The entire nation watched as the FM announced 2015-16 Union Budget. While industrialists, financial experts and economists have deemed the budget as favourable for growth and fiscal policy others have commented in a more negative fashion, majorly due to the increase in various taxation issues. The current article will take you through the ten major factors Aam Aadmi should look out for.
1. Unchanged Tax Rates; Abolishment of Wealth Tax
In order to portray an image of growing and stable taxation administration, rates of income tax were left unhindered. On the other hand, service tax as well education cess saw increase of 1.64 percent to 14 percent. This is going to create a pinch on the pockets of those who love outings and eating out across restaurants. The Budget also gave proposal to abolish the present wealth tax for the super-rich. Instead, an additional surcharge of 2 percent will be included for these entities. These include firms, individuals as well as cooperative societies having income above 1 crore rupees.
2. Now save more with tax exemption proposals
Transportation allowance is the highlight of this space as allowances for transportation for salaried individuals has been increased to 1600 rupees/month from the current 800 rupees per month. This will be a huge boost for the field employees who are the backbone for most of the MNCs across the nation. Also, increase in premium in health insurance from the current 15,000 rupees to 25,000 rupees was announced.
This essentially means that while tax exemptions have reduced, our incomes have also reduced. Apart from that, the government has also undertaken slew of exemptions for disabled as well as senior citizens. As per the latest budget, it is estimated that total individual exemption from various schemes can reach 4, 44,200 rupees.
3. Universal scheme for social security
With the objective of pushing social security and universal pension scheme, the FM introduced various policies and schemes such as PMSBY for providing risk coverage to accident death. The coverage has been kept up to two lakh rupees.
Another highlight was the APY, which was introduced with the objective of providing defined pension based on contribution and period of the pension. As per Mr. Jaitley, the objective is to transfer the nation from a society that is pension-less to a pensioned one. In order to encourage the above measure, the government has announced contribution of 50 percent of premium with upper limit of 1000 rupees a year.
4. Get Over Shares: Make profit from Gold
Gold is pure, gold is bright but keeping gold is becoming a plight. It is no surprise that this yellow metal has been infatuating the Indians. However, most of the gold consumers neither trade with it not store it across banks.
In order to encourage gold dwellers to make money out of gold, the FM has announced a new scheme for Gold Monetization. Under this scheme, when an individual stores his or her gold with banks or with the government, they will be paid interest on stored value of the metal. Also, measures will be taken to make gold loan’s take out easy.
However, consumers need to be aware of the fact that gold investment can be cyclical and can change from time to time. As such, it is wise to keep yourself updated with the current cycle and gold prices to avoid confusion and disappointment. With lucrative interest rates as well as easy redemption options, gold monetization can be a great option for extra income.
5. Shoes, TVs cheaper; alcohol, mobiles costlier
Gutka, pan masala, cigarettes and tobacco consumers are going to feel the pinch in their pockets. The excise duties on the above categories have been raised between 15 percent and 25 percent. Apart from that, aerated drinks, mineral water, alcohol, tablet computers and mobile handsets will also get costlier. Consumers may also see increase in car prices. Thus, consumers will have to reconsider buying or replacing their cars, especially high-end and premium categories.
On the positive side, excise duty on footwear, shoes and leather products have been decreased by 6 percent for pairs with 1000 rupees plus retail prices. This means more happy faces outside footwear showrooms, leather bags outlets and leather accessories showrooms.
Also, time to rejoice and make your home more sophisticated with posh new LCD and LED TVs as they are becoming cheaper. This is some good news for cricket lovers for the on-going world cup as well as in coming IPL.
6. Skill development: Roadmap to creation of more jobs
Prime Minister Narendra Modi’s Make-In-India was given due importance during the financial budget 2015, with a huge sum of money being dedicated to infrastructure development. Also, the FM announced various excise and customs cut for indigenous infrastructure sector development. For the development of youth below the age of 25 years, NSM has been announced. This will be a vital part across various ministries.
7. New IIMs and new IITs
The budget announced development of new technical and educational universities. New IIMs will be launched in AP and J&K and an IIT will be introduced in Karnataka.
8. Plan for better highways and better roads
A sum of Rupees 70,000 crores have been announced for infrastructure development. This means better highways, more road and increased R&D investment for improved manufacturing processes across the nation.
9. Structural reforms for senior citizens and minority’s youth
As per the financial budget 2015-16, many welfare schemes have been launched and reforms have been made. For minority youth, a new scheme was announced named ‘Nayi Manzil.’ Also new structure has been announced wherein devices for assisted living and physical aids shall be provided for senior citizens above 80 years of age. Also, the government proposed that by 2020, every individual will have their own house. Additional 1000 crore rupees for Nirbhaya Fund and 5000 crore rupees for MNREGA have been announced.
10. Some good news for tourism industry
Some of the critical heritage sites such as old convents and churches across Goa, Elephanta Caves, Hampi, Rajasthan Forests, Jallianwala Bagh, Varanasi, Leh Palace and Hyderabad tombs have been centred sponsored for making them tourist friendly. Also, visa-on-arrival has been increased to 150 nations, a move that will definitely enhance the tourism sector.