Budget aims at 7-8% GDP growth in 3-4 years. Aiming a Fiscal Deficit of 3.6% for FY 15-16

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Budget Highlights:
* To hike FDI in defence to 49%
* NDA policy to encourage FDI in selective sectors
* Domestic defence mfg sector at nascent stage
* FDI in selected sectors to help larger interest of country
* Plan to enlarge scope of income tax settlement commission
* To provide certainty in tax laws
* Propose changes in transfer pricing rules
* Propose to strengthen authority for advance ruling in tax
* High level panel to interact with industry on indirect tax
* Clarification on tax issues to be given
* Plan law, administrative changes to reduce tax disputes
* Resident tax payer to get facility of advance tax ruling
* Propose changes to resolve ongoing direct tax disputes
* Aim stable, predictable investor-friendly tax regime
* Tax demands worth 4 trln rupee currently under litigation
* GST to result in higher tax mop-up for Centre, states
* Committed to stable, practical tax regime
* All cases of retrospective tax to be studied by CBDT panel
* GST to streamline tax administration
* Tax regime to be investor friendly
* Assure states govt to be more than fair on GST
* Won’t ordinarily bring in tax changes retrospectively
* Govt’s right for retrospective legislation unquestionable
* Retrospective taxes should be done with caution
* Hope to bring final solution to GST issue in FY15
* Aim to make food subsidy better directed, more inclusive
* Hope to have final solution on GST this yr
* GST debate must come to an end
* To review food, fuel subsidy
* Food, oil subsidy to be more targeted
* Committed to minimum govt, maximum governance
* New urea policy will be formulated
* To constitute expenditure mgmt panel
* No option but to undertake bold steps to enhance econ
* Time has come to revive efficiency of govt spend
* Today’s measures are directional
* Must address problem of black money
* Still not out of the woods on inflation
* Seen gradual moderation in WPI inflation recently
* Aim 3.0% fiscal gap in FY17
* Aim 3.6% fiscal gap in FY16
* Accepted FY15 4.1% fiscal deficit target as a challenge
* Reduction in fiscal deficit achieved by spending cuts
* Jaitley: Aim of 4.1% of GDP fisc gap indeed daunting
* Need fisc prudence that will lead to fisc consolidation
* Jaitley: To continue to remain watchful on CAD front
* Must improve tax-GDP ratio
* Need to revive growth in infra, manufacturing sectors
* Non-tax revenue must be increased
* Must reduce wasteful expenditure
* Urgent need to generate more resources for econ
* Tax GDP ratio must be improved
* Steps today start of macro economic stabilisation
* Fisc prudence of paramount importance
* Cannot spend beyond our needs
* Can’t leave behind legacy of debt
* Should we be victims of mere populism?
* Fiscal prudence of paramount importance
* Not wise to expect too much from new 45-day govt
* Task before me today is very challenging
* Need to revive growth in mfg, infra sectors
* Econ situation presents a grave challenge
* Won’t leave any stone unturned for vibrant, strong India
* Not wise to expect anything major in first budget
* Higher growth is a sine qua non
* Have to ensure anti-poverty plans are well aimed
* Can’t be oblivious that large population below poverty line
* Budget is the most comprehensive action plan.
Great news for home loan borrowers..section 80 c limit increased to 1.50 lakhs also income tax exception limit to 2.5 lakhs…
IT Exemption raised from 2 lakhs to 2.5 lakhs, Sec 80C limit raised to 1.5 lakhs from 1 lakh, Home loan interest exemption limit increased to 2 lakhs from 1.5 lakhs No change in rax rate.

Kisan vikas patra to be reintroduced for planned and unplanned savings. Cheaper housing loan & Tax incentive for LIG – low income group Insurance sector FDI to be hiked to 49% from 26% Introduction of standardised KYC norms across financial sector. Introduction of single demat account for all types of financial transactions PPF limit raised from 1 to 1.5 lakhs.
A special small saving scheme will be introduced to encourage savings towards education & marriage of girl child.
Direct Taxes.
Income tax exemption limit increased from 2 to 2.5 lakhs for age less than 60 yrs, Senior citizen from 2.5 to 3 lakhs Standard deduction limit u/s 80C raised from 1 to 1.5 lakhs , Interest on housing loan for self occupied property from 1.5 to 2 lakhs , Long term Capital gain on sale of debt mutual fund increased to 20%, Holding period for long term capital gain for mutual funds &shares increased from 12 to 36 months.

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