Pradhan Mantri Suraksha Bima Yojana Pradhan Mantri Jeevan Jyoti Bima Yojana

The Finance Minister in his Budget Speech 2015-16, announced two Social Security Schemes in the Insurance Sector, namely the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Major Highlights of Both the Schemes are as Under.

Highlights of the Pradhan Mantri Suraksha Bima Yojana (Pmsby – Scheme 1 – for Accidental Death Insurance).

Eligibility: Available to people in age group 18 to 70 years with bank account.

Premium: Rs.12 per annum.

Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
Risk Coverage: For accidental death and full disability – Rs.2 Lakh and for partial disabilityRs.1 Lakh.
Eligibility: Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.
Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.
Who will implement this Scheme:
The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.

Highlights of The Pradhan Mantri Jeevan Jyoti Bima Yojana  (PMJJBY – SCHEME 2 – FOR LIFE INSURANCE COVER) 

Eligibility: Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
Premium: Rs.330 per annum. It will be auto-debited in one instalment.
Payment Mode: The payment of premium will be directly auto-debited by the bank from the subscribers account.
Risk Coverage: Rs.2 Lakh in case of death for any reason.
Terms of Risk Coverage: A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
Who will implement this Scheme:
The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.
Income Tax benefit : The premium paid is eligible for Deduction u/s 80C
Government Contribution In Both the Scheme above:
  1. Various other Ministries can co-contribute premium for various categories of their beneficiaries out of their budget or out of Public Welfare Fund created in this budget out of unclaimed money. This will be decided separately during the year.
  2. Common Publicity Expenditure will be borne by Government.

 

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Finance,Travels,Education and Make Money Online

Finance,Travels,Education and Make Money Online

Finance In Unisted States is very Hard if are a Small business man But There are Many Money making Ideas that Give you lot of money On Internet.If You have Much times and Hard work you can achieve This target of making money online.

Make Money Online In Other countries:

If you Non-US Then you can face some problems in making money online because CPC in other countries is very Low
A US based CPC Can be $100 Per Click but Non US can $0.1 Also.

EducationIs also A big part of making money Online.If You are educated well you can get Jobs but if you have Less education then you can face many problem for Jobs Remember Jack Ma (Founder Of Alibaba)Rejected over 30 times for Job.

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Donate Car To Charity In USa

What is donate car to charity
I was looking for donate car for charity and i found some nice website and this gaves me lot of happiness and Joy.

donate cars is good idea ?
Yes because you may got a new car but selling is not Good idea bcoz you cant get a good price.Donate is Best way to Get New Car.
Whice car to donate is Best
The car you want to sell or not feeling Good with that anymore

What is 50 life insurance
a insurance is very known thing these days and you should take this if you dont have Now

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How to maximize tax benefits on a joint home loan

home-loan

How to maximize tax benefits on a joint home loan

Generally all of us think that taking a loan to buy a residential property is not a good idea and so, they start saving some amount from their monthly income into recurring investment or a Systematic Investment Plan (SIP) offered by mutual funds. But the financial planners recommend that for acquiring a house for self use, one should go for a housing loan and pay EMIs in place of going for recurring investment or SIP in other investment product.

A payee can get income tax benefits through home loan under two different Sections of Income Tax Act.

  1. Under Section 24– Deduction on interest on home loan for self-occupied property up to Rs 2 lakh.
  2. Under Section 80C– Deduction on repayment of principal amount on home loan up to Rs 1.5 lakh. 

Also see Permanent Account Number (PAN)

Tax Benefits under Section 24 and Section 80C: Mr. X is eligible to claim tax benefits under Section 80C for the principal repayment of the home loan and under Section 24 for interest components. He can claim deduction up to Rs 1.5 lakh along with all other permissible instruments like, life insurance premium, PPF, ELSS, NSC etc under Section 80 C and up to Rs 2 lakh under Section 24.

Total deduction will be Rs 3.5 lakh and if Mr. X is in the highest income tax slab, he will get a income tax benefit of Rs 1,05,000.

Income Tax Benefits on Joint Home Loan: One can avail income tax benefit on home loan up to Rs 1.5 lakh under Section 80C and 2 lakh under Section 24. But if you go for a joint home loan along with your spouse in the ratio of 50: 50, then both of you can claim these benefits separately. So the combined limit will be Rs 3 lakh under Section 80C and 4 lakh under Section 24. This can reduce your overall cost of loan for the family considerably.

Total deduction will be Rs 7 lakh and if both spouses are in the highest income tax slab, they will get a income tax benefit of Rs 210000/- which is just double compared to an individual home loan, although this provision may vary from person to person.

Before going for a joint home loan, you should mutually work out your ownership share if you wish to optimize the income tax benefit. That is, if you and your spouse own the house jointly in the ratio of 50:50, both can claim deductions in equal proportion. Therefore, if your income tax slabs are different, you need to work out your ownership share in a manner that the spouse in the higher income tax bracket owns a bigger share.

Please note that it is essential to be co-owners to be eligible for income tax benefits. The co-ownership share also plays a role in determining your deductions.

 

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Before filing Income Tax Return some points to be Kept in mind

Tax-Return

Before filing Income Tax Return some points to be Kept in mind

SELECTION OF RETURN FORM TO BE USED

The first step in filing of a income tax return is to select the correct Form of income tax return. It should be noted that the Forms of income tax return may be changed in the middle of the year. The taxpayer, therefore, need to file in the new form. There are seven Forms of return notified by the income tax authorities. Out of these, ITR 1 to 4  are applicable to individuals/HUFs, while ITR 5 is for Partnership Firms and LLP, ITR is for Companies other than those claiming exemptions (See Rule 12) and ITR 7 is for  [For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D (Please see rule 12 of the Income-tax Rules).  Therefore, correct form needs to be filled in.

