India Budget 2015. Summary on Tax proposal

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SN	Sec	Changes
1		No change in tax rates. Surcharge increased to 12%
2	80D	Health Insurance– to Rs. 25K from 15K.  Senior citizen – 30K from 20K- Senior citizen – Rs. 30 K for Medical Treatment

Union Budget 2015- Key Personal tax proposals

1.       Personal tax rates - The personal tax rates and income slabs remains the same as compared to financial year 2014-15.

 

Service Tax Budget Notification.

F. No. 334/5/2015-TRU

D.O.F. No. 334/5/2015-TRU

 dated February 28th, 2015

The Finance Minister has, while presenting the Union Budget 2015-16, introduced the Finance Bill in the Lok Sabha on the 28th of February, 2015. Clauses 105 to 116 of the Bill cover the amendments made to Chapter V of the Finance Act, 1994. Chapter VI of the Bill (clause 117) contains the enabling provisions relating to levy Swachh Bharat Cess, which empowers the government to impose Cess on all or any of the taxable services at the rate of 2% of the value of taxable services. Changes are also proposed in,-

The Finance Bill 2015, as introduced in the Lok Sabha today, 28.02.2015, is available for download.

Click here to download Finance Bill 2015 with the Memorandum explaining the provisions

Click here to download Budget Speech of Hon’ble Finance Minister

India Budget 2015. Fast Summary on Tax proposal.

 

SN	Changes	Remark
Personal Tax.
1	No change in tax rates.	Neutral
2	Health Insurance – 80D – to Rs. 25K from 15K.  Senior citizen – 30K from 10K- Senior citizen – Rs. 30 K for Medical Treatment	Positive.
3	80DDB – 80 K from 60K in case of senior citizen	Positive.
4	Increase the limit in section 80DD/ 80U – Rs. 25K.	Positive.
5	Addl Deduction – 50K  - 80CCD -  National Pension Scheme	Positive
6	Transport Allowance – Rs. 1600 from Rs. 800	Positive.
7	Abolished Wealth Tax and 2% additional surcharge on super rich.    Details of assets will be captured in Income tax return	Neutral.
8
Corporates.
1	Reduce tax rate to 25%	Positive.
2	Domestic Transfer pricing increased to 20 Cr.	Positive.
3	Service tax flat rate of 14%	Negative.
4	100% deduction to Swach Bharat & Clean Ganga other than CSR.	Positive.
5	Presence of fund manager not create a PE In India.	Positive.
6	GAAR – defer by 2 years.- prospectively 1.4. 2017.	Positive.
7	FTS – 10% from 25%.	Positive.
8	New employment deduction   - reduced to 50.	Positive.

LIVE INDIA BUDGET 2015

·         Health Insurance – 80D – to Rs. 25K from 15K.  Senior citixen – 30K from 10K- Senior citizen – Rs. 30 K for Medical Treatment 

·         80DDB – 80 K from 60K in case of senior citizen 

·         80DDB / 80U – 25K  

·         Pension Scheme – increased to 1.5 K.

·         Addl Deduction – 50K  - 80CCD -  National Pension Scheme.

·         Investment in Sukanya samridhi a/c -  80C. interest fully exmepted.

·         Transport Allowance – Rs. 1600 from Rs. 800

·         Senior Citizen – S tax on Insurance.   

·         S Tax -  Cold storage – certain exemption withdrawn. 

·         Yoga -  exemption   

·         Direct Tax code – Not required.

·         Abolished Wealth Tax and 2% additional surccharge on super rich.    Details of assets will be captured in Income tax return.

·         Domestic Transfer pricing increased to 20 Cr.

·         Digital invoices signed with DSC.

·         Central excise flat rate of 12.5%.

·         Service tax flat rate of 14%.

·         100% deduction to Swach Bharat & Clean Ganga other than CSR.

·         Swach bharat cess @ 2%

·          

·         Reduce custom duty on 22 items.  

