The main highlights of Union Budget 2015 (F.Y.2015-16 and A.Y.2016-17) are as               under:-

  1. No change in income tax slabs.
  2. Corporate tax will be reduced from 30% to 25% along with removal of various types of exemptions from F.Y. 2015-16.
  3. Very Tough provisions are made for not declaring foreign investments, foreign income and foreign deposits etc. The penalty shall be for such concealments at the rate of 300% of tax and rigorous imprisonment from 7 years to ten years according to the offence committed. The offender in these cases will not be permitted to approach the settlement commission.
  4. GST will be implemented from 1st April’2016.
  5. Acceptance of cash advances against sale of immovable property shall not be allowed more than Rs.20000/=.
  6. Benami Transaction (Prohibition) Bill in respect of domestic black money is introduced in this budget.
  7. It will be mandatory to give PAN for any purchase of sale more than Rupees one lakh..
  8. Wealth Tax is to be abolished from F.Y. 2015-16.
  9. Income tax rates on Royalty and Technical fees will be reduced from 25% to 10%.
  10. Additional Surcharge of 2% on persons who will have taxable income more than 1 crore.
  11. The service tax will be increased to 14% from 12.36%. It means no education cess shall be levied on 14%.
  12. General rate of central excise duty is rounded off from 12.36% to 12.50%.
  13. In case of Individuals the limit of mediclaim is increased from Rs.15000/= to Rs.25000/=. For senior citizens the limit of mediclaim is increased from Rs.20000/= to Rs.30000/= under section 80-D.
  14. 100% Deduction shall be allowed for any contribution made for Swachh Bharat Kosh and Clean Ganga Fund.
  15. For individuals, the limit of transport  allowance is increased from Rs.800/= per month to Rs.1600/= per month.
  16. A levy of surcharge 12% shall be levied on Individuals, HUFs, firms, Cooperative societies and local authorities if the income exceeds Rs. One crore.
  17. In case of domestic companies having income exceeding one crore  to 10 crore, the surcharge will be levied 7% and the income exceeding Rs.10 crore the surcharge will be levied 12%.
  18. There is no change in surcharge in case of foreign companies.
  19. Individuals now can contribute to National Pension Scheme up to Rs.150000/= and they can avail an additional deduction from income of Rs.50000/= under section 80-CCD over and above the limit of Rs.150000/= under section 80-C.
  20. Levy of Swachh Bharat Cess proposed on all or any of the taxable services 2%.
  21. Medical expenditures incurred on Very Senior Citizens who are not covered under health insurance, a deduction of Rs.30000/= shall be allowed as deduction.