COMMON MISTAKES WHILE FILING THE INCOME TAX RETURN FORM

1. Interest from bank deposits or NSC certificates should be disclosed

Even though the deduction for interest incomes was withdrawn three years back, many people still do not disclose the interest which they may have earned from their bank deposits or NSC certificates. No matter how small the amount is, such interest should be disclosed in the return. One should not make the mistake of skipping the interest income altogether on the basis that it is not shown in Form 16, as in many cases, the employer may have not at all considered the interest income for computing the TDS of the employee. In respect of Interest on Saving Bank Account Assessee can claim deduction Under Section 80TTA.

2. Deduction for investment made under Section80C, Section80CCC & Section80 CCD is restricted to Rs 1.50 lakh wef A.Y. 2015-16

Further, it should be noted that deduction for investment made under Section 80C, contribution to pension fund under Section 80CCC or for contribution to pension scheme of the employer under Section 80CCD is restricted to an overall limit of Rs 1.50 lakh. Benefit under Section 80C can also be claimed for tuition fees paid by an individual for their children and for the repayment of principal amount in respect of home loan taken by him.

3. Income of spouse or minor child may have to be clubbed with the income of taxpayer

There can also be cases where the income of spouse or minor child of the taxpayer may be liable to be clubbed with the income of the taxpayer as per provisions of income tax laws. In such a scenario, it is pertinent that the correct Form of return is used to file the return of income tax.

4. Be cautious while calculating surcharge and education cess

It is common to make a mistake while calculating the amount of surcharge and education cess on the amount of income tax payable. It needs to be noted that surcharge of 10% is not required to be added to the income tax if the total income does not exceed Rs 100 lakh. However, education cess should be added to the amount of income tax at the rate of 3% even if the total income is less than Rs 100 lakh. The correct method is to first add surcharge of 10% to the tax, if it is applicable, and thereafter, add education cess at the rate of 3% on such aggregate of tax and surcharge.

5. Safely file all relevant documents for future needs

Though the requirement to attach various certificates, documents, etc., along with the return has been dispensed with, one should not commit the mistake of trashing away such documents on the premise that these would not be required in the future. The income tax authorities might require any document to be furnished by the taxpayer in case a scrutiny proceeding is initiated for verifying the claims made in the return.

6. Double check all key information like PAN No., bank account details, communication address etc

Some taxpayers may commit error in quoting the correct Permanent Account Number (“PAN”). The correct 10 digit PAN should be filled in legibly. Appropriate care is required while filling in the address as all the notices and other communication from the income tax authorities is posted to this address.

In case of a refund, the bank account number needs to be filled in accurately. In case the refund is opted to be received via ECS direct into the bank account, adequate care should be taken to correctly fill in the MICR code. Any mistake may lead to problems in credit of income tax refund and consequent inconvenience.

Also see Details about Section 80C of Income Tax Act

PRECAUTIONS WHILE FILING THE INCOME TAX RETURN

1. File the income tax return in time

Taxpayers often tend to wait too close till the last day to file the income tax return. This often leads to a lot of inconvenience. And even if, in order to avoid the long queues at the counters receiving the paper income tax returns, a taxpayer plans to file the income tax return online, filing very close to the last day is not advisable given the fact that peak load on the servers of the e-filing website during the last few days may make the whole online filing experience quiet frustrating. If the clock on the last day ticks beyond 12 at midnight, any return filed thereafter would be treated as having been filed on the next day.

Filing income tax return after the due date may prove to be a costly mistake for a taxpayer who has incurred losses which he wants to carry-forward to future years (e.g., house property loss, short-term capital loss, long-term capital loss, etc.). Under the income tax laws, such losses are not allowed to be carried forward for being set-off against the income of future years unless the income tax return has been filed by the due date even though all the taxes have been pre-paid. Mostly, the taxpayers filing a loss income tax return for the first time commit this mistake.

2. Online filing of income tax returns

Many taxpayers, opting to file their return online, are of the perception that having filed the return online without a digital signature, submission of Form ITR-V is a mere formality which can be completed anytime. This is a misconception. If the return is filed online without digital signature,  A duly verified ITR-V form should be signed and submitted to CPC, Post Bag No. 1, Electronic City Post Office, Bangalore – 560100 by Ordinary Post or Speed Post (without Acknowledgment) ONLY, within 120 days from the date of e-Filing. If Form ITR-V is filed beyond 120 days, it would be deemed as if the return was not filed online in the first place and it might be too late by then.

Similarly, if a paper return is filed, the acknowledgement slip should be preserved carefully.

3. Key rules to be followed to ensure trouble free processing

  • Once E filing is done (without digital signature), ITR V needs to be sent in time to CPC. In case ITR V acknowledgement is not received within reasonable time, the assessee may call up the CPC call centre to verify status Nearly 10% of assessees have failed to send the ITR V to CPC after E filing.
  • Assessee needs to fill his email address, mobile number correctly to ensure appropriate communication from the Income Tax Department. The use of the Tax practioner/CA’s email address may not be appropriate.
  • The assessee should make sure the correct (latest) address, bank account number, MICR number is filled
  • The assessee should verify income tax credits available in Form 26AS/NSDL websites. Mismatches are the single largest cause of incorrect tax computation. Non credits may be taken up with the TDS deductor and/or the banker as soon as they are noticed.

4. Impact of Errors made while filing income tax returns

  • Returns can be classified as defective u/s 139 (9) and in some scenarios the return can be declared in valid / Non Est. ITD is not introducing this concept to cover certain types of errors in order to prevent future grievances.
  • Computation Errors – In electronic filing, it has been noticed that most of the errors are due to data errors as filed by the assessee This includes non filling of key schedules, wrong details etc resulting in rectification requests etc which delay closure of processing.
  • Inability to pay refunds to the assessee.

