Budget 2015 Synopsis

Limit of deduction of health insurance premium increased from Rs 15,000 to Rs 25,000; for senior citizens, limit increased from Rs 20,000 to Rs 30,000

•Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs 1,00,000 (One Lakh) to Rs 1,50,000 (One Lakh Fifty Thousand).

•Additional deduction of Rs 50,000 for contribution to the new pension scheme (NPS) u/s 80CCD.

•Transport allowance exemption increased from Rs. 800 p.m. to Rs. 1,600 p.m.

•Payment to the beneficiaries including interest payment on deposit in Sukanya Samriddhi Scheme (SSS) to be fully exempt.

•Wealth-tax replaced with additional surcharge of 2 per cent on super rich with a taxable income of over Rs 1 crore annually

•Donation made to National Fund for Control of Drug Abuse (NFCDA) to be eligible for 100% deduction u/s 80G of Income-tax Act.

•Proposal to reduce corporate tax from 30% to 25% over the next four years, starting from next financial year.

•General Anti Avoidance Rule (GAAR) to be deferred by two years. GAAR to apply to investments made on or after 01.04.2017, when implemented.

•Positive. The increase in the limit of deduction of health premium, increased transport allowance exemption, the additional deduction allowed for contribution to the NPS, the payments made under the SSS being exempted and the donations made to NFCDA to be eligible

•The finance minister has proposed to allow tax pass-through for alternate investment funds.

•Rationalisation of capital gains regime for the sponsors exiting at the time of listing of the units of REITs and InvITs. The rental income arising from real estate assets directly held by the REIT is also proposed to be allowed to pass through and to be taxed in the hands of the unit holders of the REIT.

•The distinction between foreign portfolio investments and foreign direct investments has been done away with and replaced with composite caps.

•The finance minister has allowed foreign investments in Alternate Investment Funds

•Forward Markets Commission to be merged with SEBI to strengthen regulation of commodity forward markets and reduce wild speculation.

•The government will introduce Gold Monetization Scheme, Sovereign Gold Bonds and gold coins with Ashok Chakra to cut demand for gold coins from overseas.

•Service tax plus education cess increased from 12.36% to 14% to facilitate transition to GST

•Generation of black money and its concealment to be dealt with effectively and forcefully.

•Bill for a comprehensive new law to deal with black money parked abroad to be introduced in the current session.

•Benami Transactions (Prohibition) Bill to curb domestic black money to be introduced in the current session of Parliament.

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