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Krishna Swaroop Ayush Srivastava Sheeba Singh Nikhil Suyesh Arya Vikram Srivastava

union budget 2015

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Page 1: union budget 2015

Krishna SwaroopAyush SrivastavaSheeba SinghNikhilSuyesh AryaVikram Srivastava

Page 2: union budget 2015

Measures to curb Black money

Job creation through revival of growth and investment

Minimum government and maximum governance to improve ease of doing business

Benefits to middle class taxpayers

Improving quality of life and health through Swachch Bharat initiatives

Stand alone proposals to maximize the benefits to economy

24%

20%

14%9%

10%

9%

10%4%

Government Earnings in %

Borrowings and Other liabilities Corporation tax Income TaxCustoms Union excise duties Service and Other TaxNon-tax Revenue Non.debt Capital Receipts

• Proposed to reduce the corporate tax from 30% to 25% over the next 4 years

• To have the Permission from the Swiss Authorities to provide information in cases investigated by Income Tax and provide

transparency with equinity in clients

• A new and more comprehensive Benami Transactions (Prohibition bill ) to be passed in current session of Parliament.

TAX PROPOSALS

Page 3: union budget 2015

Abolishment of Wealth tax which is replaced by with additional surcharge of 2% on super-rich (taxable income of Rs.1 Crore)

Reiteration of government’s resolve of rolling out GST from April 2016

Extension in excise duty exemption and concessions for manufacture of cleaner technology vehicles

Weighted deduction from corporate tax for wages of new workmen reduced from 100 to 50

Enacting of tough penalties for tax evasion in new bill

In domestic Transfer pricing, for small tax payers the threshold limit has increase Rs.5 Crore to Rs.20 crore

Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing

Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 percent

GDP growth seen at between 8 percent and 8.5 percent with an expectation of double digit growth

2011-12

2012-13

2013-14

2014-15

27 28 29 30 31 32 33 34

33.631.9

30.7

29.8Investments Remain Sluggish

%share in GDP2011-12 2012-13 2013-14

28293031323334 33

31.130

SAVINGS RATE

Savings

TAX PROPOSALS

Page 4: union budget 2015

To give a Boost domestic Leather Industry, Excise Duty on leather footwear more than Rs.1000 per pair is reduced to 6%

To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the

present rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%.

Proposal of 100% deduction for contributions, other than by way of CSR contributions, to the Swachh Bharat Kosh. A

similar tax treatment is also proposed for the Clean Ganga Fund.

Increment in Clean Energy Cess from Rs.100 to Rs.200 for the Metric tonne of coal

Excise duty on sacks and bags of Polymers for industrial use is increased by 12% to 15%

Increase in limit of deduction in health insurance premium for Rs.15000 to Rs.25000

The deduction limit for the senior citizens under diseases has increased from Rs.60000 to Rs.80000

Limit for the PENSION fund has increased from Rs.1Lakh to Rs.1.5 Lakh

After all the concessions , Individual tax payers will get Rs.4,44,200 benefit

“The Revenue loss from direct tax is Rs.8,315 Crore with Revenue Income From the Indirect tax is yield of Rs.23,823 Crore with the net Impact of

All tax proposals is revenue Gain of Rs.15,068 Crore”

TAX PROPOSALS

Page 5: union budget 2015

FY13 FY14 FY15 FY16 FY17 FY180

1

2

3

4

5

6

4.94.4 4.1 3.9 3.6

3

FISCAL TARGET

Fiscal Deficit in %

FY11 FY12 FY13 FY14 FY15 FY160

0.5

1

1.5

2

2.5

3

1.57 1.591.67

1.88 1.922.41

HIGHER CAPITAL SPENDING

Capital in Rs.Lakh

• Remain confident an achieving the medium term target up to 3% taking account the increment of public investment

• The total public investment is planned to be 1.25 lakh Crore out of which 70,000 crore will be capital expenditure from

budgetary outlays

• The Fiscal Space will go towards funding infrastructure and investment

“With this compositional shift, the aggregate envelope of Job creation, Poverty EliminationAnd Infrastructure is going to bloom in the steps of development”

FISCAL ROADMAP

Page 6: union budget 2015

• The proposed merger would help streamline monitoring of commodity futures trading and curb wild speculations.