5. Precaution in filling Personal Information Schedule

  • Name: Has to match the PAN database
  • Date of Birth: Mistakes here will result in computation of higher taxes in case of senior citizens
  • Address: House/Flat no, City, PIN Code, are mandatory fields. Non filling will result in refund delays
  • E mail Address: Needs to be filled correctly, is the basis of all communication from CPC. Mistake will result in non receipt of all intimations from CPC. Use of Auditor/Tax practitioner’s ID may be avoided.
  • Mobile No: Full Mobile No without use of +91 needs to be entered. This is essential for all SMS based communication.
  • Sex: Should match the PAN database. If PAN database is wrong, it results in mistakes in computation.
  • Status : Should be correctly filled
  • Residential Status – the status of NOR and NRI should be mentioned only where applicable as they are not eligible for certain benefits available to resident assessee.

 

 

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Post office small savings schemes

saving-scheme

Post office small savings schemes

As we have finished the FY 2014-15 and started a new FY 2015-16, FM Arun Jaitley has declared the new interest rates for post office small savings schemes. Recently we have noticed private sector banks like ICICI, Axis, HDFC banks reduced fixed deposit interest rate for FY 2015-16. At the same time our FM is increasing few of the post office schemes. Under post office small deposit scheme there are many products like Kisan Vikas Patra (KVP)National Saving Scheme (NSC) , Post office Savings account, Public Provident Fund (PPF), Recurring deposit – 5 year, Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana Account (SSYA) and Term deposit schemes. Out of them FM has declared a hike of 0.10% interest rate only Sukanya Scheme and Senior Citizen scheme. Rest all interest rates were kept as it was.

post-office

Post office small savings schemes

It is clear that Govt is trying to stress more on investment towards Sukanya Samriddhi Scheme and Senior Citizen scheme. We have seen that BJP govt is trying more to encourage people to save more for the girl child future as well pension schemes. By June 1st we are going to get a new pension scheme Atal Pension Yojana. Anway many experts think that this move might be a political move by keeping all popular schemes interest rate as it was, but giving importance to the new Sukanya Scheme.

Also see Highlights of Union Budget for 2015-16

Whatever the fact it is, this move will definitely help Govt to to open more Sukanya Samriddhi Account in coming days by attracting highest interest rate in the peer group. But people should not consider that this scheme will get every year more interest rate. In the early years it may get more interest, but there is no guarantee that it will continue for long term. And again in case political power changes in our country after few years, it may impact this future of this scheme as well. Anyway consider this piece of information as a news only, think twice about your priorities and goals before investing in any product just by considering the best interest rate. Share your valuable thoughts by writing a comment below.

 

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Latest fixed deposit interest rates in India 2015

Latest fixed deposit interest rates in India 2015 – ICICI, HDFC, Axis bank revised rates:

interest-rates

Latest fixed deposit interest rates in India 2015

Leading private banks HDFC bank and ICICI bank has reduced the fixed deposit interest rates by 0.25% for amount more than 1 crore. The effective interest rate will come down from 8.25% to 8% for deposited amount above 1 crore for maturity period of 121 to 150 days. Besides that the interest rate on term deposits for amount more than 5 crore in the period of 61 – 90 days and also 91 – 120 days has also revised to 8% from earlier 8.25% effective from last Sunday, 29th March 2015. Earlier country’s third largest private sector bank Axis bank has also reduced the fixed deposit interest rates by 0.25% for a term of 18-36 months duration. Also for deposits up to 18 months interest rate is reduced by 0.15%.

Latest fixed deposit interest rates offering by various banks

Seems like major private sector banks has already started reducing the deposit rates. That means in coming days other banks are also reduce fixed deposit interest rates further to join the competition. We have to wait for few more days till we get news from SBI as well. I am including here banks who has changes the FD interest rates recently.

Also read Highlights of Union Budget for 2015-16

ICICI bank latest fixed deposit interest rates

Single Deposit Current Rate of Interest (% p.a)                             w.e.f March 30, 2015
Tenure Period 1 or to less than 5 or 5 or to less than 25 or 25 or to less than 100 or 100 or to less than 250 or 250 or & above
7 days to 14 days 7.25 7.25 7.25 7.25 6.50
15 days to 29 days 7.25 7.50 7.50 7.50 7.50
30 days to 45 days 7.50 7.50 7.50 7.50 7.50
46 days to 60 days 7.75 7.50 7.50 7.50 7.50
61 days to 90 days 8.00 8.00 8.00 8.00 8.00
91 days to 120 days 8.00 8.00 8.00 8.00 8.00
121 days to 150 days 8.25 8.00 8.00 8.00 8.00
151 days to 184 days 8.25 8.25 8.25 8.25 8.25
185 days to210 days 8.25 8.25 8.25 8.25 8.25
211 days to 240 days 8.25 8.25 8.25 8.25 8.25
241 days to 270 days 8.25 8.25 8.25 8.25 8.25
271 days to 300 days 8.25 8.25 8.25 8.25 8.25
301 days to 330 days 8.25 8.25 8.25 8.25 8.25
331 days to 365 days 8.25 8.25 8.25 8.25 8.25
1 year to 389 days 8.50 8.40 8.40 8.40 8.40
390 days to less than 15 months 8.25 8.25 8.25 8.25 8.25
15 months to less than 18 months 8.25 8.25 8.25 8.25 8.25
18 months to 2 years 8.25 8.25 8.25 8.25 8.25
2 years 1 day to 3 years 8.25 8.25 8.25 8.25 8.25
3 years 1 day to 5 years 8.25 8.25 8.25 8.25 8.25
5 years 1 day to 7 years 8.25 8.25 8.25 8.25 8.25
7 years 1 day to 10 years 8.25 8.25 8.25 8.25 8.25

