India Budget 2014 - Highlights Rs 7500 crore additional revenue due to changes in indirect taxes Service Tax: Minimal changes. Negative list: Sales of space for advertisements on online. Newspapers will remain exempted. Tourism to be boosted for change in service tax Indirect Taxes Customs duty: Reduced basic customs duty for some industries with varying rates LCD and LED TV prices below 19 inches to go down Coal customs duty changed to reduce disputes regarding quality of coal Power: 10 year tax holiday for new generators or distributors Income out of portfolio: capital gains Long term foreign borrowing: eligible date from 31.6.2016 to 20.6.2017: concessional rate of 5% for interest payments. All bonds, not just infrastructure bonds Transfer Pricing: Range concept for determination of arms length price. Provide investment allowance at 15% for 3 yrs to the manufacturing company which invests more than Rs 25 cr in plant and machinery Direct Tax Code: Govt will review and take a decision. Previous proposal lapsed with dissolution of Lok Sabha Non plan expenditure: Rs 1219892 crore Fertiliser and capital expenditure separate Taxation Direct tax: retain interim budget targets. Rs 13,64,524 cr tax receipts Introduce measures to promote manufacturing Individual: No changes in tax rate Basic tax exemption limit raised to Rs 2.5 lakh, and Rs 3 lakh for senior citizens (60-plus). No changes made in corporate or other direct taxes. Limits under section 80C raised to Rs 1.5 lakh - as indicated in raising the PPF limit to Rs 1.5 lakh. EMI exemption for self-occupied property raised to Rs 2 lakh. Companies to get 15 percent investment allowance for fresh investments above Rs 25 crore. Foreign institutional investors to get tax-breaks to entice them to move back from Mauritius. Their incomes will be treated as capital gains - which is 15 percent for short-term gains and zero tax for long-term gains. Bad news for debt funds: tax-break for long-term capital gains will happen only on three-year holdings. Rate of tax up from 10 percent to 20 percent for long-term gains. Banks will now gain at expense of mutual funds from the elimination of this arbitrage opportunity. No change in surcharge rate Education cess; remain 3% Savings at 30.1% in 2013. Increase in savings required. Investment limit under 80C increase to Rs 1.5 lakh Housing loan: exemption hiked up to Rs 2 lakh for self occupied houses Andhra Pradesh-Telengana: Provisions to help both states Rs 10000 crore extra to buil railways in North East over and over Interim Budget Displaced Kashmiri migrants: Rs 500 crore for rehabilitation Himalayan studies: National centre in Uttarakhand with initial outlay at Uttarakhand North East: organic farming development: Rs 100 crore Sports National Sports academies at different parts of the country Jammu & Kashmir: special sum of Rs 200 crore to upgrade indoor and outdoor stadiums Sports University in Manipur: Rs 100 crore International events to be held in North and North East India Rs 100 crore for training of sports persons for Asian Games Young leaders programme: Rs 100 crore Rivers Serious effort to link rivers. Sets aside Rs 100 crore for a report. Substantial money spent to clean Ganga. Integrated Ganga Conservative Mission: Rs 2037 crore for it Rs 100 crore for Ghat development Science and technology Turn 5 centers into research institutions. PPP model 2 clusters for research in Kolkata and Pune Defense Rs 2,29000 crore for defense 1 rank- 1 pension for army Rs 1000 crore set apart for it Capital outlay increased by Rs 5000 crore over interim Budget Police reforms: Rs 3000 crore set aside vs Rs 1800 crore last Budget Banking Govt in principle agrees to consolidation of PSU banks Rise of NPA matter of concern 6 new revival tribunals to be set up Bank will be encouraged to give long term funds & loans to the infrastructure sector Insurance Insurance Bill to be brought for consideration in Parliament Special small saving instrument for girl child education and girl marriage PPF scheme: Rs 1.5 lakh per annum Financial Sector Essential to strengthen financial sector Modern monitory policy to be brought in Advise regulators for liquid corporate bond market, eliminate unnecessary restrictions Allow international settlements of bond settlements Introduce uniform KYC norms across financial sector 1 operating Demat account to control any instrument New accounting norms Energy and transport Rs 4200 crore: Inland navigation Airport : Scheme for airport in Tier 1 and 2 under Airport Authority of India Road : NHAI to get Rs 37000 crore; include Rs 3000 crore for North East National Industrial corridor with headquarter in Pune SME: Bulk of service sector also SMEs. Majority run by SC ST OBC. Financing is important. Need to examine financial architecture of this sector. Set up committee to give suggestion in 3 months. Venture capital in SME: Rs 10,000 crore fund. To attract other investors Apprentice Act to be suitably amended to strengthen the Apprentice Training Scheme