Corp tax to be cut by 5 pc in 4 yrs; no change for individuals

February 28, 2015

New Delhi, Feb 28: Finance Minister Arun Jaitley today announced a 5 per cent reduction in corporate tax over next four years, abolished wealth tax and replaced it with an additional 2 per cent surcharge on super-rich individuals, while increasing service tax that will result in higher cost of variety of services.

India knock UAE

In the first full-year Budget of the NDA government that shunned populism, he proposed no changes in personal and corporate income-tax rates for 2015-16 but extended benefits to middle-class by increasing the limit of deduction on health insurance premium from Rs 15,000 to Rs 20,000.

For senior citizens, it will go up from Rs 20,000 to Rs 30,000 and for those above 80 years, not covered by health insurance, deduction of Rs 30,000 towards expenditure on medical treatment will be allowed.

Combining these incentives with others including an enhanced deduction of Rs 1.5 lakh on account of contribution to pension fund as against Rs 1 lakh now, the relief of tax deductions under various sections, including 80C and 80CCD, go up to Rs 4.42 lakh.

The transport allowance exemption has been doubled to Rs 1,600. With the levy of 2 per cent additional surcharge, the total surcharge on 'super-rich' individuals with an income of over Rs 1 crore, becomes 12 per cent as against 10 per cent now. In the case of domestic companies having income between Rs 1 crore and Rs 10 crore, it will be 7 per cent and 12 per cent for firms with income above Rs 10 crore.

Presenting the Budget in the Lok Sabha, Jaitley announced fresh measures to tackle blackmoney, including a comprehensive legislation that will make concealment of income and assets abroad a punishment with rigorous imprisonment of 10 years.

Stashing blackmoney abroad will be made a non- compoundable offense, providing for a penalty of 300 per cent of tax on concealed income and assets. The concealed assets and income will be taxable at the maximum marginal rate and no deduction and exemptions will be allowed. It will be made a predicate offence.

In a bid to encourage foreign investors, Jaitley announced deferring of the implementation of controversial GAAR (General Anti-Avoidance Rules) by 2 years.

The Budget also provided for increased funding of Rs 70,000 crore for infrastructure as also higher allocation for social sector schemes like MNREGA.

It decided to re-issue tax-free infra bonds and announced introduction of a sovereign gold bond as an alternative to purchasing metal gold. The bond will carry a fixed rate of interest and will be redeemable in cash on the face value of gold.

The social sector spending for poor and disadvantaged have been kept at allocation of Rs 68,968 crore to education sector, Rs 33,152 crore for health, Rs 77,526 crore for rural development including MNREGA, and Rs 22,407 crore for housing and urban development.

Defence expenditure has been pegged at Rs 2,22,370 crore for 2015-16, up by 11 per cent over Rs 2,46,727 crore in the current fiscal.

The Budget estimates for 2015-16 pegs the non-plan expenditure at Rs 13,12,200 crore and plan spending at Rs 4,65,277 crore. Total expenditure has been estimated at Rs 17,77,477 crore.

Gross tax receipts are estimated to be Rs 14,49,490 crore. Devolution to states will be Rs 5,23,958 crore and states will get Rs 9,19,842 crore. Non tax revenues are estimated at Rs 2,21,733 crore.

The fiscal deficit has been pegged at 3.9 per cent of the GDP in 2015-16 against 4.1 per cent in current fiscal while the revenue deficit has been put at 2.8 per cent of GDP.

The Finance Minister announced plans to bring fiscal deficit down to 3 per cent over the next two years.

In indirect taxes, the Budget reduced basic customs duty on raw materials, excise duty on leather footwear while excise duty on cigarettes is being increased by 25 per cent on cigarettes exceeding 65 mm length and by 15 per cent for cigarettes of other length.

Excise duty on variety of electronics and hardware goods has been reduced. This includes wafers of manufacture of IC for smart cards, mobile phones and inputs for use of LED drivers and LED lights.

100 per cent deduction, other than CSR contributions, has been allowed for donations to Swachh Bharat and Clean Ganga Funds.

While the direct tax proposals will involve a revenue outgo of Rs 8,315 crore, the indirect tax proposals are expected to yield Rs 23,383 crore. The net impact of all tax proposals would be a revenue gain of Rs 15,068 crore.

The education cess of 2 per cent and 1 per cent higher education cess is proposed to be continued in the next year for all tax payers.

Jaitley said the Indian Economy has turned around dramatically in the last nine months with the real GDP growth expected to accelerate to 7.4 per cent, making India the fastest growing large economy in the world.

Growth next fiscal will be between 8 to 8.5 per cent and aiming for a double-digit rate seems feasible very soon.

He said macro-economic stability has been restored and conditions created for sustainable poverty elimination, job creation and durable double-digit economic growth.

India, he said, has now embarked on two game changing reforms -- GST and the JAM Trinity - Jan Dhan, Aadhar and Mobile - to implement direct transfer of benefits.