Axis bank latest fixed deposit interest rates

DEPOSITS – LESS THAN 5 CRORES W.E.F 11/03/2015  
SR. NO PERIOD INTEREST RATES      (%P.A.)  
    INTEREST RATE ON DEPOSITS BELOW RS. 1 CRORE INTEREST RATES ON DEPOSITS OF RS. 1 CRORE <RS.5 CRORES
1 7 days to 14 days 3.50 6.00
2 15 days to 29 days 3.50 6.00
3 30 days to 45 days 7.50 6.00
4 46 days to 60 days 7.50 7.50
5 61 days < 3 months 7.50 7.50
6 3 months < 4 months 8.25 7.50
7 4 months < 5 months 8.25 8.25
8 5 months < 6 months 8.50 8.25
9 6 months < 7 months 8.50 8.50
10 7 months < 8 months 8.50 8.50
11 8 months < 9 months 8.50 8.50
12 9 months < 10 months 8.50 8.50
13 10 months < 11 months 8.50 8.50
14 11 months < 1 year 8.50 8.50
15 1 year < 13 months 8.50 8.50
16 13 months < 14 months 8.50 8.50
17 14 months < 15 months 8.50 8.50
18 15 months < 16 months 8.50 8.50
19 16 months < 17 months 8.50 8.50
20 17 months < 18 months 8.50 8.50
21 18 months < 2 years 8.50 8.50
22 2 years < 30 months 8.50 8.50
23 30 months < 3 year 8.50 8.50
24 3 years < 5 years 8.50 8.50
25 5 years to 10 years 8.50 8.50

 Also see Income tax rates for Financial year 2015-2016

HDFC bank latest fixed deposit interest rates

< 1 Crore   >=1 Crore to < 5 Crores
Period Interest Rate (Per Annum) Senior Citizen Rates (Per Annum) Interest Rate (Per Annum) Senior Citizen Rates (Per Annum)
7 – 14 days 3.50% 4.00% 7.00% 7.50%
15 – 29 days 5.00% 5.50% 7.25% 7.75%
30 – 45 days 6.00% 6.50% 7.50% 8.00%
46 – 60 days 7.75% 8.25% 7.75% 8.25%
61 – 90 days 7.75% 8.25% 8.00% 8.50%
91 days – 6 months 8.00% 8.50% 8.25% 8.75%
6 months 1 day – 9 months 3 days 8.25% 8.75% 8.50% 9.00%
6 months  4 days 8.25% 8.75% 8.50% 9.00%
6 months 5 days – 9 months 8.25% 8.75% 8.50% 9.00%
9 months 1 day – 9 months 3 days 8.25% 8.75% 8.50% 9.00%
9 months 4 days 8.25% 8.75% 8.50% 9.00%
9 months 5 days <  1 Year 8.25% 8.75% 8.50% 9.00%
1 year 8.75% 9.25% 8.75% 9.25%
1 year 1 day – 1 year 3 days 8.75% 9.25% 8.75% 9.25%
1 year 4 days 8.75% 9.25% 8.75% 9.25%
1 year 5 days – 1 year 15 days 8.75% 9.25% 8.75% 9.25%
1 year 16 days 8.75% 9.25% 8.75% 9.25%
1 year 17 days – 2 years 8.75% 9.25% 8.75% 9.25%
2 years 1 day – 2years 3 days 8.75% 9.25% 8.75% 9.25%
2 years 4 days 8.75% 9.25% 8.75% 9.25%
2 years 5 days – 3 years 8.75% 9.25% 8.75% 9.25%
3 year 1 day – 5 years 8.75% 9.25% 8.75% 9.25%
5 years 1 day – 10 years 8.25% 9.75% 8.25% 8.75%

 

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No change in rate of Service Tax from 1 April 2015

Tax

No change in rate of Service Tax from 1 April 2015

Clarification- No change in rate of Service Tax

Finance bill, 2015 has proposed to increase effective rate of Service Tax from 12.36% to 14%. It is wrongly reported in some quarters that the effective date of change in rate of Service Tax is 1st April, 2015. It is hereby clarified that the change in the rate of Service Tax will be effective from the date to be notified after enactment of Finance Bill, 2015. In this regard relevant portion of D.O.F. No.334/5/2015-TRU dated 28th February 2015 is produced below: “3.3 The Service Tax rate shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015”. Hence, it is worthwhile to mention that there is no change in the rate of Service Tax w.e.f. 1st April 2015.

Also see Highlights of Union Budget for 2015-16

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Income tax rates for Financial year 2015-2016

Income tax -rates-for-Financial-year-2015-2016

Income tax rates for Financial year 2015-2016

1). Individual resident aged below 60 years (i.e. born on or after 1st April 1955) or any NRI / HUF / AOP / BOI / AJP*

Income Tax :

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 2,50,000/-. NIL
ii. Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the total income exceeds Rs. 2,50,000/-.
Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/-. Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore  (if applicable then Marginal Relief in Surcharge).

Education Cess : 3% of the total of Income Tax and Surcharge.

Abbreviations used :   NRI – Non Resident Individual; HUF – Hindu Undivided Family; AOP – Association of Persons; BOI – Body of Individuals; AJP – Artificial Judicial Person

2). Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year (i.e. born on or after 1st April 1934 but before 1st April 1954)

Income Tax :

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 3,00,000/-. NIL
ii. Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- 10% of the amount by which the total income exceeds Rs. 3,00,000/-.
Less : Income Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 20,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/- Rs. 120,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

3). Individual resident who is of the age of 80 years or more at any time during the previous year (i.e. born before 1st April 1934).

Income Tax :

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 5,00,000/-. NIL
ii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iii. Where the total income exceeds Rs. 10,00,000/- Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

4). Co-operative Society

Income Tax :

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 10,000/-. 10% of the income.
ii. Where the total income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-. Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii. Where the total income exceeds Rs. 20,000/- Rs. 3.000/- + 30% of the amount by which the total income exceeds Rs. 20,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

5). Domestic Company

Income Tax : 30% of total income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge

  • At the rate of 5% of such income tax, provided that the total income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
  • At the rate of 10% of such income tax, provided that the total income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

6). Firm

Income Tax : 30% of total income.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

7). Local Authority

Income Tax : 30% of total income.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

8). Company other than a Domestic Company

Income Tax :

  • 50% of on so much of the total income as consist of  royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or
  • Fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
  • 40% of the balance.

