Live Chat: Demystifying Union Budget 2015

From tax policies to measures for sectors like Agriculture, Infrastructure, Tourism and Education - here's what the Union Budget 2015 holds for us.

Updated - December 03, 2021 08:08 am IST

Published - February 28, 2015 12:11 pm IST

Participate in The Hindu's Live Chat featuring Nagappan Valliappan, Chennai-based independent investment expert and Devendra Kumar Pant, chief economist and senior director – public finance at India Ratings and Research.

The Hindu: Welcome to The Hindu's live chat on the Union Budget 2015-16.

Comment From janakiraman

What is the new gold deposit scheme? Can i deposit gold and get paid interest?

The Hindu: We have Nagappan Valliappan, Chennai-based independent investment expert, Devendra Kumar Pant, chief economist and senior director – public finance at India Ratings and Research, and our Business Editor - Online and Technology Sriram Srinivasan here to answer your questions.

Comment From janakiraman:

The unclaimed deposits are being used for senior citizen welfare. Is it fair to do that?

Comment From Kasi Viswanath:

What's in this budget for the individual tax payer? Also, how's that benefit of 4 lakhs+ calculated? Did the tax slabs change?

Comment From Swaminathan:

Do you have announced with respect to electric cars...whether it will become cheaper ??

Comment From janakiraman

What was that regarding NPS - 50 K is it over and above current exemptions?

Comment From Kasi Viswanath

If tax slabs remain same, then how's that benefit to the tune of 4+ lakhs accounted? Am I missing something? Also, any changes to the 80CC.

Comment From subbu

BJP is just pouring on water on the hopes of AP. It is not fulfilling the Re organization Act.

Comment From Lakshmi

how the 4 l savings was computed

Comment From Kasi Viswanath

Can you kindly please list the exemptions and the benefits (tax rebate) they provide in easy to understand words.

Comment From Nachu Nagappan

FM has announced 10% tax ease on royalty fee on tech services. My question is Does Software licenses comes under royalty?

Comment From Guest

2.5(tax free)+1.5(80c)+25000(medical)=4,25,000

Comment From janakiraman

anything that encourages retail investor?

Comment From Sai Sandeep

ISM Dhanbad is now IIT Dhanbad...finally their grievances were addressed

Comment From Burhanuddin

Electric cars are important to reduce the fuel imports from other countries. Government shall provide subsidy for use of electric cars, they should also bring law to have electric car charging stations in the city fuel stations. The saving achieved by use of electric cars shall be clearly taught to public (savings in fuel and maintenance cost)

Comment From Kasi Viswanath

"2.5(tax free)+1.5(80c)+25000(medical)=4,25,000" So, basically, an additional 10000 when compared from the last year. Is it right?

Comment From Shashank

Gold deposit scheme may lead to increase in import and gold depository was an epic failure earlier ,then why re introducing it again when CAD need to be curbed?

Devendra Kumar Pant: corporate tax is proposed to reduce to 25% in four year one has to see detail roadmap

Devendra Kumar Pant: Housing loan interest rate will come down with gradual easing in monetary policy stance

Comment From Pancaz It's a first-class Budget, will spur growth & India's global competitiveness

Comment From janakiraman agree on electric cars. way to go

Comment From subbu BJP has not mentioned anything in fulfilling the promises made in the AP reorganization act. It is pouring water on the hopes of the people.

Comment From Kasi Viswanath

Also, what does reducing the Corporate Tax to 25% from 30% mean? Does it benefit the employees?

Nagappan Valliappan: its going to be over next 4 years. it is meant to make our corporate tax regime competitive with the world.

Comment From KP Very poor budget

Comment From Burhanuddin

Unclaimed deposit: This should also be used to improve the government schools with better facilities. Each school shall have good English teacher or teachers to teach children good spoken English.

Comment From Pancaz

ISM dhanbad is going to be IIT dhanbad !!!!

