2015 Union budget of India

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 () 2015 Union budget of India
Bhartiya Janta Party
Websitewww.indiabudget.nic.in
‹ 2014
2016›

The 2015 Union budget of India refers to 2015–2016

halwa ceremony. From 20 February until the presentation of budget about 100 government employees remained locked up in the North Block of the Secretariat Building, New Delhi, which houses the budget printing press, to maintain secrecy.[1] The budget was presented on 28 February by Finance Minister Arun Jaitley.[2][3]

Summary

Taxation

Personal income tax

See also: Income tax in India

There was no change in

local authorities having income earning ₹1 crore or more, was raised from 10% to 12%.[5][6]

The

differently-abled citizens.[7]

An additional

National Pension Scheme as their pension fund.[7][8] Investments in Sukanya Samriddhi Scheme and interest payouts were made eligible for deductions. Exemptions for transport allowances was raised from ₹800 to ₹1,600 per month, it is thus ₹19,200 per year. This exemption is usually given to individual salaried employees for commuting from home to workplace.[9][7]

It was announced that premature withdrawal from pension funds, if service period is less than 5 years, will result in deduction of tax at source. If withdrawal amount is more than ₹30,000 then 10% tax will be deducted.[10]

Corporate tax

It announced that

General Anti-Avoidance Rule was delayed by two years.[13] Yoga trusts were classified as charitable trusts and given tax benefits.[14]

Service tax

The

Lottery ticket sellers and chit fund agents were brought under the ambit of service tax.[18][19] Varishta Bima Yojana for senior citizens was exempt from service tax.[7]

Pre-cooling, ripening, retail packing and labelling of vegetables and fruits were exempted from service tax. Ambulance services were exempted from service tax. Visits to

tiger reserves were exempted service tax.[20]

Salaried employees were given the choice between

social security of the poor citizens. Pradhan Mantri Suraksha Bima Yojana with an annual premium of ₹12 will provide a coverage of ₹2 lakh for full disability or death, and 1 lakh for partial disability. Pradhan Mantri Jeevan Jyoti Bima Yojana is a life insurance scheme with an annual premium of ₹330, it will pay ₹2 lakh in case of death. Atal Pension Yojana is a pension scheme targeted at the unorganised sector.[21]

Excise

The education cess were subsumed from central excise duty. Instead, the central excise duty rates were rounded off from 12.36% to 12.5%.[22] The clean energy cess was increased from ₹100 to ₹200 per tonne of coal.[23] It was announced that the Goods and Services Tax is expected to be implemented by 1 April 2016.[24]

The excise duty on

incense sticks.[20]

Excise duty on

LED lights and lamps was reduced. The duty on ambulance chassis reduced from 24% to 12.5%.[20]

Custom duty

22 components used in electronics sector were exempted from import duty.

pacemaker components were exempted.[20] Duty on imported commercial vehicle was increased from 10% to 40%.[26]

Education

A scheme called Nayi Manzil was announced which will help minority youth without school-leaving certificate to find employment.

Indian School of Mines, Dhanbad will be upgraded to an IIT. Two new Indian Institutes of Management (IIM) announced for Jammu and Kashmir and Andhra Pradesh.[29]

A new Post Graduate Institute of Horticulture Research and Education was announced for Amritsar. Three new National Institutes of Pharmaceutical Education and Research were announced for Maharashtra, Rajasthan and Chhattisgarh. Two new Institutes of Science and Education Research were announced for Nagaland and Odisha. Two new institutes called Apprenticeship Training Institute for Women were announced for Haryana and Uttarakhand.[29]

A networked system called the Student Financial Aid Authority was announced which would monitor the allocation of scholarships and educational loans under the Pradhan Mantri Vidya Lakshmi Karyakram.[29]

The

education budget was allocated ₹69,074 crore for the year 2015–16. This was a reduction from the revised estimates from 2014 to 2015 which was ₹70,505 crore. The school education sector was allocated ₹42,219.5 crore and higher education sector was allocated ₹26,855 crore.[30]

Investments

A proposed Benami Transactions (Prohibition) Bill, which would criminalise cash transactions of

non-performing assets (NPA).[37]

Other announcements

The states of Bihar and West Bengal were given special assistance packages from the centre.[38] A startup incubator programme called Self Employment and Talent Utilisation (SETU) was announced. It was allocated ₹1,000 crore.[39]

