First cut notes Direct from Budget Live

Here is a post coming from @Mymuneemji on the live interpretation of budget 2015 for #Startups and #Entrepreneurs.

We mainly focus on the Tax highlights in the budget, being tax experts.

Times now calls this as remarkable #SuperBudget. While there is a Stretched sentiment all around. Expectations on one side and agonies of overcommitment on the other.

Sensex is displaying positive mood by +221 points from morning till before the Budget starts and ends flat when it ends. Interpretations crackers due to be seen next week.

Very relevant speach start from Jaitley "Kuch to fool khilaye abtak kuch to fool khilane hai... mushkil hai ki baag me abtak kaate kahi purane hai"

Economic Indicators

• CPI (Consumer Price Index) Inflation projected 5% - Inflation declines - WPI in to negative.
• GDP growth projected between 8% to 8.5% For FY 2015-16.
• Fiscal deficit targets 3% of GDP at the spread of 3 years.

General Highlights

• #Startups will be supported by the #Budget2015 in all aspects with Rs.1000 Cr. being set aside.
• Corporatisation of Ports and other Infrastructure Assets.
• Mudra Bank to refinance the Micro Finance arrangement for Small 
• Disinvestments of PSU for Loss making companies and strategic purposed.
• Going big way with Direct Benefit transfer of subsidies through Jan Dhan and Adhar Schemes.
• Entrepreneurs preferably SC / ST  categories.
• Now you can earn Interest on Metal Account. This will help to bring the savings in form gold in the main stream!! #Budget2015. 
• Trade Receivable Discounting System would be mechanized with electronic system to improve the efficiency and transparency. 
• Pradhan Mantri Bima Yojana and Jeevan Jyoti Yojana shall cover the poor families from accidental / natural death at a very very nominal premiums.
• Unclaimed PPF / EPF funds lying with the government treasury will be used for Senior Citizen Welfare Fund.
• Huge positive fro tourism sector with increment in list of countries covered under arival VISA from 43 to 150.

Tax Provisions

• Black Money comes in preface to Tax Provisions. There is also a Benami Transaction Prohibition bill coming up?? Let's see how does this look.
• Rate of Corporate Tax would be @25% instead of existing @30% over the period of next 4 years. Very courageous decision coming to boost business Scenario.
• Foreign Asset disclosure is taken very seriously. Non-Disclosure to this count would be considered as Crime.
• Permanent Establishment norms undergoing change mainly for Investment Funds.
• Applicability of GAAR is postpones for another two years to foster confidence for Investing in India.
• Wealth Tax is abolished. Again a very courageous decision. Introduction of Supper Rich Surcharge @2%.  
• Domestic Transfer Pricing Limit Increased from Rs.5 Cr. to Rs.20Cr. This allows free Domestic Trade for smaller companies.
• Service tax levy goes up to consolidated 14% from existing 12.36%. This shall bit of disturb services sector. 
• Individual Taxation -

• Medical Insurance deduction limit goes up from Rs.15000/- to 25000/-; Senior Citizen would get upto Rs.30000/-. Deduction towards medical expenditure for very senior citizens (above 80 years of age) would Rs. 30000/-.
• To Provide Social Safety net Sec 80CCD get Rs.50,000 extra deduction.
• Transport allowance exemption is increased from current Rs.800 to Rs.1600 per month for #Salarytax employees.
• Total benefit would be Rs.4.44 Lac for an individual. 

• Yoga to be Included in the Ambit of Charitable activities. This will boost the development of Yoga institutes all around.
• Enactment of Direct Tax Code DTC seems to be of no merit to the existing government. Seems that this government will drop the plans to implement DTC any further.

Finance Minister concludes with a verse from the Upanishads meaning "Let all be happier and healthier"!!

Overall a very well rounded budget. "Genuine mood for Action"

Key vat changes - by mymuneemji

The Maharashtra BUDGET for 2014-2015 is announced today 5th June, 2014 and the main tax proposals in respect of Maharashtra VAT and

1.Profession Tax are -
Registration limit increased to 10 lakhs

2.VAT Audit limit raised to 1 crore from FY 2013-2014

3.Late Fee reduced to Rs.2,000/- for late upto 1 month in filing Return

4.Pending Returns can be filed with Tax, interest and Late Fee of Rs.1,000/-.

5.Retailer composition @1% of total turnover or @1.5% of taxable turnover

6.No 30(4) penal interest if additional demand as audit or investigation is less than 10% of tax paid with returns.

7.Rate of Tax on Cotton reduced to 2%

8.Profession Tax limit for salaried persons increased to Rs.7,500/-

Highlights on Interim Budget 2014

Highlights of Finance Minister P Chidambaram's Vote on Account or Interim Budget speech.

FM inaugurated his Interim Budger as always with glorious words from Tamil sage Thiruvalluvar which spoke of "not the spear but sceptre swayed with equity alone gives the ruler victory".

Finance minister P Chidambaram on Monday "neither populism nor individualism" is an alternative way of governance and expressed confidence that people will entrust responsibility to a "hand" that works for equity.

MyMuneemji presents below quick look at key highlights with insights from the Vote on Account:

12.10: FM hopes to peg revenue deficit at 3.3% and fiscal deficit target at 4.1% next year. 

12.00: No change in direct taxes.Excise duty cuts on mobile handsets, consumer durables, capital goods. Excise duty cut for large and mid-segment cars (20% cut), small cars and two wheelers (12% to 8% ), SUVs (24% from 30%).

11.58: Students get major relief. Moratorium on education loan interest taken prior to 2009 till 2014. - Does this mean more money for foreign schools setting up operations in India more than students?

11.55: Urban Housing Fund at get Rs 2,000 cr

    Rural housing fund get Rs 6,000 cr

  Minority affairs to get Rs 3,711 cr 

11.53: Expenditure kept at Rs 5.55 lakh crore (same as last year)

11.52: PSU Banks get a boost by fresh capital infusion Rs.11,200 Cr - Is this an NPA funding?

11.52: Rs 8 lakh cr allocated for rural credit - Continuous favor goes for Farm lending - Hope the next session doesn't propose a waiver of these credits!!

11.51: Defense Allocation to Rs 2.24,000 crore, up 10%. - We Startups need to come up with some ideas around defence needs now!!

11.49: Food, Fuel and Fertilizer subsidy at 2.46 Lakh crore. Non-plan expenditure at Rs 1.15 lakh crore. - again farmers favored - is this because this the vote bank? 

11.48: Ministry of Health and Family Welfare gets Rs. 33,725 cr - Good for society - Huge opportunity in heath care

11.45: Fresh power capacity, rural roads, highways added in last 3 months. 50000 MW of thermal and hydro power plants under construction - good infrastructure boost - No power cuts!!

11.42: Government committed to Aadhaar. Even critics will realise it is a tool of empowerment. 54 lakh transactions completed under direct benefit transfer.  - Great Governance tool!!

11.34:  Last two quarters of 2013-14 to grow at atleast 5.2%. Rupee doing better than other emerging market currencies. However, stagnation in manufacturing sector a worry.

11.29: Exports to grow to $326 bn; up 6.4%. Investment rate at 34.8%; saving rate at 30.1%. $15 bn added to foreign reserves this fiscal. Cabinet cleared 296 projects. GDP to be 4.9%. 

11.24:  Key concerns of last fiscal: fiscal consolidation and inflation. 2013-2014's fiscal deficit managed at 4.6% of GDP. Food inflation has declined but still a worry. Analysts are expecting PC to report a fiscal deficit of around 4.7 per cent of GDP

11.22: World economy has slowdown in last few years. India affected by global economy downturn but doing better than other emerging economies.