July 10, 2014

Union Budget 2014

On Thursday 10th July, 2014 Finance Minister Arun Jaitely presented his First Budget under NDA Government. The Highlights of the Union Budget is given below:



  • NO change in Tax rates
  • Increase Personal Income Tax Limit
  • Rs 250000.00 from Rs. 20000.00 for all citizens below age of 60 years
  • 3 lakhs for Senior Citizen from Rs. 250000.00
  • No Change of Surchage
  • Increase 80C from Rs. 1.00 Lakhs to 1.50 Lakhs
  • Increase of Deduction on Interest on Housing Loan for Self Occupied Property to 2.00 lakhs from 1.50 lakhs
  • Investment allowance @ 15% to investment more than 25 crores on Plant and Machinery upto 31.03.2017
  • Ten year tax holidays to Business of Generation of Power upto 31.03.2017
  • Income arising out of portfoilio investment by Foreignors will be Capital gain.
  • Transfer Pricing laws changes to remove anomolies
  • Income Tax on MF- LTCG Tax rate increased to 20% and holding period increased to 36 months
  • 30% of payment will be disallowed if TDS is not deducted
  • DTC will be reviewed
  • 16 more Aaykar Sampark Kendra
  • Revenue Loss of 22200 crores due to Tax Changes



Reduction of Custom Duty on  
Fatty Acid Duty and Other Palm Duty- From 7.50% to Nil   
Crude Glycreine From 12.50 to Nil 
Battery Waste- 10 to 5 %
Exempt Color Picture Tube to make TV cheaper.
LCD/LED below 19inches- From 10 % to NIL


Concession will be enhance for 6 months on Excise Duty reduced in Interim Budget on Cars and Other Commodities
Reduce of Excise Duty from 10% to 6% on Food Processing Industry
Reduce of Excise Duty from 12% to 6% on Footwear Industry exceeding 500 per paid but not above 1000 per pair
Increase in Excise Duty on Tobacco and Cigrattes
Increase of Excise Duty of 5% on Aerated water having Sugar


Negative List has been reviewed:

Sale of Time Place on Advertisment will be taxed on Mobile and Internet
Service Tax on Loading and Unloading of cotton will be exempt

Revenue Gains due to Indirect Tax Amendments-Rs 7525 crores

  • Allocation of Rs. 4200 crores to build Infrastructure for river Ganga from Allahabad to Handia
  • Five more IIM and IIT
  • 4 more AIIMS
  • Rs. 8000 crores to Improve Rural Housing
  • To encourage investment in Mining Sector, changes in Mining Act will be done. To Revise the rate of royalty last done in August 2009.(to increase greater revenue for state)
  • Introduction of Uniform KYC Norm
  • One Demat Account for All Finance Assets
  • Adoption of New Indian Accounting Standards for All companies 2015-16 voluntary and 2016-17 mandatory
  • Six New Debt Recovery Tribunal for revival of NPA
  • A special small saving scheme for Girls Education and Marriage.
  • 100 crores fro Woman Safety
  • PPF Scheme enhance to 1.25 lacs from Rs 1.00 lac
  • Allocation of Rs. 229,000 crores to Defense
  • Allocation of Rs. 1000 crores for One rank One Pension
  • Allocation of Rs. 5000 crores over and above the amount provided by Interim Budget
  • War Memorial-  To be build at Princes Park 100 crores allocated
  • National Police Memorial- 40 crores
  • Sum of Rs. 100 crores for detailed Study on reviving rivers.
  • To Revive Ganga- 2000 crores
  • Ghats- Rs. 100 Crores for modification in Kedarnath Kanpur and Varanasi
  • Establishment NRI Fund for Ganga to fund the Ganga Projects
  • Allocation of Rs. 200 crores for Jammu and Kashmir Indoor and Outdoor Stadiums.
  • North Eastern Region- Development in Organic Farming. Rs. 100 crores for this purpose.
  • 24x7 channel for North Eastern States in the name of Arun Prawah
  • Allocation of Rs. 200 crores for power reforms and Rs. 500 crores for water reforms in New Delhi
  • Krishi Darshan TV to be Launched




PLANNED EXPENDITURE- Rs. 575000 crores

TOTAL EXPENDITURE- Rs. 17,94,892.00 crores


CAPITAL REVEUE-225505 crores

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