Revenues and expenditures

The Plan Expenditure for 2014-15 was revised from ₹575,000 crore to ₹467,934 crore due to a large deficit. The Plan Expenditure for 2015-16 was set at ₹465,277 crore. The Non-Plan Expenditure was estimated at ₹1,312,200 crore, with the total being estimated at ₹1,777,477 crore.[40] The government expects ₹1,449,490 crore as tax receipts, of which ₹523,958 crore will go to state governments. Non-tax receipts were estimated at ₹221,733 crore for 2015–16.[41]

The

healthcare was set at ₹33,152 crore for 2015–16, a reduction from ₹39,238 crore in 2014–15.[43] Tax-free infrastructure bonds were re-introduced after a gap of one year.[44]

The

GDP. The target set for 2015-16 was that the fiscal deficit would be brought down to 3.9%. The revenue deficit target for 2015-16 was set at 2.8% of the GDP, 0.1% lower from 2014 to 2015.[45]

Responses

black money measures.[46]

Mallikarjun Kharge of INC political party called the budget pro-industrialist. Former Finance Minister P. Chidambaram of INC said the budget appeases taxpayers and corporates but ignores the poor. Former Prime Minister Manmohan Singh of INC said that the budget had good intentions but lacked a proper road map.[46]

Phailin and Hudhud.[49]

Indian stock index

SENSEX gained 140 points on the day of budget announcement.[50] Kishore Biyani, CEO of Future Group, said new service tax rate may discourage consumption.[51]

