COMPARISONGENERAL BUDGET 2015-16 AND BUDGET 2014-15( july )

Finance Minister, Arun Jaitley has said that the Indian Economy has turned around dramatically in the last nine months with the real GDP growth expected to accelerate to 7.4% making India the fastest growing large economy in the world. Among all the other sectors; provisions regarding tax and related topics are very much sought after, these topics concern everyone, whether it is the common man or the business executives.Arun jaitley presented two budgets within a span of 10 months, once in july 2014 and the other one now. This section particularly deals with the comparison between both the years general budget.Talking about the 2015-16, Arun Jaitley has said that a very important dimension to our tax administration is the fight against the scourge of black money. Tax collections help the Government to provide education, healthcare, housing and other basic facilities to the people to improve their quality of life and to address the problems of poverty, unemployment and slow development. To achieve these objectives, task in the last nine months is to foster a stable taxation policy and non-adversarial tax administration.He said that the rate of corporate tax is proposed to be reduced from 30% to 25% over the next four years. This will lead to higher level of investment, higher growth and more jobs. About the tensions related to tax and black money, a considered decision has been taken to enact a comprehensive new law on black money to specifically deal with such money stashed away abroad. The Bill in this regard is proposed to be introduced in the current Session of the Parliament. The key features of the bill will include punishment of rigorous imprisonment up to ten years for concealment of income and assets and evasion of tax in relation to foreign assets. This offence will be made non-compoundable and offenders will not be permitted to approach the Settlement Commission. Penalty for such concealment of income and assets at the rate of 300 per cent of tax shall be levied. Non-filing of return or filing of return with inadequate disclosure of foreign assets will be punishable with rigorous imprisonment up to seven years.

In the year, 2014 july; tax exemption limit Rs 2.5 lakhs for individuals below 60 years and Rs 3 lakh for senior citizens. Minimum monthly pension of Rs 1,000 cr under EPFOI's EPS-95 scheme.In 2015; No change in the rate of personal income tax, yet individual tax payers to get income tax benefit of Rs 4,44,200 in a year. Increase in health insurance premium tax benefit from Rs 15,000 to Rs 25,000 and for Sr citizens Rs 30,000.Unlike 2014 where the window was limited, in 2015; the Budget has helped us either save more or pay less taxes in other ways. For one, tax-free infrastructure bonds are back. Two, the Sukanya Samriddhi Scheme for the girl child has become more attractive. Three, transport allowance for the salaried have been doubled and four, the premium paid under the Varishta Bima Pension Yojana, LICs immediate annuity plan for senior citizens, is exempt from service tax.Great things indeed come in small packages. Introduction of tax-free infra bonds, no tax on initial investment, interest and maturity proceeds for Sukanya Samriddhi scheme and doubling of transport allowance will make the common man plough more money in to saving.1) Reduction in rate of Corp. tax from 30% to 25% for next 4 years.2) Increment in Service tax from 12.36% to 14%3) Increment in Excise duty from 12.36% to 12.50%.4) Abolition of wealth tax. Instead increment in 2% additional surcharge on super rich

TheBudget has proposed a new and comprehensiveBenami Transactions (Prohibition) Bill, which is likely to be introduced in Parliament in the current session.Arun Jaitley has proposed raising the tax deduction limit by Rs 10,000 for payment towards health insurance premium.What remained unchanged or untouched in 2015, differing from 2014 is-In 2014; the rate of tax on long-term capital gain on the above has been proposed to be increased from 10 to 20 per cent.In order to encourage household savings, it is proposed to raise the deduction limit under Section 80C from the existing limit ofRs.1 lakh toRs.1.5 lakh.Considering the appreciation in the value of house property and the cost of finance, the existing deduction limit ofRs.1.5 lakh has been proposed to be increased toRs.2 lakh for interest paid on self-occupied house property.This change will lead to tax savings ofRs.5,000-15,000 depending on the individual's tax slab and rate.Summarizing the comparison, this can be noticed that both the budgets are different in approach and they both did half work each in bringing the change needed before BJP led the government.