Union Budget 2014-15 LIVE: Income Tax exemption limit raised to Rs 2.5 lakh; investment ceiling hiked to Rs 1.5L Last Updated: Thursday, July 10, 2014, 13:10Zee Media BureauNew Delhi: Bringing cheer to individual taxpayers, Finance Minister Arun Jaitley in his maiden Union Budget 2014-15 in Parliament on Thursday, raised personal tax exemption limit to Rs 2.5 lakh from the current Rs 2 lakh. Income tax exemption limit for senior citizens has been raised to Rs 3 lakh.The Investment limit under Section 80C has also been hiked to Rs 1.5 lakh from the current Rs 1 lakh, while the FM increased housing loan interest rate deduction limit to Rs 2 Lakh.In further relief to the depositors, the FM announced that the PPF (Public Provident Fund) deposit ceiling will be raised to Rs 1.5 lakh from the existing Rs 1 lakh.The FM also announced to raise FDI in Defence and Insurance sectors to 49 percent and said that the subsidy regime, particularly food and fuel, will be overhauled. Assuring investors that retrospective amendments to tax laws will be undertaken with extreme caution, Jaitley said all fresh cases arising out of the 2012 amendment of I-T Act will be looked into by a high-level CBDT committee.However, the existing tax disputes, arising out of Retrospective Amendment to the Income tax Act, 1961, and are pending in courts, will be allowed to reach their logical conclusions, he said.Stating that his predecessors have left a very daunting target of meeting the fiscal deficit, Jaitley said that the BJP government will take this as a challenge and meet the fiscal deficit target of 4.1 percent of GDP.Jaitley told Parliament that India`s 1.2 billion people were exasperated after two years of economic growth of below 5 percent.He vowed that Asia`s third largest economy would expand at a rate of 7-8 percent within three to four years. Here are the key highlights of Union Budget 2014-15:Taxation:Personal tax exemption limit raised to Rs 2.5 lakh from current Rs 2 lakh for taxpayers below 60 yearsSenior citizens tax exemption limit hiked from Rs 2.5 lakh to Rs 3 lakhNo change in surcharge for corporates, individualsEducation Cess to stay at current 3%Investment limit under Section 80C hiked to Rs 1.5 lakh from current Rs 1 lakh Exemption on housing loans interest on self-occupied property increased from Rs 1.5 lakh to 2 lakh Other highlights:The people of India have decisively voted for change India unhesitatingly desires to growWe look forward to lower levels of inflationThe country is no mood to suffer from unemployment, lack of infrastructure and apathetic governanceThe continuing slowdown in emerging economies has posed threat to global economic recoverySlow decision-making has led to slow growthSteps announced in the budget are aimed for sustained growth of 7-8% within the next three-four yearsIt would not be wise to expect that the same can be done and must be done in the first budget being presented within the first 45 days of the new govtWe will leave no stone unturned to create an vibrant and strong IndiaWill lay down broad policy indicators in the budgetWe cannot spend beyond our means, we needs to follow fiscal prudenceWe cannot leave a legacy of debt for our future generationsConsidering we have 2 years of GDP growth and static industrial sector, the target of 4.1% fiscal deficit is dauntingI accept this target as a challengeBlack money is curse on our economyWe have to take bold steps to spur growth in economy. They are directionalGovt committed to minimum government maximum governance Aim to make food and fuel subsidy more targeted so that it helps those who need themUrgent need to generate more resources for the economyThis govt will not bring any change in tax rates retrospectivelyAll retro taxes to be scrutinized by a high-level committeeGST by end of the year (sets no firm deadline)To encourage development of smart cities; FDI cap on minimum built up area reducedPolicy of NDA govt is to promote FDI in select sectorsGST will streamline tax administration and result in higher tax collection for Centre and statesFDI in defence sector to go up to 49% Greater autonomy to banksPSU 247,944 cr capex to create industrial cycleSmart cities: PM has vision of developing 100 new citiesRs 7,060 cr fund for smart citiesTourism: e-visas to be introduced