Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs. 20,000 crore, and credit guarantee corpus of 3,000 crore, which will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana. He added that priority will be given to SC/ST/OBC enterprises in lending. Education and skill development An IIT will be set up in Karnataka and Indian School of Mines in Dhanbad will be upgraded to a full-fledged IIT. New All India Institutes of Medical Sciences (AIIMS) will be set up in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam. Another AIIMS like institution will be set up
  7. 7. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com in Bihar. A post graduate institute of Horticulture Research & Education will be set up in Amritsar. Three new National Institutes of Pharmaceutical Education and Research will be set up in Maharashtra, Rajasthan and Chattisgarh and one institute of Science and Education Research will be set up in Nagaland and Odisha each. IIMs will be setup in J&K and Andhra Pradesh. The Government will soon launch a National Skills Mission which will consolidate skill initiatives spread across several Ministries. Rs. 1,500 crore has been set apart for Deen Dayal Upadhyay Gramin Kaushal Yojana. Fully IT based Student Financial Aid Authority will be set up to administer and monitor Scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram. Starting up & investments The government is establishing a mechanism to be known as SETU (Self-Employment and Talent Utilisation) which will support all aspects of startup businesses, and other self-employment activities, particularly in technology-driven areas. Rs. 1,000 crore has been initially earmarked in NITI Aayog for the purpose. In order to promote investment in the country, a Public Debt Management Agency (PDMA) will be set up to bring both India’s external borrowings and domestic debt under one roof. Jaitley has proposed to merge the Forwards Markets Commission with SEBI to strengthen regulation of commodity forward markets and reduce wild speculation. He said enabling legislation, amending the Government Securities Act and the RBI Act is proposed in the Finance Bill, 2015. Foreign investments will be allowed in Alternate Investment Funds. In order to catalyze investments from the Indian Private Sector in South East Asia, a Project Development Company will set up manufacturing hubs in Cambodia, Myanmar, Laos and Vietnam. Social Security schemes Soon-to-be- launched Pradhan Mantri Suraksha Bima Yojana will cover accidental death risk of Rs. 2 lakh for a premium of just Rs. 12 per year.
  8. 8. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com The government will also launch the Atal Pension Yojana, in which the government will contribute 50% of the beneficiaries’ premium limited to Rs. 1,000 each year, for five years, in the new accounts opened before December 31, 2015. Pradhan Mantri Jeevan Jyoti Bima Yojana covers both natural and accidental death risk of Rs. 2 lakhs. The premium will be Rs. 330 per year, or less than one rupee per day, for the age group 18-50. There are unclaimed deposits of about Rs. 3,000 crores in the PPF and approximately Rs. 6,000 crores in the EPF corpus, which will be appropriated to a corpus to be used to subsidize the premiums on these social security schemes through creation of a Senior Citizen Welfare fund in the Finance Bill. Infrastructure An increased outlays on both the roads and the gross budgetary support to the railways by Rs. 14,031 crore and Rs. 10,050 crore respectively has been announced. CAPEX of the public sector units is expected to be Rs. 3,17,889 crore, an increase of approximately Rs. 80,844 crore over RE 2014-15. National Investment and Infrastructure Fund (NIIF) will be established with an annual flow of Rs. 20,000 crore. There are plans to permit tax free infrastructure bonds for the projects in the rail, road and irrigation sector. Jaitley proposed to establish the Atal Innovation Mission (AIM) in NITI which will provide Innovation Promotion Platform involving academicians, and drawing upon national and international experiences. A sum of Rs. 150 crore is proposed to be earmarked for the mission. Gold Monetization Scheme India is one of the largest consumers of gold in the world. Gold Monetisation Scheme will replace both the present Gold Deposit and Gold Metal Loan Schemes. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account. Banks/other dealers would also be able to monetize this gold. A Sovereign Gold Bond as an alternative to purchasing metal gold has been proposed as well. Work on developing an Indian Gold Coin with Ashok Chakra on its face will commence soon. Others
