‚Jn-Â¹-«Õ¢“A Æª½Õ-ºý-èãjšÌx ¦œçbšü “X¾®¾¢’¹ ¤Äª¸½¢
CMx : 2015Ð16 ¦œçb-šüÊÕ
êÂ¢“Ÿ¿ ‚Jn-Â¹-¬Ç-È-«Õ¢“A Æª½Õ-ºý-èãjšÌx ©ðÂú-®¾-¦µ¼©ð “X¾„ä-¬Á-åX-šÇdª½Õ.
¦œçb-šü©ð«Õ¢“A æXªíˆÊo «á‘Çu¢-¬Ç©Õ, X¾Ÿ±¿-ÂÃ©Õ, X¾ÊÕo©Õ, ªÃªá-B©Õ... ÅŒC-ÅŒª½
Æ¢¬Ç-©ÊÕ ‚¢’¹x “X¾A©ð OÂË~¢-ÍŒ¢œË...
Budget 2015-16 Marks
the Beginning of Co-Operative Federalism and Empowerment of the States.
Several New Schemes Announced
Micro Units Development
Refinance Agency (Mudra) Bank To Refinance Micro Finance Institutions
Pradhan Mantra Suraksha
Bima Yojana To Cover Accidental Death Risk Of Rs. 2 Lakh For Just Rs. 12
Per Year Premium
Atal Pension Yojana
For Defined Pension, Government To Contribute 50% Of The Premium
Pradhan Mantri Jeevan
Jyoti Bima Yojana To Cover Both Natural And Accidental Death Risk
Proposal To Create
Senior Citizen Welfare Fund
And Infrastructure Fund Proposed
Tax Free Infrastructure
Bonds For Projects In Rail, Road And Irrigation Sectors
And Talent Utilisation) Mechanism To Support Start-Up Businesses
5 New Ultra Mega
Power Projects To Be Set Up
Scheme To Replace Present Gold Deposit And Gold Metal Loan Schemes
1,000 Crore For Nirbhaya Fund
Including Aiims, Iit And Iim To Be Set Up
Estimated To Be Rs. 17,77,477 Crore, Fiscal Deficit To Be 3.9% Of Gdp
Objective Of Stable
Taxation Policy And A Non-Adversarial Tax Administration
Fight Against Scourge
Of Black Money To Be Taken Forward
Efforts On Various
Fronts To Implement Gst From Next Year
No Change In Rate
Of Personal Income Tax.
Proposal To Reduce
Corporate Tax From 30% To 25% Over The Next Four Years, Starting From Next
Removal Of Various Tax Exemptions
To Reduce Tax Disputes And Improve Administration
Exemption To Individual
Tax Payers To Continue To Facilitate Savings
Shri Arun Jaitley has said that the Indian Economy has turned around dramatically
in the last nine months with the real GDP growth expected to accelerate
to 7.4% making India the fastest growing large economy in the world. Presenting
the General Budget for the year 2015-16 in Lok Sabha today, he said macro-economic
stability has been restored and conditions have been created for sustainable
poverty elimination, job creation and durable double digit economic growth.
Shri Jaitley specifically talked about three key achievements of the Government,
the Jan Dhan Yojana which brought over 12.5 crores families into financial
mainstream in a short period of 100 days, transparent coal block auctions
to augment resources of the states and ‘Swachh Bharat’ which has become
a movement to regenerate India. Shri Jaitley said that India has now embarked
on two more game changing reforms which are GST and the JAM Trinity-Jan
Dhan, Aadhar and Mobile-to implement direct transfer of benefits. He added
that GST will put in place a state-of-the art indirect tax system by 1st
April 2016 while the JAM Trinity will allow transfer benefits in a leakage-proof,
well-targetted and cashless manner.
Describing the declining
inflation as one of the major achievements of the Government, the Finance
Minister said that this represents a structural shift. He said CPI inflation
is expected to remain at close to 5% by the end of the year which will
allow further easing of monetary policy. Shri Jaitley said a Monetary Policy
Framework Agreement has been concluded with the RBI to keep inflation below
Stating that while
based on the new series, estimated GDP growth for 2014-15 is 7.4%, Shri
Jaitley said growth in the next financial year is expected to be between
8 to 8.5% and aiming for a double-digit rate seems feasible very soon.