Comment From janakiraman Yep. Did not see anything on education.. like agriculture this isn one sector that needs aggressive govt investment

Devendra Kumar Pant: corporate tax reduction is for four year, one has to see detail how this will decline from 30% to 25%

Comment From kiran jose

corporate tax reduced by 5%, but no change in income tax slabs, the budget forgets aam aadmi.

Comment From Raj

Corporate Tax reduction timeline is not clear. I heard 25%, some media have reported 24%. Also he mumbled something about next financial year....

Nagappan Valliappan: reduction will be done in next 4 years commencing 2015-16.

Comment From Guest

will the central government share tax projections with the states that it devolves before budget??

Comment From prakash

what is tax buoyancy

Devendra Kumar Pant: front end of budget is always different from back end, devil lies in detail

Comment From Pancaz

Worst budget, nothing for middle class families. only focusing on corporate sector and upper class public.. feeling disappointed wid FM. I was something more from our PM and FM for the youth, their job opportunities.

Comment From Sai Sandeep

PG institute of Horticulture in Amritsar...But I agree that one institute is not sufficient enough to boost research in agriculture structure

Comment From Raj

Another confusion was about ESI. I heard him say that ESI facilities will be made optional and may be replaced by an equivalent Insurance Scheme.

Nagappan Valliappan: He said contribution by employees to EPF may become optional. And they can choose between EPF and NPS.

Comment From Guest

Individual tax payer will benefit to the extent of Rs. 444200 from the exemptions announed..what does it mean?

Devendra Kumar Pant : all central taxes collected by centre is shared by states

Comment From Pancaz

What's the point of getting a raise by 15% in salaries when everything is going to be costly again!

Comment From Raj

Individual pension schemes - he was totally mixed up. He mentioned increase from 1 lakh to 1.5 lakh. Also about some new pension scheme with 50K limit. Under 80CCD?

Devendra Kumar Pant: invest for your retirement, reduce tax liability and spend

Comment From vivek

factored in 7th pay commission in the budget?

Sriram Srinivasan: That will be next year, and it is acknowledged as a fiscal challenge.

Comment From Sai Sandeep

yep...62% will be taken by states and rest will be taken by Central govt.

Comment From Venkatraman

Nothing for the common man. Only favouring the corporates

Sriram Srinivasan: Except some deductions for the common man. The FM essentially said if he creates more fiscal space, he can give out more goodies!

Comment From kartik

How can we implement single composite cap for Foreign Investment

Comment From kiran jose

nothing concrete to turn around the fortunes of the agriculture sector.A separate budget for agriculture is imperative.

Comment From mikki

This is completely anti-poor and anti-middle class budget ....

Comment From Venkatraman

Budget is not pro people

Devendra Kumar Pant: proposed reduction in corporate tax is likely to increase investment, growth and lower inflation

Comment From Deepak Jogdand

How we can maintain the service and industry sector in balanced way?

Comment From Renganarayanan

Is the corporate tax stands reduced to 25% from the FY 15-16 at one go for next 4 years or it will be phased out in next 4 years and will have 25% only at the 4th year?

Devendra Kumar Pant: it is proposed to reduce by 5% in four year

Comment From vivek

how mudra different from SIDBI?

Comment From Sai Sandeep

For the Atal Pension Yojna, govt. will contribute 50% of the premium limited to Rs. 1000 a year and Rs. 5,000 crore additional allocation for this for corporates....? So, Don't comment conventionally

Comment From Ramesh

Is there any further clarity on individual tax - if there is no change in tax slab and only 50K pension contribution and 10k increase in medical insurance what about the claim on 4.4+ lacs

Nagappan Valliappan: It also probably includes the Transport allowance.

Comment From ashish Almeida

there is allocation for 4 mega power projects. will this be initiated in this financial year - 2015-16 ?

Comment From AK

Lots of spending on infrastructure without any concrete implementation plan. Hope this money does not go to corrupt. Devil is in the details.

