Friday, July 11, 2014

Highlights of Budget



  • Every taxpayer gains Rs 416 per month or Rs 4,992 per year
  • Personal income tax limit for individuals aged below 60 years raised to Rs 2.5 lakh
  • Deduction limit under section 80 C raised to Rs 1.5 lakh
  • Excise duty on cigarettes raised in range of 11-72 per cent
  • Annual PPF ceiling hiked to Rs 1.5 lakh
  • Home loan interest exemption hiked to Rs 2 lakh
  • No tax for income up to Rs 3 lakh for senior citizens
  • LCDs, LED TVs to get cheaper
  • Service tax imposed on AC bus travel
  • Readymade clothes, cosmetics get dearer
  • Solar lamps to get cheaper
  • Additional excise duty of 5 per cent on aerated drinks
  • Excise duty on footwear reduced
  • No custom duty on CRT TV
  • Wage ceiling for EPFO hiked to Rs 15,000 cr
  • Tax saving of Rs 5,000 after PPF ceiling hike
  • Small savings instrument for girlchild
  • New sops for infra loans
  • Seven industrial smart cities to be set up
  • Rs 237 crore for cleaning of rivers
  • New cess on imported electronics goods
  • Rs 2,000 cr for Ganga conservation project
  • New industrial clusters to be set up on golden quadrilateral
  • Education cess for all taxpayers continues at 3 per cent
  • Tax proposed on the service provided by radio taxis
  • No changes in corporate tax rates
  • Basic tax exemption limit of Rs two lakh is likely to be extended by Rs 1 lakh, giving relief to salaried taxpayers.
  • Limit u/s 80C raised to Rs 1.5 lakh from Rs 1 lakh
  • PPF Annual ceiling to be hiked from Rs 1,00,000 to Rs 1,50,000
  •  Interest cap on Self-occupied houses raised to Rs 2 lakh from Rs 1 lakh
  •  Income tax exemption limit for senior citizens raised to Rs 3 lakh frmRs 2.5 lakh
  •  No change in tax rate, exemption limit raised form Rs 2 lakh to Rs 2.5 lakh for general assessees
  • Tobacco products to cost more. Excise duty increased b/w 11-72%.
  • Indirect Tax proposals to yield additional revenue of Rs 7,000 cr
  • To cut excise duty on packaging machinery to 6%
  •  To cut excise duty on food processing to 6% from 10%
  •  No change in rules on retrospective taxation; all retro tax cases will be scrutinised buy high level commission
  • Clean energy cess increased from Rs 50/ tonne to Rs 100/tonne.
  • Additional 5% excise tax to be levied on aerated drinks with added sugar (cold drinks). Tobacco products also to get costly as excise duty hiked to 72%
  • Government announces reduction in excise duty for specified food package industry from 10% to 6%.
  • Excise duty on footwear reduced from 12% to 6%
  • Government announces measures to encourage manufacture of LCD/LED panels of TVs.
  • Housing loan rebate to raised from Rs 1.5 lakh to Rs 2 lakh.
  • Net effect of direct tax proposals is revenue loss of Rs 22,200 crore.
  • Government proposes to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh. (Read story here)
  • Tax exemption limit for small and marginal, and senior tax payers changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens,
  • no tax for income up to Rs 3 lakh per annum.
  • No changes in tax rate.

What goes up:
  • Cigarettes
  • Cigars
  • Tobacco products
  • Gutkha and pan masala
  • Jarda scented tobacco
  • Aerated drinks containing added sugar
  • Some telecom products
  • Radio Taxi
  • Imported electronic products
  • Portable X-ray machines
  • Half cut/broken diamonds  


 
What goes down
  • Mobile phones
  • Imported computers components
  • Smart cards
  • Footwear
  • Colour picture tubes
  • Small LCD TV

