Highlights of Union Budget 2015-16

Hello Friends, today we are going to share Highlights of Union Budget 2015-16. This was the first full year budget of NDA govt. and presented by Finance Minister Sh. Arun Jaitley in the Parliament.

Highlights of Union Budget 2015-16

Three Key achievements:
1. Financial Inclusion – Rs.12.5 crores families financially mainstreamed in 100 days.
2. Transparent Coal Block auctions to augment resources of the States.
3. Game changing reforms on the anvil:
♦ Goods and Service Tax (GST)
♦ Jan Dhan, Aadhar and Mobile (JAM) – for direct benefit transfer.


1. CPI inflation projected at 5% by the end of the year
2. Monetary Policy Framework Agreement with RBI, to keep inflation below 6%.
3. GDP growth in 2015-16, projected to be between 8 to 8.5%
4. The fiscal deficit targets are 3.9%, 3.5% and 3.0% in FY 2015-16, 2016-17 & 2017-18 respectively.
5. Direct Transfer of Benefits to be extended further with a view to increase the number of beneficiaries from Rs.1 crore to Rs.10.3 crore.
6. Target of Rs.8.5 lakh crore of agricultural credit during the year 2015-16
7. Rs.5,300 crore to support micro-irrigation, watershed development and the ‘Pradhan Mantri Krishi Sinchai Yojana’.
8. Pradhan Mantri Suraksha Bima Yojna to cover accidental death risk of Rs.2 Lakh for a premium of just Rs.12 per year.
9. Pradhan Mantri Jeevan Jyoti Bima Yojana to cover both natural and accidental death risk of Rs.2 lakh at premium of Rs.330 per year for the age group of 18-50.
10. 5 new Ultra Mega Power Projects, each of 4000 MW, in the Plug-and-Play mode.
11. Rs.1000 crores to the Nirbhaya Fund
12.  Visas on arrival to be increased to 150 countries.
13. An IIT to be set up in Karnataka and Indian School of Mines, Dhanbad to be upgraded in to a full-fledged IIT.
14. 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.
15. A post graduate institute of Horticulture Research & Education is to be set up in Amritsar.
16. 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.
17. University of Disability Studies will be established in Kerala.
18. In Arunachal Pradesh, Centre of film production, animation and gaming will come up.
19. For Infrastructure sector Rs. 70,000 crores allocated. Projects in rail road and irrigation bonds will be tax free.
20. For Rural Infrastructure Development Bank, Rs. 25,000 crore allocated.
21. 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.
22. Forward Markets commission to be merged with SEBI.
23. National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of Rs.20,000 crores to it.  Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors

> Gross Tax receipts are estimated to be Rs. 14,49,490 crore.
>Total Expenditure has accordingly been estimated at Rs.17,77,477 crore.
>Fiscal deficit will be 3.9 per cent of GDP and Revenue Deficit will be 2.8 per cent of GDP.

>implement GST from next year.
>No change in rate of personal income tax.
>Proposal to reduce corporate tax from 30% to 25% over the next four years, starting from next financial year.
>Wealth-tax replaced with additional surcharge of 2 per cent on super rich with a taxable income of over  Rs.1 crore annually
>PAN being made mandatory for any purchase or sale exceeding Rs. 1lakh.
>Evasion of 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.
>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.
>Domestic transfer pricing threshold limit increased from Rs.5 crore to Rs.20 crore.
>Excise duty on footwear with leather uppers and having retail price of more than Rs.1000 per pair reduced to 6%.
>Education cess and the Secondary and Higher education cess to be subsumed in Central Excise Duty.
>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.
>Online central excise and service tax registration to be done in two working days.
>100% deduction for contributions, other than by way of CSR contribution, to Swachh Bharat Kosh and Clean Ganga Fund.
>Clean energy cess increased from Rs.100 to Rs.200 per metric tonne of coal, etc. to finance clean environment initiatives.

Benefits to middle class tax-payers:
>Limit of deduction of health insurance premium increased from Rs.15000 to Rs.25000, for senior citizens limit increased from Rs.20000 to Rs.30000
>Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of Rs.30000 towards medical expenditures.
>Deduction limit of Rs.60000 with respect to specified decease of serious nature enhanced to Rs.80000 in case of senior citizen.
>Additional deduction of Rs.25000 allowed for differently abled persons.
>Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs.1 lakh to Rs.1.5 lakh.
>Additional deduction of  Rs.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.
>Yoga to be included within the ambit of charitable purpose under Section 2(15) of the Income-tax Act.

>Rs.2,46,726 crore allocated for Defence. It is 9.87 per cent greater than last year.
>Make in India campaign will take into consideration for speedy manufacturing of Defence equipments.

Click Here To Download PDF File Of Highlights of Union Budget, 2015-16

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