The Good And Bad Of Budget 2015
The Good And Bad Of Budget 2015
After the path-breaking and innovative programs like 'Swachh Bharat Abhiyan, 'Jan Dhan Yojana' and 'Make in India' gained popularity, the taxpayers, investors, businesses and consumers all expected a big-bang budget. It was the full-fledged budget of Modi government, and therefore expectations were really high. Taking into account the reaction of stock markets, it can be called as a good budget that met expectations of all participants. FM Arun Jaitley presented the Budget for 2015-2016 on February 28, 2015. Let us check out a list of the good and the bad of the Union Budget:
Good
- FM announced abolition of wealth tax effective 2015-2016. The taxpayers can invest up o Rs 1.5 lakh in New Pension Scheme. It hikes the threshold limit for total deductions under Sec 80C to Rs 1.5lakh.
- FM reduced basic customs duty on raw products for specific consumer-durable goods.
- The new bankruptcy code was announced which will make it easier for the businesses to close down unviable units.
- On the GAAR front, FM said that it be will implemented only after two years. Moreover, it will be prospective rather than retrospective.
- Penalty on excise, service and customs tax reduced to prompt timely compliance.
- MAT exemption was announced on income of FII for the investment on which STT has been paid.
- For investors tax free infra bonds in rails, irrigation and roads segment were announced. The gold buyers will have more options to invest in yellow commodity. There will be no capital gains tax charged on mutual fund scheme mergers.
- Government allowed decentralization measures indicating that more revenues will be passed on to states.
- Corporate tax was reduced to 25% from 30%. The step will fuel corporate investments and will provide clarity to tax regime.
Bad
- FM hiked surcharge on income of super-rich people from 10% to 12%. The effective tax rate for individuals with income more than 1 crore stands now at 34.6%.
- The surcharge on DDT was raised from 10% to 12%, which indicates lower dividend payouts for shareholders.
- Standard effective service tax rate can be hiked from 12.3% to 14%. It can rise to as much as 16% with inclusion of Swachh Bharat Cess at 2%.
- The consumers will be hurt by higher service tax that was proposed on admission to award functions, musical performances, pageants, sporting events and concerts where admission charge is above Rs 500.
- FM hiked corporate surcharge from 10% to 12% for firms with taxable income of over 10 crore. It implies corporate tax rate will now stand at 34.6% instead of 33.9%. Also, MAT was hiked to 21.34% from 20.96%
Conclusion
Evaluating the reforms announced, Budget 2015 seems to have addressed the key needs of various participants in the country. The measures will boost investment and change the tax structure by simplifying it. A number of measures were taken for the rural economy. The reduction of corporate tax will provide clarity to all the people who want to invest in India. It is a balanced budget especially when Indian economy is yet to take off.
Discussion
- RE: The Good And Bad Of Budget 2015 - RITESH (03/16/15)
- I think Budget(2015) is not much effective as we expected.This Budget is not able to help,those people which belog to (BPL).Respective" FM" have to take some diff steps from the other.But one thig is very important ,they want to be strong our economic power which is very essential for us.All we know that,our (GDP) will be reform till (2017).so, we have to aware about that.Finally,we can say that the Budget(2015) is good as well as bad.
- RE: The Good And Bad Of Budget 2015 -Nitin gusain (03/12/15)
- I have disagree thats budget becz they budget totally favour for rich people..arun jetaley can.t see poor people.,budget also show 1000 rupee above shoes get discount bt poor people how to purchase or efford bt ruch people they can easily efford..,.,.
- RE: The Good And Bad Of Budget 2015 -Deepa Kaushik (03/06/15)
- The budget seems to be somehow a balanced one. It has touched all the spheres of the society from the business class to poor, from rural part to the common man. Rather than a capitalist budget focussing only the corporate group of the society, it is very appreciable to concentrate on every aspect of the society.
For a common man, it might be a bit leniency on the saving part. But, at the same time, increasing the service tax and having a good and commodity tax have made a hole on the pockets in the day-to-day expenses, especially for those who have a regular habit of eating and partying out.
The reduction in the custom duty on raw products for specific consumer-durable goods is again a good move. And opening the various field for the investment on the yellow commodity has paved way to get the money into circulation. Buying a gold often stalks the amount which doesn’t come up.
For the business section, the budget had been quite welcoming. The market index has shown a positive trend with its expected speculations with the announcement of the much awaited Modi budget. Though the expectations always remain high, still the budget should be considered a balanced one on the broader aspect sufficing the majority section of the society.
