Published On : Sat, Feb 28th, 2015

Does this budget deliver?

Jaitle-modi-budgetNagpur: Yes. If you are a Corporate – you can look forward to tax limit coming down from 30% to 25 % in the next four years – (may be will be implemented from next year only.)

Yes. If you are a senior citizen and fall sick. You get tax exemptions from Rs. 30,000 to Rs. 80,000 depending on the nature of the disease and ailment.

 

Yes. If you are in infrastructure or even a Builder – especially utilizing off shore funds.

 

May be ..if you are a farmer, though what benefits he will finally get is debatable

 

Yes – If you are wealthy and end up paying almost punitive ‘Weath tax’ every year….but if you are super rich you will end up paying 2% surcharge on income tax paid.

 

Nothing for women….or middle class….. or small traders, businessmen etc.

 

No – If you are a smoker or gutkha consumer 

Yes – for Defense allocations. 

Yes – If you are an importer – exporter 

No – If you are looking to park black money in foreign banks. (In fact a lot of punitive measures including R.I. up to 7 – 9 years mentioned…and 300% penalties).
 

 

Congress leaders and other opposition parties have been quick to label this as a pro-rich budget.

Service tax and excise going up is bad news for almost everybody.

As an expert said – there is no direct benefit to middle class except for structured growth and scope for employment.

•Taxation: To provide social safety net, pension, additional deduction of Rs 50,000 to be provided for new pension scheme
•Taxation: To raise limit of deduction of health insurance premium to Rs 25,000 •Taxation:
100% tax deduction for Swachh Bharat, Clean Ganga schemes
•To increase clean energy cess to Rs 200 per metric tonne of coal
•To increase service tax plus education cess to 14%
•To increase threshold for transfer pricing to Rs 20 crore •To increase excise duty to 12.5%; excise duty cut on leather footwear
•To defer GAAR by two years
•To reduce customs duty on 22 items •Rich and wealthy must pay more tax
•To abolish wealth tax; Two percent additional surcharge on super-rich tax •
•To rationalize capital tax regime
•Quoting of PAN number mandatory for any transaction over Rs 1 lakh
•To allow tax pass-through for Alternative investment funds
•Binami transaction prohibition bill to introduced in current session
•To enact law to deal with black money stashed abroad •Strict measures including imprisonment, hefty fines to deal with tax evasion with regard to foreign assets
•Taxation: corporate tax rate to be cut to 25% over next four years
•To rationalize, remove exemptions for corporates over four years
•Taxation: Fight against black money to get stronger •Taxation: GST expected to play transformative role •Considered as having high corporate tax regime
•Defence sector allocation of Rs 2,46,000 crore
•Pursuing Make in India policy in defence sector
•Rs 68,960 crore to eduction crore, Rs33,000 crore to health sector
•Propose to provide similar special assistance to Bihar and West Bengal as in the case of Andhra Pradesh
•Making good progress on Digital India
•To set up AIIMS IN Jammu and Kashmir, Punjab, Tamil Nadhu, Himachal Pradesh and Assam
•To set up another AIIMS-like institution in Bihar, IIT in Karnataka, IIMs in J&K and Andhra Pradesh
To launch National Skills Missions
•To set up film institute in Arunachal Pradesh
•To set up autonomous bank board bureau to select PSU heads