·         Presence of fund manager not create a PE In India.

·         GAAR – defer by 2 years.- prospectively 1.4. 2017.

·         FTS – 10% from 25%.

·         New employment  - reduced to 50.

·         Amendment in REIT

·         No cash transaction on purchase of property – Rs. 20K., PAN mandatory of Purchase of property – Rs. 1 Lakh.

·         Comprehensive law on black money/ Benami properties.. -   concealment -  non compoundable offence – 10 year imprisonment  - 3 time of tax – penalty. Mandatory filing of return of income.    

 

·         Electronic filing of statement by foreign banks.

·         Removal of various exemption to corporates.. 

·         Corporate Tax -   25% - next 4 years.

·          
Regulatory reform law on infrastructure. 

Fully IT based student financial aid scheme for higher education

·         Procurement law for public contracts. Govt. to introduce Public Contracts (Resolution of Disputes) Bill. Regulatory reform law to be introduced

National skill council

·         Visa on Arrival increased to 150 countries.

·         FII  - in alternative investment scheme in India -

·         Gold Monetization Scheme.

·         EPF /  ESI -  options provided -

Merge FMC with SEBI

·         Sec6 – fema amendment - 

·         Ports will be encouraged to corporatise and become companies under Companies Act.

·         Plug & Play Infrastructure projects.

·         Nayi Manzil scheme - to enable minority youth to obtain school leaving certificate and gain better employment

·         Fund set up for IT start up.

·         Tax free Infrastructure bond

·         Physical aids for senior citizen below poverty line.

·         NBFC with turnover of Rs. 500 Cr now will be treated as FI.

·         A universal social security system – PM Jeevan Yojna – Premium of Rs. 12 p.a. – accident insurance – Atal Pension yojna – 50% by government limited to Rs. 1000  p.a. -  PM Jeevan jyoti Yojna – Insurance Rs. 2 Lakh – Premium Rs. 330/- p.a.  . – senior citizen welfare fund -  details in March 2015.   

          Financing of trade receivables of MSME

·         Mudra Bank for micro finance for SC/ST small enterprises.

·         More fund to State government – almost 62% of total central revenue..

·         Estimated GDP for 2015-16 will be between 8 and 8.5 per cent.

·         Expected CPI to be around 5%.

• ·         GST to be place in FY 2016.
• Started

 

Tax Rates.

Individual & HUF – age less than 60 years .

	Income Slab	FY 2014-15	FY 2015-16.
i.	Where the taxable income does not exceed Rs. 2,50,000/-.	NIL
ii.	Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.	10% of amount by which the taxable income exceeds Rs. 2,50,000/-. Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.	Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.	Where the taxable income exceeds Rs. 10,00,000/-.	Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

 

Senior Citizen –Age between  60 to 80 Years.

	Income Slab	FY 2014-15	FY 2015-16.
	Where the taxable income does not exceed Rs. 3,00,000/-.	NIL
ii.	Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-	10% of the amount by which the taxable income exceeds Rs. 3,00,000/-. Less : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.	Where the taxable income exceeds Rs. 10,00,000/-	Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

 

 

Super Senior Citizen –above  80 Years.

	Income Slab	FY 2014-15	FY 2015-16.
i.	Where the taxable income does not exceed Rs. 5,00,000/-.	NIL
ii.	Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iii.	Where the taxable income exceeds Rs. 10,00,000/-	Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/

 

Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)    Education Cess : 3% of the total of Income Tax and Surcharge.

Non  - Individual.

Status	FY 2014-15	FY 2015-16.
Firm	30%
Local Authority	30%
Domestic Company	30%.
Foreign Company	40%.
Dividend Distribution Tax	20.47% Inc Sur.

• At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
• At the rate of 10% of such income tax, provided that the taxable income exceeds Rs. 10 crores. 
• Education Cess : 3% of the total of Income Tax and Surcharge.