General (Aam) Budget 2015

About the Union Budget 2015-16

The Union Budget is the premier document featuring the financial planning and strategy of the Government of India for the next fiscal. The Union Budget of India for the 2015-16 fiscal was presented in the Lok Sabha (Lower House of the parliament) by the Union Minister of Finance Arun Jaitley on 28 February 2015.

The people of India had a lot of expectations from the Union Budget for the 2015-16 financial year. The expectations soared high owing to the fact that the ruling Narendra Modi government had promised a lot to the people while campaigning for the General Elections 2014. The BJP led NDA had attained clear majority riding on its Prime Ministerial candidate Narendra Modi's development agenda and his track record in this regard. So, the Union Budget had to reflect what was promised.

Main Highlights of the Union Budget 2015-16

Income Tax-

It was expected that the slabs of the Personal Income Tax will be brought down and the Tax Payer will be relieved to some extent, but the income tax slabs for individuals remained the same as earlier. On the other hand, the Wealth Tax was revoked completely. While the surcharge was raised to 10-12% on Hindu Undivided Families (HUF), Bodies of Individuals (BOI), Associations of Persons (AOPs), cooperative societies, firms, artificial juridical persons, local authorities and individuals.

Social Security-

As their pension fund, a choice between Employee Provident Fund (EPF) and National Pension Scheme (NPS) was given to the salaried employees. To upgrade the social security for poor citizens, one Pensions Fund and two new insurance schemes were introduced. As per the provisions of the Pradhan Mantri Suraksha Bima Yojna scheme, persons with full disability (or death) will get a coverage of Rs. 2 lakh, while the persons with partial disability would get a compensation worth Rs. 1 lakh, with just Rs. 12 per annum as the premium.

A life insurance scheme by the name Pradhan Mantri Jeevan Jyoti Bima Yojna was also announced in the budget, which assures Rs. 2 lakh to a beneficiary in case of death. An annual premium of Rs. 330 will be payable under the scheme. A pensions scheme meant for the un-organised sector by the name Atal Pension Yojna was also announced.

Service Tax-

The Finance Minister Arun Jaitley announced a raise in the service tax from 12.36% to 14%. An additional 2% tax to be levied on a select few services under the 'Swach Bharat' cess was also announced. The Mutual Fund agents would no longer enjoy the exemption on the service tax, on the other hand exemption was provided to the Varishtha Bima Yojna meant for senior citizens.

Corporate Tax-

Arun Jaitley, the Finance Minister, also announced that starting from April 2016, the Corporate Tax rates will also be brought down from 30% to 25% over a period of four years. It was announced that earnings above 10 crores will have to bear 2 % surcharge. The minister said that 100% deduction will be applicable to the Clean Ganga Plan and Swach Bharat Abhiyan to the donations made under the corporate social responsibility.

Custom Duty-

Import duty was lifted from 22 components used in electronics sector. The custom/import duty was further removed from magnetrons, solar water heaters, refrigerator components and peacemaker components. But the duty levied on imported commercial vehicles was raised from 10% to 40%.

Announcements related to Education

A total of Rs. 69,074 were allocated to the education sector. To enable the minority youth in order to find employment without school leaving certificate, the government introduced a scheme called Nayi Manzil. The Finance Minister made major announcements in the education sector — five new All India Institute for Medical Sciences (AIIMS) to be set up in the states of Punjab, Jammu & Kashmir, Himachal Pradesh, Tamil Nadu and Assam. The state of Karnataka will witness the setting up on an Indian Institute of Technology (IIT), while two Indian Institute of Managements (IIM) will be set up in Andhra Pradesh and Jammu & Kashmir.

• National Institutes of Pharmaceutical Education and Research to come in Rajasthan, Chhattisgarh and Maharashtra.
• Post Graduate Institute of Horticulture Research and Education in Amritsar.
• Institute of Science and Education Research in Odisha and Nagaland.
• Apprenticeship Training Institute for Women in Haryana and Uttarakhand.

The Union Government allocated special assistance packages to the states of Bihar and West Bengal. Another programme called SETU- Self Employment and Talent Utilisation was also announced.

One of the most special and innovative announcements made by the Finance Minister Arun Jaitley was the introduction of a special Gold Coin as a mode of gold deposit. This was done to discourage the import of gold. The special gold coin will feature the Ashok Chakra on the face.