Surcharge :

The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under

  • At the rate of 2% of such income tax, provided that the total income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
  • At the rate of 5% of such income tax, provided that the total income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

Marginal Relief : When an assessee’s taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Example :

In case of an individual assess (< 60 years) having taxable income of Rs. 1,00,01,000/-

1. Income Tax Rs. 28,30,300
2. Surcharge @10% of Income Tax Rs. 2,83,030
3. Income Tax on income of Rs. 1 crore Rs. 28,30,000
4. Maximum Surcharge payable
(Income over Rs. 1 crore less income tax on income over Rs. 1 crore)
Rs. 700/- (1000 – 300)
5. Income Tax + Surcharge payable Rs. 28,31,000
6. Marginal Relief in Surcharge Rs. 2,82,330/- (2,83,030 – 700)

 Note: There is no change in Income tax rates for year 2015-16. It is same as last year 2014- 2015 (AY 2015-16).

 

 

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Highlights of Union Budget for 2015-16

Budget-highlights

Highlights of Union Budget for 2015-16

INTRODUCTION:

  • Credibility of Indian economy has been re-established in the last nine months.
  • Indian economy about to take-off on a fast growth trajectory.
  • Most growth forecasts have upgraded Indian economic growth while downgrading
    global economic growth.
  • Economically empowered States are equal partners to Indian economic growth.
  • Round the clock, round the year Government to pursue accelerated growth, enhanced investment for the benefit of all Indians.
  • After inheriting an economy with sentiments of “doom and gloom” with adverse macroeconomic indicators, nine months have seen at turn around, making India fastest growing large economy in the World with a real GDP growth expected to be 7.4% (New Series).
  • Stock market – Second best performing in 2014.
  • Macro-economic stability and conditions for sustainable poverty alleviation, job creationand durable double digit economic growth have been achieved.
  • Restored the trust of the people on the Government by delivering on different areas.

Three Key achievements:

  • Financial Inclusion – 12.5 crores families financially mainstreamed in 100 days.
  • Transparent Coal Block auctions to augment resources of the States.
  • Swachh Bharat is not only a programme to improve hygiene and cleanliness but has become a movement to regenerate India.

Game changing reforms on the anvil:

  • Goods and Service Tax (GST)
  • Jan Dhan, Aadhar and Mobile (JAM) – for direct benefit transfer.

STATE OF ECONOMY

Inflation

  • Inflation declined – a structural shift.
  • CPI inflation projected at 5% by the end of the year, consequently, easing of monetary policy.
  • Monetary Policy Framework Agreement with RBI, to keep inflation below 6%.
  • GDP growth in 2015-16, projected to be between 8 to 8.5%.

Amrut Mahotsav – The year 2022, 75th year of Independence Vision for “Team India” led by PM:

  • Housing for all – 2 crore houses in Urban areas and 4 crore houses in Rural areas.
  • Basic facility of 24×7 power, clean drinking water, a toilet and road connectivity.
  • At least one member has access to means for 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.
  • Ensure a Senior Secondary School within 5 km reach of every child, while improving quality of education and learning outcomes.
  • To strengthen rural economy – increase irrigated area, improve the efficiency of existing irrigation systems, and ensure value addition and reasonable price for farm produce.
  • Ensure 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 – to turn youth into job creators.
  • Development of Eastern and North Eastern regions on par with the rest of the country.

Major Challenges Ahead:

  • Five major challenges: Agricultural income under stress, increasing investment in
    infrastructure, decline in manufacturing, resource crunch in view of higher devolution in taxes to states, maintaining fiscal discipline.
  • To meet these challenges public sector needs to step in to catalyse investment, make in india programme to create jobs in manufacturing, continue support to programmes with important national priorities such as agriculture, education, health, MGNREGA, rural infrastructure including roads.
  • Challenge of maintaining fiscal deficit of 4.1% of GDP met in 2014-15, despite lower nominal GDP growth due to lower inflation and consequent sub-dued tax buoyancy.

Fiscal Road map:

  • Government firm on journey to achieve fiscal target of 3% of GDP.
  • Realistic figures shown in fiscal account without showing exaggerated revenue
    projections.
  • With improved economy, pressure to accelerate fiscal consolidation too has decreased.
  • Accordingly, journey for fiscal deficit target of 3% will be achieved in 3 years rather than 2 years. The fiscal deficit targets are 3.9%, 3.5% and 3.0% in FY 2015-16, 2016-17 & 2017-18 respectively.
  • Additional fiscal space will go to funding infrastructure investment.
  • Need to view public finances from a National perspective and not just the perspective of the Central Government. Aggregate public expenditure of the Governments, as a whole can be expected to rise substantially.
  • Disinvestment to include both disinvestment in loss making units, and some strategic disinvestment.

Good governance:

  • Need to cut subsidy leakages, not subsidies themselves. To achieve this, Government committed to the process of rationalizing subsidies.
  • Direct Transfer of Benefits to be extended further with a view to increase the number of beneficiaries from 1 crore to 10.3 crore.

Agriculture:

  • Major steps take to address the two major factors critical to agricultural production, that of soil and water.
  • Paramparagat Krishi Vikas Yojana’ to be fully supported.
  •  ‘Pradhanmantri Gram Sinchai Yojana’ to provide ‘Per Drop More Crop’.
  • 5,300 crore to support micro-irrigation, watershed development and the ‘Pradhan
    Mantri Krishi Sinchai Yojana’. States urged to chip in.
  • 25,000 crore in 2015-16 to the corpus of Rural Infrastructure Development Fund
    (RIDF) set up in NABARD; `15,000 crore for Long Term Rural Credit Fund; `45,000 crore for Short Term Co-operative Rural Credit Refinance Fund; and `15,000 crore for Short Term RRB Refinance Fund.
  • Target of `8.5 lakh crore of agricultural credit during the year 2015-16.
  • Focus on improving the quality and effectiveness of activities under MGNREGA.
  • Need to create a National Agriculture Market for the benefit farmers, which will also have the incidental benefit of moderating price rises. Government to work with the States, in NITI, for the creation of a Unified National Agriculture Market.

