Budget 2015: Wealth tax abolished; applicability of GAAR deferred by two years

NEW DELHI: seeking to simplify the tax regime, Finance Minister Arun Jaitley in his budget speech announced that Wealth Tax will be abolished. "This will help simplify the tax structure," Jaitley said.

Jaitley also deferred the applicability of GAAR by two years. Jaitley announced an additional 2% surcharge for those earning over Rs 1 crore.

Coming down hard on black money holders, Finance Minister Arun Jaitley in his budget speech announced that the government will introduce a new bill in the current session of the Parliament for black money stashed abroad.

"We will curb Benami transactions in property deals. FEMA Act will be amended to incorporate black money provisions," Jaitley announced. "We will make sure a comprehensive, tough new law on black money is implemented," Jaitley added.

"Concealment of income assets to get 10-year imprisonment," he said. "New structure including e-filing, tracking down is our abiding commitment for curbing balck money," Jaitley assured.

Aiming to up employment generation, Jaitley announced that corporate tax will be reduced from 30% to 25% for the next four years.

"We will rationalise & remove exemptions to eliminate tax disputes," Jaitley said. Jaitley expects the direct tax collection to be at Rs 14.49 lakh crore.