Budget 2015

2Mar

Union Budget 2015-16 India Update : Arun Jaitley says corporate tax rate to be cut from 30 pct to 25 pct over 4 yrs

budget 15-16

 

Finance Minister Arun Jaitley presented in Parliament the Union Budget; we present here the best of the Union Budget 2015 in a short and succinct manner:

* Individual tax payers to get income tax benefit of Rs 4,44,200 in a year. 

* Income Tax exemptions to individual tax payers to continue: FM.

* Income Tax reduction from 25 per cent to 10 per cent on royalty for providing technical services: FM

* Service tax rate increased from 12%, plus education cesses to 14%

* Direct tax proposals to lead to Rs 8315 cr revenue loss; indirect tax proposals to yield Rs 23,383 cr

* Negative list in service tax has been pruned by bringing some services under tax net: FM.

* Transport allowance exemption increased from Rs 800 to Rs 1,600

* Addl deduction of Rs 50,000 for contribution in NPS

* Increase in health insurance premium tax benefit from Rs 15,000 to Rs 25,000 and for Sr citizens Rs 30,000

* Wealth tax abolished, addl 2% surcharge on super-rich

* GAAR deferred by 2 years

* PAN quoting to be mandatory for sale over Rs 1 lakh

* Non-filing or wrong filing of tax returns related to foreign assets will lead to prosecution

* To enact a comprehensive law on black money, bill in this session

* Corp tax rate to be reduced from 30% to 25% in next 4 years

Check tax calculator:

* Corp tax exemptions to be phased out from next year

* GST to be implemented from next year

* Non tax revenues in FY16 to be 2,21,733 cr

* Fiscal deficit of 3.9% for FY 16

* Exclusive commercial divisions in high courts to be set up

* Defence allocation for FY16 raised to Rs 2,46, 727 cr

* Spl assistance for Bihar and West Bengal

* IIT in Karnataka and IIMs in J&K and Andhra

* AIIMS in Punjab, J&K, Tamil Nadu, HP and Assam this year

* Set up a fully IT based student aid and loan facility through PM scheme

* Launch national skills mission soon

* Introduce a regulatory reform law for infra

* Parliament needs to take a look at the need to have a procurement law

* Visa on arrival facility to be extended to 150 countries

* To allow foreign investment in alternate investment funds

* Will introduce sovereign gold bonds

* Will introduce gold monetisation scheme

* Employees must be allowed to opt for EPF or NPS

* Public debt management agency to be set up this year

*FMC to be merged with Sebi

* Five ultra mega power projects, each of 5,ooo MW coming, this will bring Rs 1 lakh cr investment

* Ports in public sector will be allowed to be corporatised

* Tax-free bonds in Rail and roads

* Infra investment to go up by Rs 70,000 cr in FY 16

* Atal Pension Yojana for defined pension

* Universal social security system for all Indians to be launched

* Fiscal deficit targets for next 3 years will be 3.9% for FY16, 3.5% for FY17 and 3% for FY18

* We need a well targetted system of subsidies

* Rs 34,699 cr allocation for MGNREGA in FY16; addl 5K cr can be given in MNREGA if there is tax buoyancy

* Will bring comprehensive bankruptcy code in FY16

* We inherited a sense of gloom and doom

* 3 achievements of NDA govt: 1. Jan Dhan Yojana, 2. Coal Auctoions, 3. Swachch Bharat Abhiyaan

* Targetting CPI inflation close to 5% by end of year

* Aiming for a double-digit growth seems feasible very soon

* At least 1 member of every family should have jobs

* Will meet 4.1% fiscal deficit target for FY15

* Cabinet approves Union Budget for 2015-16.

2Mar

Union Budget 2015-16 India Update : All You Need to Know About The Budget

Economic Survey_7

Ahead of the presentation of the Union Budget 2015-16, on Saturday, the Economic Survey 2014 has hinted at some policy proposals of the PM Narendra Modi govt, will it lead to something bigger?

Take a look:

Fiscal deficit: Target of 4.1 % of the GDP retained in FY15, gross deficit of Centre and states may be new norm

CVD: Eliminate all exemptions to countervailing duties to boost ‘make in India’ and end teh negative protection of Indian manufacturers

Gold imports: with improved CAD, “opportune time” to withdraw restrictions on gold imports, cut import duty

Multi-brand Retail: Livberalisation of FDI in retail can help meet investment nd infra deficit which results in supply chain inefficiencies

Infra: Restructure framework for public parivate partnership (PPP) to evaluate risk and financing

Trade: Become a part of the global integrated market by joining Trans-Pacific Partnership or RCEP

28Feb

Modi Budget 2015-16 India Live: Jaitley sets FY16 divestment target at Rs 69,500 cr

Union Budget 2015-16 announced a divestment target of Rs 69500 crore, higher than the previous fiscal’s target of Rs 58,425 crore.

The government has so far managed to raise only a small fraction of its ambitious divestment target. The break-up envisaged was thus: To raise Rs 36,925 crore from PSU disinvestments, Rs 15,000 crore from residual stake sale in Hindustan Zinc and Balco, and Rs 6500 crore from the stake it held in Axis Bank, Larsen & Toubro and ITC through SUUTI.

Coal India and Steel Authority of India ( SAIL ) divestments added Rs 22558 crore and Rs 1700 crore respectively. The other big stake sale of ONGC has been deferred beyond April due to low oil prices and absence of new subsidy sharing mechanism between the Centre and oil exploration companies.

Expectation

The 2015-16 Union Budget was expected to set disinvestment target in the range of Rs 65,000-70,000 crore, the highest ever. There were strong buzz in the weeks leading to Budget that:

  • Rs 45,000 crore would be mopped up from 5-10 percent stake sale in state-owned firmslike Oil and Natural Gas Corporation, Indian Oil, Bharat Heavy Electricals, National Aluminium, Dredging Corp, Container Corporation, Power Finance Corporation, Rural Electrification Corporation and NMDC.
  • Rs 15,000-20,000 crore would come from residual stake sale in Hindustan Zinc and Bharat Aluminium (Balco)
  • A further Rs 5,000 crore from partial stake sale of government holdings in private firms through SUUTI.
  • Since there was wide spread expectation that Arun Jaitley would want to raise funding and incentives for Prime Minister Narendra Modi’s new centrally sponsored schemes, including Smart Cities, Swachh Bharat and Pradhan Mantri Jan Dhan Yojana, direct and indirect tax levies would be bumped up.
  • The Centre may resort to year-round stake sales to meet divestment target.
28Feb

Union Budget 2015-16 India Live: FM says to introduce India-made gold coins, gold bonds

Gold

In a bid to further cut down on imported gold, Finance Minister Arun Jaitley said the government will introduce India-made gold coins. These will be branded with Ashok Chakras, Finance Minister Arun Jaitley said today.

In a bid to monetize gold through securitization, the FM also said that the government was proposing to develop a gold bond. This would likely be similar to gold funds or e-gold schemes where returns would track the price of the yellow metal.

The FM, however, stayed away from cutting import duties on gold, currently at a high 10 percent. The duty was upped in order to curb imports when the government was going through a current-account crisis a few years ago but of late there were reports the curb may relaxed after gold imports eased in the past few quarters.

The RBI, however, did recently do away with the 80:20 scheme that required gold

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