Budget 2014


Budget 2014 : Jaitley proposes to revitalise small savings scheme

Jaitley proposes to revitalise small savings schemes. Rs 1.5 lakh will be allowed as PPF account investment annually.

Secondly, special national savings certificates and savings instruments have been announced for parents to invest in name of girl child.

Thirdly, one-rank-one-pension scheme for retired soldiers is also being implemented with allocation of Rs 1,000 crore this year.



Rs 2.5 lakh tax-free, tax breaks for India Inc, FIIs

Most of the concessions for sectors are small and narrow. Wonder why these itsy-bitsy announcements should be read in the budget speech.


Budget 2014 : Bad news for debt funds

Net revenue loss for direct tax changes if Rs 22,200 crore.

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.


Budget 2014 : TAX PROPOSALS

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.

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