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Budget 2015: Live Updates


We will be constantly updating this post with tweets from our Twitter handle(@capitalmind_in).


1:08 pm: 9. There’s a black money bill, there’s a DTC, a GST – all reform is supposed to be there.

1:02 pm: 8. GAAR deferral and prospective only taxation is good. Tax department needs to listen.

12:59 pm: It will be better to set up a company than to earn money yourself.

12:59 pm: Gross borrowings of 7 lakh cr then? Fisc deficit at 5.3 lakh cr. plus maturity of 1.7 lakh cr.

12:49 pm: The law on arb funds hasn’t really been changed, has it? Or is it hidden in annexures?

12:48 pm: 7. the Increase in surcharge by 2% for income > 1 crore will hurt the ultra rich, but no one else cares.

12:47 pm: 6. Removing wealth tax is huge. This kind of thing shouldn’t have existed in the first place.

12:46 pm: I believe just the new committee formation will add 1% of GDP. Or it better because that 8% is just voodoo.

12:46 pm: All the GDP that will come will be from investments, which they are promoting.

12:45 pm: Which means government spending will be muted. You pay more to spend, so you’ll spend less.

12:44 pm: 5. There are no major spends, and lots of major tax increases. Yet, states take a bulk.

12:43 pm: 4. Corporate taxes remain the same, but next year, you will find taxes go down. But next year has a next years budget.

12:43 pm: Other than that there are no major changes for personal taxes.

12:43 pm: 3. There’s something about NPS increases, health insurance exemptions raised to 25K.

12:41 pm: Excise is up immediately to 12.5% it seems. Thanks

12:41 pm: Ok so service tax has to be notified. Wait for it.

12:40 pm: Nifty now negative?

Nifty Down


12:39 pm: 2. The increase in defense spend is next to nothing. All that defence move? There’s no money for it. Sorry.

12:39 pm: Indirect tax rates are increased with immediate effect. 14% applies from tomorrow, AFAIK. Can someone confirm?

12:39 pm: 1. Duties and taxes are up everywhere. You will see prices go up everywhere. From tomorrow.

12:38 pm: Our quick takes are coming up. This is before we look at the details, so we’ll be apologizing profusely later.

12:37 pm: So that was the budget speech, ladies and gentlemen. Jaitley sat it through. Now, drink some coffee.

12:35 pm: Jaitley’s done. No one know what really happened!

12:33 pm: The devil is in the annexures. Stay posted.

12:33 pm: Net tax increases will be only 15,000 cr. What a waste of time!

12:32 pm: Yoga is a charitable thing now, it seems.

12:32 pm: What is 4, 44,000 cr. benefit? Huh?

12:31 pm: Transport allowance increased form 800 to 1600 per month. (Very cool)

12:29 pm: Investments in Sukanya Smriti, plus interest received is tax free.

12:29 pm: To provide social safety net: Additional deduction of Rs. 50K for NPS ! Cool.

12:29 pm: Limit of deduction for NPS is increased to 1.5 lah (from 1 lakh).

12:28 pm: Senior citizens get a 30,000 rupee insurance limit. 80 yrs+ get 30K for hospital bills.

12:27 pm: Increase of deduction in health insurance premium from 15,000 to 25,000 rupees. Thanks!

12:27 pm: Ooh. benefits to mid-class coming;

12:26 pm: 14% ! we expected this but so did everyone else.

12:25 pm: Service tax will be increased to 14%. Whammy!

12:24 pm: Leather footwear of >1000 per pair is cut to 6% excise. Bad luck, Relaxo.

12:24 pm: Excise duties moved to 12.5%.

12:23 pm: MAT for FIIs – capital gains not subject to MAT.

12:21 pm: 9000 cr. on the 2% additional surcharge.

12:20 pm: Rich should pay more. So wealth tax removed. 2% higher surcharge for income > 1 cr. Whoa.

12:20 pm: Nifty at high of the day?

12:20 pm: How can reducing customs duty be helping make in india?

12:20 pm: No 80c increases, no changes in current laws?

12:19 pm: Okay that’s it for direct? No tax cuts, no new exemptions.

12:19 pm: Facilitate tech inflow into startup, rate of royalty taxes down from 25% to 10%

12:18 pm: GAAR is deferred by 2 years. FIIs will be happy. GAAR only prospective beyond 2017.