Funding the Unfunded:

  • Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of `20,000 crores, and credit guarantee corpus of `3,000 crores to be created.
  • In lending, priority will be given to SC/ST enterprises.
  • MUDRA Bank will be responsible for refinancing all Micro-finance Institutions which are in the business of lending to such small entities of business through a Pradhan Mantri Mudra Yojana.
  • A Trade Receivables discounting System (TReDS) which will be an electronic platform for facilitating financing of trade receivables of MSMEs to be established.
  • Comprehensive Bankruptcy Code of global standards to be brought in fiscal 2015-16 towards ease of doing business.
  • Postal network with 1,54,000 points of presence spread across villages to be used for increasing access of the people to the formal financial system.
  • NBFCs registered with RBI and having asset size of `500 crore and above may be
    considered for notifications as ‘Financial Institution’ in terms of the SARFAESI Act, 2002.

From Jan Dhan to Jan Suraksha:

  • Government to work towards creating a functional social security system for all Indians, specially the poor and the under-privileged.
  • Pradhan Mantri Suraksha Bima Yojna to cover accidental death risk of `2 Lakh for a premium of just `12 per year.
  • Atal Pension Yojana to provide a defined pension, depending on the contribution and the period of contribution. Government to contribute 50% of the beneficiaries’ premium limited to `1,000 each year, for five years, in the new accounts opened before 31st December 2015.
  • Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both natural and accidental death risk of `2 lakh at premium of `330 per year for the age group of 18-50.
  • A new scheme for providing Physical Aids and Assisted Living Devices for senior
    citizens, living below the poeverty line.
  • Unclaimed deposits of about `3,000 crores in the PPF, and approximately `6,000
    crores in the EPF corpus. The amounts to 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.
  • Government committed to the on-going schemes for welfare of SCs, STs and Women.

Infrastructure:

  • Sharp increase in outlays of roads and railways. Capital expenditure of public sector units to also go up.
  • National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of `20,000 crores to it.
  • Income Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors.
  • PPP mode of infrastructure development to be revisited and revitalised.
  • Atal Innovation Mission (AIM) to be established in NITI to provide Innovation
    Promotion Platform involving academicians, and drawing upon national and international experiences to foster a culture of innovation , research and development. A sum of 150 crore will be earmarked.
  • Concerns of IT industries for a more liberal system of raising global capital, incubation facilities in our Centres of Excellence, funding for seed capital and growth, and ease of Doing Business etc. would be addressed for creating hundreds of billion dollars invalue.
  • (SETU) Self-Employment and Talent Utilization) to be established as Techno-financial, incubation and facilitation programme to support all aspects of start-up business. `1000 crore to be set aside as initial amount in NITI.
  • Ports in public sector will be encouraged, to corporatize, and become companies
    under the Companies Act to attract investment and leverage the huge land resources.
  • An expert committee to examine the possibility and prepare a draft legislation where the need for multiple prior permission can be replaced by a pre-existing regulatory mechanism. This will facilitate India becoming an investment destination.
  • 5 new Ultra Mega Power Projects, each of 4000 MW, in the Plug-and-Play mode.

Financial Market:

  • Public Debt Management Agency (PDMA) bringing both external and domestic
    borrowings under one roof to be set up this year.
  • Enabling legislation, amending the Government Securities Act and the RBI Act includeding the Finance Bill, 2015.
  • Forward Markets commission to be merged with SEBI.
  • Section-6 of FEMA to be amended through Finance Bill to provide control on capital flows as equity will be exercised by Government in consultation with RBI.
  • Proposal to create a Task Force to establish sector-neutral financial redressal agency that will address grievance against all financial service providers.
  • India Financial Code to be introduced soon in Parliament for consideration.
  • Vision of putting in place a direct tax regime, which is internationally competitive on rates, without exemptions.
  • Government to bring enabling legislation to allow employee to opt for EPF or New
    Pension Scheme. For employee’s below a certain threshold of monthly income,
    contribution to EPF to be option, without affecting employees’ contribution.

Monetising Gold:

  • Gold monetisation scheme to allow the depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account to be introduced.
  • Sovereign Gold Bond, as an alternative to purchasing metal gold scheme to be developed.
  • Commence work on developing an Indian gold coin, which will carry the Ashok Chakra on its face.

Investment: 

  • Foreign investments in Alternate Investment Funds to be allowed.
  • Distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments to be done away with. Replacement with composite caps.
  • A project development company to facilitate setting up manufacturing hubs in CMLV countries, namely, Cambodia, Myanmar, Laos and Vietnam.

Safe India:

  • 1000 crores to the Nirbhaya Fund.

Tourism:

  • Resources to 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 heritage sites.
  • Visas on arrival to be increased to 150 countries in stages.

Green India:

  • Target of renewable energy capacity revised to 175000 MW till 2022, comprising
    100000 MW Solar, 60000 MW Wind, 10000 MW Biomass and 5000 MW Small
    Hydro.
  • A need for procurement law to contain malfeasance in public procurement.
  • Proposal to introduce a public Contracts (resolution of disputes) Bill to streamline the institutional arrangements for resolution of such disputes.
  • Proposal to introduce a regulatory reform Bill that will bring about a cogency of approach across various sectors of infrastructure.

