Professional Documents
Culture Documents
India
Union Budget 2015-16
An Insight
March 2, 2015
Prepared By:
CONTENTS
I.
POLICY ANNOUNCEMENTS
POLICY ANNOUNCEMENTS
iv. Substantial
reduction
of
poverty.
v. Electrification,
by
2020,
of
the
i.
habitations
weather roads.
by
all
areas.
vii. Providing medical services in each
ii. Each house in the country to have
and,
employment
or
ix. Increasing
the
irrigated
area,
increasing
farm
incomes,
and
corpus
of
Rural
Infrastructure
the same.
Agriculture
Proposal to introduce Pradhan Mantri
Gram Sinchai Yojana, which is aimed at
Lending
Micro
Units
Development
Refinance
created.
of
effective
and
hassle-free
(ST) enterprises.
which
are
in
the
Insurance
contribution
and
the
period
of
December 2015.
Pradhan
Mantri
Jeevan
Jyoti
Bima
Finance
Companies
culture
of
innovation,
research
and
Finance Bill.
It
is
proposed
Employment
and
to
establish
Talent
Self-
Utilization
Infrastructure
Fund
be
resources.
(NIIF),
is
proposed
to
multiple prior
of
infrastructure
development
to
be
destination.
in
recommendations
the
Plug-and-Play
model.
The
projects
in
the
Law
Commission.
other
Financial Markets
of
Agency
(PDMA)
for
to
contain
malfeasance
in
public
procurement.
Markets
Securities Exchange
the
institutional
arrangements
for
Commission
(FMC)
with
Board of
India
Proposal
to
introduce
Regulatory
sectors of infrastructure.
equity
air-craft
will
be
regulatory matter.
exercised
by
the
to
establish
redressal
sector-neutral
agency
that
will
financial
address
providers.
regime,
the Bond.
which
is
internationally
Government
to
introduce
enabling
country.
contribution.
Monetising Gold
transactions.
Investment
Foreign
investments
in
Alternate
be allowed.
Tourism
including
up
CMLV
manufacturing
hubs
in
securities
and
toilets,
countries now.
Renewable Energy
Women Safety
to
175000
MW
till
2022,
MW Small Hydro.
Skill India
The
Institute
of
Horticulture
INR 1.5
bank account.
Three
new
National
Institutes
of
Science
and
Education
Research
in
Eastern
States;
and
Apprenticeship
and Uttrakhand.
of
Telecommunications.
innovative
financial
and
instruments.
methods
reorganization.
Digital India
FISCAL PROPOSALS
DIRECT TAXES
1.1. Personal Taxation
1.1.1. No changes in effective tax rates
No change in the rates in case of
individuals (including senior and super
premium
and
medical
fully exempt.
Control
of
Drug
Abuse
w.e.f.
manage
their
own
private
burden
of
these
type
of
and
removal
of
various
kinds
of
2015.
companies for
Alternative
Investment
Funds
AIFs
2015-16.
of
1.2.4.
eligible
trust,
company,
or
limited
liability
period
of
194LD
of
extended.
Security
Transaction
Tax
is
of investment fund.
years
GAAR
provisions
to
be
made
GAAR.
to
provide
for
an
additional
Trusts (Invit)
benefit
manufacturing
all
assessees
units
rather
having
than
additional
35%
workmen.
depreciation
additional depreciation
It has been proposed to amend second
proviso
to
section
32(1)(iia)
to
of
such
plant
or
succeeding
previous
1.3.2. Fund
managers
constitute
in
business
not
to
connection
of
India
offshore funds
the
activity
prescribed
income-tax
authority
on
the
scope
of
total
income
or
transfer
and
vi. The taxation of gains arising on transfer
(b) Represents at least 50% of the value of
entity
determination
of
proportionality
is
certain conditions
associated enterprises,
x. There shall be a reporting obligation on
- Neither holds the right of control or
management,
in
case
where
such
holds
the
right
of
control
either
or
Banking Corporation-[ITAT-(Mum)].
However,
of
foreign
placing
company
in
company,
respect
of
transactions
computation
of
total
income,
etc. remain.
in certain cases
interest
paid
by
Permanent
companies
Conditions
on
transactions
on
which
securities
profit.
promoted
by
Indian
Such companies
in
light
of
the
aforesaid
amendment.
companies
against
from
DR
to
income
from
1.4. Deduction/Collection at
source
50,000.
