PARADIGM SHIFT AND ITS IMPACT ON INDIVIDUALS AND CORPORATES.

PRESENTED BY, MENTORTRIVEEN KUMAR.CSUBIYA SAINYAARA. Prof. ROHINI. S

BUDGET (2015-16) India presented its annual budget for the year 2015-

16 on 28th February 2015.

By Finance minister Mr. Arun Jaitley.

The total plan outlay of this budget is Rs. 4,65,277 crores.

Benefitting towards sectors like:i. Infrastructure.ii. IT, Telecommunication.iii. Power sector.iv. Consumer goods. v. Agriculture.vi. Financial Institutions.vii. Tourism.viii. Education. Etc

Key Features Expected GDP from 8 % to 8.5 %. Financial inclusion- 12.5 crore families financially

mainstreamed in 100 days. Inflation to keep below 6 %. Houses for all – ( 2000 houses for urban and 4000

houses for rural) Infrastructure hike by 70,000 Crores. 24/7 basic facilities. Substantial reduction in poverty.. Pan card details are mandatory for transactions

above Rs.1,00,000.

IMPACT ON INDIVIDUALS Personal Tax

I. No revision of tax bracket for individuals.

II. Exemption limit for individuals increased upto Rs.4,44,200.

• Increase in deduction limit Under sec 80D from Rs.15,000 to Rs.25,000 for general public and for senior citizens from Rs.10,000 to Rs.30,000.

• For very senior citizens, who do not qualify for health insurance, Rs.30,000 in medical expenses will qualify for deductions.

• Increase in limit on deduction of pension fund and new pension scheme from Rs.1,00,000 to 1,50,000.

• Increase in transportation allowances exemption from Rs.800 to Rs.1,600 per month.

Conti… All contribution to Sukanya Samridhi Scheme to be

tax free. Suraksha Bhima Yojana insurance scheme for poor

offers at Rs. 12 pa with coverage of Rs. 2,00,000. Increase in service tax rate from 12.36 % to 14 %. Hike in excise duty on cigarettes by 25 % (65mm in

length) Reduced Import duty on tablet computers, leather

footwear costing above Rs. 1000 -”Make in India” Additional 2% cess tax as Swachh Bharat Cess (Near

future) Abolition of Wealth Tax Increased Surcharge by 2% on super rich Tax free infrastructure bonds for projects in roads,

rail & irrigation projects.

IMPACT ON CORPORATES.Reduction in corporate tax from 30 % to 25 %.Govt allocates Rs. 346.99 billion for rural.Fiscal deficit target of 3 % will be achieved in 3

years rather than 2 years.Renewable energy capacity revised to

175000mw till 2022.Rate of income tax on royalty and fees for

technical service reduced from 25%-10% Depreciation on plant and machinery have

been increased from 15% -20%

Conti…Expects to implement GST by April 2016.Reduce in Custom duty on 22 items, hike in

import of Iron an steel from 10 % to 40 % which would boost domestic and commercial vehicles.

To enact tough penalties for tax evasion in New bill.

Excise duty on Alcohol and tobacco is raised by 25 %. Leather products reduced from 12 % to 6 %. Increase in excise duty from 12 % to 15 % on sack and bags of polymer.

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