The regime of direct taxation will be revamped under the new budget scheme with competitive rates. The new budget will also see changes in the EPF, giving the option of opting out of reducing employee’s contribution while maintaining the employer’s contribution as standard. This step will be beneficial for those having low income. Also, cash transactions will be incentivized with the objective of popularizing cashless society.
Read Also: A 2 minute read of Budget 2015 Summary
Old foreign investments such as FDI and FBI will be replaced with smarter and more comprehensive schemes. The government also announced additional allocation of 1,000 crore to Nirbhaya fund, the incident that shook the nation. To enhance the tourism sector of the nation, sites declared as World Heritage such as convents and churches across old Goa, Elephanta caves, Hampi, Varanasi, Leh Palace, Jallianwala Bagh and many more will be properly developed.
For the production of electric cars, 75 crore has been allocated. For entrepreneurship and skill development, a new scheme has been announced and 1,500 crore has been allocated. For overall education sector, 68,968 crore has been announced. Tamil Nadu, Assam, J&K and Punjab will get their own AIIMS. Institution of the same standard as AIIMS will be introduced in Bihar. While a new IIT will be introduced in Karnataka, Andhra Pradesh and J&K will get a taste of IIMs. Also a centre for Film studies will be introduced in AP.
The policy of Make-In-India, as started and heavily promoted by the Prime Minister, Narendra Modi, got 2,46,727 crore in its kitty, for defence and associated equipment. A relief for the Corporate India in the form of reduced tax rate has come. According to the budget the corporate tax will see reduction of 5 percent from the current 30 percent in next four annuals. The government also announced schemes for dealing with black money.
The agricultural schemes presented during the budget were aimed at irrigation. 25 crore have been allocated for the RIDB and the micro-irrigation program will be supported through 5300 crore. In the renewable energy sector biomass, small hydro projects, wind power and solar power were considered and development and potential sources for replacing the current non-renewable sources of energy. Rate for Custom duty got reduction for specific 22 items.
The government plans to abolish the wealth tax and replace it with a new and advanced super-rich tax, for those individuals have income above 1 crore. Bad news for frequent restaurant visitors as service tax is now 14 percent. To increase the quality of life of people living on pensions, additional allocation of Rs. 50,000 has been made. Yoga has been included under charitable undertakings.
It can be seen from the 2015 budget that while there have been some relief to sectors such as infrastructure and defence; others were not highly benefit from the budget. Especially the hike in service tax and specific commodities will hurt the already low income of common man.
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