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|5th March 2015, 11:41||#1|
Join Date: May 2013
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The Budget & You
Budget is one key event expected by the country at large. It sets the framework on how much money to put in the pockets of a common man, where the country should be headed and what its ambitions are in the coming years. The budget for the coming financial year was presented by our Honorable Finance Minister on the 28 of February, 2015.
Although late in coming, I’ve listed only the salient features that might have a direct/ indirect impact on our day to day lives (my comments on how it might affect us have been specified in italics after every passage). This is only a gist and not the complete list.
1. Tax Rates:
Income Tax rates remain the same for individuals for the FY 2015-16.
[b]a. Individual below 60 years:
[b]b. Individual above 60 but below 80 years:
* - Relief of Rs. 2000 or total tax which is less, is available under section 87A when total income is below Rs. 5 lacs
[b]c. Super seniors above 80 years:
Puts less money in our pockets.
2. Surcharge of 12% will be levied where income is above Rs. 1 Cr.
Wealth tax has been abolished, with this an increase of 2% from the previous year.
3. Deductions from income available for the respective financial year are;
Not much relief for an individual from either the tax slab or change in deductions available.
4. Restrictions on cash Transactions:
Section 269SS and 269T of the Income-tax Act - prohibit acceptance or re-payment of advance in cash of Rs 20,000 or more for any transaction in immovable property.
Move to curb black money circulation and registration of property at a rate different from the actual sale value.
5. Customs and Excise Duty:
The standard ad valorem rate of Basic Excise Duty is being increased from 12% to 12.5%.
However, since the Education cess, from this FY, is subsumed in basic excise duty, this increase will not have a major impact on the final product.
6. Service tax:
Rate increased from 12.36% to 14% with the cess subsumed in the rate.
Eating out, mobile bills, Travel expenses, banking expense will see an increase. More importantly, all sellers who use online shopping sites like Amazon/ Flipkart are liable to pay service tax so except your online shopping bills to increase.
1. Corporate Tax:
Corporate taxes are proposed to be reduced from the existing rate of 30% to 25% over the next 4 years.
If this comes into effect as promised, we can expect to see individuals’ maximum tax rate pegged at 25% instead of the current 30% above Rs. 10 lacs.
2. Surcharge increased by 2%.
• Sec 194 C: Transport operators exemption from TDS is only where the operator has 10 or less than 10 goods carriages ( However, PAN is required to be provided).
• Sec 192 A : EPF Trustees while paying the accumulated PF balance should deduct 10% TDS ( for payments of Rs 30,000 or more).
Your withdrawals from PF will be after TDS of 10%.
4. Additional Depreciation:
Additional depreciation @ 20% is allowed on new plant and machinery installed by a manufacturing unit or a unit engaged in generation and distribution of power.
If the asset is installed after 30th September of the previous year only 10% of the additional depreciation was allowed. Now the remaining 10% of the additional depreciation will be allowed in the subsequent previous year.
Undisclosed Foreign assets:
1. Under the proposed law, concealment of income and assets and evasion of tax in relation to foreign assets will be prosecutable with rigorous imprisonment of up to 10 years.
2. Made mandatory to file returns in respect of any foreign assets.
3. Non-filing of returns or filing returns with inadequate\incomplete disclosure will attract rigorous imprisonment of up to seven years.
4. Undisclosed income from any foreign assets will be taxable at the maximum marginal rate under the proposed law, and any entities, banks, financial institutions and individuals involved will all be liable for prosecution and penalty.
While I've taken every effort to ensure there are no errors, any error that might have crept in would be corrected; after all to err is human.
|5th March 2015, 12:14||#2|
Join Date: Feb 2004
Thanked: 103,638 Times
Re: The Budget & You
Nice thread! Thanks for sharing. To know how it impacts the car scene, click here (Budget 2015 & Indian Cars: All you need to know).
|5th March 2015, 12:31||#3|
Join Date: Feb 2010
Thanked: 9,598 Times
Re: The Budget & You
Nice summary, MikeRX!
The one thing I am happy with is Mediclaim premium limit going up to 25,000/- (15K barely covered my own premium let alone my family's!)
Rest is ho-hum. Welcome moves however to curb cash usage for big-ticket transactions, which should help in "whitening" the economy!
|5th March 2015, 12:36||#4|
Join Date: Feb 2005
Location: San Jose, CA
Thanked: 16,422 Times
Re: The Budget & You
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