MERGE COMMODITY MARKET REGULATOR FMC

WITH SEBI

• Big positive as tightening of defaults will lead to ease of businessNEW BANKRUPTCY CODE

• Not a much need policy at the time, which may reduce the powers of the central bank.

PUBLIC DEBT MANAGEMENT AGENCY (PDMA) & MONETARY POLICY

COMMITTEE

• To improve management of PSU• Reduce the burden of frequent capital infusion into PSU

banksAUTONOMOUS BANK BOARD

Year 2014/15 2015/16

Target in Rs (Crores) 58,425 69,500

Target Achieved in Rs (Crores)

24,257 ?

DISINVESTMENT PROGRAMME

Page 7: union budget 2015

• New ones enacted to make life miserable for anyone with black money.• At present, the income-tax department has no power to arrestNEW LAW ON BLACK MONEY

• To protect the individuals of insurance of any kind, health, accidental or life

UNIVERSAL SOCIAL SECURITY SYSTEM

• Highly-skilled educated talent• More employment

NATIONAL SKILLS MISSION TO ENHANCE EMPLOYABILITY OF

RURAL YOUTH & 346.99 BILLION RUPEES FOR RURAL

EMPLOYMENT GUARANTEE SCHEME

• Increase in TourismVISA-ON-ARRIVAL FACILITY TO 150 COUNTRIES

• Positive confidence building for investorsGOVERNMENT DEFERS ROLLOUT OF ANTI-TAX AVOIDANCE RULES GAAR BY TWO YEARS TO APRIL 1, 2017 & RETROSPECTIVE TAX PROVISIONS

WILL BE AVOIDED

Page 8: union budget 2015

Gold Monetization Scheme• Gold depositors will earn interest on their gold account, while jewellers can obtain

loans on it. Banks and other dealers will be able to monetize the gold.• Banks to hold a part of the deposits as part of the mandatory CRR or the SRR.• Banks can channelize gold held by households to the industry.• Monetary value of gold deposits mobilized may be at least Rs 1 trillion.

Sovereign Gold Bond• The sovereign gold bond will be an alternative to purchasing the metal and will

carry a fixed rate of interest. Holders will be able to redeem them in cash on the face value of gold.

Indian Gold Coin• To introduce Indian-made gold coin to reduce demand for foreign gold coins, gold

coins with Ashok Chakra• The Indian gold coin will help recycle local gold and cut overseas gold demand.

Impact• Less buying of gold

• More liquidity of money with banks for lending

• Smuggling could rise 20-30 per cent in 2015 from the estimated 175 tonnes last year due to the decision to keep the import duty intact

Page 9: union budget 2015

Investment in infrastructure will go up by 700 bln rupees in 2015/16 over last year

Plans to set up National Investment and Infrastructure Fund (NIIF) for Infrastructure

Finance Companies like Indian Railway Finance Corporation Ltd.(IRFC) and

National Housing Bond(NHB)

Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation

projects

Proposes 5 “ultra mega” power projects for 4,000 MW each

Second unit of Kudankulam nuclear power station to be commissioned

Will need to build additional 1,00,000 km of road

Ports in public sector will be encouraged to corporatize under Companies Act

PPP implementation done in a balancing way with major risk with public sector

INFRASTRUCTURE

Page 10: union budget 2015

Propose to do away with different types of foreign investment caps and replace them with

composite caps

To allow foreign investment in alternative investment funds

Public investment needed to catalyse investment

Plan expenditure estimated at about 4.65 trillion rupees

Non-plan expenditure seen at about 13.12 trillion rupees

Allocates 2.46 trillion rupees for defence spending

Allocates 331.5 billion rupees for health sector

If revenue improves, hope to raise budgeted allocations for rural job scheme by 50 billion

rupees

Gross market borrowing seen at Rs 6 trillion and Net market borrowing seen at Rs 4.56 trillion

INVESTMENT & EXPENDITURE

Page 11: union budget 2015

While India has 25 (twenty five) Cultural World Heritage Sites. They require

restoration, including landscape restoration; signage and interpretation centres; parking;

access for the differently abled; visitors’ amenities, including securities and toilets;

illumination and plans for benefiting communities around them.