12:17 pm: Mere presence of fund mgr in India = doesn’t hurt offshore tag.

12:17 pm: Pan needed to do transactions more than 1 lakh.

12:15 pm: Promo of domestic manufacturing, tax pass through for AIF 1s and 2s. (Not that big a deal)

12:14 pm: Real estate will just die, you think?

12:14 pm: Domestic black money: Benami transaction bill to come soon

12:14 pm: Any forex is held against the act, then gone case.

12:14 pm: You stock option holders please note.

12:14 pm: Offense of not declaring foreign assets = tax dept will take away everything.

12:13 pm: If he has cut 2017 taxes but not for 2016, then what’s he gonna do next budget?

12:12 pm: Black money rules coming.

12:10 pm: Exemptions to indiv tax payers will continue. jeez.

12:10 pm: Rationalization of exemptions. Meaning you don’t get all that stuff that saved you the five% anyways.

12:09 pm: Next four years tax rate to be cut. But not this year!!!

12:09 pm: Reduction on corp tax to 25% over four years. Nice.

12:08 pm: Stable, non adversarial policy, fight against black money.

12:07 pm: Now for taxes.

12:07 pm: 12 lakh crore total revenues? This is bull.

12:06 pm: Tax receipts at 14.49 lakh cr. Devolution to states is 5.23 lakh cr. Center: about 10 lakh cr.

12:05 pm: Budget Estimates: Total expenditure is 17 lakh cr?

12:05 pm: Defense spend increase is TINY. Just OROP will probably cost that much extra?

12:04 pm: Nifty now negative.

12:03 pm: Defense to get 246K cr. from 222K cr. (Not enough!)

12:02 pm: Arunachal to get film making and gaming industry

12:02 pm: States being urged to spend in development.

12:01 pm: 22,000 cr. for housing and urban dev.

12:00 pm: FMC and SEBI to be merged. MCX hit?

11:59 am: Interim to making holding company for Banks.

11:59 am: Autonomous bank board bureau. Big HR thingy to find stuff that make PSBs ompetitive.

11:57 am: IIMs in J&K, AP.

11:57 am: IIT in Karnataka, Dhanbad too.

11:57 am: AIIMS in Punjab, TN, HP, Assam, Kashmir.  

11:56 am: Fully IT based scholarship authority.

11:55 am: National Skills Mission, again. Does this ever work?

11: 54 am: Regulatory reform in infra. But don’t know what.

11: 54 am: Resolution of disputes through a bill which will do something that doesn’t involve bashing each other up.

11: 53 am: Market at 8865. That’s off the highs but still positive for the day.

11:52 am: Big for M&M? Electric cars to get enthu.

11:52 am: Everyone gets visa on arrival it seems. Okay.

11:52 am: “What about Kolar?” abeyaar, kolar is heritage site?

11:51 am: All others feeling miffed their favourite heritage sites not in list.  

11:51 am: Develop heritage sites: Churches of Goa, Hampi, Elephanta cave, Kumbalgarh, Rani ka [], Leh Palace, Varanasi, Jallianwala bagh

11:49 am: Foreign Investment in AIFs will be allowed. FPI/FDI difference to be removed.

11:48 am: Measures to incentivize credit or debti transactions. Nice! Big for banks.

11:47 am: Reduce black money by cash. All Jan dhan have rupay card.

11:47 am: 3. Indian gold coin with ashoka chakra. Reduce demand for coins minted outide.

11:46 am: 2. Dev. Soverign Gold Bond, bond will carry fixed rate of interest. Redeems in cash in face value of gold.

11:46 am: 1. Gold monetization scheme, allow depositors of gold will earn interest in their metal account.

11:46 am: India imports 800 to 1000 tons of gold each year. we have 20,000 tons of gold, neither traded nor monetized.

11:45 am: Employee can choose ESI versus health insurance. Nice.

11:45 am: EPF and ESI have hostages rather than clients! Well put, Mr Jaitley.

11:45 am: Direct tax competive, no exemptions, no tax from intermediaries. Modern indirect tax regime. (This is a hope, I think)

11:44 am: Indian financial code. Ooh.

11:44 am: Something big happening in the Capital Control space? No details.

11:43 am: Finally! Treasury mgmt to be govt job?

11:43 am: Public debt management agency! Replaces RBI’s thingy?

11:42 am: Fin markets: Need to deepen bond markets.