  • PPF limit to be raised to Rs 1.5 lakh: Jaitley
  • Rs 100 crore for training of sportspersons for upcoming Asian Games. (Read story here)
  • Government announces Rs 150 crore for communication needs of Andaman and Nicobar islands.
  • Government announcesArunPrabha channel for northeastern region; will be 24/7 channel. (Read story here)
  • Rs 1000 crore provided for rail connectivity in northeastern region.
  • Programme for displaced Kashmiri migrants with Rs 500 crore to be started.
  • Rs 100 crore set aside for project to link rivers.
  • Government announces Rs 100 crore for development of Archaeological sites. Gaya to be developed as world class tourism spot.
  • Rs 5000 crore set aside for defence outlay over and above amount provided under interim budget.
  • National Police Memorial to be set up. Rs 50 crore set aside for this purpose.
  • Rs 100 crore set aside for development of Technology Development Fund.
  • Rs 100 crore War Memorial at Princess Park, India Gate.
  • Policy of One Rank One Pension to be adopted for defence personnel.
  • RBI will create framework for licenses of small banks.
  • Government aims to provide all households with banking facilities to empower the weaker sections; there should be atleast 2 bank accounts in each household.
  • Urgent need to converge current Indian standard with international accounting standards: Jaitley
  • Rs 37, 800 crore allotted for National Highways.
  • Revision of rate of royalty on minerals to be taken up on request from the states.
  • In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode.
  • New and renewable energy deserves high priority; ultra modern power projects to be taken up in Rajasthan, Tamil Nadu, Ladakh with Rs 500 crore.
  • Rs 4200 crore set aside for JalMargVikas project on river Ganga connecting Allahabad to Haldia , over 1620 km.
  • Scheme for development of new airports at tier II and III cities through PPP mode. (Read story here)
  • Rs 200 crore set aside for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur. Rs 50 crore set aside for Pashmina Production program in J&K.
  • MSMEs are the backbone of the economy; to be revived through a Committee to examine and report in three months.
  • 6 more textile clusters to be set up.
  • Industrial Smart Cities to come up at 7 cities.
  • All govt departments and ministries to be integrated through E-platform by 31 December this year.
  • Rs 100 crore set aside for Kisan Television to provide real time information on various farming and agriculture issues.
  • National Industrial Corridor to be set up. Rs 1000 crore set aside for this.
  • Rs 5000 crore short time rural credit refinance fund for 2014-15.
  • Rs 50 core set aside for indigenous cattle breed and blue revolution for inland fisheries.
  • Propose to provide finance to 5 lakh landless farmers through NABARD.
  • Govt will initiate scheme to provide a soil health card; Rs 100 crore set aside. Rs 56 crore for soil testing labs across the country.
  • Agriculture University in Andhra Pradesh and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside by the government.
  • Slum development to be included in Corporate Social Responsibility activities.
  • Govt announces Rs 100 crore for modernization of madrassas.
  • Govt announces development of Metro rails in PPP mode; Rs 100 crore set aside for metro scheme in Ahmedabad and Lucknow.
  • Rs 100 crore set aside for Community Radio Centres; 600 new and existing ones will be supported.
  • National Rural Internet and Technology Mission; Rs 500 crore set aside. (Read story here)
  • Govt proposes to set up Center of Excellence in MP named after LokNayak Jai Prakash Narayan.
  • 5 more IITs and 5 IIMs to be set up .
  • Propose to set up four more AIIMS; Rs. 500 crore set aside for this. Six new AIIMS started recently have become functional. Four new AIIMS will be set up in Andhra Pradesh, West Bengal, Vidarbha and Purvanchal. (Read story here)
  • Govt proposes National Housing Banking programme; sets aside Rs 8000 crore for this program.
  • Union Budget 2014 through infographics
  • PradhanMantri Gram SadakYojana has a massive impact on rural development; Govt sets aside Rs 14,389 crore for this scheme.
  • Crisis Management Center for women at Delhi; money to be provided from Nirbhaya fund.