Skill India:

  • Less than 5% of our potential work force gets formal skill training to be employable. A national skill mission to consolidate skill initiatives spread accross several ministries to be launched.
  • Deen Dayal Upadhyay Gramin Kaushal Yojana to enhance the employability of rural youth.
  • A Committee for 100th birth celebration of Shri Deen Dayalji Upadhyay to be
    announced soon.
  • A student Financial Aid Authority to administer and monitor the front-end all scholarship as well Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakram.
  • An IIT to be set up in Karnataka and Indian School of Mines, Dhanbad to be upgraded in to a full-fledged IIT.
  • New All India Institute of Medical Science (AIIMS) to be set up in J&K, Punjab,
    Tamil Nadu, Himachal Pradesh and Assam. Another AIIMS like institutions to be set up in Bihar.
  • A post graduate institute of Horticulture Research & Education is to be set up in Amritsar.
  • 3 new National Institute of Pharmaceuticals Education and Research in Maharashtra, Rajasthan & Chattisgarh and one institute of Science and Education Research is to be set up in Nagaland & Orissa each.
  • An autonomous Bank Board Bureau to be set up to improve the governance of public sector bank.
  • The National Optical Fibre Network Programme (NOFNP) to be further speeded up by allowing willing states to execute on reimbursement of cost basis.
  • Special assistance to Bihar & West Bengal to be provided as in the case of Andhra
    Pradesh.
  • Government is committed to comply with all the legal commitments made to AP & Telengana at the time of their re-organisation.
  • Inspite of large increase in devolution to state sufficient fund allocated to education, health, rural development, housing, urban development, women and child development, water resources & cleaning of Ganga.
  • Part of Delhi-Mumbai Industrial Corridor (DMIC); Ahmedabad-Dhaulera Investment region and Shendra-Bidkin Industrial Park are now in a position to start work on basic infrastructure.
  • Made in India and the Buy and the make in India policy are being carefully pursued to achieve greater self-sufficiency in the area of defence equipment including air-craft.
  • The first phase of GIFT to become a reality very soon. Appropriate regulations to be issued in March.

BUDGET ESTIMATES:

  • Non-Plan expenditure estimates for the Financial Year are estimated at `13,12,200 crore.
  • Plan expenditure is estimated to be `4,65,277 crore, which is very near to the R.E. of 2014-15.
  • Total Expenditure has accordingly been estimated at `17,77,477 crore. The requirements for expenditure on Defence, Internal Security and other necessary expenditures are adequately provided.
  • Gross Tax receipts are estimated to be `14,49,490 crore.
  • Devolution to the States is estimated to be `5,23,958.
  • Share of Central Government will be `9,19,842. Non Tax Revenues for the next fiscal are estimated to be `2,21,733 crore.
  • Fiscal deficit will be 3.9 per cent of GDP and Revenue Deficit will be 2.8 per cent of GDP.

TAX PROPOSAL:

  • Objective of stable taxation policy and a non-adversarial tax administration.
  • Fight against the 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 income tax from 30% to 25% over the next four years, starting from next financial year.
  • Rationalisation and removal of various tax exemptions and incentives to reduce tax disputes and improve administration.
  • Exemption to individual tax payers to continue to facilitate savings.

Broad themes :

  • Measures to curb black money;
  • Job creation through revival of growth and investment and promotion of domestic manufacturing – “Make in India” ;
  • Improve ease of doing business – Minimum Government and maximum
    governance;
  • Improve quality of life and public health – Swachh Bharat;
  • Benefit to middle class tax-payers; and
  • Stand alone proposals to maximise benefit to the economy.

Black Money:

  • Generation of black money and its concealment to be dealt with effectively and forcefully.
  • Investigation into cases of undisclosed foreign assets has been given highest priority in
    the last nine months.
  • Major breakthrough with Swiss authorities, who have agreed to:
  • Provide information in respect of cases independently investigated by IT
    department;
  • Confirm genuineness of bank accounts and provide non-banking information;
  • Provide such information in time-bound manner; and
  • Commence talks for automatic exchange of information.
  • New structure of electronic filing of statements by reporting entities to ensure seamless integration of data for more effective enforcement.
  • Bill for a comprehensive new law to deal with black money parked abroad to be
    introduced in the current session.

Key features of new law on black money:

  • Evasion of income tax in relation to foreign assets to have a punishment of rigorous
    imprisonment upto 10 years, be non-compoundable, have a penalty rate of 300%
    and the offender will not be permitted to approach the Settlement Commission.
  • Non-filing of return/filing of return with inadequate disclosures to have a punishment of rigorous imprisonment upto 7 years.
  • Undisclosed income from any foreign assets to be taxable at the maximum marginal rate.
  • Mandatory filing of return in respect of foreign asset.
  • Entities, banks, financial institutions including individuals all liable for prosecution and penalty.
  • Concealment of income/evasion of income in relation to a foreign asset to be
    made a predicate offence under PML Act, 2002.
  • PML Act, 2002 and FEMA to be amended to enable administration of new Act
    on black money.
  • Benami Transactions (Prohibition) Bill to curb domestic black money to be introduced in the current session of Parliament.
  • Acceptance or re-payment of an advance of ` 20,000 or more in cash for purchase of immovable property to be prohibited.
  • PAN being made mandatory for any purchase or sale exceeding Rupees 1 lakh.
  • Third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions.
  • Provision to tackle splitting of reportable transactions.
  • Leverage of technology by CBDT and CBEC to access information from either’s data bases.

Make in India:

  • Revival of growth and investment and promotion of domestic manufacturing for job creation.
  • Income Tax “pass through” to be allowed to both category I and category II alternative
    investment funds.
  • Rationalisation of capital gains regime for the sponsors exiting at the time of listing of the units of REITs and InvITs.
  • Rental income of REITs from their own assets to have pass through facility.
  • Permanent Establishment (PE) norm to be modified to encourage fund managers to relocate to India.
  • 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.
  • Additional investment allowance (@ 15%) and additional depreciation (@35%) to
    new manufacturing units set up during the period 01-04-2015 to 31-03-2020 in notified backward areas of Andhra Pradesh and Telangana.
  • Rate of Income-tax on royalty and fees for technical services reduced from 25% to
    10% to facilitate technology inflow.
  • Benefit of deduction for employment of new regular workmen to all business entities and eligibility threshold reduced.
  • Basic Custom duty on certain inputs, raw materials, inter mediates and components in
    22 items, reduced to minimise the impact of duty inversion.
  • All goods, except populated printed circuit boards for use in manufacture of ITA bound items, exempted from SAD.
  • SAD reduced on import of certain inputs and raw materials.
  • Excise duty on chassis for ambulance reduced from 24% to 12.5%.
  • Balance of 50% of additional depreciation @ 20% for new plant and machinery
    installed and used for less than six months by a manufacturing unit or a unit engaged in generation and distribution of power is to be allowed immediately in the next year.