Comment From Guest

is the 4.44 lakh IT exemption applicable from this fin year?

Nagappan Valliappan: 2015-16

Devendra Kumar Pant: already explained existing exemption add on that increased health insurance benefit and contribution to pension scheme

Comment From Raj

For individual tax payers, Chidambaram's Fringe Benefit Tax was big bang!

Comment From Guest

what about LTC exemption???

Nagappan Valliappan: Statusquo remains

Devendra Kumar Pant: Kartik, look for total transfers to states, they are not likely to increase significantly, instead of tied grants, it is in the form of share in central taxes

Comment From Dr.S.V.Raghunatha Reddy

Is It Bing-Bang Reform Budget as expected by Experts?

Sriram Srinivasan: Sort of ties in with what was expected after the survey. The govt push to infrastructure, more clarity on retrospective tax. The attempt is clearly to create a better environment for private investors.

Comment From Renganarayanan

Why Standard Deduction was not re-introduced, despite the demand justified from CA Institute Forum?

Nagappan Valliappan: Its a handicap given earlier to the salaried class - compared to businessmen.

Devendra Kumar Pant: it is applicable from next financial year after passage of direct tax proposals

Comment From Raj Gupta

If govt wants to increase its revenue deficit then why it decreased the corporate tax from 30 % to 25 %

Comment From Raj

Very minor tweaking. No big bang. Will probably hold the carrots (not give them) for a couple of years more, till the next elections?

Comment From kartik

With Huge transfer of 44 percent to states will the finance Minister able to contain Fiscal Deficit to 3.9 percent

Comment From Yuvraj Tiwari

Deferring GAAR is bed news.

Nagappan Valliappan : But looks like FIIs like it.

Comment From kiran jose

Before creating new IIT'S and AIIMS the govt.must focus on improving the standards of existing ones.

Comment From Guest

NPS - 50 K is it over and above current exemptions?

Comment From Raj

Indians love their gold and will never trade it for paper! One more dud scheme, in my opinion.

Sriram Srinivasan: This will be interesting to watch. Obviously, history is against gold schemes.

Nagappan Valliappan: Had it been coupled with an amnesity scheme , then it would have been a success.

Sriram Srinivasan: Interesting thought, Mr Nagappan.

Comment From santa

really good budget considering the fiscal constraints

Comment From Subhadip Batabyal

standard & progressive budget....

Comment From Guest

And also increase of Travel allowance of 9600

Comment From DSK

instead of pouring huge revenue into MGNREGA, Already allocated funds should be audited and reviewed on time basis.

Devendra Kumar Pant: unless provided with Hallmark

Comment From S.Ramasamy.

Did the FM think about middle class persons in arriving at the individual's income tax?

Comment From Raj

Made in India gold with Ashok Chakra etc., may be more popular than the bonds

Comment From SABA

will the markets weaken further?

Nagappan Valliappan: May be a correction is due for quite some time. and if it corrects it may act as an excellent opportunity to enter as budget is not end of road. wait for a few surprises post budget as they have done a few before the budget.

Comment From Yuvraj Tiwari

More hope but

Comment From Krishna

service tax increase to 14 % all services would be costly by 2% ?

Nagappan Valliappan: Yes.

Comment From Guest

overall, it is an excellent budget for the poor and needy !

Comment From Raj

For salaried class, the infra bonds are the only addition, for which no details are available!

Comment From Krish

Total disappointment for salaried class in the society,increase of service tax to 15% will adversely affect many charges including mobile calls and data tariff. It is not balanced budget,it is utopian budget without certainty on results.

Comment From kartik

How Gold will get interest ? will the banks Monetise the gold?

Nagappan Valliappan: Naturally. that seems to be the purpose. we may not get back the same gold on maturity.

Comment From Guest

service tax increases to 14%+Ec+Shec.the burden is on us.not gud at all.nd budget is below par level.

Comment From Renganarayanan

It is proved again that for Union Budget like this, one need not wait for 1 year, Economic Survey, Inputs from Professional Body's,.

