Finance Minister Arun Jaitley will present Union Budget 2015 on Saturday. Touted as the 'make or break'...
Finance Minister Arun Jaitley will present Union Budget 2015 on Saturday. Touted as the ‘make or break’ fiscal exercise, we take a look at 7 transformational ‘sops’ for tax payers he is expected to unveil.
1. After having been humiliated at the hustings by Arvind Kejriwal’s Aam Aadmi Party (AAP) in Delhi Assembly elections, and with more state polls on the way, the chastened ruling Bharatiya Janata Party-led (BJP) NDA government is likely to either raise tax slabs or hike investment limit in saving instruments.
Arun Jaitley in his maiden Budget in July, 2014 had outlined his approach to providing relief to individual tax payers. In 2014 , he had raised the personal income tax exemption limit by Rs 50,000 to Rs 2.50 lakh and also raised by same amount the exemption from payment of Income Tax on savings to Rs 1.50 lakh.
2. Arun Jaitley may also raise tax exempted investment limit in health insurance as well as exempt savings in pension schemes at all three stages – entry, accrual and withdrawal. (Read Full Report: Economic Survey)
3. Besides sops to individual tax payers, Arun Jaitley also expected to unveil initiatives to boost investments by corporates
4. FM may attempt to create a competitive, predictable, clean and exemption-light tax policy regime that will lower the cost of capital, incentivise savings and facilitate tax payer compliance.
5. Arun Jaitley likely to pursue the path of fiscal consolidation and keep the fiscal deficit target at 3.6 per cent of GDP, down from 4.1 per cent expected this year.
6. Finance Minister set to promote manufacturing as part of the ‘Make In India’ campaign that aims to make the country a global manufacturing hub and create jobs.
7. As far as ‘transformational’ changes are concerned, Arun Jaitley may try to do a Manmohan Singh (during then PM Narasimha Rao’s tenure) and user in ‘big bang’ reforms to boost economic growth in India to 8+ percent and perhaps even to an unheard of two digits (10 percent) in near future.