  9. 9. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com The National Optical Fibre Network Programme (NOFNP) of 7.5 lakh kms networking 2.5 lakh villages is being further speeded up by allowing willing States to undertake its execution. Resources will be provided to start work along landscape restoration, signage and interpretation centres, parking, access for the differently abled, visitors’ amenities, including securities and toilets, illumination and plans for benefiting communities around them at various heritage sites. Expressing concern over environmental degradation, the Minister said that the target of renewable energy capacity has been revised to 1,75,000 MW till 2022. He said the Government is also launching a Scheme for Faster Adoption and manufacturing of Electric Vehicles (FAME) with an initial outlay of Rs. 75 crore. Tax proposal The rate of corporate tax is proposed to be reduced from 30% to 25% over the next four years. This will lead to higher level of investment, higher growth and more jobs. The broad things adopted in finalizing the tax proposals include:- Measures to curb black money Job creation through revival of growth and investment and promotion of domestic manufacturing and ‘Make in India’ Minimum government and maximum governance to improve the ease of doing business Benefits to middle class taxpayers Improving the quality of life and public health through Swachch Bharat initiatives Stand alone proposals to maximize benefits to the economy Black money A new and more comprehensive Benami Transactions (Prohibition) Bill will be introduced in the current Session of the Parliament. This law will enable confiscation of benami property and provide for prosecution, thus, blocking a major avenue for generation and holding of black money in the form of benami property, especially in real estate. Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs.1 lakh. To improve enforcement,
  10. 10. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com CBDT and CBEC will leverage technology and have access to information in each other’s data- base. Towards Swachh Bharat As an initiative to Swachh Bharat Abhiyan, Jaitley proposed 100 per cent reduction for contribution, other than by way of CSR contributions, to the Swachh Bharat Kosh. A similar tax treatment is also proposed for the Clean Ganga Fund. There’s a proposal to increase clean energy cess from Rs.100 to Rs.200 per metric tonne of coal, etc. to finance clean environment initiatives. Excise duty of sacks and bags of polymers of ethylene other than for industrial use is proposed to be increased from 12% to 15%. Concessions on customs and excise duty available to electrically operated vehicle and hybrid vehicle is extended up to 31-03-2016. Taxation for the middle class Describing the extension of benefits to middle class tax payers as the priority of the government, Jaitley proposed the following concessions:- Increase in the limit of deduction in respect of health insurance premium from Rs.15,000 to Rs.25,000 (1) For senior citizens the limit will stand increased to Rs.30,000 from the existing Rs.20,000 (2) For very senior citizens of the age of 80 years or more, who are not covered by health insurance, deduction of Rs.30,000 towards expenditure incurred on the treatment will allowed The deduction limit of Rs.60,000 towards expenditure on account of specified diseases of serious nature is proposed to be enhanced to Rs.80,000 in case of very senior citizens Additional deduction of Rs.25,000 will be allowed for differently-abled persons under Section 80DD and Section 80U of the Income-tax Act The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme is proposed to be increased from Rs.1 lakh to Rs.1.5 lakh To provide social safety net and the facility of pension to individuals and additional deduction of Rs.50,000 is proposed to be provided for contribution to the New Pension Scheme under Section 80 CCD. This will enable India to become a pensioned society instead of a pensionless society
  11. 11. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com Investments in Sukanya Samriddhi Scheme are already eligible for deduction under Section 80C. All payments to the beneficiaries including interest payment on deposit will also be fully exempt Transport allowance exemption is being increased from Rs.800 to Rs.1,600 per month For the benefit of senior citizens, service tax exemption will be provided on Varishta Bima Yojana Surcharge for the super rich The Finance Minister proposed no change in the rate of personal income tax and rate of tax for companies in respect of income earned in the finance year 2015-16, assessable in Assessment Year 2016-17. Shri Jaitley proposed to levy a surcharge @ 12 per cent on individuals, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities having income exceeding Rs.1 crore. Wealth tax is proposed to be abolished and replaced with an additional surcharge of 2 per cent on the super rich with the taxable income of over Rs.1 crore. With this 2 per cent additional surcharge a collection of Rs.9,000 crore is targeted against a tax sacrifice of Rs.1,008 crore. To eliminate the scope for discretionary exercise of power and provide a hassle-free structure to the tax payers, Jaitley proposed to increase the threshold limit from Rs.5 crore to Rs.20 crore. For Study Material Of Nabard Phase I & II, RBI Gr B Phase I & II and Other Banking Exams Call Das Sir @ 8961556195 or mail your enquiry to tamal253@yahoo.com

Key union budget 2015 16 points by das sir 8961556195

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