Banking News

Highlights of 2015 Budget

Budget 2015 Highlights:

1. No change in income tax slabs.
2. Medical exemption limit increased to Rs.25000/- from Rs.15000/-
3. Health Insurance Premium deduction for senior citizen increased to Rs.30000/- from Rs.10000/-
4. Exemption of Rs.50000/= for pension under section 80 C
5. Exemption limit rose to Rs.150000/- from Rs.100000/- on contribution to National Pension scheme.
6. Transport allowance exemption increased to Rs.1600 from Rs.800 per month.
7. Government is considering a proposal to change PF law in which contribution to employee would be made optional. Employees can contribute to National Pension Scheme instead of contribution to PF.
• Launching of Senior citizen welfare fund to subsidize the premium for elderly people.
• PAN number is must for any sale exceeding Rupees One lakh.
• Corporate tax to be reduced to 25% from 30% over next four years.
• All contributions to Sukanya Samridhi Scheme is tax free.
• 2% surcharge on income over crore per annum.
• Wealth tax is abolished.
• Tax relief for institutions of yoga instruction
• Consolidated service tax increased to 14%
• 100% tax exemption on contribution towards Clean Ganga Fund & Swacch Bharat Kosh.
• Tax on technical services reduced to 10% from 25%.
• Cess on metric ton of coal increased from Rupees 100/- to 200/-
• Tax free infrastructure bonds for projects in railways and roads.
• Introduction of PM Suraksha Bima Yojana under Jan Dhan Yojana
• Atal Pension Yojana to provide defined pension with 50% contribution from Government.
• Divestment of loss making PSUs.
• New scheme called NAYI MANZIL to enable minority youth without school-leaving certificates to get the employment.
• To set up IT based student scholarship scheme.
• To utilize vast postal network for increasing access to institutional banking.
• Rupay Debit cards to be incentivized to move towards paperless transactions.
• Launching MUDRA bank to refinance micro finance institutions under PM’s MUDRA scheme.
• Launching PM Suraksha Bhima Yojana offering coverage of Rupees two lakh for premium of just Rs.12/- per annum. (Rupees one per month).

Finance Minister Arun Jaitley said that individual tax payer will benefit to the extent of Rs.444200/= from exemptions announced.

(2) Comments

  1. alkeshpatel

    to day one newspaper "GUJARAT SAMACHAR' NEWS APPEARED THAT FROM NEW F.Y 2015-2016 THE TDS ON INTEREST EARNED ON BANK FD BY CLUB ING ALL THE FD IN BANK EVEN THOUGH YOU HAVE INVESTED IN SEPERATE BRANCH OF BANK i.e. TDS will be deducted if interest earned above Rs.10000/- on your total deposit in a perticular bank by clubing all the deposit instead of per branch. pl clearify.

    1. Surendra NaikSurendra Naik - Post author

      Hither to, banks were deducting TDS (Tax Deducted at Source) only if the interest earned from FDs made in a particular branch exceeds threshold limit of Rs.10000.00. Therefore it was common for investors to open FDs at multiple branches of their bank to circumvent TDS. The budget 2015 proposes important change in the rules relating to interest income from FDs. As per new rules, banks will be deducting TDS if the combined interest income of a customer’s FDs in all branches of a bank exceeds Rs.10000/- in a financial year. The interest earned on RDs should also be included to combine income of FDs which was not subjected to TDS till now. The new rule will come into effect from June 1, 2015. For more details you may go through my article titled "TDS on fixed deposits'interest" published in this website.

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