The Minister underlined that India has to think in terms of a quantum jump.
He said the year 2022 will be the Amrut Mahotsav, the 75th year, of India’s
independence. He added the vision of what the Prime Minister has called
‘Team India’ led by the States and guided by the Central Government should
include a roof for each family which will require to complete two crore
houses in urban areas and four crore houses in rural areas with each house
having 24 hour power supply, clean drinking water, a toilet and road connectivity.
He said the vision includes that at least one member from each family should
have access to the means of livelihood, substantial reduction in poverty,
electrification of the remaining 20,000 villages including off-grid solar
power by 2020, connecting each of the 1,78,000 un-connected habitation,
providing medical services in each village and city, ensuring a Senior
Secondary School within 5 km reach of every child, strengthening rural
economy-increase irrigated area, ensuring communication connectivity to
all villages, to make India, the manufacturing hub of the world through
Skill India and the Make in India Programmes, encourage and grow the spirit
of entrepreneurship and development of Eastern and North Eastern regions
on par with the rest of the country.
The Finance Minister
counted five major challenges faced by the Indian economy which are agricultural
income under stress, weak private sector investment in infrastructure,
decline in manufacturing, resource crunch in view of higher devolution
in taxes to states and maintaining fiscal discipline. Shri Jaitley assured
that the country will meet the challenging fiscal deficit target of 4.1%
of GDP, that the Government had inherited. Talking about the fiscal roadmap
Shri Jaitley said that the Government is firm to achieve fiscal target
of 3% of GDP. He added that the journey for fiscal deficit target of 3%
will be achieved in three years rather than two years.
Stating that the Government is committed in its resolve, as Indians, to
regain its pre-eminence as a just and compassionate country, Shri Jaitley
said that what is needed is a well targetted system of subsidy delivery.
He emphasized on need to cut subsidy leakages, to achieve which the Government
is committed to the process of rationalizing subsidies. He said the direct
transfer of benefits, started mostly in scholarship schemes, will be further
expanded with a view to increasing the number of beneficiaries from the
present 1 crore to 10.3 crore.
Reiterating that the Government’s commitment to farmers runs deep, the
Finance Minister proposed to fully support Agriculture Ministry’s organic
farming scheme – “Paramparagat Krishi Vikas Yojana”. Stating that the Pradhanmantri
Gram Sinchai Yojana is aimed at irrigating the field of every farmer and
improving water use efficiency to provide ‘ Per Drop More Crop’’ , Shri
Jaitley proposed allocation of Rs. 5,300 crore to support micro-irrigation,
watershed development and the Pradhan Mantri Krishi Sinchai Yojana.
In order to support the agriculture sector with the help of effective agriculture
credit and focus on small and marginal farmers, the Finance Minister proposed
to allocate Rs. 25,000 crore to the corpus of Rural Infrastructure
Development fund (RIDF) set up in NABARD, Rs. 15,000 crore for Long Term
Rural Credit Fund; Rs. 45,000 crore for Short Term Cooperative Rural Credit
Refinance Fund; and Rs. 15,000 crore for Short Term RRB Refinance Fund.
He said that the Government has set up an ambitious target of Rs. 8.5 lakh
crore of agricultural credit. Stating the Government’s commitment to supporting
employment through MGNREGA, The Minister proposed an initial allocation
of Rs. 34,699 crore for the programme.
The Finance Minister proposed to create a Micro Units Development Refinance
Agency (MUDRA) Bank, with a corpus of Rs. 20,000 crore, and credit guarantee
corpus of 3,000 crore, which will refinance Micro-Finance Institutions
through a Pradhan Mantri Mudra Yojana,. He added that priority will be
given to SC/ST enterprises in lending.