Comment From Madhan

it is fulfill the corporate needs only

Comment From KP

Corporates are loved ones of this government. Others are servants. Hence the government will do their best for the corporates and high class community.

Comment From Yuvraj Tiwari

Increase in service tax is good considering GST Rate of Tax. It is well expected by experts.

Comment From Raj

If we have to read the annexures for so many details, what is the point in 'presenting' the budget?

Comment From Avinash

What's calculation of benefit of about Rs 4.44 lakhs in Income TAx

Nagappan Valliappan: Explained already; basic exemption, 80C, NPS, Healt Insurance and Transport allowance.

Devendra Kumar Pant: well, if expenditure is increased taxes has to be raised

Comment From Guest

the announcement of house for everyone which completed in 2022. so no need to announce and get the credit out of it as it is after 6 years

Comment From Raj

Seems to be much more talk and very little action on the ground. We will do this next year, and we will also do these in the following years, plus we plan to do all of these in the ensuing years, blah blah blah

Comment From Amardeep

which part of personal tax exemption has been increased. rs. 2,50000 or saving part of rs. 1,50,000/- (tax exemption through savings plus investments).if the extra 44200 is of the part of later .it will not be of much solace for common people.please clarify.

Nagappan Valliappan: It is the savings part plus transport allowance.

Comment From Renganarayanan

Dear All, Don't be so Anxious. Nothing great on the Personal Income Tax side. FM has made individuals so comfortable, by not doing anything .

Comment From Guest

ike a futuristic BUT the main thing is that budget is announced in every year so it should be for the present year rather than 2022

Comment From Guest

gst will be implemented in april 2016...will be...not even surety that it must be implemented..words can easily defines everything..

Comment From Sourav

What has been the allocation for Delhi Metro?

Comment From Madhan

is there any benefit for middle class and low middle class

Comment From Raj

FM kept getting the numbers mixed up and slipped a lot, so this 4.44 lakhs could also be a mistake?

Nagappan Valliappan: i am tempted to think so. it is not tallying as of now. either it is more if you include the NPS and less if you remove it....

Comment From Thirunavukkarasu

No relief . Scratch your brain to arrive at Rs. 4. 35 lakhs exemption. Service Tax increase

Comment From Sai Sandeep

That's available in the annexure of the budget speech

Comment From Renganarayanan

Why FM has not considered the recommendation of RBI Governor, on the personal Income Tax side?

Comment From Ashish

Excellent budget to start with!

Comment From Arun

ncrease in service tax is good considering GST Rate of Tax

Comment From Krishna

Increase in service tax from 12 to 14 not good for common man

Comment From Expectations

expected bold steps from budget and expected a lot!

Comment From

Goverment employees seem to have gained nothing

Comment From Raj

It again demonstrates that the government is only a cog in the wheel and the country is slowly becoming bigger and better on its own. Budgeting exercise will become more and more predictable and hence irrelevant.

Sriram Srinivasan: The government has to be an enabler. And given the circumstances, it has to figure out how best to do it.

Comment From Guest

AIIMS and IIM in J& K is a good move

Comment From ASHISH

Proceeding towards "aache din"

Comment From Jayesh

What is the increase in service tax%? Wont this impact the common man?

Comment From Raj

Big Bang would be abolition of income tax for individuals as services are anyway taxed and GST would also be in place soon. Problem is how will the Income Tax department survive!

Comment From Absolutely

Good that there are no popular schemes,

Comment From Guest

How is setting of new IIMs and AIIMs a good move when we don't really have proper facilities and amenities for the same??These institutes will never be able to reach to the same level and reputation as the existing ones have..

Comment From Kalpesh

AIIMS will take around 4 years to start operation. last year it was in gujrat yet the place is not fixed.

