Decoding Union Budget 2015-16 in simple words

Union Budget was announced on 28^th Feb and it was the first full-fledged budget for the new government.

Macro Economy

1. 1.     2015-16 growth between 8-8.5%, double digit growth feasible
2. 2.     Retail inflation close to 5% by March, room for monetary policy easing
3. 3.     To achieve fiscal deficit of 3% of GDP by 2017-18
4. 4.     Fiscal Deficit target 3.9% in 2015-16, 3.5% in 2016-17
5. 5.     Revenue Deficit to be 2.8% in 2015-16
6. 6.     Current Account Deficit for 2014-15 to be below 1.3% of GDP
7. 7.     Sharp increase in outlays of roads and railways and introduction of a new fund called “National Investment and Infrastructure Fund (NIIF)”

Market Booster

1.     To lower Corporate Tax to 25% over next four years

2.     GAAR implementation deferred by 2 years to April 2017

3.     Tax free bonds for roads, railways, irrigation projects

4.     GST to be put in place by April 1, 2016

Personal Finance

1.     No change in personal Income Tax

2.     Health Insurance Premium deduction hiked from Rs 15,000  to Rs 25,000; for senior citizens to Rs 30,000

3.     Additional 2% surcharge on people earning over Rs 1 cr; to fetch Rs 9,000 cr; Wealth tax abolished

4.     Rs 50,000 deduction for contribution to New Pension Scheme

5.     Service Tax rate hiked to 14%, from 12.36%

Category	Tax Benefit
Deduction u/s 80C	1,50,000
Deduction u/s 80CCD(NPS)	50,000
Deduction on account of interest on house property loan (Self occupied property)	2,00,000
Deduction u/s 80D on health insurance premium	25,000
Exemption of transport allowance	19,200
Total	4,44,200

Miscellaneous:

1.     To introduce comprehensive law to deal with black money

2.     Benami property transaction bill to tackle black money transaction in real estate soon

3.     100% deduction for contribution to Swachh Bharat, Clean Ganga projects

4.     Internationally competitive direct tax regime to be put in place to incentivise saving

5.     Incentivise use of credit, debit cards; disincentivise cash transaction to curb black money

Budget mainly focused on:

• Effective & optimal allocation of Natural Resources like coal & minerals through auction for development of people

• Financial Inclusion

• Health and hygiene for all

• Care for the Girl Child and their Education

• Creation of Employment for the Youth

• Hassle Free Business Environment

• Delivery of benefits to the poor to be made more efficient

• Attracting Investments to create Jobs

• Expanding the job market and ensuring welfare of the labour

• Improving agri-productivity for generating more income to farmers

• Energizing the country using all resources including new and renewable energy sources

• Adoption of technology-from grass root to the Space

• Skill India programme

• Efficiency & better work culture in Government

• Red tape to Red carpet for ‘Ease of Doing Business’

• To bring North-eastern parts of the country into the mainstream

• To promote Pride in the Nation and its Culture

Source of Info :

http://www.newsonair.com/

http://indiabudget.nic.in/