Thursday, July 10, 2014

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.

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