  • Govt announces BetiPadhao, BetiBadhaoYojana; sets aside Rs 100 crore for this. (Read story here)
  • Safety of women of prime importance.
  • EPFO will launch a unified account scheme for portability of Provident Fund accounts.
  • Schemes for disabled persons in the country. 15 new Brail presses to be established and revival of 10 existing.
  • Rs 50,548 crore proposed for Schedule Caste development.
  • Govt committed to providing 24/7 power supply to all homes. DeenDayalUpadhyay Gram JyotiYojna for electricity supply to rural areas.
  • Rs 200 crore for 'Statue  of Unity' of SardarVallabh Patel.
  • PradhanMantriKrishiSichayinYojana to be started for irrigation.
  • We will examine proposal to give additional autonomy to banks and make them more responsible: Jaitley
  • E-visas to be introduced at nine airports in India in phased manner. (Read story here)
  • FDI in insurance to be increased to 49%
  • FM announces FDI in defence up from 26 to 49 % with Indian management and control
  • Transfer pricing is major area for litigation; proposes changes in transfer pricing regulation: Jaitley
  • I propose to strengthen authority for advance ruling in tax: Jaitley
  •  Aim to achieve 7-8 per cent economic growth rate in next 3-4 years.
  • We wish to provide an investment friendly taxation system: Jaitley
  • Thisgovt will not ordinarily change policies retrospectively which creates a fresh liability.
  • GST will streamline tax administration and result in higher tax collection for center and states. (Read story here.)
  • The task before me is very challenging. We need to introduce fiscal prudence. there is an urgent need for more reforms.
  • Raises limit on foreign direct investment in defence sector to 49 percent from 26 percent
  • Pledges to provide necessary tax changes to introduce real estate investment trusts and infrastructure investment trustsGovernment will not ordinarily bring any change retrospectively that creates a new liability
  • Aims to approve goods and services tax by end of this year
  • Extends 5 percent withholding tax on corporate bonds until June 30 2017
  • Extends 10-year tax holiday for power generation companies
  • Imposes 10 percent customs duty on some telecom products
  • Introduces uniform customs duty on all types of coals
  • Raises export tax on bauxite to 20 percent from 10 percent
  • Raises income tax exemption limits for individuals
  • Revenue deficit seen at 2.9 percent of GDP in 2014/15
  • Capital receipts forecast to total 739.5 billion rupees in 2014/15
  • Targets 634.25 billion rupees from total stake sales of companies in 2014/15; 150 billion rupees from stake sales of non-government companies
  • Total expenditure forecast at 17.95 trillion rupees in 2014/15
  • To provide 134.5 billion rupees capital infusion to state-run banks in 2014/15
  •  Allocates 2.29 trillion rupees for defence spending in 2014/15; capital outlay raised by 50 billion rupees over interim budget
  • Earmarks 70.6 billion rupees to create 100 "smart cities"
  • Proposes 50 billion rupees for warehousing capacity
  • Plans 100 billion rupees of private capital for start-up companies
  • Proposes 378 billion rupees of investment in national and state highways
  • 40 billion rupees for affordable housing planned through national housing bank; 80 billion rupees proposed for rural housing scheme
  • Net market borrowing forecast at 4.6 trillion rupees in 2014/15
  • Gross market borrowing forecast at 6 trillion rupees in 2014/15 versus 5.97 trillion rupees in interim budget
  • Forecasts interest payments and debt servicing will total 4.27 trillion rupees in 2014/15
  • Plans to make food and petroleum subsidies better targeted
  • Rural job-guarantee scheme, which provides 100 days of paid employment a year, will become more focused on asset creation
  • Food subsidy bill estimated at 1.15 trillion rupees for 2014/15
  • Petroleum subsidy bill seen at 634.27 billion rupees for 2014/15
  • Fertiliser subsidy bill forecast at 729.7 billion rupees for 2014/15
  • Will focus on acheiving 4 percent growth per year in agriculture
  • Sets farm credit target at 8 trillion rupees for 2014/15
  • Proposes a long-term rural credit fund with an initial corpus of 50 billion rupees




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