Highlights of Union Budget 2015

Arun jaitley, finance minister rolls out the Budget 2015 on 28^th February, 2015.

Highlights of the union budget 2015 are-

1. GST will roll out from 04.2016
2. Excise duty and cess hiked from 12.36% to 12.5%.
3. Service tax hiked to 14% from 12.36%.
4. 2% swachha bharat cess on most services.
5. Negative list pruned i.e. exemptions removed.
6. Cut in basic custom duty on 22 items.
7. Excise duty on footwear with price above 1,000 reduced to 6%.
8. No change in income tax slabs for individuals and others.
9. Corporate tax (The tax imposed on a company’s income is known as corporate tax) have been reduced to 25% from 30% over 4 next years.
10. GAAR (General anti- avoidance rules) have been deferred for 2 years. To be applied from April 2017.
11. Wealth tax (which is paid on net assets) abolished.
12. 2% additional surcharge as super rich tax on income over 1 crore.
13. Transport allowance increased from Rs.800 pm to 1,600 pm.
14. Medical claim (sec 80D) limit increased to 25,000. In case of senior citizen the limit has been increased to 30000. For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed to take for 30000 towards medical expenditure.
15. Deduction for treatment of specified disease (sec 80 DDB) increased to 80,000 from 60,000 for senior citizens.
16. Additional deduction of 25, 000 will be allowed for differently abled persons under Section 80DD and Section 80U.
17. The limit on deduction on account of contribution to a Pension Fund and the New Pension Scheme (sec 80CCC and sec 80 CCD) is proposed to be increased from Rs.1 lakh to 1.5 lakh.

• The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD(1) (combined together) is 1,50,000/-.
• To provide social safety net and the facility of pension to individuals and additional deduction of 50, 000 is proposed to be provided for contribution to the New Pension Scheme under Section 80 CCD.
• It is proposed to provide a deduction of upto Rs. 50,000 over and above the limit of Rs. 1.50 lakh in respect of contributions made to New Pension Scheme under Section 80CCD(1).

18. 100% deduction for donation to swaccha bharat kosh and clean Ganga fund under sec 80 G.
19. 10% TDS on provident fund withdrawn before expiry of 5 years.
20. Investment under sukanya samridhi scheme will be exempt from tax ( 100% deduction u/s 80C)
21. Balance 50% of the additional depreciation on new plant and machinery acquired and used for less than 180 days which has not been allowed in the year of acquisition and installation of such plant and machinery, shall be allowed in the immediate succeeding previous year. The amendment will take effect from 04.2016.
22. Retrospective tax provisions will be avoided.
23. Setting up of an AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam
24. Setting up of an IIM for Jammu and Kashmir and Andhra Pradesh.
25. Setting up of an IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.
26. Six crore toilets across the country under the Swachh Bharat Abhiyan will be constructed.
27. The ‘JAM Trinity’ of Jan Dhan Yojana, Aadhaar and Mobile numbers should be linked effectively for better transfer of subsidies to the intended beneficiaries.
28. Visa on Arrival facilities for 150 countries from 43 countries currently.
29. Raises excise duty on cigarettes by 25% for cigarettes of length not exceeding 65mm and raises excise duty by 15% for cigarettes of other lengths
30. Customs duty on commercial vehicles increased to 40% from 10%