While showing concern over a large proportion of India’s population being
without any kind of insurance, Shri Jaitley said that the soon-to-be- launched
Pradhan Mantri Suraksha Bima Yojana, will cover accidental death risk of
Rs. 2 lakh for a premium of just Rs. 12 per year. Similarly, he said, the
Government will also launch the Atal Pension Yojana, which will provide
a defined pension, depending on the contribution, and its period. To encourage
people to join this scheme, the Government will contribute 50% of the beneficiaries’
premium limited to Rs. 1,000 each year, for five years, in the new accounts
opened before 31st December, 2015. The third Social Security Scheme that
the Minister announced is the Pradhan Mantri Jeevan Jyoti Bima Yojana which
covers both natural and accidental death risk of Rs. 2 lakhs. The premium
will be Rs. 330 per year, or less than one rupee per day, for the age group
Mentioning about unclaimed deposits of about Rs. 3,000 crores in the PPF
and approximately Rs. 6,000 crores in the EPF corpus, the Minister said
that the amounts will be appropriated to a corpus, which will be
used to subsidize the premiums on these social security schemes through
creation of a Senior Citizen Welfare fund in the Finance Bill. He reiterated
the Government’s commitment to the on-going schemes for the welfare of
SCs, STs and Women.
The Finance Minister underlined the pressing need to increase public investment
in infrastructure. He said that he proposes increased outlays on both the
roads and the gross budgetary support to the railways, by Rs. 14,031 crore
and Rs. 10,050 crore respectively. He said the CAPEX of the public sector
units is expected to be Rs. 3,17,889 crore, an increase of approximately
Rs. 80,844 crore over RE 2014-15. He also proposed to establish National
Investment and Infrastructure Fund (NIIF) with an annual flow of Rs. 20,000
crore. He said that he also intends to permit tax free infrastructure
bonds for the projects in the rail, road and irrigation sector. He said
the PPP mode of infrastructure development has to be revisited and revitalized.
Shri Jaitley proposed to establish the Atal Innovation Mission(AIM) in
NITI which will provide Innovation Promotion Platform involving academicians,
and drawing upon national and international experiences. A sum of Rs. 150
crore is proposed to be earmarked for the mission.
The Finance Minister said that the Government is establishing a mechanism
to be known as SETU (Self-Employment and Talent Utilisation) which will
support all aspects of start-up businesses, and other self-employment activities,
particularly in technology-driven areas. Rs. 1,000 crore have been initially
earmarked in NITI Aayog for the purpose.
Shri Jaitley said the Government also proposes to set up 5 new Ultra Mega
Power Projects each of 4000 MWs in the plug-and-play mode.
In order to promote investment in the country, the Minister proposed to
set up a Public Debt Management Agency (PDMA) which will bring both India’s
external borrowings and domestic debt under one roof. He also proposed
to merge the Forwards Markets Commission with SEBI to strengthen regulation
of commodity forward markets and reduce wild speculation. He said enabling
legislation, amending the Government Securities Act and the RBI Act is
proposed in the Finance Bill, 2015.
Regarding the Employees Provident Fund (EPF), the Minister said the employees
need to be provided two options, EPF or the New Pension Scheme (NPS). He
said, for employees below a certain threshold of monthly income, contribution
to EPF should be optional, without affecting or reducing the employer’s
Stating that India is one of the largest consumers of gold in the world,
Shri Arun Jaitley proposed to introduce a Gold Monetisation Scheme, which
will replace both the present Gold Deposit and Gold metal Loan Schemes.
New scheme will allow the depositors of gold to earn interest in their
metal accounts and the jewelers to obtain loans in their metal account.
Banks/other dealers would also be able to monetize this gold. He also proposed
a Sovereign Gold Bond, as an alternative to purchasing metal gold. He also
announced commencing work on developing Indian Gold Coin, which will carry
the Ashok Chakra on its face.
Highlighting need for increasing investments from all sources, the Finance
Minister proposed to allow foreign investments in Alternate Investment
Funds. He said in
order to catalyze investments from the Indian Private Sector in South
East Asia, a Project Development Company will set up manufacturing hubs
in Cambodia, Myanmar, Laos and Vietnam.
In order to support Programmes for women security, advocacy and awareness,
the Minister proposed to provide another Rs. 1,000 crore to the Nirbhaya
Shri Jaitley said resources will be provided to start work along 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 at various
over environmental degradation, the Minister said that the target of renewable
energy capacity has been revised to 1,75,000 MW till 2022. He said the
Government is also launching a Scheme for Faster Adoption and manufacturing
of Electric Vehicles (FAME) with an initial outlay of Rs. 75 crore.
