Highlights of Budget 2014

 

 

• 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). Tobacc 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.

• 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