The Union budget for the financial year 2015-16 presented by Finance Minister Arun Jaitley is a big disappointment for the poor and the middle class people. The budget offers no personal taxation relief to tax payers. There is no announcement regarding the steps taken for the recovery of the economy. The statistics provided by the NSO on Friday which is based on revised parameters set out by the organisation cannot be believed.
The main highlights in income tax is as follows.
a) Abolition of wealth tax
b) Corporate tax to come down from 30% to 25% over the next 3 year period.
c) Transfer pricing requirement for corporate assesses the limit increased from Rs.5 crore to Rs.20 crore which will bring down the work load of income tax officers.
d) Mediclaim policy limit increased from Rs.15,000 to Rs.25,000 (Rs.30,000 for Senior Citizen) u/sec 80 D
e) Pension fund exemption increase from Rs.1,00,000 to Rs.1,5,0000 u/sec 80CCD ( Savings based )
f) Under Sec 10 Conveyance allowance monthly increased from Rs.800 to Rs.1,600 which will help salaried tax payers.
The disadvantages to common man are increase in excise duty and service tax from 12.36% to 14.42% which will increase the price line . The proposed increase in indirect taxes is inflationary. The Prime Minister has not bothered to implement his promise in his election manifesto where it was mentioned that the individual income tax limit will be increased to Rs.5,00,000. The Budget presented is similar to the one presented by the previous UPA regime . The influence of World Bank, WTO etc., is prevalent in the Budget proposal to stream line subsidies and reduce the coverage of people who are below the poverty line .