GST will put in place a state-of-the art indirect tax system by April 1, 2016 while the JAM Trinity will allow transfer benefits in a leakage-proof, well-targetted and cashless manner.

Jaitley said a Monetary Policy Framework Agreement has been concluded with RBI to keep inflation below 6 per cent.

The Finance Minister counted five major challenges faced by the Indian economy which are agricultural income under stress, weak private sector investment in infrastructure, decline in manufacturing, resource crunch in view of higher devolution in taxes to states and maintaining fiscal discipline.

Assuring that the challenging fiscal deficit target of 4.1 per cent of GDP this fiscal will be met, he said the Government was firm to reach fiscal deficit target of 3 per cent of GDP, which will be achieved in three years rather than two years.

Jaitley emphasized on the need to cut subsidy leakages. To achieve it, the Government is committed to the process of rationalizing subsidies.

He said the direct transfer of benefits, started mostly in scholarship schemes, will be further expanded with a view to increasing the number of beneficiaries from the present one crore to 10.3 crore.

An allocation of Rs 5,300 crore to support micro- irrigation, watershed development and the Pradhan Mantri Krishi Sinchai Yojana has been made in the Budget.

In order to support the agriculture sector with the help of effective agriculture credit with a focus on small and marginal farmers, the Finance Minister proposed to allocate Rs 25,000 crore to the corpus of Rural Infrastructure Development fund (RIDF) set up in NABARD, Rs 15,000 crore for Long Term Rural Credit Fund; Rs 45,000 crore for Short Term Cooperative Rural Credit Refinance Fund and Rs 15,000 crore for Short Term RRB Refinance Fund.

He said the Government has set up an ambitious target of Rs 8.5 lakh crore of agricultural credit and proposes to create a Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs

20,000 crore, and credit guarantee corpus of Rs 3,000 crore, which will refinance Micro-Finance Institutions through a Pradhan Mantri Mudra Yojana.

Announcing new insurance schemes, he said Pradhan Mantri Suraksha Bima Yojana will cover accidental death risk of Rs 2 lakh for a premium of just Rs 12 per year and the Atal Pension Yojana will provide a defined pension, depending on the contribution.

The Pradhan Mantri Jeevan Jyoti Bima Yojana will cover both natural and accidental death risk of Rs 2 lakh on a premium of Rs 330 per year for the age group 18-50.

arun jaitley Corp tax

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 20,2020

New Delhi, Jul 20: Reiterating that China has still occupied India's territory, Congress leader Rahul Gandhi on Monday attacked Prime Minister Narendra Modi saying that he has fabricated a fake strongman image to come to power which has now become India's biggest weakness as he has to protect the idea of 'Chhapan Inch'.

Taking to Twitter, the Congress leader posted a video message and wrote, "PM fabricated a fake strongman image to come to power. It was his biggest strength. It is now India's biggest weakness."

In the video message, speaking on "China's Strategic Game Plan" the Congress leader said: "What is China's strategic and tactical game plan? It is simply not a border issue. The worry I have is that the Chinese are sitting in our territory today. Chinese don't do anything without thinking about it strategically."

"In their mind, they have mapped out the world and they are trying to shape the world. That's the scale of what they are doing. That's what Gwadar is, that is what belt and road is. It is a restructuring of the planet. So when you are thinking about the Chinese you have to understand that that is the level at which they are thinking," he added.

Now at the tactical level, they're trying to improve their position. Whether it is Galwan, whether it's Demchok or whether it is Pangong Lake. The idea is to position themselves, he said.

"They are disturbed by our highway they want to make our highway redundant and if they are thinking larger scale, they want to do something with Pakistan in Kashmir. So it is not simply a border issue. It is a border issue designed to put pressure on the Prime Minister of India," the Congress leader said.

"And they are thinking of putting pressure in a very particular way. And what they are doing, is that they are attacking his image. They understand that it in order for Mr Narendra Modi to be an effective politician; in order for Mr Narendra Modi to survive as a politician, he has to protect the idea of--Chhapan Inch. And this the real idea the Chinese are attacking. They are basically telling Mr Narendra Modi that if you do not do what we say, we will destroy the idea of Mr Narendra Modi as a strong leader," he added.

Gandhi continued saying, now the question is, how will PM Narendra Modi react. Will he take them on? Will he take on the challenge and say absolutely not, I'm the Prime Minister of India. I do not care about my image I'm going to take you on. Or will he succumb to them?

"The worry I have so far is that the Prime Minister has succumbed. The worry I have is, the Chinese are sitting in our territory today and the Prime Minister has said publicly they are not, which to me tells me that is worried about his image and defending his image," said Gandhi.

"And if he allows the Chinese to understand that they can manipulate him because of his image, the Indian Prime Minister will no longer be worth anything for India," he added.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 15,2020

New Delhi, May 15: A group of doctors from the AIIMS, Raipur has recommended restrictions on the use of mobile phones in healthcare institutions amid the COVID-19 pandemic, warning that such devices can be a potential carrier of the virus and lead to infection among healthcare workers.