11:41 am: Enhance MNREGA allocation by 5000 cr. Jaitley now trolling Mallikarjun Kharge.

11:40 am: Markets not very happy right now.

11:39 am: Appoint committee to prepare draft legislation to replace permissions with regulatory thing. Very cool!

11:38 am: Investors spend time in getting permissions. 14 regulatory permissions now in one source.

11:38 am: Ports now: Private and public

11:37 am: SETU to get 1000 cr. ! Crowdfunding startups?

11:37 am: Self Employment and Talent Utilization – incubation and help to startups!!! I’m signing on!

11:37 am: More liberal system for raising global funds, seed capital etc are challenges

11:36 am: India has big IT industry. Growing interest in startups.

11:36 am: 5.”Atal Innovation Mission” – Foster culture of innovation. WhatThe

11:35 am: Tax free infra bonds in rail, road, irrigation.

11:35 am: National Investment and infra fund. Govt pays 20,000 cr. The fund then raises debt. Puts money into infra fin companies.

11:33 am: SCs: 30000 cr. STs: 20000 cr. and so on. Didn’t rhear what it was for

11:32 am: Physical aids and Accessibility devices given by govt to the old poor. Nice!

11:31 am: Unclaimed deposits of 3000 cr. in PPF -> Senior Citizens Welfare Fund. To Pay premiums of old age pensioners, BPL’ers,etc.

11:30 am: This is not huge. You might think it is but it’s not.

11:30 am: Upto Rs. 1000 per year for 5 years, govt pays 50% of a new pension scheme.

11:30 am: Defined pension: Oh goodness.

11:29 am: National Insurance scheme – Rs. 200,000 at Rs. 12 per year. Whatay.

11:29 am: Another huge thing: India wide social security

11:28 am: NBFCs more than 500 cr. will get access to SARFAESI! HDFC and others is very good

11:27 am: Comprehensive Bankruptcy Code!!!!

11:26 am: Only 34,699 cr for MNREGA! Yay!

11:25 am: 8.5 lakh cr. for agri credit?  

11:25 am: The numbers thrown around are very very big.

11:24 am: Farmers now. Agri production, soil and weather. 5300 cr. for microirrigation.

11:23 am: Jaitley now sits.

11:23 am: 11.5 cr. LPG customers have got LPG subsidies.

11:22 am: Yay! Subsidies to be worked around. Nice.

11:21 am: This is big. That’s a deficit higher by 0.3%, or about 40,000 cr.

11:20 am: 3.9% for FY16! THat’s higher than the 3.6% earlier planned.

11:20 am: Will reach fisc deficit in 3 years not two. Big spending coming?

11:19 am: Drastically reduced fiscal space, and 7th Pay Comm. Let’s not rush into fiscal thingy.

11:19 am: Fiscal target of 3% and then there is a “But…” , Whoa.

11:18 am: Nominal growth is lower=taxes are lower.

11:18 am: Agri, Education, Health, Roads+rural infra is still center’s responsibility.

11:17 am: 62% of receipts will be devolved to states.

11:17 am: 1. Agri incomes 2. Investment sucks. 3. Manufacturing sucks. 4. Fiscal discipline

11:15 am: This is all we “need” to do. Thanks Mr. Jaitley. Now what are we doing?

11:15 am: Support new startups, it seems!

11:14 am: Rural urban divide cut – ensure connectivity of all villages.

11:14 am: 80,000 secondary school, 75,000 additions in senior/middle Wow, but where is this going to come from?

11:12 am: 2 cr. of houses in urban, 4 cr. in rural. A toilet, a road, one member should be employed. – the goal?

11:11 am: Growth in 2015-16 will be 8% to 8.5%. [We think this is just magic]

11:09 am: 50 lakh toilets already built. 6 crore toilets to be built. Positive for Sintex?

11:07 am: Action has been taken on fin inclusion, health, women, employment, non-adversarial tax admin and so on. [What’s next?]

11:05 am: In Nov 2012, CPI inflation was 11%, CAD deficit was huge and investment community had almost written us off.

11:04 am: Common man and woman and youth and child. Politically correct

11:03 am: India is better than the world. till now in a summary. Ok lets move on.

11:01 am: Item number 1: Shri Arun Jaitley ji

11:01 am: The drama begins.

10:43 am: 20 minutes to action. is coming your way.



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