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BUDGET 2015 ON TAX

Today is first full budget of NDA government. Today we are discussing on the benefits available of the budget to the middle man, industry etc. how that budget will help in Make in India programme of modi government.what are the changes made in Income tax , service tax and excise duty in Budget 2013.

BUDGET 2015 ON INCOME TAX

Income tax slab rate for individual and Hindu undivided family

There is no change in tax slab rate of individual and Hindu undivided family in budget 2015. Slab rate for the individual and Hindu undivided family for the financial year 2014-15 will be same as in financial year 2013-14.

Increase in surcharge rate – Additional surcharge  2 percent will be charged for person earning income above Rs 1 crores.

Income tax slab rate for Partnership Firm

There is no change in tax slab rate of partnership firm in budget 2015. Slab rate for the partnership firm for the financial year 2014-15 will be same as in financial year 2013-14.

Increase in surcharge rate – Additional surcharge  2 percent will be charged for person earning income above Rs 1 crores

 Income tax slab rate for Corporate (private and public limited company)

Reduction in slab rate of corporate tax by 5 percent in upcoming 4 years by reducing the  exemption provided to the corporate.current rate is 30 percent. It will be reduced to 25 percent in upcoming 4 years.

No Reduction in Financial year 2015-16

Reduction in Financial year 2016-17 will be 1.5%

Reduction in Financial year 2017-18 will be 1.5%

Reduction in Financial year 2018-19 will be 2%

Budget 2015 on Deduction available in Income tax

Deduction under section 80G –100 percent deduction available on donation made to Swachch Bharat and Clean Ganga schemes. Yoga and has been included under the definition of charitable activates. Donation made to National Fund for Control of Drug Abuse (NFCDA) shall be eligible for 100% deduction

Deduction under section 80C –Investment in Sukanya Samriddhi Scheme is also eligible for deduction.

Deduction under section 80D – health insurance premium has been increased to Rs. 25,000 from 15,000. For senior citizens, limit will be Rs. 30,000 and Very senior citizens Rs. 30,000 deduction.

Deduction under section 80DD – Medical treatment of a dependent disabled person has been increased to Rs 75,000 from 50,000 and in case of severe disability Rs 1, 25,000 from 1, 00,000

Deduction under section 80DDB – Limit on expenditure of specified disease has been increased to Rs 80,000 from Rs 60,000.

Deduction under section 80U- deduction to disabled person has been increased to Rs 75,000 from 50,000 and in case of severe disability Rs 1, 25,000 from 1, 00,000.

Transport allowance exemption to be increased to Rs. 1,600 per month from Rs 800/- per month. It will be beneficial to the salary employee.

Amendment in section 269SS and 269T

As per section 269SS – Any person shall not accept a sum exceeding rupees 20,000 in cash  from any person by way of loan, advances, deposit or any sum of money in relation to transfer of an immovable property. Immovable property is inserted in the budget 2015, earlier loans and advances is covered under section 269SS
As per section 26T  – Any person shall not repay a sum exceeding rupees 20,000 in cash from any person by way of loan, advances, deposit or any sum of money in relation to transfer of an immovable property. whether transfer take place or not. Immovable property is inserted in the budget 2015, earlier loans and advances is covered under section 269T.

Domestic Transfer Pricing Audit

As per section 92BA limit of ‘specified domestic transaction’ has been increased to Rs 20 crores from 5 crores.

Wealth tax

Wealth tax has been abolished in the budget. It good move by the government as revenue generated from the weath tax is very less.

 Budget 2015 on TDS

No need to obtain a TAN Number in case of an Individual or HUF purchasing an immovable property from a non-resident.

TDS on TransporterAs per section 194C payment made to contractors for plying,hiring and leasing of goods carriage is exempt from TDS if contractors furnish the PAN CARD copy and  furnish a declaration that he is owing 10 or less vehicles during the previous year. Earlier such declaration by contractors is not necessary.

TDS on Interest under section 194A  –

(a) Tds will be deducted on interest payment made by the cooperative banks to its member.

(b) Tds will be deducted on interest received on recurring deposit

(c) Limit of Interest income for the TDS will considered of banks instead of branch .

Penalty of Rs 1 lakhs in case of non furnishing or furnishing incorrect information in FORM 15CA and Form 15CB under section 195(6)

TDS rate  on royalty and technical fees is reduced to 10% from 25%.

 BUDGET 2015 ON SERVICE TAX

Service Tax rate has increased to 14 per cent from 12 percent. education cess and senior and higher education cess has been removed.

Time limit for Online  Service Tax Registration will be within two working days.

Time limit for taking CENVAT Credit on inputs and input services is being increased from six months to one year

 Service Tax assesses can issue digitally signed invoices and also  maintain other records electronically

Reverse charge mechanism – 100 percent reverse charges on Manpower supply and security services provided by individual, HUF, partnership firm to a body corporate

100 percent reverse charges on  Services provided by mutual fund agents, mutual fund distributors and lottery agents.

BUDGET 2015 ON EXCISE DUTY

Basic Excise Duty has been increased from 12% to 12.5%. also education and senior education cess has been removed.

Time limit for Online Central Excise  Registration will be within two working days.

Central Excise  assesses can issue digitally signed invoices and also  maintain other records electronically

Budget 2015 on MAKE IN INDIA

We are analyzing the budget 2015  how it will improve the MAKE IN INDIA. Following steps will help

Implementation of GST from 1st April 2016 will make ease the taxation for business man and boost the  manufacturing sector.

Reducing the fiscal deficit will be 3 percent in two years

Allocation of Rs. 75 crore for electric cars production in India

Allocation of Rs 2, 46,727 crore for defense equipment

Provision made in income tax for black money will help government in raising funds by way of taxation.

BUDGET 2015 ON GOODS AND SERVICE TAX IN INDIA (GST)

GST will be implemented from the 1st April 2016.

BUDGET 2015 ON DIRECT TAX CODE – 

No need of DTC code now. as Direct tax code provision already inserted in Income tax act,1961.

BENEFITS OF BUDGET 2015

In our view the government has not given any direct benefits to an individual, it has not Increase the slab limit in income tax. government has given more emphasis  on increasing the Make in India, employment, tourism industry in India etc. Government is trying to  reduce the losses , simplified tax structure for businessman.

 

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