Budget 2015: Moving on GST; education cess to be subsumed in central excise, says government
"As part of the movement towards GST, I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty."
By PTI | Updated:
NEW DELHI: Government is moving forward on various fronts to implement the Goods and Services Tax from next year and, as part of this, the Education Cess and Secondary Higher Education Cess are to be subsumed in the Central Excise Duty, Finance Minister Arun Jaitley said today.
" GST will put in place a state-of-the-art indirect tax system by 1st April, 2016...
"As part of the movement towards GST, I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty. In effect, the general rate of Central Excise Duty of 12.36 per cent including the cesses is being rounded off to 12.5 per cent," Jaitley said while presenting the Budget 2015-16 in Parliament.
Unveiling Prime Minister Narendra Modi led NDA government's first full-year budget, he said that India needs enabling tax policy to revive growth and investment to ensure that more jobs are created for youth.
GST is expected to play a transformative role in the way economy functions and it will add buoyancy to growth by developing a common Indian market and reducing the cascading effect on the cost of goods and services.
Touted as the single-biggest indirect taxation reform since independence and a "win-win" for Centre and states, the 122nd Constitution Amendment Bill for GST was tabled in the last Winter Session after extensive discussions to get states on board by addressing their concerns.
The Bill will be discussed in the ongoing Budget Session.
" GST will put in place a state-of-the-art indirect tax system by 1st April, 2016...
"As part of the movement towards GST, I propose to subsume the Education Cess and the Secondary and Higher Education Cess in Central Excise duty. In effect, the general rate of Central Excise Duty of 12.36 per cent including the cesses is being rounded off to 12.5 per cent," Jaitley said while presenting the Budget 2015-16 in Parliament.
Unveiling Prime Minister Narendra Modi led NDA government's first full-year budget, he said that India needs enabling tax policy to revive growth and investment to ensure that more jobs are created for youth.
GST is expected to play a transformative role in the way economy functions and it will add buoyancy to growth by developing a common Indian market and reducing the cascading effect on the cost of goods and services.
Touted as the single-biggest indirect taxation reform since independence and a "win-win" for Centre and states, the 122nd Constitution Amendment Bill for GST was tabled in the last Winter Session after extensive discussions to get states on board by addressing their concerns.
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The Bill will be discussed in the ongoing Budget Session.
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The limit of reduction of health insurance premium was enhanced from Rs 15,000 to Rs 25,000. For senior citizens this limit has been increased from Rs 20,000 to Rs 30,000.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
"For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens," Jaitley said.
Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.
Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.
Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
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