The genie is out of the bottle and there is one major surprise. Having been used to flip-flops and turnarounds, this budget is straight-speaking and promises stability at least for the next four years. All stakeholders have been crying for intellectual honesty, which one can visibly see in the various pronouncements. The main pillars on which the budget proposals are framed are: black money; Make in India; job creation; and helping the middle-class. There are enough and more in the budgetary proposals to satisfy the aforesaid requirements.
The corporate tax rate is being reduced to 25 per cent in a phased manner. The new law on black money stashed away abroad is a game changer. Stringent measures are provided like imprisonment, which should act as a deterrent for people using various routes to keep money outside the country. Deferment of the General Anti-Avoidance Rule (GAAR) by two years should provide solace and relief to international investors.
On the personal tax front, while the slab rates have remained unchanged, there are concessions directed towards social security schemes. The deduction for medical insurance premium for individuals has been increased from Rs.15,000 to Rs. 25,000 and in respect of senior citizens from Rs. 20,000 to Rs.30,000. There is also another category of “very senior citizen” introduced for individuals who attain the age of 80. Similarly, the deduction for medical treatment for chronic diseases has been increased from Rs. 50,000 to Rs. 75,000 and expenditure in relation to severe disability from Rs. 1,00,000 to Rs. 1,25,000. The thrust is to ensure that senior citizens are well taken care of and are provided the required medical and associated benefits via the Income Tax Act.
The definition of charity under the existing provisions will now include conducting Yoga as a charitable activity. It is mentioned that the activity of Yoga is one of the focus areas in the present times and also accorded recognition by the United Nations.
Abolishment of wealth tax, similar to what the government did in 1986 in relation to estate duty, is a welcome step. Replacement of this tax with a 2 per cent surcharge on the super-rich is a clever act of substituting a more effective way of recovering tax on the rich rather than tax on assets. The actual collection on account of wealth tax was Rs. 845 crore and the cost of maintaining the legislation did not warrant its existence.
With most proposals of the Direct Tax Code (DTC) already included in the last two finance bills, it has automatically been consigned to oblivion.
By providing necessary concessions to the middle class, the government has ensured that they either save, which is necessary to boost the savings to GDP ratio, or spend, which will anyway propel the economic activity. In effect, an individual earning up Rs. 4,44,200 can plan his affairs without paying any income tax.
The most heartening feature of the Finance Minister’s approach is to provide a fiscal framework for the long term so that businessmen, domestic and international, small and big, can plan their affairs with reasonable certainty and clarity. This is the most redeemable feature of Budget 2015-16.
Taxation 