200A.
PAN.
co-operative
section
society
under
period.
assessee
particulars
evidence
of
the
or
proof
prescribed
or
claim
prescribed
revenue
form
and
manner
before
the
process
of
obtaining
remitter
declared
as
taxable
information
for
foreign
2015.
1.6. Miscellaneous
Bharat Kosh
and
other
existing
authority
(Chief
educational
Commissioner
institution
2015-16.
(AOP)
discussed below.
Finance
as
advance
or
otherwise,
of
an
immovable
property
Similarly,
amendment
is
introduce
Minister
a
Bill
has
in
proposed
the
to
ongoing
non-compoundable
offence
assets
include
will
also
be
an
offence
concealment
of
income
or
foreign
offences;
assets
unaccounted
for
and
exemptions or deductions;
Yoga
income.
corresponding
related
Foreign
changes
Exchange
to
Management
Act
recognised
stock
exchange
or
Aggregate
receipts
from
such
mechanism
for
weighted
deduction,
the
cooperation
development
prescribed
in
such
authority
for
research
and
facility
and
fulfills
1.6.7. Exemption
of
income
of
Core
To
clarify
the
issues
arising
in
INDIRECT TAX
Energy Sector
2.1 CUSTOMS
Tariff item
Old
New
Nil
2.5%
2%
2.5%
bituminous coal
5%
2.5%
6%
2%
coal
Sectoral Impact
Tariff item
Old
New
Renewable Energy
5%
2.5%
upgraded ilemenite
BCD on metallurgical coke
2.5%
5%
Old
New
2.5%
Nil
ulemenite ore
Basic
Customs
isoprene
and
duty
on 5%
2.5%
liquefied
The tariff rate of Basic Customs Duty on
butane
Basic
Automobiles:
Customs
EDC, VCM, SM
Duty on 2.5%
2%
on
Completely
electrically
such
vehicles
in
operated
vehicles
of
presently
available
upto
2.2
EXCISE
2.2.1
Tax rate
12.36% to 12.5%.
Education Cess of 2% and Secondary
and Higher Education Cess of 1%
2.1.3
2.2.2
Sectoral impact
Automobiles
goods
of
upto 31.3.2016.
omitted.
for
use
in
manufacture
Renewable Energy
Excise duty on pig iron SG grade and
Ferro-silicon-magnesium for manufacture
of Cast components of wind operated
electricity
generators
is
being
fully
Electronics/Hardware
system.
Department
of
Electronics
and
Consumer Goods
Excise duty on leather footwear of Retail
Sale Price of more than INR 1000 per pair
is being reduced from 12% to 6%.
unchanged.
of cesses) to 14%.
may go up to 16%.
2.3.3
in
amusement
parks,
2.3.4
Withdrawal/pruning of exemptions
erection,
events,
of
namely,
cinematographic
dance,
theatrical
for
production
or
(a)
commissioning,
historical
etc.
monument,
importance,
archaeological
excavation
or
antiquity;
(b) canal, dam or other irrigation
work; and
(c) pipeline, conduit or plant for (i)
water supply (ii) water treatment,
or (iii) sewerage treatment or
disposal.
o Exemption
to
other
services
to
construction,
erection,
commissioning
installation
of
original
or
works
for a performance.
April 1, 2015.
input services.
to
mutual
fund
or
assets
management company,
(b) distributor to a mutual fund or AMC,
(c) selling or marketing agent of lottery
ticket to a distributor.
Exemption is being withdrawn on the
following service,-
allowable.
o Service
provided
by
way
of
New exemptions
o Services
by
way
pre-
pre-cooling,
conditioning,
of
service
tax.
Scope
of
this
exempt
such
services
when
Yojna;
o Service
provided
exhibition
of
by
movie
way
of
by
the
or
association
consisting
of
of
such
and
establishment
establishment
from
by
is
clinical
clinical
exempt
from
(LCS).
2.3.7
Other changes.
electronic form.
.
In cases involving fraud or collusion or
wilful mis-statement or suppression of
facts or contravention of any provision of
the Act or rules with the intent to evade
payment of service tax, in the following
manner,-
amount;
from 1.4.2015.
implementation,
e.g.
allowing