Finally, the budget 2015 is all out with every piece of news about new taxation, fiscal deficit, growth, revenue, disinvestment, market reforms, policy reforms, borrowing, and investment. Finance Minister, Arun Jaitley, terms this budget as inductive for high growth. He promises to keep the fiscal discipline in mind in spite of the necessity for boost in investment. Narrating the budget as friendliest towards the poor, the Finance Minister hopes to meet the challenging task of achieving the fiscal deficit of 4.1 percent of GDP soon. The Finance Minister hopes this would become enormously helpful in achieving double-digit growth rate in the future.
Let’s have glances at the budget and know about the things relevant for growth and taxation.
2015 New Taxation
Abolition of Wealth Tax – The budget has done away with Wealth Tax.
Surcharge on Super Rich – It has brought additional surcharge of 2 % on super rich.
Provision for reduction in corporate Tax – The budget proposes to cut off 25% corporate tax in the coming four years.
Total gain from taxation – Government hopes to gain net amount of 150.68 billion rupees from the new taxation from budget 2015.
No change in Individual Exemptions – The old exemptions in the limit for tax payers would continue without any changes. As per the old exemption limits, individuals would not pay tax up to the amount of Rs 2, 50,000. Senior citizens, aged from 60-80, would get exemption up to Rs 3, 00,000. Senior citizens aged more than 80 years would get exemptions up to Rs 5, 00,000.
Increase in the investment limit – Adding further boost to individual saving plans, the Finance Minister also raised the investment limit under Section 80 C from rupees 1 lac to 1.5 lacs.
New Goods and Services tax from 2016 – Government hopes to implement new goods and services Act in taxation by April, 2016.
Tough provision for Tax evasion – Evasion of tax by individuals could bring rigorous imprisonment term up to 10 years.
Rise in the limit of Import Tax – Government has raised the import tax on iron and steel from 10 percent to 15 percent. Import tax on metallurgical tax has also gone up from 2.5 percent to 5 percent.
Proposal for corporate gain tax – The budget proposes to rationalize capital gain tax with a new regime for real estate investment trust.
Reduction on custom duty – Government has decided to bring reduction on custom duty on 22 items. But the basic custom duty on commercial vehicles now stands revised to 20 percent.
Proposal to abolish adverse tax consequences – The Finance Minister has sought through a proposal to modify permanent norms in establishment so that only the Funds Managers in India would not make permanent establishment of offshore funds that bring adverse tax consequences. Government has also plans to bring in direct tax regime on the applicable rates without exemptions.
Aspects of Growth in Budget 2015 in India
As the prevailing GDP growth is 8.5%, the Finance Minister is hopeful to make it a double-digit figure in near future.