Ease of doing business – Minimum Government Maximum Governance:

  • Simplification of tax procedures.
  • Monetary limit for a case to be heard by a single member bench of ITAT increase from 5 lakh to `15 lakh.
  • Penalty provision in indirect taxes are being rationalised to encourage compliance and early dispute resolution.
  • Central excise/Service tax assesses to be allowed to use digitally signed invoices and maintain record electronically.
  • Wealth-tax replaced with additional surcharge of 2 per cent on super rich with a taxable income of over `1 crore annually.
  • Provision of indirect transfers in the Income-tax Act suitably cleaned up.
  • Applicability of indirect transfer provisions to dividends paid by foreign companies to their shareholders to be addressed through a clarificatory circular.
  • Domestic transfer pricing threshold limit increased from `5 crore to ` 20 crore.
  • MAT rationalised for FIIs and members of an AOP.
  • Tax Administration Reform Commission (TARC) recommendations to be appropriately implemented during the course of the year.
  • Education cess and the Secondary and Higher education cess to be subsumed in Central Excise Duty.
  • Specific rates of central excise duty in case of certain other commodities revised.
  • Excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and other tobacco products also changed.
  • Excise duty on footwear with leather uppers and having retail price of more than `1000 per pair reduced to 6%.
  • Online central excise and service tax registration to be done in two working days.
  • Time limit for taking CENVAT credit on inputs and input services increased from 6 months to 1 year.
  • Service-tax plus education cesses increased from 12.36% to 14% to facilitate transition to GST.
  • Donation made to National Fund for Control of Drug Abuse (NFCDA) to be eligible for 100% deduction u/s 80G of Income-tax Act.
  • Seized cash can be adjusted towards assessees tax liability.

Swachh Bharat:

  • 100% deduction for contributions, other than by way of CSR contribution, to Swachh Bharat Kosh and Clean Ganga Fund.
  • Clean energy cess increased from `100 to `200 per metric tonne of coal, etc. to
    finance clean environment initiatives.
  • Excise duty on sacks and bags of polymers of ethylene other than for industrial use
    increased from 12% to 15%.
  • Enabling provision to levy Swachh Bharat cess at a rate of 2% or less on all or certain services, if need arises.
  • Services by common affluent treatment plant exempt from Service-tax.
  • Concessions on custom and excise duty available to electrically operated vehicles and hybrid vehicles extended upto 31.03.2016.

Benefits to middle class tax-payers:

  • Limit of deduction of health insurance premium increased from `15000 to ` 25000, for senior citizens limit increased from `20000 to `30000.
  • Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of ` 30000 towards medical expenditures.
  • Deduction limit of ` 60000 with respect to specified decease of serious nature enhanced to ` 80000 in case of senior citizen.
  • Additional deduction of `25000 allowed for differently abled persons.
  • Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from ` 1 lakh to `1.5 lakh.
  • Additional deduction of ` 50000 for contribution to the new pension scheme u/s 80CCD.
  • Payments to the beneficiaries including interest payment on deposit in Sukanya Samriddhi scheme to be fully exempt.
  • Service-tax exemption on Varishtha Bima Yojana.
  • Concession to individual tax-payers despite inadequate fiscal space.
  • Lot to look forward to as fiscal capacity improves.
  • Conversion of existing excise duty on petrol and diesel to the extent of ` 4 per litre into Road Cess to fund investment.
  • Service Tax exemption extended to certain pre cold storage services in relation to
    fruits and vegetables so as to incentivise value addition in crucial sector.
  • Negative List under service-tax is being slightly pruned to widen the tax base.
  • Yoga to be included within the ambit of charitable purpose under Section 2(15) of the Income-tax Act.
  • To mitigate the problem being faced by many genuine charitable institutions, it is proposed to modify the ceiling on receipts from activities in the nature of trade, commerce or business to 20% of the total receipts from the existing ceiling of ` 25 lakh.
  • Most provisions of Direct Taxes Code have already been included in the Income-tax Act, therefore, no great merit in going ahead with the Direct Taxes Code as it exists today.
  • Direct tax proposals to result in revenue loss of ` 8315 crore, whereas the proposals in indirect taxes are expected to yield ` 23383 crore. Thus, the net impact of all tax proposals would be revenue gain of `15068 crore.

Others:

Increase in basic custom duty:

  • Metallergical coke from 2.5 % to 5%.
  • Tariff rate on iron and steel and articles of iron and steel increased from 10% to
    15%.
  • Tariff rate on commercial vehicle increased from 10 % to 40%.
  • Basic custom duty on digital still image video camera with certain specification reduced to nil.
  • Excise duty on rails for manufacture of railway or tram way track construction material exempted retrospectively from 17-03-2012 to 02-02-2014, if not CENVAT credit of duty paid on such rails is availed.
  • Service-tax to be levied on service provided by way of access to amusement facility, entertainment events or concerts, pageants, non recoganised sporting events etc.

Service-tax exemption:

  • Services of pre-conditioning, pre-cooling, ripening etc. of fruits and vegetables.
  • Life insurance service provided by way of Varishtha Pension Bima Yojana.
  • All ambulance services provided to patients.
  • Admission to museum, zoo, national park, wile life sanctuary and tiger reserve.
  • Transport of goods for export by road from factory to land customs station.
  • Enabling provision made to exclude all services provided by the Government or local authority to a business entity from the negative list.
  • Service-tax exemption to construction, erection, commissioning or installation of original works pertaining to an airport or port withdrawn.
  • Transportation of agricultural produce to remain exempt from Service-tax.
  • Artificial heart exempt from basic custom duty of 5% and CVD.
  • Excise duty exemption for captively consumed intermediate compound coming into existance during the manufacture of agarbathi
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