1. Develpoment schemes for churches and convents in old Goa; Hampi , Elephanta

caves , Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at

Hyderabad to be under the new toursim scheme.

2.Visa on Arrival for 150 countries. (In the month of January, a total of 25,023 tourists

arrived by availing VoA as compared to 1,903 last year, registering a growth of whooping

1,214.9 % )

TOURISM

Page 12: union budget 2015

Rs. 75 crore for electric cars production.

RENEWABLEENERGYTARGET

FOR 2022

SOLAR

WIND

BIOMASS

SMALL HYDRO

100K MW in solar

60K MW in wind

10K MWin biomass

5K MW in small hydro

RENEWABLE ENERGY – GREEN INDIA

Page 13: union budget 2015

GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve

quality of life and to pass benefits to common man

Six crore toilets across the country under the

Swachh Bharat Abhiyan

MUDRA bank will refinance micro finance orgs. To encourage first

generation SC/ST entrepreneurs

Housing for all by 2020

Up gradation 80,000 secondary schools

DBT will be further be expanded from 1 crore to

10.3 crore

WELFARE SCHEMES

Page 14: union budget 2015

For the Atal Pension Yojana, govt. will contribute 50% of the premium

limited to Rs. 1,000 a year

Rs. 5,000 crore additional allocation for MGNREGA

Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens

Fund

Govt. to create universal social security system for all Indians

Page 15: union budget 2015

AIIMS in Jammu and Kashmir, Punjab, Tamil

Nadu, Himachal Pradesh, Bihar and Assam

Kerala to have University of Disability Studies

IIT in Karnataka

PG institute of Horticulture in Amritsar

Centre of film production, animation and gaming to come

up in Arunachal Pradesh

IIM for Jammu and Kashmir and Andhra

Pradesh

SKILL INDIA

Page 16: union budget 2015

The main takeaway for the agriculture sector from the Budget was a proposal to create a national agricultural market to boost farm productivity and farmers' income.

The finance minister proposed to increase the target of agriculture credit by Rs 50,000 crore to Rs 8.5 lakh crore

In order to improve soil health, Proposal to support Agriculture Ministry’s organic farming scheme – “Paramparagat Krishi Vikas Yojana”.

AGRICULTURE

DEVELOPMENT FUND AMOUNT PROPOSED

Rural Infrastructure Development Fund Rs.25000 Crore

Long Term Rural Credit Fund Rs.15000 Crore

Short Term Rural Credit Refinance Fund Rs.45000 Crore

Short Term RRB Refinance Fund Rs.15000 Crore

Page 17: union budget 2015

• Jan Dhan, Aadhaar & Mobile & GST, will help the government to implement direct transfer of benefits in leakage proof manner

• An overall sum of Rs 2,510 crore has been set aside in the budget for 2015-16 under the head “Digital India Programme and Telecommunications and Electronic Industries”

• Rs 1,000 crore for promotion of start ups and entrepreneurs particularly in the technology sector

• The IT-ITeS sector has raked in revenues of USD 119 billion in 2014-15 and directly employs about 40 lakh people

• Postal Department will utilise the services of its vast network for the proposed Payment Bank, so that it can contribute in Pradhan Mantri Jan Dhan

• Government proposes to utilise vast postal network with nearly 1.55 lakh points of presence across villages of the country.” USD 20.9 billion in 2014-15, with a growth of 10 per cent

DIGITAL INDIA

Page 18: union budget 2015

Non-Plan expenditure estimates for the Financial Year are Rs. 13,12,220cr.Plan expenditure is estimated to be Rs. 4,65,277cr.Total Expenditure has accordingly been estimated at Rs.17,77,477cr. Gross Tax receipts are estimated to be Rs. 14,49,490cr. Devolution to the States is

estimated to be Rs. 5,23,958cr. Share of Central Government will be Rs. 9,19,842cr. Non Tax Revenues for the next fiscal are estimated to be Rs. 2,21,733cr.Fiscal deficit will be 3.9 percent of GDP and Revenue Deficit will be 2.8 percent of

GDP.

BUDGET ESTIMATES

Page 19: union budget 2015
Page 20: union budget 2015

BUDGET 2015-2016AND SO FOR YOUR EXTRA

SAVINGS………