Mangaluru: Rachana organised a talk on the ‘Union Budget 2015’ and the Women’s Day Celebrations at the Conference Hall, Valencia here on March 8.
The progamme began with an invocation. President of Rachana, John Monteiro welcomed the gathering.
Chartered Accountant Rudolf Rodrigues presented a talk on the Union Budget of 2015. Speaking of this budget, he said that since this was the first budget under the Modi government, many people expected it to have ‘big bang’ reforms. “While analyzing a budget, economists focus on the economic and income/expenditure aspects like fiscal deficit. And those with an accounting background will focus on the tax proposals. When a budget is presented, everyone is keen to know about the tax lapse. There are no changes in this year’s budget as those changes were made in the 2014 budget. But the tax rate for those [individuals or companies] where the income exceeds Rupees 1 crore, has the surcharge increased from 10% to 12%. The effective tax is now 57% of the income of the company. The Finance Minister has announced that he will reduce the tax on corporates to 25% in the next 5 years. But some of the exemptions will be withdrawn. Our corporate tax rates are higher than those in major ASEAN (Association of Southeast Asian Nations) countries, where the average rate is only 21%. There is some relief in this budget. Conveyance Allowance tax exemption limit has been increased to Rs 1,600 per month from Rs 800.”
“There are changes in provisions relating to charitable trusts. One change in this budget is that the definition of charitable purpose has been expanded to include propagation and popularization of yoga. If a charitable trust, where the object is general public utility, carry out any activity in the nature of trade, commerce or industry and charge any fees or cess, that amount should not exceed 20% of the total income to enjoy tax exemption. This will effect mostly small organisations involved in such activities.”
“Deduction for expenditure on medical treatment of a dependent suffering from certain disabilities has also been increased from Rs 50,000 to Rs 5,000, while for disabilities of severe nature, it has been increased from Rs 1 lakh to Rs 1.25 lakh. There is another section dealing with expenditure for medical treatment on terminal illness invites tax deduction. For this deduction, one of the conditions was that a certificate had to be obtained from a doctor with a PG degree and employed at a government hospital. Those who were admitted at private hospitals would face problems. But now, the condition has been revised so that the required certificate can also be obtained from the doctor, not necessarily working in a government hospital.”
“The budget also makes a 100% tax exemption if a person contributes to the Swachh Bharat Kosh and Clean Ganga Fund, and this is the only amendment in the income tax act in this budget, which is retrospective in effect. Which means that it applies to financial year 2014-15 as well. So, if by the 31st of March 2015, you contribute to Swachh Bharat Kosh and Clean Ganga Fund, you will get a 100% tax deduction.”
“This budget comes heavily on black money stashed abroad. If a resident Indian has any income or asset abroad and he does not declare them, he will be taxed at a rate of 30% plus a penalty of 300% along with imprisonment of upto 10 years.”
“The budget making exercise is certainly a tough task. The budget can only be properly analysed after a year, when its achievements can be seen.” Concluding he said that keeping in mind all the aforementioned points, he would give this budget a rating of 5 out of 10.
Louis Pinto spoke about the ‘Entrepreneur Development Cell’, its objectives, mission and on how it helps budding entrepreneurs or those who seek to start a venture, the knowledge of how to succeed in their particular area of interest.
A felicitation ceremony was held thereafter honouring notable women as part of the Women’s Day celebrations. Violet Pereira (Proprietor and Editor-in-chief), Corine Rasquinha (Founder President White Doves) and Veronica Cornelo (Chairman of the KSDL) were felicitated for their achievements in their respective fields.
Secretary Anil delivered the vote of thanks. Linett Tellis compered the programme.