The Minister emphasized on formal skill training and said the Government
will soon launch a National Skills Mission which will consolidate skill
initiatives spread across several Ministries. He said Rs. 1,500 crore has
been set apart for Deen Dayal Upadhyay Gramin Kaushal Yojana. He proposed
to set up a fully IT based Student Financial Aid Authority to administer
and monitor Scholarship as well Educational Loan Schemes, through the Pradhan
Mantri Vidya Lakshmi Karyakram.
The Minister proposed to set up several New Institutions. An IIT will be
set up in Karnataka and Indian School of Mines, Dhanbad will be upgraded
in to a full-fledged IIT. New All India Institutes of Medical Sciences
(AIIMS) will be set up in J&K, Punjab, Tamil Nadu, Himachal Pradesh
and Assam. Another AIIMS like institution will be set up in Bihar. A post
graduate institute of Horticulture Research & Education will be set
up in Amritsar. Three new National Institutes of Pharmaceutical Education
and Research will be set up in Maharashtra, Rajasthan and Chattisgarh and
one institute of Science and Education Research will be set up in Nagaland
and Odisha each. IIMs will be setup in J&K and Andhra Pradesh.
Shri Jaitley said India is making good progress towards digital India.
He said the National Optical Fibre Network Programme (NOFNP) of 7.5 lakh
kms networking 2.5 lakh villages is being further speeded up by allowing
willing States to undertake its execution.
The Minister said that in spite of the large increase in the devolution
to states, adequate provision is being made for the schemes for the poor
with allocation of Rs. 68,968 crore to the education sector including mid-day
meals, Rs. 33,152 crore to the health sector and Rs. 79,526 crore for rural
development activities including MGNREGA, Rs. 22,407 crore for housing
and urban development, Rs. 10,351 crore for women and child development,
Rs. 4,173 crore for Water Resources and Namami Gange. The Minister said
that adequate funds have been provided for the needs of the armed forces.
As against likely expenditure of this year of Rs. 2,22,370 crore the budget
allocation for 2015-16 is Rs. 2,46,727 crore.
Shri Arun Jaitley while giving the budget estimates for 2015-16 said Non-Plan
expenditure estimates for the Financial Year are Rs. 13,12,220 crore. Plan
expenditure is estimated to be Rs. 4,65,277 crore, which is very near to
the R.E. of 2014-15. Total Expenditure has accordingly been estimated at
Rs. 17,77,477 crore. Gross Tax receipts are estimated to be Rs. 14,49,490
crore. Devolution to the States is estimated to be Rs. 5,23,958 crore.
Share of Central Government will be Rs. 9,19,842 crore. Non Tax Revenues
for the next fiscal are estimated to be Rs. 2,21,733 crore. He said with
the above estimates, fiscal deficit will be 3.9 percent of GDP and Revenue
Deficit will be 2.8 percent of GDP.
The Finance Minister Shri Arun Jaitley has said that a very important dimension
to our tax administration is the fight against the scourge of black money.
He said that taxation is an instrument of social and economic engineering.
Tax collections help the Government to provide education, healthcare, housing
and other basic facilities to the people to improve their quality of life
and to address the problems of poverty, unemployment and slow development.
To achieve these objectives, it has been our endeavour in the last nine
months to foster a stable taxation policy and non-adversarial tax administration.
Shri Jaitley said that Goods and Services Tax (GST) introduced in the last
Session will play a transformative role in the way our economy functions.
This transformative piece of legislation in indirect taxation needs to
be matched with transformative measures in direct taxation. He said
that the rate of corporate tax is proposed to be reduced from 30% to 25%
over the next four years. This will lead to higher level of investment,
higher growth and more jobs. The broad things adopted in finalizing the
tax proposals include:-
Measures to curb black money
Job creation through revival of growth and investment and promotion of
domestic manufacturing and ‘Make in India’;
Minimum government and maximum governance to improve the ease of doing
Benefits to middle class taxpayers;
Improving the quality of life and public health through Swachch Bharat
Stand alone proposals to maximize benefits to the economy.