All the Govt departments and ministries will be integrated through E-platform by 31 Dec this year Agriculture sector Fertilser - must take care of degradation of soil. Initial fund of Rs 100 crore for climate change fund. Farmers bank lending: propose to produce of Rs 5 lakh to Bhumeeheen Kisan groups through NABARD Price stabilization fund Food, oil subsidies to be more targeted Indigenous cattle breeding to be supported Banks: target of Rs 8,00,000 crore to lend to agriculture sector Short term crop loan: Farmers to get further incentive of 3% for farmers who pay on time. Was already getting loan at 7%. Raise RIDF corpus by Rs 5000 crore. Target of Rs 25000 crore set by Chidambaram Rs 5000 crore for infrastructure fund in agriculture Long term rural credit bank to provide support to cooperative banks and RRBs, by NABARD. Rs 5000 crore allocated. Producers development fund to get Rs 200 crore in NAABARD Food Sector Need to restructure FCI Govt will undertake open market sales to keep prices under control Farmers to get information on new techniques. Rs 100 crore set aside E-based platforms: FTII Pune, SRFTI Kolkata : special status of national importance Use of recycled water, solid waste management, sae drinking water: hubs using PPP model to be set up Rs 100 crore: Metro project in Lucknow Propose to set up 5 new IIMs in HP, Punjab, Bihar, Odisha & Maharashtra: Low cost housing : Rs 4000 crore for National Housing Bank Slum development to be part of CSR. Currency notes to have braille Rs 200 crore for 4 agricultural institutes in 4 states Rs 100 crore has been allocated for the modernization of Madrasas Universal healthcare: 4 more AIIMS in Andhra Pradesh, West Bengal, Vidharbha, Purvanchal. Rs 500 crore set aside 12 more medical colleges in government hospitals. Aim to create AIIMS in every state of the country Rs 3650 crore for safe drinking water Toilets and drinking water in all girls school to begin with. More than Rs 26000 crore set aside Under the Pradhanmantri sadak yojna propose 14,389 cr for development of roads-Arun Jaitley. Budgetory Allocations Rs 50548 crore for SC-ST plan Senior citizens: Additional pension introduced by NDA govt last time. Unclaimed amount of PPF etc. Mostly out of investments belonging of senior citizens. Set up a committee to protect senior citizens. report by December 2014. EPFO to launch unified accounts to transfer PF funds. Min pension of Rs 1000 per month. Initial fund of Rs 250 crore. Differently abled persons: Make inclusive opportunities. Centre for sports for differently abled Visually challenged: 15 new braille press. Womens safety: Rs 50 crore to be spent by Roads ministry to increase safety of women on roads: Pilot project Beti bachao Beti padhao Yojana: Apathy towards girl child rampant. Rs 100 crore allocation. NREGA: Rural SHGs extend 4% loans to more rural areas. NREGA to target more productive work. National Housing programme: Rs 8000 crore Banking: Disinvestment to retail investors to collect money. To give greater autonomy to banks. PSU capital expenditure: Rs 2, 47,000 crore. Urbanization: Need to develop new cities. Provides Rs 7060 crore. E Visas: To facilitate visa on arrival Infrastructure Investment Trust to help infrastructure projects. Kisan Vikas Patra: To have bank and non-bank savings for farmers. Bulk of farm lands are rain fed. Must improve irrigation. Sets aside Rs 1000 crore for this. Sanitation: Rural sanitation to reach of every household. Power: Dindayal Upadhyay Gram Jyoti Yojana launch: Rs 500 crore set aside Litigation in direct tax: Resident to have possibility of getting advanced order on tax liability. FDI: Allow selectively in sectors. India needs a push for job creation. We are buying substantial portion of defence requirement. Insurance sector: Increases FDI to 49% from 265 currently. FDI in defense raised to 49% Promoted to minimum government and maximum governance. Govt will form commission to review expenditure. Urea policy will be reformulated. GST essential to restructure taxation. I assure all states govt will be more than fair to all states. Retrospect taxation: No change to be brought in retrospectively. Govt will be extremely cautious. Jaitley says the people below poverty line wants to raise themselves above it. While higher growth is important, we cannot ignore that the poor suffer the most. The government has taken up the challenge in right earnest. The task is challenging because we need to revive manufacturing and infrastructure sector. We need to introduce fiscal prudence. We cannot spend today which is compensated by tax in future. Must improve tax-GDP ratio. Although the external sector witnessed turn around and CAD improved, it was through restriction on non-essential imports. Fiscal Deficit: target 4.1% set by Chidambaram is daunting, but accept the challenge. 3.6% for 2016 and 3% for 2017. Like my page :) https://facebook/uniglobeventure
Posted on: Thu, 10 Jul 2014 10:19:59 +0000
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