at nine airports in the country in a phased mannerReal estate investment trusts – modified REITS is being announced for infrastructure projects to reduce pressure on banking system Kisan Vikas Patra to be pushed furtherNew scheme for skill development called Skill India to be launchedSanitation in every household by 2019Shyama Prassad Mukherjee Rozgar mission to be launchedNew scheme for agricultural irrigationRs 500 cr for rural electrificationRs 200 cr for Sardar Vallabhbhai statue in GujaratRs 50000 cr for SC/ST schemesSocial security: minimum pension of Rs 1000 per month for all subscribers of EPFO schemeNational level institute for mental health to be set upCurrency notes with braille like signs to help the blindRs 150 cr on new scheme to improve safety of women in big citiesBeti bacahao, beti padahao scheme to be launched – Rs 100 cr allocationGender main-streaming: School curriculum to have a chapter on the issueMNREGA will be made more productive; it will be linked to agriculture related activities Women SHGs bank loan scheme to be extended to other districts Rural housing scheme: allocation increased to Rs 8000 crWatershed programme: New prog with outlay of Rs 2000 crBackward region grant fund for 272 backward districts - BRGF will be restructuredRs 3600 cr for national rural drinking water programmeHealth for all: free drug and free diagnostic servicesFour more AIIMS to be set up in AP, WB, Vidharbha and Purvanchal – Rs 500 cr allocation12 more govt medical colleges to be addedAim to create an AIIMS in every state Govt to provide toilet and drinking water in all girl schoolsNew teachers training scheme is being launched: Rs 500 cr allocatedRs 100 cr for virtual classroomsNational Centre of Humanities would be set up in MPFive more IITs and five more IIMs to be set upPan-India programme called Digital India would be launched – it will provide broadband connectivity to villages5 new IITs in Jammu, Chhattisgarh, Goa, AP & Kerala5 new IIMs in HP, Punjab, Bihar, Odisha & MaharashtraProgram for upgradation of skills and ancient arts for the minoritiesTwo more research institutes on farming to be set up in Assam and JharkhandNew agri univ in AP, RajasthanHorticulture univ in Telangana and HaryanaNational rural and tech mission is proposed – Rs 500 cr allocatedNew plan to promote community radio – Rs 100 cr allocatedUrban renewal to get Rs 50000 cr Urabn metro: govt will encourage metro system in PPP modeRs 100 cr for Lucknow and Ahmedabad metro projectsNew mission for low cost affordable housing for urban poor – Rs 4000 cr allocatedEasier flow of FDI is also being encouraged in this sectorRs 100 cr for modernisation of madrasasSlum development to be included in Corporate Social Responsibility activitiesUrban renewal will address drinking water, use of recycled water,solid waste management, digital connectivity; 500 habitats supported15 Model Rural Health Research centers to be set up for rural health issuesAnti-poverty programmes will be targeted wellNew scheme to provide soil health card to each farmer- Rs 100 cr allocatedClimate change is a reality which we have to face – national adaptation fund for climate change to be set up - Rs 100 allocatedFinance to 5 lakh joint farming groups through NABARDPrice stabilisation fund to be set up - Rs 500 cr allocatedState govts to be encouraged to set up farmers markets in cities and townRs 8 lakh crore target for agriculture credit3% tax subvention for farmers who pay up on timeRIDF target raised to 30000 crWarehousing: Rs 5000 cr allocatedSet up long term rural credit fund to be started by NABARDRs 5000 cr for STRC fundTo set up 100 mobile soil testing labs across countrySee FY14 growth at 4%Committed to restructuring FCIKisan Television will be launched this year – this will provide real time info to farmers on farming techniques – Rs 100 cr allocatedAll the govt departments and ministries will be integrated through e-platform by 31 Dec this yearExport proportion mission to be set upCommitted to revive SEZsEffective steps to revilatise SEZsSMEs form the backbone of economyMost SMEs are owned and run by SC/STs and OBCsCommittee to be set up to look at financing this sectorNational Industrial Corridor with headquarters in Pune will be set up. Rs 100 crores allotedApprentice Act to be