Highlights Budget 2015-16

[Deepak Aggarwal]

Budget Highlights 2015-16

• Yoga activities will be covered in Charitable activities under Sec. 2(15) of income tax Act.
• Service tax exemption for senior citizens in Swasth Bima Yojana
• Net gain in tax proposals - ₹ 15068 Crores
• Service tax exemptions will be extended to Cold storages
• Transport allowance increased upto ₹ 1600 p.m.
• Contribution to National pension scheme upto ₹ 50000 will be exempt
• Health insurance exemption increased upto ₹ 25000, for senior citizen upto ₹ 30000
• In case of senior citizens above 80 years, ₹ 30000 will be allowed even in case of medical treatment
• Swatch Bharat Ceass @ 2% or less proposed
• Service tax rate increased upto 14%
• Online registration of excise and service tax will be complete in 2 days
• MAT provision will be rationalized in case of FIIs
• Retrospective provisions will be avoided
• Wealth tax will be abolished
• To compensate wealth tax, a surcharge @ 2% is proposed on individuals having income > 1 crore
• Some Exemptions in service tax withdrawn to extend service tax base
• SAD will be exempt in most of the articles imported to remove accumulation of Cenvat credit
• Rate on royalty and technical income reduced to 10%
• GAAR deferred by 2 years, Prospectively w.e.f. 01/04/2017
• CBDT and CBEC will use each other data base to access detailed informations
• Merely presence of Fund manager in India will not be considered a PE i.e. permanent establishment
• Filing of return in case having foreign asset even no income is taxable
• Need to mention opening of foreign exchange account in return
• Reduction in Corporate taxation in phased manner in 4 years. Reduced rate will be 23%.
• Exemptions will be rationalized in income tax act
• GST deadline set at 01/04/2016.
• New IIMs and IITs are proposed
• Visa on arrival will be extended to 150 countries
• Further ₹ 1000 crores attributed to Nirbhaya fund
• Special schemes for World heritage sites
• FPI and FDI schemes will be merged
• No change in 100% automatic route in foreign investment sectors
• Gold monetised scheme will be launched
• Indian gold coins will be launched with Ashok Chakra on this
• Employees will be given option to choose EPF or National pension scheme
• Same option will be in ESI or Health insurance
• Bond market will be promoted by various measures to make it like a World class Equity market
• ₹ 5000 crores attributed to MANERGA scheme
• Post offices across country will be used to extend financial inclusion in rural areas
• NBFC having net assets >500 crors will be treated as Financial Institution and will be coverd in SARFASI act
• 6 crors more toilets will be made as a part of Swatch Bharat Abhiyan