ey-global-tax-policy-outlook-for-2015

India
2.4 Tax policy outlook for 2015 — detail
Corporate income taxes
• No change is expected in corporate income taxes as the
Taxes on wages and employment
• No changes are expected.
VAT, GST and sales taxes
•
•
•
2.5 Fiscal stimulus in 2015
2.6 Political landscape
• The May 2014 general elections brought the National
coalition, Bharatiya Janata Party (BJP), gaining an absolute
majority in the Lok Sabha (the lower house of Parliament).
However, the ruling coalition does not have a majority in the
Rajya Sabha (the upper house of Parliament) and is unlikely
to have a majority until 2016.
2.7 Current tax policy and tax administration
leaders
Tax policy leaders
• Arun Jaitley, Finance Minister
•
of Finance
•
•
Minister
Tax administration leaders
•
• Kaushal Srivastava, Chairperson, Central Board of Excise and
Customs (CBEC)
2.8 Key tax policy changes in 2014
Personal income tax
• The Ministry of Finance issued circulars to bring clarity on
The PIT exemption limit was raised from INR200,000 to
INR250,000 in the case of individual taxpayers below the
age of 60. The exemption limit was raised from INR250,000
to INR300,000 in the case of senior citizens.
• The investment limit under section 80C of the Income Tax
Act was raised from INR100,000 to INR150,000.
• The deduction limit for loan interest for self-occupied house
property was raised from INR150,000 to INR200,000.
Corporate income tax
• A conducive tax regime for infrastructure investment trusts
and real estate investment trusts will be set up in accordance
with the regulations of the Securities and Exchange Board of
India.
• An investment allowance at the rate of 15% is available to
a manufacturing company that invests more than INR25
is available for three years, i.e., for investments up to 31
March 2017.
• A 10-year tax holiday is extended to the undertakings that
begin generation, distribution and transmission of power by
31 March 2017.
The outlook for global tax policy in 2015 |
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