See also

References

  1. The Hindu Business Line
    . 19 February 2015. Retrieved 19 February 2015.
  2. ^ "India budget to boost investment". BBC News. 28 February 2015. Retrieved 28 February 2015.
  3. ^ "Key Features of Budget 2015-2016" (PDF). Government of India. Archived from the original (PDF) on 14 March 2015. Retrieved 4 March 2015.
  4. ^ "Budget 2015 Overview: No change in rate of personal tax; mediclaim, pension exemption limits hiked". Zee News. 1 March 2015. Retrieved 4 March 2015.
  5. ^ "Budget 2015: Tax hike for Super Rich". Zee News. 28 February 2015. Retrieved 4 March 2015.
  6. ^ "Budget 2015: Curtains on wealth tax, extra 2% surcharge on super-rich". Hindustan Times. 1 March 2015. Archived from the original on 2 March 2015. Retrieved 4 March 2015.
  7. ^ a b c d "Budget 2015: Tax exemptions for middle class". Zee News. 28 February 2015. Retrieved 4 March 2015.
  8. ^
    Live Mint
    . 28 February 2015.
  9. ^ "Transport allowance to be tax-free for up to Rs 1,600 per month". Hindustan Times. 1 March 2015. Archived from the original on 10 March 2015. Retrieved 4 March 2015.
  10. Business Today
    . 2 March 2015. Retrieved 5 March 2015.
  11. Rediff
    . 28 February 2015. Retrieved 4 March 2015.
  12. ^ "Budget: Tax sops likely for investments in Swachh Bharat, Clean Ganga". Zee News. 17 February 2014. Archived from the original on 17 February 2015. Retrieved 4 March 2015.
  13. ^ "Budget 2015: Wealth tax abolished; applicability of GAAR deferred by two years". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  14. ^ "Budget 2015 - Baba ray: Yoga gurus can now exhale". The Times of India. 1 March 2015. Retrieved 5 March 2015.
  15. ^ "Budget 2015: Service tax hike likely to hit overall consumption". The Economic Times. 2 March 2015. Retrieved 4 March 2015.
  16. ^ "Swachh Bharat Cess not on all services: Centre". Deccan Herald. 3 March 2015. Retrieved 4 March 2015.
  17. ^ "Service tax exemption to MF agents withdrawn". The Times of India. 4 March 2015.
  18. ^ "Budget 2015: Now chit fund foremen to pay service tax". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  19. ^ "Lottery sellers now under service tax ambit". The Hindu. 1 March 2015. Retrieved 5 March 2015.
  20. ^ a b c d "Union Budget 2015-16: Smoking, eating out, air travel to be costlier". The Hindu. 28 February 2015. Retrieved 5 March 2015.
  21. ^ "Govt announces details of new insurance, pension schemes". Business Line. 2 March 2015. Retrieved 4 March 2015.
  22. ^ "Budget 2015: Moving on GST; education cess to be subsumed in central excise, says government". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  23. ^ "Budget 2015 lukewarm to the green energy sector". Forbes India. 28 February 2015. Retrieved 5 March 2015.
  24. ^ "Budget 2015: Implementation of GST in April 2016, a reality or mirage?". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  25. ^ "For 'Make in India': No basic custom duty on 22 items". Hindustan Times. 1 March 2015. Archived from the original on 10 March 2015. Retrieved 5 March 2015.
  26. ^ "Union Budget 2015: Customs duty on commercial vehicles raised to 40% from 10%". Moneycontrol. 28 February 2015. Retrieved 5 March 2015.
  27. ^ "Nayi Manzil is a step in right direction". The Times of India. 1 March 2015. Retrieved 4 March 2015.
  28. ^ "Budget 2015: More AIIMS, IIT and IIMs, Announces Finance Minister Jaitley".
  29. ^ a b c "Over 2 per cent cut in education budget; new IITs, IIMs to be set up". The Economic Times. 1 March 2015. Retrieved 4 March 2015.
  30. Live Mint
    . 28 February 2015. Retrieved 4 March 2015.
  31. ^ "Benami property bill soon, PAN needed for over Rs 1 lakh purchase". Zee News. 28 February 2015. Retrieved 4 March 2015.
  32. ^ "Budget 2015: India to introduce gold deposit accounts, no mention of import duty". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  33. ^ "Ashoka Chakra gold coin soon". The Hindu. 28 February 2015. Retrieved 5 March 2015.
  34. ^ "Union Budget 2015: REITs listing set to become easy, with smoother investor exits". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  35. Live Mint
    . 4 March 2015. Retrieved 5 March 2015.
  36. ^ "Budget 2015: A comprehensive bankruptcy code like US style Chapter 11". The Economic Times. 1 March 2015. Retrieved 5 March 2015.
  37. ^ "SARFAESI Act to cover NBFCs". The Hindu. 1 March 2015. Retrieved 10 March 2015.
  38. ^ "Budget 2015's poll pitch: Special assistance for Bihar, West Bengal". India Today. 28 February 2015. Retrieved 5 March 2015.
  39. ^ "Budget 2015: Rs. 1,000-Crore Fund Announced for Tech Startups, Entrepreneurs". NDTV. 28 February 2015. Retrieved 5 March 2015.
  40. DNA India
    . 28 February 2015. Retrieved 4 March 2015.
  41. ^ "Budget 2015 At a glance (Revenues)" (PDF). Government of India. 28 February 2015. Archived from the original (PDF) on 18 March 2015. Retrieved 18 June 2015.
  42. ^ "Indian defence budget hike will create new edge of tension: Pakistani media". The Economic Times. 2 March 2015. Retrieved 4 March 2015.
  43. DNA India
    . 1 March 2015. Retrieved 4 March 2015.
  44. ^ "Comeback kings: Arun Jaitley ushers in tax-free infra bonds again". The Financial Express (India). 4 March 2015. Archived from the original on 2 April 2015. Retrieved 4 March 2015.
  45. ^ C. Rangarajan (1 March 2015). "Many hits in Budget, but fixing fiscal deficit is a miss". The Times of India. Retrieved 4 March 2015.
  46. ^ a b "Union Budget 2015 reactions: BJP lauds Jaitley's 'clear vision', Congress terms it 'dhanwapsi' to corporates". Zee News. 28 February 2015. Retrieved 5 March 2015.
  47. ^ "Budget 2015: Nitish Kumar thanks Centre for special financial assistance, AIIMS". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  48. ^ "Union Budget 2015 pro-rich, pro-corporate, nothing for Assam and North-East: Tarun Gogoi". The Economic Times. 28 February 2015. Retrieved 5 March 2015.
  49. ^ "Odisha ignored in budget, says Naveen Patnaik". The Hindu. 1 March 2015. Retrieved 5 March 2015.
  50. ^ "Budget: Sensex Ends 140 Points Higher; Nifty Above 8,900". NDTV. 28 February 2015. Retrieved 5 March 2015.
  51. ^ "Budget 2015: Middle-class consumers feel the pinch as FM Arun Jaitley raises duties and service tax". The Economic Times. 1 March 2015. Retrieved 5 March 2015.

Further reading

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