¢ GST to be in place by 1st April, 2016
¢ GDP growth rate proposed at 7.4 %
¢ 5 challenges & steps proposed
o Agriculture income in stress: Per drop More crop campaign to be launched; Unified National Agricultural Market; Highest ever MNREGA allocation
o Infrastructure investment: Public Private Partnership
o Manufacturing declining: Make In India campaign
o Fiscal discipline : 42 % share of divisible pool of taxes given to states
o Fiscal deficit target: 4.1 % of GDP for FY 2015-2016. Mid term target of 3 % fiscal deficit in the next 3 years
¢ Micro units development refinance agency : Mudra Bank will refinance micro finance institutions through Pradhan Mantri Mudra Yojna to foster entrepreneurship
¢ Comprehensive Bankruptcy code to be brought in 2015-16 in line with global practices
¢ 154000 post offices to be aligned with the banking system in Jan Dhan Yojna
¢ Universal social security system to be introduced
o Pradhan Mantri Suraksha Yojna: Rs. 2 Lacs personal accident insurance for a premium of Rs. 12/ year for poor people
o Atal pension Yojna for people above 60
o Pradhan Mantri Jeevan Beema Yojna: Premium of Rs. 330 / year for Rs. 2 Lacs Life insurance
o Senior citizens welfare fund via unclaimed PPF balance: Detailed scheme in March
¢ National Investment and Infrastructure Fund: Govt to contribute Rs. 20,000 cr. The Trust to raise debt also.
¢ Tax free infrastructure bonds to be issued for rail and road projects
¢ Atal Innovation Mission : A platform to be created for Innovation & R&D
¢ Self Employment and Talent Utilization (SETU) to encourage entrepreneurship
¢ Public sector ports to become Companies under Companies Act, 2013
¢ Ease of Doing Business:
o eBiz portal integrates 14 regulatory permissions on one platform
o Expert committee to be appointed to prepare a draft legislation to replace the multiple registrations / licenses by a pre-agreed legislative system
¢ To amend Section 6 of FEMA
¢ Direct tax regime internationally competitive on rates
¢ Modernized indirect tax regime by GST
¢ EPF: Employee may opt for EPF / Pension scheme
¢ ESI: Employee may opt for ESI / Health insurance
¢ Gold:
o Gold monetization scheme to allow depositors of gold to earn interest in their metal account
o Sovereign Gold bond to be introduced
o Indian Gold Coin with Ashoka Chakra to recycle existing gold with people. This will cut overseas gold demand
¢ Curbing Black Money:
o Rupee Debit card
o Disincentivising cash transactions
¢ Allow Foreign investments in Alternate Investment Fund
¢ To do away with distinction between FDI and FIIs
¢ Visa on Arrival: Proposed to increase countries from 43 to over 150 nations
¢ Procurement Law to be in place
¢ Public Contracts Resolution of disputes Bill to be introduced for dispute resolution in government contracts
¢ 1.75 Lacs MW target for Renewable Energy till 2022: 1 Lacs MW in Solar; 60K MW in Wind
¢ Regulatory reform law to be proposed
¢ National Skills Mission to be launched
¢ Electric Vehicle Manufacturing to be encouraged
¢ Pradhan Mantri Vidya Lakshmi Karyakram for Education loans
¢ AIIMS to be set-up in J&K, Punjab, Tamil Nadu, HP and Assam; IIT in Karnataka; IIMs in J&K and Andhra Pradesh
¢ Digital India:
o National Optical Fibre Network of 7.5 Lacs km
Taxation
¢ GST to be in place by 1st April, 2016
¢ Corporate Tax to be reduced from 30 % to 25 % in the next 4 years accompanied by rationalization and removal of tax exemption (from next fiscal)
¢ Income tax rates remain unchanged
¢ Exemptions to individual tax payers to continue
¢ Black money:
o 7 years jail for inadequate disclosure of assets location abroad
o FEMA to be amended for seizure and confiscation of property in India if cross border property / assets are not disclosed
o Prevention of Money Laundering Act to be beefed up
o Benami transaction prohibition bill to be introduced for domestic black money
o Quoting of PAN mandatory for purchase of any property above Rs. 1 Lacs
¢ Permanent Establishment norms to be amended
¢ General Anti Avoidance Rules (GAAR) to be deferred by 2 years. GAAR would apply prospectively on or after 1st April, 2017
¢ Tax on royalty fees to be reduced from 25 % to 10 %
¢ To reduce basic customs duty and Special Additional duty on certain inputs
¢ Wealth tax to be abolished
¢ Additional 2 % surcharge on individuals of income > 1 crore
¢ Will simplify tax procedures
¢ Central Excise duty to be rounded off to 12.5 % (from 12.36 %)
¢ Online Excise and Service Tax registrations in 2 days
¢ Digital invoices to be accepted
¢ Service tax to be increased from 12.36 % to 14 %
¢ Increase in limit of deduction U/s 80D for Health insurance from 15,000 to Rs. 25,000. For senior citizens, the limit increased from 10,000 to 30,000
¢ Transport allowance exemption to be increased from 800 pm to Rs. 1600 pm
