In the Union Budget 2015-16, Finance Minister, Arun Jaitley announced some key changes in major sectors.
If you are tax payer, investor or a responsible citizen here are some must know facts on how your finances would be affected after Union Budget 2015.
1) No change in Personal Income Tax Slab
In this Budget there was no Change in the rate of Personal Income-Tax for the financial year 2015-16.
However, Jaitley proposed to levy a surcharge at the rate of 2% on individuals, having income exceeding Rs 1 crore, which will replace wealth tax. Click to know more on tax benefits.
2) Limit of deduction of health insurance premium increased
Deduction limit on health insurance premium is increased from Rs 15000 to Rs 25000. For senior citizens the limit has increased from Rs 20,000 to Rs 30,000.
Senior citizens who are above the age of 80 years, who are not covered by health insurance, to be allowed deduction of Rs 30,000 towards medical expenditures.
A Deduction limit of Rs 60,000 with respect to specified decease of serious nature has been enhanced to Rs 80,000 in case of senior citizens.
Additional deduction of Rs 25,000 allowed for differently abled persons.
3) Limit Increased in National Pension Scheme
Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs 1 lakh to Rs 1.5 lakh.
Also, an additional deduction of Rs 50,000 for contribution to the new pension scheme u/s 80CC. Click to know more on NPS.
4) Monetising Gold
A Gold monetisation scheme has been allowed to depositors of gold to earn interest in their metal accounts and the jewellers to obtain loans in their metal account has been introduced. Click here to know more.
A Sovereign Gold Bond, as an alternative to purchasing metal gold scheme is being initiated. The government will commence work on developing an Indian gold coin, which will carry the Ashok Chakra on its face.
5) Launch of two new insurance scheme
Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana with low insurance premium has been launched.
6) Employees Provident Fund(EPF) to Provide two Options
Employees Provident Fund (EPF), the employee needs to be provided two options. Firstly, the employee may opt for EPF or the New Pension Scheme (NPS).
Secondly, for employees below a certain threshold of monthly income, contribution to EPF should be optional, without affecting or reducing the employer's contribution.
7) PAN Must for all Transactions above Rs. 1 Lakh
There was also strict guidlines to curb black money. it is also said that non-filing of return/filing of return with inadequate disclosures to have a punishment of rigorous imprisonment upto 7 years. Mandatory filing of return in respect of foreign assets is a must.
8) Tax-free infrastructure bonds
This budget Infrasructure had some good news with re-introducing Infrastructure bonds. Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors.
National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of Rs 20,000 crores to it.