In a commentary published in the BMJ Global Health journal, the doctors stated that mobile phone surfaces are a peculiar 'high-risk' surface, which can directly come in contact with the face or mouth, even if hands are properly washed and one study indicates that some healthcare workers use phones every 15 minutes to two hours.

Though there have been many significant guidelines from various health organisations like the WHO and CDC focusing on prevention and control of disease, the commentary highlighted "there is no mention of or focus on mobile phones in these guidelines, including the WHO infection control and prevention guidelines, which recommends the use of handwashing".

In healthcare facilities, phones are used to communicate with other health care workers, look up recent medical guidelines, research drug interactions, understand adverse events and side effects, conduct telemedicine appointments and track patients among others, stated the document.

The document has been authored by Dr Vineet Kumar Pathak, Dr Sunil Kumar Panigrahi, Dr M Mohan Kumar, Dr Utsav Raj and Dr Karpaga Priya P from the Department of Community and Family Medicine.

"In their tendency to come in direct contact with the face, nose or eyes in healthcare settings, mobile phones are perhaps second only to masks, caps or goggles," the authors said.

"However, they are neither disposable nor washable like these other three, thus warranting disinfection. Mobile phones can effectively negate hand hygiene... There is growing evidence that mobile phones are a potential vector for pathogenic organisms," they said.

It is the need of the hour to address proper hygienic use of mobile phones in healthcare settings. In a study in India, almost 100 per cent of health workers of a tertiary care hospital used mobile phones in the hospital, but only 10 per cent of them had at any time wiped their mobile phones clean, the commentary published on April 22 said.

"The safest thing to do is to consider your phone as an extension of your hand, so remember you are transferring whatever is on your phone to your hand," Dr Pathak said.

Amidst the ongoing pandemic, two biggest mobile phone companies have uploaded their user support guidelines, saying that 70 pc isopropyl alcohol or Clorox Disinfecting Wipes can be used to gently wipe the exterior surface of phones in switched-off mode.

However, in doing so, the use of bleach or entry of moisture through any of the openings must be avoided, and any harsh chemical may damage the oleophobic screen, leading to damage in the touch screen sensitivity of the phone, the article stated.

Mobile phones are one of the most highly touched surfaces according to the Centers for Disease Control and Prevention (CDC), along with counters, tabletops, doorknobs, bathroom fixtures, toilets, keyboards, tablets and bedside tables.

The doctors recommended restriction on mobile phone usage in healthcare settings like hospital wards, ICUs and operation theatres, while advocating the use of headphones to prevent contact with the face while talking.

There should be no sharing of mobile phones, headphones or headsets of any kind. In addition, where available, the use of interdepartmental intercom facility may be promoted.

"Although hand hygiene and mobile phone use by a person are not mutually exclusive, it is high time to acknowledge the potential role of mobile phones in disease transmission cascade and to take evidence-based appropriate actions. This is especially important, given the ongoing COVID-19 pandemic," the authors said.

They said it is necessary for government agencies and the WHO to generate public awareness and to formulate suitable information, education and communication material on mobile phone hygiene, especially in healthcare settings.

AIIMS, New Delhi, Resident Doctors' Association (RDA) General Secretary, Dr Srinivas Rajkumar T said even outside health care settings, people should pay special attention to the usage of mobile phones as they carry them to all places.

"Phone and computer peripherals like keyboard, mouse, etc. should be covered with transparent plastic covers which can be cleaned without interfering with their function. Cleaning hands by soap or alcohol-based hand sanitizer before and after contact with phone and between contact with other surfaces can decrease the risk of potential transmission.

"Using a handsfree headset, dedicated operator/assistant per ward handling the communication via common line in hospitals while on duty can enable communication without compromising safety," Dr Srinivas said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 20,2020

Thiruvananthapuram, May 20: As COVID-19 count surges to 666 with 24 new cases reported on Wednesday, Kerala Chief Minister Pinarayi Vijayan has said that if cases keep increasing in this manner, then the State will be in a 'serious situation.'

Out of 24 new patients, 12 have returned from abroad, 11 others from other States and one has been infected by a contact. Now, total positive cases in the State stand at 666 including 161 active cases, Chief Minister Vijayan said at press meet.

"If the number of COVID-19 cases increases like this, then the State will be in a serious situation. We have given more relaxations in lockdown guidelines. We need to have more strict measures in some areas," he said.

Speaking about the people who are coming to Kerala from other States, he stressed that all people coming from outside are "not carriers." However, the State has to tighten the security as some among those people are "carriers."

The Chief Minister while clearing that there is no restriction for the people to come back to Kerala, said: "Lakhs of people residing in other states cannot come together."

"There is no relaxation in containment areas. Those who came from outside have to be in quarantine. This is their moral responsibility. The State has implemented home quarantine successfully. Various level committees like ward committee, neighbours and residential associations are monitoring the people in quarantine," he said.

Chief Minister Vijayan has directed the police to visit people under home quarantine to take their report and district panchayat to make sure that all panchayats are working in a proper manner.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.