Union Budget 2015-16 Summary - Download PDF

Published on Sunday, March 01, 2015
Finance Minsiter Arun Jaitley introduced Union Budget 2015-16. It was a budget for corporates as corporate tax reduced from 30% to 25%. Further decreased custom duty on raw materials. Tax benefit on hiring on employees base also widened.

There was nothing for middle class. Service tax increased from 12.36% to 16%. 80C limit and Tax slabs remained unchanged. Although tax benefits under 80D increased but that's for health insurance. Health insurance is not so popular and people in middle class don't avail policy of Rs.20,000 per annum.
Further subsidy decreased on Petroleum products. Everything is expensive for middle class.

Financial sector

  • Commodity futures and the government bond market merged with SEBI
  • Build GIFT(Gujarat International Finance Tec-City) as an International Financial Services Centre (IFSC)
  • Employees will be given choice to opt out EPF and pick NPS instead
  • To bring Bankruptcy code in 2015
  • Mudra Bank will be started for Micro finance market with capital of Rs.20,000
Rupee comes from
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Welafre schemes

  • MNREGA corpus this year - Rs.34,6999 cr
  • Rs.1400 cr allocated to child development scheme
  • Rs 5,000 crore to new infra fund
  • Indian gold coins to be launched with Ashok Chakra
  • 80,000 secondary schools to get upgrade
  • Insurance cover of Rs 2 lakh for a premium of Rs 12/yr - Pradhan Mantri Suraksha Bhim Yojana
  • 50,000 toilets to be constructed under Swach Bharat scheme
  • To use Rs.9000 crores unclaimed funds in PPF and EPF for senior citizens pension fund

Education

  • 80,000 secondary schools to be upgraded
  • ISM to be upgraded to IIT
  • IIT to be built in Karnataka
  • IIM to be built in Jammu and Kashmir
  • Atal innovation Mission for innovation
  • Horticulture university to be established in Punjab
  • Jammu and Kashmir, Assam, Tamilnadu, Himachal pradesh to get new AIIMs

Infrastructure

  • Five ultra-mega power projects, each of 4,000MWs
  • 2nd unit of Kundankulam nuclear p;lant to be established in 2015-16
  • Tax free bonds to be introduced for Rail and Road projects

Agriculture

  • Rs.25,000 cr Rural Infrastructure Development Bank 
  • Rs.5300 cr for micro irrigation program

Taxation

Direct taxes

  • Personal taxation rates remained same
  • Corporate tax decreased from 30% to 25% for four years
  • PAN card is mandatory on purchase of more than Rs.1,00,000
  • Surcharge on income of Rs.1 crore or more increased from 10% to 12%
  • Surcharge on Dividend Distribution Tax increased from 10% to 12%
  • Wealth tax has been abolished
  • Deduction of Rs.50,000 will be available for investment in National Pension Scheme. 
  • Limit on Tax free Investment in LIC Annuity plan or any other Pension plan increased from Rs.1,00,000 to Rs.1,50,000
  • Transport allowance increased from Rs.800 to Rs.1600 per month
  • Contribution made in name of girl child will be tax free under section 80C. Interest earned in Sukanya Samriddhi account will also be tax free.
  • Health insurance limit increased under section 80D. For individual, children and spouse it increased from Rs.15000 to Rs.25,000. For senior citizens it increased from Rs.20,000 to Rs.30,000
  • Deduction available for dependent person with disability increased from Rs.75,000 to Rs.1,00,000. For person with severe disability, limit increased from Rs.1,00,000 to Rs.1,25,000.
  • Swach Bharat Kosh and Clean Ganga Fund added in 80G list of eligible institutions
  • TDS will now be applicable on Recurring Deposit accounts if interest earned is more than Rs.10,000 per annum
  • Up to 10 years imprisonment for under black money laundering act

Indirect taxes

  • Goods and Services Tax (GST) will be introduced form 1 April 2016
  • Custom duty decreased on raw materials
  • Subsidy decreased on Petrol and Diesel. Petrol prices increased by Rs.3.18 and Diesel prices increased by Rs.3.09
  • Excise duty on Mobile phones increased from 6% to 12.5%
  • Excise duty on Leather footwear exceeding Rs.1000 decreased from 12% to 6%
  • CENVAT on input goods and service time limit increased from 6 months to 1 year
  • Effective Service tax rate increased from 12.36% to 16%.
  • Education cess removed from service tax. Swach Bharat cess of 2% introduced on service tax.
  • Services provided by Mutual fund agent or distributor removed from negative list
Budget at glance
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