suitably amended to strengthen the Apprentice Training Scheme6 more textile clusters to be set up at Bareily, Lucknow, Kutch, Mysore, Bhagalpur and TN Hastkala academy to be set up in DelhiPashmina production prog in J&KTo set up 7 new Industrial Smart CitiesManufacturing units will be allowed to sell products through retail, e-commerceTrade facilitation centre to promote handloom work in VaranasiGanga inland navigation – jal marg from Allahabad to Haldia at the cost of Rs 4200 crNew scheme to develop new airports in tier 2 and tier 3 citiesRoad sector needs huge investmentNHAI and state highways get 37,000 cr which includes Rs 3000 cr for NortheastNew expressways to be developed in parallel to the development on industrial corridorsRs 100 cr for new coal based power generation technologyBig solar projects in Rajasthan, TN and Ladakh – Rs 400 cr allocatedCurrent impasse in mining sector will be resolved expeditiouslyRoyalty on mining will be reviewed as suggested by many state governmentsCapital markets: Need to strengthen regulatory frameworkEssential to have modern monetary policy framework, Govt to work with RBI on thisLiberalise AGR-GDR scheme partIndian capital market to be energized by introduction of single KYC schemeUrgent need to converge Indian accounting standards with international onesAdherence to Indian accounting standards to be made mandatory by 2017Two bank accounts in each household for marginal sectionsBanks to be encouraged to give long term loans to industrial sectorNPA is a cause of worry6 new debt recovery tribunals to be set up Insurance penetration is still very lowPending Insurance Amendment Bill to be taken up in ParliamentBenefits of insurance have not reached larger section of people, will address in multi-pronged manner with stakeholdersProvide all households with banking facilities to empower the weaker sectionsCommittee will be set up to examine how unused money in postal schemes can be utilisedGovt committed to providing 24x7 power supply to all homesChit Fund and Money Circulation Act will be overhauledPPF ceiling upped from Rs 1 lakh to be Rs 1.5 lakhSmall savings scheme to be revitalisedCapital outlay of defence increased by Rs 5000 crNew war memorial will be constructed at Princess Park – Rs 100 cr allocated Small savings scheme to promote girl child, which will mature at the time of her marriage, higher education will be introducedRenewed effort to link rivers, Rs 100 cr for detailed study on itNew scheme Namami Ganga for rejuvenation of River Ganga gets Rs 2,037 cr Rs 990 crore for development of villages along the borderRs 100 cr set aside for development of Technology Development FundNational Police Memorial to be allocated Rs 50 cr Allocation for defence Rs 2,29,000 crore Budget proposes National Housing Banking programme; sets aside Rs 8,000 Rs 500 cr for five tourists circuitsNational sports academies to be set up in different parts of IndiaRs 200 cr for upgradation of stadiums in J&KSports university to be set up in Manipur, Rs 100 allocatedRs 100 cr for training for forthcoming Asian and Commonwealth GamesYoung leaders prog for youth to be started, Rs 100 cr set asideDisplaced Kashmiri migrants rehabilitation gets Rs 500 crNational Centre for Himalayan studies to be set up in UttarakhandNational institute for customs and central excise to be set up in Karnataka Development of rail system in Northeast get Rs 1000 cr over and above what has been provided in interim budgetNew 24x7 TV channel for NortheastUnion govt to help Andhra and Telangana in reorganisationRs 200 cr for power reforms and Rs 500 cr for water reforms in DelhiRs 150 cr for communication needs of Andaman and Nicobar IslandsRs 100 cr set aside for development of organic farming in Northeast regionBudget estimates:Non-plan expenditure at Rs 12,19,892 croreNon-tax revenue at Rs 2,12,544 croreRevenue deficit pegged at 2.9 percent of GDPPlan expenditure at over Rs 5.75 lakh croreImpact of tax changes have been factored60 more Ayakar Sewa Kendras to be set up in the countryIncome Tax Dept is expected to function not only as an enforcement dept but also as a facilitatorNet effect of direct tax proposals is revenue loss of Rs 22,200 crLong-term Capital Gains tax on MFs raised to 20% from 10%First
Posted on: Thu, 10 Jul 2014 12:52:01 +0000