Union budget 2015

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Budget 2015Views & Vows

Manu Antony

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Budget The Indian Scenario NII Fund Bankruptcy Code FMC to be merged with SEBI Public Debt Management Agency Curbing Black Money Fund Allocation Tax Policies Investment and Disinvestment Schemes New Projects Growth Projections

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The working backgroundFalling Oil PricesLand Acquisition BillMake in India Campaign14th FC reports

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Union Budget - Bottom-line

An act of Balancing?!Despite of financial constraints, (NR Growth rate merely 1.4% ) the FM has substantially increased capital spending in Infrastructure.Long term objectives and VisionIn order to create elbow room for spending, the fiscal consolidation target was rolled. (3.9% to 3.6%)Nothing for the middle class tax payer.Effects unclear Manu Antony

How it ComesHow it goes

The Rupee Break upManu Antony

Economic Growth

GDP Projections 7.4% real growth for 2014 15 8.1% to 8.5% projected growth for 2015 16

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Vows

Trade deficit Interest rates Struggling Industrial Production Pending Land Acquisition Bill Pending GST

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Confused Market The D Day charts (28/02)Manu Antony

Fiscal Deficit Currently ranging around 4.1% of GDPExpected to reach 3.6% by the end of FY. Possible disinvestments in SUUTI, Balco and Hindustan Zinc Strengthening MSMEs Make in India Black Money PolicyManu Antony

Vows Expected Pay Commission Report Disinvestment cant be stretched for long Telecom Spectrum, Coal Mine Auctioning Depending too much on the oil prices can turn bitter

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Infrastructure

Proposed Plans

National Optical Fibre Network Project 1126 km National Highways and 4351 km roads in LWE affected areas. Raising Teledensity.Manu Antony

Cooperative Federalism

Transforming Practices

14th FC recommendations Delinking Schemes Land and Labour Reforms GST

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14th Finance Commission

Tax devolution based on Area, Population, Demography etc. Boost for States share in Divisible pool Delinking Central Schemes Parted grants for states (Local Bodies)Manu Antony

Delinking Schemes

National E-governance Plan Backward Regions Grant Fund Modernisation of Police ForcesRGPSAExport Infrastructure Development etc.Manu Antony

GST To be implemented from 01/01/2016 Concurrent implementation Uniform Tax law across state and centreAdministrative Convenience Provision for interstate tax credits

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The GST mechanism

Will reduce the effective tax rate The one-line GST rates will be calculated first and then divided among State and Centre. Consumer states are benefitted C.A requirements and technical glitchesManu Antony

Taxes

Indirect Tax Excise Duty 12.36% to 12.50% Service Tax 12.36% to 14.00% Increase in CENVAT Credit time periodManu Antony

Direct Tax Applicability of GAAR deferred by 2 years Corporate I.T proposed to be reduced to 25% over four yearsWealth Tax abolished 2% additional surcharge on super rich Personal Tax rate slabs unchanged with addl. exemptions

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What's in there for an Individual?

Health Insurance Premium Exemption under 80D has been raised from 15,000 to 25,000. Additional exemption of Rs 50,000 under 80CCD (NPS)

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ParticularsPre BudgetPost BudgetPre BudgetPost BudgetGTI5,00,0005,00,00011,30,00011,30,000Deduction Under 80C1,50,0001,50,0001,50,0001,50,000Deduction Under 80CCD-50,000-50,000Deduction Under 80D15,00025,00015,00025,000Pre Tax Income3,350002,75,0009,65,0009,05,000Income Tax850025001,18,0001,06,000Less Rebate under 87A20002000--65005001,18,0001,06,000Surcharge 12%000065005001,18,0001,06,000Education Cess 3%1951535403180Total Tax, Surcharge and Cess66955151,21,5401,09,180Difference Saving618012,360Saving Percentage92.31%10.17%

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Expectations.. Keeping the savings investment gap in check Harvesting from the reduced commodity prices Re routing the investment patternIn 2011-14, homes and other domestic structures made up 34% of GFC Formations in the Country.Manu Antony

Kerala

Whats in it?

Kochi Metro NISH University Rubber, Coffee, Tea and Spices Cochin SEZ and ShipyardManu Antony

Practices & Priorities

House hold savings in Capital FormationSkill DevelopmentCurbing Black moneyDifferential Taxation for Companies

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What's Next..?

Its time for a makeover...!!

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Queries??

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Thank you!!Manu Antony