india budget 2014

7/23/2019 India Budget 2014

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* No change in tax slabs or minimum taxable limit

* The transport allowance exemption hiked to Rs 1,600 per month from Rs 800 permonth.

* Limit of deduction of health insurance premium increased from Rs. 15000 to Rs. 25000. For senior citizens limit increased from Rs 20000 to Rs 30000.

* Senior citizens above the age of 80 years, who are not covered by health insurance, to be allowed deduction of Rs 30000 towards medical expenditures.

* Deduction limit of Rs 60000 with respect to specified decease of serious nature enhanced to Rs 80000 in case of senior citizen.

*Additional deduction of Rs 25000 allowed for differently abled persons.

*Limit on deduction on account of contribution to a pension fund and the new pension scheme increased from Rs 1 lakh to Rs 1.5 lakh.

*Additional deduction of Rs 50000 for contribution to the new pension scheme u/s 80CCD.

*Payments to the beneficiaries including interest payment on deposit in SukanyaSamriddhi scheme to be fully exempt.

*Service-tax exemption on Varishtha Bima Yojana.

*FM says concession to individual tax-payers despite inadequate fiscal space.

*Lot to look forward to as fiscal capacity improves

Here are sector-wise highlights:

TAXATION

1Abolition of Wealth Tax.2Additional 2% surcharge for the super rich with income of over Rs. 1 crore.

3Rate of corporate tax to be reduced to 25% over next four years.4No change in tax slabs.5Total exemption of up to Rs. 4,44,200 can be achieved.6100% exemption for contribution to Swachch Bharat, apart from CSR.7Service tax increased to14 per cent.

AGRICULTURE

1Rs. 25,000 crore for Rural Infrastructure Development Bank.2Rs. 5,300 crore to support Micro Irrigation Programme.3Farmers credit - target of 8.5 lakh crore.

INFRASTRUCTURE

1Rs. 70,000 crores to Infrastructure sector.2Tax-free bonds for projects in rail road and irrigation3PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.4Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.5Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.

EDUCATION



1AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.2IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.3PG institute of Horticulture in Amritsar.4Kerala to have University of Disability Studies5Centre of film production, animation and gaming to come up in Arunachal Pradesh.6IIM for Jammu and Kashmir and Andhra Pradesh.

DEFENCE

1Allocation of Rs. 2,46,726 crore; an increase of 9.87 per cent over last year.2Focus on Make in India for quick manufacturing of Defence equipment.

WELFARE SCHEMES

1GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.2Six crore toilets across the country under the Swachh Bharat Abhiyan.3MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.4Housing for all by 2020.5Upgradation 80,000 secondary schools.

6DBT will be further be expanded from 1 crore to 10.3 crore.7For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.8New scheme for physical aids and assisted living devices for people aged over 80 .9Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.10Rs. 5,000 crore additional allocation for MGNREGA.11Govt. to create universal social security system for all Indians.

RENEWABLE ENERGY

1Rs. 75 crore for electric cars production.

2Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro

TOURISM

1Develpoment schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.2Visa on Arrival for 150 countries.

GOLD

1Sovereign Gold Bond, as an alternative to purchasing metal gold.

2New scheme for depositors of gold to earn interest and jewellers to obtain loans on their metal accounts.3To develop an Indian gold voin, which will carry the Ashok Chakra on its face,to reduce the demand for foreign coins and recycle the gold available in the country.

FINANCIAL SECTOR

1Forward Markets Commission to be merged with the Securities and Exchange Boardof India



2NBFCs registered with the RBI and having asset size of Rs 500 crore and above to be considered as financial institution under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses3Permanent Establishment norms to be modified to that mere presence of offshorefund managers in the country does not lead to adverse tax consequences.

With Finance Minister Arun Jaitley getting ready to present the Budget on February 28, its also time for us to learn and ready ourselves for a long speech. And a part of this long speech involves terms that arent used in daily conversation. Here is a ready reckoner for some of these terms.

Disinvestment Receipts

The term refers to the money raised by the Government through disinvestment, orthe sale of its equity stake in companies it owns.

Fiscal Responsibility and Budget Management Act

The Act is an attempt to make the Government adhere to a phased plan to reduce fiscal deficit, which denotes an excess of expenditure over revenue.

Dividend Distribution Tax

This is a tax levied on companies that pay out dividends to its shareholders, i.e. share a portion of earnings with them.

Venture Capital Funds

These are funds that invest in startups, a financially riskier proposition thaninvesting in established companies.

Securities Transaction Tax

It is a tax on all transactions done over the stock exchanges involving securities such as shares, derivatives, and equity-linked mutual funds.

Wholesale Price Index (WPI)

It is a measure of inflation, or price change, arrived at after regularly measuring the prices of a slew of wholesale goods.

Consumer Price Index (CPI)

It is a measure of inflation, or price change, arrived at after regularly measuring the prices of a slew of household goods and services.

Capital Gains Tax

It is a tax on the gains that ensue when an asset is sold for a price higher tha

n what it was bought for.

Value-Added Tax (VAT)

It is a tax on the value added to a product at each stage of distribution, so that inputs that go into making the product arent taxed more than once.

Ad Valorem Tax

This is charged as a percentage of the value of a good or service, not at a spec



ific rate per unit.

Advance Pricing Agreement (APA)

It is an agreement between a taxpaying entity and the taxman that indicates howthe former will price transactions with its associates.

Fiscal Policy

It is what a Government does to influence the course of an economy through decisions on taxes and spending.

Monetary Policy

It is what a central bank does to influence the course of an economy through decisions on money supply and interest rate.

Direct Tax

A tax such as the income-tax, which has to be borne by the person it or entity it is imposed on.

Indirect Tax

A tax on goods and services, typically, levied on an entity but paid by another.

Direct Taxes Code (DTC)

Indias likely replacement to the long-standing Income Tax Act, the Direct Taxes Code is meant to make direct tax laws simpler and more efficient.

Goods and Services Tax (GST)

Proposed to be rolled out in India from April 1, 2016, the GST seeks to make the indirect tax structure simpler and efficient by replacing a slew of levies such as octroi, central sales tax, State sales tax, entry tax and so on.

External Commercial Borrowing (ECB)

ECBs refer to commercial loans with a minimum three-year maturity that can be raised from lenders from overseas where interest rates are lower than in India.

Fiscal Consolidation

The term refers to the things a Government does to maintain good fiscal health cut debt and wasteful expenditure and improve revenue opportunities.

Current Account Deficit

It is a trade measure that shows the value of a countrys imports of goods and ser

vices to be higher than the value of its exports.

The disadvantages to common man are increase in excise duty and service tax from 12.36% to 14.42% which will increase the price line . The proposed increase inindirect taxes is inflationary. The Prime Minister has not bothered to implement his promise in his election manifesto where it was mentioned that the individual income tax limit will be increased to Rs.5,00,000. The Budget presented is similar to the one presented by the previous UPA regime . The influence of World Bank, WTO etc., is prevalent in the Budget proposal to stream line subsidies and reduce the coverage of people who are below the poverty line .

india budget 2014

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