Narendra Modi’s Vision reflected in the Budget?

Narendra Modi led Bharatiya Janata Party got absolute majority and has formed the Government. Mr. Arun Jaitley, Finance Minister in Modi cabinet presented the budget for the year 2015-16. The budget is oriented towards long term development rather than short term benefits. The highlights of the budget are :

1. Increase in Service tax from 12.36% to 14 %
2. Excise duty increased from 12.36% to 12.50%.
3. Reduction in rate of Corporate tax from the existing 30% to 25% gradually over a period of time.
4. Wealth tax has been totally abolished. Instead, 2% additional surcharge is levied on those earning above 1 crore per annum.
5. Contribution to P.F by employee share optional to certain category of labour.
6. Increment in tax deduction in health insurance from Rs 15000 to Rs 20000
7. Yoga related services are under charitable services.
8. Transport allowance exemption increased from Rs. 800 pm to Rs. 1600/- pm
9. Increase in limit of deduction of health insurance premium of Rs. 15,000 to Rs. 25,000. For senior citizens, limit will be Rs. 30,000. Very senior citizens – Rs. 30,000 deduction on expenses incurred.
10. GAAR – applicability to be deferred by two years.
11. Section 6 of FEMA to be amended.
12. All contributions to Sukanya Samridhi Scheme to be tax free.
13. Additional deduction of Rs. 50k for pension contribution
14. 100% deduction for contributions made to swach Bharat and clean Ganga schemes
15. Retrospective tax provisions to be avoided.
16. 150 Crore set aside to create world class IT hub in India
17. Individual tax payers to get benefits up to Rs. 4,44,200
18. To enhance medical facilities, AIIMS to be established in J&K, Punjab, TN, HP and Assam.
19. AIIMS like institute to be set up in Bihar.
20. Karnataka to get a new IIT and J&K and Andhra Pradesh to get IIM.
21. Postgrad institute of horticulture to be established in Punjab.
22. 15,000 crore scheme to skill rural India. Poor students get aid through PM scheme.
23. Pradhan Mantri Jeevan Jyoti Bima Yojana to benefit accident victims. Insurance coverage of Rs. 2 lakh to be provided for BPL persons at a premium of Rs. 1 per month.
24. Bankruptcy law reform has been identified as a key to ease of doing business. Bring comprehensive Bankruptcy code in 2015-16.
25. GST proposed to be implemented by April 2016