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Wednesday, March 4, 2015

FIRST CUT HIGHLIGHTS OF BUDGET 201

First cut Highlights of Budget 2014                                                

28/02/2015

 

·       Mudra Bank (with 20000 crore capital) to finance Micro Financing activity for priority to entrepreneurs in SC & ST category in SME sector.

·        Bringing fresh Bankruptcy code in this fiscal year.

·       To utilise vast Postal network for Banking venture.

·       Creating universal securities system for poor and unprivileged. PMs Insurance Scheme Accident death insurance Rs. 2 Lacs for Rs. 12 per year for poor.

·       Atal Pension Fund  aimed at Indians above 60 years.

·       PMs Jeevan Bima – Rs. 2 Lacs – premium Rs. 330 per year.

·       Sr. Citizen Welfare Fund via unclaimed PPFs – living below Poverty Line.

·       Poor Sr. Citizen shall get free medical equipments

·       Visa on arrival scheme to be increased to 150 nations.

·       NBFCs above Rs. 500 cr to be covered under SARFAESI.

·       Tax free Infra bonds in Rail, Road and Infrastructure to be issued.

·       FMC to be merged with SEBI to strengthen regulation.

·       Amendment in RBI Act in this Fiscal w.r.t. monetary policy.

·       To amend section 6 of FEMA for capital account transactions.

·       Alternate Investment Funds – for facilitating domestic investment- to allow foreign investment in AIF. To do away with distinction between FPI &  FDI.

·       EPF contribution to be voluntary.

·       Gold monetisation scheme to allow depositors earn interest.

·       PSU bank Broad Bureau to be set up this year.

Taxation

·       GST to be implemented from 1st April, 2016

·       Rate of Corporate tax to be at 25% over next four years from present 30%, with phased removal of exemptions from next financial year.

·       Comprehensive new law to track black money, which is stashed in foreign countries.

·       Undisclosed foreign assets / income shall be looked up very rigorously and shall be prosecuted.

·       More comprehensive law for prosecuting domestic Black Money.

·       FEMA will be rejigged to include black money provisions.

·       PAN is compulsory for sale above Rs. 1 Lakh for immovable property. Cash not allowed over Rs. 20,000/-.

·       GAAR applicability deferred for next 2 year.

·       To facilitate technology – tax on royalty reduced from 25% to 10%.

·       Indirect taxes – Basic Custom Duty – fully exempt on RM for IT bound manufacturing.

·       Wealth Tax – to be abolished and it is replaced with 2 % surcharge on Income tax payer having income over Rs. 1 crore.

·       Domestic threshold limit increased from 5 crores to 20 crores.

·       Increase in limit of deduction of Health Insurance u/s 80D from Rs. 15000 to Rs. 25000.

·       Sr. Citizen additional deduction u/s 80D from 10k to 30k.

·       For Sr. Citizens above 80 years and not covered by health insurance – deduction of Rs.30,000 on their medical treatment every year.

·       For Sr. Citizen limit of Rs. 60000 with respect to specified decease of serious nature enhanced to Rs. 80000.

·       Additional deduction for differently abled of Rs. 25,000/- under 80DD & 80 U.

·       Additional deduction u/s 80CCD of Rs. 50,000/- for contribution to the new pension fund.

·       Transport allowance exemption increased to Rs. 1600 per month from 800 per month.

·       Individual tax benefits up to Rs.  4,44,000/-.

·       Tax relief for Yoga institutions (covered under Charitable Purpose).

·       Deduction on contribution to pension fund and the new pension scheme increased from Rs 1 lakh to Rs 1.5 lakh

·       Service tax not chargeable for Yoga classes.

·       Service tax rate set to 14%

·       Deduction of 100% under 80G for donations under Swachha Bharat Abhiyaan & Ganga Cleaning Project.

·       No Direct Tax Code.

·       Central Excise and Service Tax registration to be in done in 2 days.

·       In case of offshore fund management, mere presence of the fund manager in India will not be treated as his permanent establishment in India.



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