Arun Jaitley's Union Budget 2015: Key Highlights
The most salient measures that Finance Minister Arun Jaitley presented in his Budget
Here are the key highlights of Arun Jaitley's Union Budget 2015:
1) Fiscal deficit seen at 3.9% of GDP in 2015-16, committed to meeting medium term fiscal deficit target of 3%.
2) GDP growth seen between 8% and 8.5% this year.
3) Consumer inflation to remain close to 5% by March, more room for monetary policy easing.
4) No change in individual income tax rates and slabs, overall deduction benefits to individual taxpayers hiked to Rs 4.44 lakh a year.
5) Disinvestment target set at Rs 41,000 crore for 2015-16.
6) Exemption on health insurance premium hiked from Rs 15,000 to Rs 25,000. For senior citizens it is hiked to Rs 30,000.
7) Service tax rate hiked to 14% from 12.36%.
8) To implement Goods and Services Tax by April 2016.
9) Wealth tax abolished. To be replaced by surcharge of 2% on income of Rs 1 crore and above. Move to fetch govt Rs 9,000 cr against Rs 1,008 currently mobilised under wealth tax.
10) Corporate tax rate to be reduced from 30% to 25% over four years; deductions and exemptions to be rationalised.
11) GAAR deferred by two years would apply prospectively from April 1, 2017
12) A new benami transaction bill to be introduced to tackle domestic black money; enforcement agencies empowered to attach assets held abroad illegally; Undisclosed income to be taxed at maximum marginal rate, deductions and exemptions for such income won't be allowed; 10 years rigorous imprisonment for concealing foreign assets.
1) Fiscal deficit seen at 3.9% of GDP in 2015-16, committed to meeting medium term fiscal deficit target of 3%.
2) GDP growth seen between 8% and 8.5% this year.
3) Consumer inflation to remain close to 5% by March, more room for monetary policy easing.
4) No change in individual income tax rates and slabs, overall deduction benefits to individual taxpayers hiked to Rs 4.44 lakh a year.
5) Disinvestment target set at Rs 41,000 crore for 2015-16.
6) Exemption on health insurance premium hiked from Rs 15,000 to Rs 25,000. For senior citizens it is hiked to Rs 30,000.
7) Service tax rate hiked to 14% from 12.36%.
8) To implement Goods and Services Tax by April 2016.
9) Wealth tax abolished. To be replaced by surcharge of 2% on income of Rs 1 crore and above. Move to fetch govt Rs 9,000 cr against Rs 1,008 currently mobilised under wealth tax.
10) Corporate tax rate to be reduced from 30% to 25% over four years; deductions and exemptions to be rationalised.
11) GAAR deferred by two years would apply prospectively from April 1, 2017
12) A new benami transaction bill to be introduced to tackle domestic black money; enforcement agencies empowered to attach assets held abroad illegally; Undisclosed income to be taxed at maximum marginal rate, deductions and exemptions for such income won't be allowed; 10 years rigorous imprisonment for concealing foreign assets.