Budget 2014-15 - Comprehensive action plan

Finance Minister Arun Jaitley presented the Union Budget 2014-15.

 

Direct taxes:

FM proposes, no changes in tax rate but increases personal income tax exemption to `.2.5 lakh

 

• Tax exemption increased to `.3 lakh for senior citizens.
• 80C exemption limit increased to `.1.5 lakh.
• EMI exemption for self-occupied property raised to `.2 lakh.
• No changes in corporate tax.
• Finance Minister has also provided an investment allowance at 15% for 3 years to manufacturing companies which invest more than `.25 crore in plant and machinery.

 

Net effect of direct tax proposals is revenue loss of `.22,200 crores.

 

Indirect taxes:

 

• Basic custom duty on LED panel below 19 inch made nil.
• Export duty on bauxite enhanced from 10% to 20%.
• Excise duty on footwear reduced from 12% to 6%.
• Reduction in excise duty for specified food package industry from 10% to 6%.
• Increased excised duty on tobacco products and aerated water products with added sugar.

Tax proposals on indirect tax front would yield `.7,525 crores.