Shri Jaitley said that a considered decision has been taken to enact a
comprehensive new law on black money to specifically deal with such money
stashed away abroad. The Bill in this regard is proposed to be introduced
in the current Session of the Parliament. The key features of the
bill will include punishment of rigorous imprisonment up to ten years for
concealment of income and assets and evasion of tax in relation to foreign
assets. This offence will be made non-compoundable and offenders
will not be permitted to approach the Settlement Commission. Penalty
for such concealment of income and assets at the rate of 300 per cent of
tax shall be levied. Non-filing of return or filing of return with
inadequate disclosure of foreign assets will be punishable with rigorous
imprisonment up to seven years.
As regards curbing domestic black money, a new and more comprehensive Benami
Transactions (Prohibition) Bill will be introduced in the current Session
of the Parliament. Shri Jaitley said that this law will enable confiscation
of benami property and provide for prosecution, thus, blocking a major
avenue for generation and holding of black money in the form of benami
property, especially in real estate. Quoting of PAN is being made
mandatory for any purchase or sale exceeding the value of Rs.1 lakh.
To improve enforcement, CBDT and CBEC will leverage technology and have
access to information in each other’s data-base.
Mentioning job creation as the second pillar of taxation proposals Shri
Jaitley said that this will be ensured through revival of growth and investment
and promotion of domestic manufacturing and ‘Make in India’. The
tax ‘pass through’ is proposed to be allowed to both Category-1 and Category-2
alternative investment fund so that tax is levied on the investors in these
funds and not on the funds per se. To rationalize the capital gain regime
for the sponsors exiting at the time of listing of the units of Real
Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
subject to payment of Securities Transaction Tax (STT) is proposed, he
Permanent Establishment (PE) norm will be modified to encourage fund managers
to relocate to India. The Finance Minister said that General Anti Avoidance
Rule (GAAR) will be deferred by two years. It will apply to investments
made on or after 01-04-2017, when implemented. In order to facilitate
young entrepreneurs rate of income tax on royalty and fees for technical
services will be reduced from 25 per cent to 10 per cent. To generate
greater employment opportunities the benefit of deduction for employment
of new regular workman to all business entities will be extended.
The eligibility threshold of minimum 100 regular workmen will be reduced
Recognizing the importance of indirect taxes in the context of promotion
of domestic manufacturing and ‘Make in India’, the Finance Minister said
basic custom duty on certain inputs, raw materials, intermediates and components
in 22 items is proposed to be reduced to minimize the impact of duty evasion.
All goods except populated printed circuit boards for use in manufacture
of ITA bound items are proposed to be exempted from SAD. Subject
to actual user condition SAD will be reduced on import of certain other
imports and raw materials.
Shri Jaitley said wealth tax is proposed to be abolished and replaced with
an additional surcharge of 2 per cent on the super rich with the taxable
income of over Rs.1 Crore. With this 2 per cent additional surcharge
a collection of Rs.9,000 Crore is targeted against a tax sacrifice of Rs.1,008
Crore. To eliminate the scope for discretionary exercise of power and provide
a hassle-free structure to the tax payers, Shri Jaitley proposed to increase
the threshold limit from Rs.5 Crore to Rs.20 Crore.
In order to rationalize
the MAT provisions for FIIs, profits corresponding to their income from
capital gains on transactions in securities which are liable to tax at
a lower rate, shall not be subject to MAT, Shri Jaitley said.
Education cess and the Secondary and Higher education cess is proposed
to be subsumed in central excise duty. The general rate of central
excise duty of 12.36 per cent including the cesses will be rounded off
to 12.5 per cent. The Ad-valorem rates of excise duty lower than
12 per cent and those higher than 12 per cent with a few exceptions are
not proposed to be increased. Excise duty on foot-wears with leather
uppers and having retail price of more than Rs.1,000 per pair is proposed
to be reduced to 6 per cent. Shri Jaitley said on-line central excise
and service tax registration will be done in two working days. As
a measure of business facilitation time limit for CENVAT credit on inputs
and input services to be increased from 6 months to one year. Service
tax plus education cess is proposed to be increased from 12.36 per cent
to 14 per cent to facilitate transaction to GST.