Comment From Subba

No allocations for Andhrapradesh new capital...No tax holiday statement from Finanace Minister for Andhrapradesh....BJP blammed congress, but now BJP also not showing any concern on AP

Comment From Krishna

exemption for Medical insurance policies - increased from 15k to 25K , little solace for salaried

Comment From Raj

Would it not be better to increase the facilities in existing institutions like say IIT (D,M,C,K) rather than new ones which are not well patronised?

Comment From rahul

loved it.... the stringent penalties for tax evasions

Nagappan Valliappan: yes

Comment From Raj

Incentives for RuPay card usage was the only item to prevent black money generation. Not much on improving the monetary systems.

Comment From S.Ramasamy.

What for we need to pay service tax is the question. Are the servicing sector getting profit or not? Why should the purchaser must pay an additional amount as tax?

Comment From Guest

Any plan or scheme for the structural change in agriculture sector, so that it can be more economical and competitive?

Comment From Guest

Why do they have to set up new IIT when the situation is such that even the existing IITs are struggling for proper facilities and international recognition??

Sriram Srinivasan: That's a good point. Implementation and managing is always the bigger challenge, even if you find enough money to start something in the first place.

Comment From MN PODIYAD

It is very generous in announcing new plans . but , god only knows how of of it will be completed within stipulated time .

Comment From B.S.Manjunath Ayyar

SARFESI Act made applicable for NBFC.. It is appreciable...

Comment From selva balaji

How much allocated for higher education and Sarva shiksha abhiyan? Is it enough ?

Comment From Ramasamy

Dear Sir, Kindly advice if there is anything special for small size IT companies and medium size companiesin this budget.

Nagappan Valliappan : Proposal to set up a start up fund with initial corpus of Rs. 1,000 Crore may help small start up Tech Companies

Comment From smith

Service tax increase is ultimately going to affect common man's pocket, are they not satisfied with the excise duty increment on crude oil, which otherwise would have directly benefited common man after seeing the international crude oil prices, They are doing nothing but making fool of us.

Comment From MN PODIYAD

If it is for corporate and industries FM Spends more but, for the real back born of indian economy ie agriculture is allotted minimal .

Comment From Rishi

Any stress to improve the quality of education that is deteriorating day by day, students are getting only degree not quality education ?

Sriram Srinivasan: It was apparent even before the Budget that though the enabling macro environment was more encouraging than in recent past, it was going to be difficult to be generous with sops.

Nagappan Valliappan: i cannot agree more.

Comment From Jeethu

The allocated amount for research and devpt is very meagre.Country needs to own more patented innovations by tapping the potential of our creamy manpower so as to stop the brain drainage to other countries..Still Indian firms are more focussed on service areas than patented inventions and other research outcomes which would provide a long term financial source for the country.

Comment From S.Ramasamy.

Please outline the benefits that the people get from educational cess if it is taken as an additional GST.

Nagappan Valliappan: but still there was an element of hope, high expectation . . .

Sriram Srinivasan: True!

Comment From DK

I am happy with overall budget bu t dissappointed with increase in servce tax which will ultimately increase the monthly expenditure of common person. this should be return....

Nagappan Valliappan: My feeling is, we might see a rate reduction sooner or later by RBI . . . much before Fed rises it !

Comment From Viju Gopalakrishan Nair

I feel its been so good so far , far better than the previous one

Comment From susanta

what will be the effective rate for Excise Duty and service Tax?

Sriram Srinivasan: That's an interesting point Mr Nagappan. Let's see if the Budget has done enough in the eyes of Mr Rajan!

Comment From Shyam

There was an extra deduction of 50,000 for pension funds. Is it for generic pension funds like Reliance Pension Fund etc.. or only NPS (National Pension scheme)?

Comment From Debashish Dash

What about E-commerce. Does this government have any plan to promote it or since retail is having some advantage in this budgets, E-commerce is going to drop?

The Hindu: We will be closing the chat now. Thank you all for participating. We apologise to those whose questions went unanswered. We will be providing more budget coverage throughout the day. Thank you.

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