Union Budget Highlights 2014-15 – In simple terms
You would have got bored from budget announcements in Televisions and newspapers, hence I am not going to get bored by going into much details. I would provide Union Budget Highlights of 2014-15 in simple terms.
Union Budget 2014-15 – Highlights – Personal Finance
- Maximum IT exemption limit raised to Rs. 2.5 lacs for an individual.
- Uniform Know Your Customer (KYC) norms for the entire financial sector.
- Public Provident Fund (PPF) annual ceiling enhanced to 1.5 lacs.
- Senior Citizen are not liable to pay tax on income upto Rs. 3,00,000.
- Investment limit under Section 80C increased to Rs. 1.5 Lacs.
- Deduction for Interest on Housing Loan increased to Rs. 2,00,000.
- Finance Minister proposes one Demat account for all financial products.
- Special small saving scheme to be introduced for the education of girl child.
- Income of funds from portfolio investments shall be deemed as capital gains.
- Controversy over categorization of income of foreign investor funds as capital gains or business income shall end with this proposal.
- Finance Minister Proposes liberalization of American Depository Receipt (ADR)/Global Depository Receipt (GDR) regime.
Other Budget Highlights
- Taxation issues for foreign funds with Indian managers to be clarified.
- The government will not bring any retrospective amendment, which is unfair to the taxpayers.
- Five more Indian Institute of Management (IIMs) to be set up.
- Four more Indian Institute of Technology (IITs) to be set up.
- Rs. 100 crores for Metro in Lucknow and Ahmedabad.
- Allocates Rs. 400 crores to incentivize the development of low cost housing.
- Rs 500 crores for solar power development project in Tamil Nadu and Rajasthan.
- Accounting Standards for Banks and Insurance sector would be notified separately.
- No change in tax rates for corporate tax payers.
- Concessional rate of tax on dividend from foreign subsidiaries continues.
- No sunset date for concessional rates for foreign dividends.
- Concessional rate of 5% on interest extended to all types of bonds.
- Government shall consider public comments received on DTC.
- 10 year tax holiday for power companies starting production and distribution on or before March 31, 2017.
- To boost manufacturing sectors – customs duty reduced on certain inputs such as fatty acids, etc.
- Import duty on steel increased from 5% to 7.5%.
- Government to provide investment allowance at 15% for 3 years to manufacturing company investing more than Rs. 25 crores.
- Portfolio income of Foreign Institutional Investor (FIIs) to be treated as capital gain.
- Imported electronics goods to cost more. A cess to be introduced.
- Customs duty reduced on certain types of coals.
- Government reduces basic customs duty on LCD/LED televisions.
- Customs duty cut to nil on import of LCD, LED Panels below 19 inch.
- TV sets, Solar power units, computers, oil products, soaps becomes cheaper.
- Footwear to go cheaper – excise duty reduced from 12% to 6%.
- Sugary carbonated drinks to get dearer.
- Cigarettes, Cigars, Pan Masala, Gutka and other tobacco product to attract more excise duty.
- Basic rates of customs duty @ 10%, excise duty @ 12% and service tax @ 12% remains intact.
- Excise duty hiked on aerated waters with sugar content.
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Union Budget Highlights 2014-15
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