Shri Jaitley said that cleanliness of households and clean environment
are very important social causes. As an initiative to Swachh Bharat
Abhiyan Shri Jaitley proposed 100 per cent reduction for contribution,
other than by way of CSR contributions, to the Swachh Bharat Kosh.
A similar tax treatment is also proposed for the Clean Ganga Fund, he said.
Shri Jaitley proposed an increase in clean energy cess from Rs.100 to Rs.200
per metric tonne of coal, etc. to finance clean environment initiatives.
He further said that excise duty of sacks and bags of polymers of ethylene
other than for industrial use is proposed to be increased from 12 per cen
to 15 per cent. He also mentioned an enabling provision to levy Swachh
Bharat Cess at the rate of 2 per cent or less on all or certain services
if need arises. Shri Jaitley said that services by common affluent
treatment plant will be exempt from service tax. He also proposed
concessions on customs and excise duty available to electrically operated
vehicle and hybrid vehicle extended up to 31-03-2016.
The Finance Minister proposed no change in the rate of personal income
tax and rate of tax for companies in respect of income earned in the finance
year 2015-16, assessable in Assessment Year 2016-17. Shri Jaitley
proposed to levy a surcharge @ 12 per cent on individuals, HUFs, AOPs,
BOIs, artificial juridical persons, firms, cooperative societies and local
authorities having income exceeding Rs.1 Crore. Surcharge in the
case of domestic companies having income exceeding Rs.1 Crore and up to
Rs.10 Crore is proposed to be levied @ 7 per cent and surcharge @ 12 per
cent is proposed to be levied on domestic companies having income exceeding
He further proposed that in the case of foreign companies the surcharge
will continue to be levied @ 2 per cent if the income exceeds Rs.1 Crore
and is up to Rs. 10 Crore, and @ 5 per cent if the income exceeds Rs.10
It is also proposed to levy a surcharge @ 12 per cent as against current
rate of 10 per cent on additional income tax payable by companies on distribution
of dividends and buyback of shares, or by mutual funds and securitization
trusts on distribution of income.
The education cess on income tax @ 2 per cent for fulfilment of the commitment
of the Government to provide and finance universalized quality based education
and 1 per cent of additional surcharge called ‘Secondary and Higher Education
Cess’ on tax and surcharge is proposed to be continued for the financial
year 2015-16 for all taxpayers, the Minister said.
Describing the extension of benefits to middle class tax payers as the
priority of the government, Shri Jaitley proposed the following concessions:-
Increase in the limit of deduction in respect of health insurance premium
from Rs.15,000 to Rs.25,000.
senior citizens the limit will stand increased to Rs.30,000 from the existing
very senior citizens of the age of 80 years or more, who are not covered
by health insurance, deduction of Rs.30,000 towards expenditure incurred
on the treatment will allowed.
The deduction limit of Rs.60,000 towards expenditure on account of specified
diseases of serious nature is proposed to be enhanced to Rs.80,000 in case
of very senior citizens.
Additional deduction of Rs.25,000 will be allowed for differently abled
persons under Section 80DD and Section 80U of the Income-tax Act.
The limit on deduction on account of contribution to a Pension Fund and
the New Pension Scheme is proposed to be increased from Rs.1 lakh to Rs.1.5
To provide social safety net and the facility of pension to individuals
and additional deduction of Rs.50,000 is proposed to be provided for contribution
to the New Pension Scheme under Section 80 CCD. This will enable
India to become a pensioned society instead of a pensionless society.
Investments in Sukanya Samriddhi Scheme is already eligible for deduction
under Section 80C. All payments to the beneficiaries including interest
payment on deposit will also be fully exempt.
Transport allowance exemption is being increased from Rs.800 to Rs.1,600
For the benefit of senior citizens, service tax exemption will be provided
on Varishta Bima Yojana.
Mentioning change, growth, jobs and genuine effective up-liftment of the
poor and the under-privileged as Government’s commitment and re-affirming
its commitment to the Constitutional principles of equality and justice
for all without concern for caste, creed or religion, Shri Jaitley ended
his budget speech with the Upanishad-inspired mantra-
Om Sarve Bhavantu
(OM! May All Be Happy)….