The global solution for payroll professionals, combines custom research, strategic white papers, country primers, webinars, and the expert guidance you’ve come...
By Molly Ward
March 3—India plans to increase the tax deduction limit by 10,000 rupees ($161.51) for payments toward health insurance premiums and replace the wealth tax with a surcharge on the super rich, Finance Minister Arun Jaitley said Feb. 28 in an annual budget speech to parliament.
The budget for fiscal year 2015 proposes an increase to 25,000 rupees ($403.76) from 15,000 rupees ($242.26) in the tax deduction limit for health insurance premiums.
The limit would rise to 30,000 rupees ($484.52) from 20,000 rupees ($323.01) for senior citizens.
The budget proposal also included an additional deduction of 50,000 rupees ($807.53) for contribution to the New Pensions Scheme.
Jaitley left unchanged the rate of personal tax regarding income earned in fiscal 2015.
The wealth tax would be abolished and replaced with an additional 2 percent personal income tax surcharge on the super rich, who have taxable income of more than 10 million rupees ($161,505) in the 2016-17 assessment year.
Under the changes, the tax rate for individuals earning more than the threshold would be 12 percent. A 2 percent surcharge would apply to individuals, Hindu undivided families, firms, cooperative societies and local authorities having income greater than 10 million rupees. The abolishment of the wealth tax and increased taxes on the super rich will lead to tax collections of 90 billion rupees ($1.45 billion), whereas the wealth tax would earn only 10.08 billion rupees ($162.7 million), Jaitley said.
The budget must be passed by both Houses of Parliament before it can take effect.
To contact the reporter on this story: Molly Ward at firstname.lastname@example.org
To contact the editor on this story: Michael Trimarchi at email@example.com.
The budget highlights can be found at http://indiabudget.nic.in/ub2015-16/bh/bh1.pdf.
The budget speech can be found at http://indiabudget.nic.in/ub2015-16/bs/bs.pdf.
More information on payroll issues in India can be found in the India country primer.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)