Let us talk
about my favorite subject – Economy. Being an entrepreneur, especially for a start-up
it is extremely important to have a financial knowledge. The financial
knowledge relates to the saving, spending, investing and returning the taxes to
the Government. A business owner/entrepreneur needs to learn about the various
aspects of finance, even a person who is an employee or a household must know
about it. Today the finance minister of India presented his full-fledged
general budget for 2015 in Lok Shabha. Mr. Jaitley is a well known lawyer and
right now he is our finance minister, when he became the minister I was not
sure how he will manage this department as it is a highly sensitive department
and it affects the nation's economy directly. I am happy with the budget, and I
will tell you how and why I liked this budget!!
INFRASTRUCTURE-
The
infrastructure sector is the backbone of every economy and it is highly
necessary that we should invest more and more in infrastructure. Countries like
Japan, China, USA, Australia, etc. invests so much in infrastructure and that
is why they have better infrastructure than us. This time the Government of
India has invested Rs 70,000 crores on infrastructure, it means investment in
Roads, Schools, Highways, Ports, Airports and Hospitals. It will boom the
infrastructure sector and it will provide jobs for a number of people like me,
who are associated with this field. Also, the Government will set up AIIMS in
J&K, Tamil Nadu, H.P. and Assam with IIMs in Arunachal and in other parts.
The Government has also decided to plant 5 ultra mega power projects for 4,000
MW each.
ECONOMY-
The biggest
hurdle or headache in India is inappropriate tax system or sometimes people
call it ‘tax terrorism’. A number of businesses don’t invest in India due to
this, Mr. Jaitley has done the first reforming step and that is reducing the
corporate tax from 30% to 25%. It will help a number of businesses all over the
world to come and work with great dedication in India without any fear of high
tax. Also, abolishment of wealth tax on rich people will allow rich people to
invest more money, now they will be given surcharge of 2% of their wealth. It
will help to control the black money and it will generate revenue for
Government from rich people of the nation.
Yes, we did not
get any rebate in income tax like raising the income tax slabs, but indirectly
by investing money in road and rail bonds will generate money for them in the
long term. He raised the travel allowance(TA) up to Rs 1600 that was not raised
since 1998, which is also a great move and a person can save up to Rs 19200
throughout the year by this TA. GST will be applied from April 1, 2016, which
will abolish a number of unnecessary taxes in India that are a curse for our
economy. Govt. has reduced the custom duty on 22 items and also introduced a PAN
number mandatory for the purchase above Rs 1 lakh.
OTHER
INITIATIVE-
The best I liked
about the Government is that they have invested Rs 2.46 lakh crores in the
Defense sector. We need to improve our defense, so that our Army can match the
world best Army in the means of the technology. They have allotted visa on
arrival for 150 nations, which is going to boost the tourism sector and it will
provide work and revenue for the people. People may take it lightly, but this
sector has so much potential to enhance Indian economy.
There are a
number of schemes such as PM rural irrigation scheme, PM banking scheme, Clean
Ganga initiative, etc. that makes this budget better than the previous one.
They have touched every sector and every group of society by this budget. They
have focused on Industry and as well as on poor. If you have a salary of Rs
37000 every month, you are free from any tax. They have diverted money for
every field and left no side. They have taken necessary measures for the black
money squirrels by making laws and punishment clauses in the upcoming bill.
I liked this
budget and being an entrepreneur, I am happy and I hope intellectual people
will like this budget and thank you for reading this.
Jaitley’s Calculator-
Investing money by 80C & 80 CC = Rs 2, 50, 000
Investment in PPF, LIC, Insurance,
Mutual Fund = Rs 1, 50, 000
Medical Insurance = Rs 25, 000
Travel Allowance = Rs 19, 200
Total = Rs 4, 44, 200 (0 Income Tax)
Hence, if you
are earning this much in India, you have to pay no income tax. Also if you are earning Rs 2, 50, 000 per annum you will get Rs 0 tax. It means if you have an income of Rs 6, 94, 200 you can save full money in your account.
