Updates of finance budget 2015

INCOME-TAX

1. No change in threshold limit of Income tax.
2. Corporate tax: Tax rate is proposed to reduced from 30% to 25% in forthcoming 4 years.
3. For person having income more than INR 1 Crore in a year, a surcharge of 2% will be levied.
4. No change in threshold limit of INR 150000/- u/s 80C
5. Travelling allowance exemption limited increased from INR 800 pm to 1600 pm.
6. Medical insurance premium exemption limit increase from INR 15000 to 25000/- p.a. u/s 80D
7. for senior citizen, Medical insurance premium  exemption limited increase from INR 10000/- to 30000/-
8. for super senior citizens who have no medical insurance policy, a benefit of INR 30000/- is given for Medical expenditure incurred for them.
9. Donation to Swacch Bharat Abhiyan: A benefit of 100% will be allowed for all donations.
10. Sukanya Samriddhi Scheme: it will be covered u/s 80C and interest will be taxfree.
11. PAN card mandatory for all the transactions above INR. 100000/-.
12. Yoga to be included in charitable purpose for 12A registration

SERVICE-TAX

1. Rate of Service Tax increased from 12.36% to 14%
2. Proposed changes in ‘Negative-List-of-Service-tax.

CUSTOM AND EXCISE

1. No changes in basic excise duty limited i.e. 1.5 crore.
2. New central excise duty rate will be 12.5%.
3. Import duty will be reduced on 22 goods.

WEALTH-TAX

1. It is proposed to abolish wealth tax.

GENERAL

1. GAAR (General Anti Avoidance Rules) postponed for 2 years

EFFECTS ON CONSUMERS AND BUSINESSES:

• leather goods like shoe, slippers etc will be expensive.
• Dining in Restaurant would be expensive.
• use of credit card would be costlier.
• Telephone and mobiles bill would be expensive.