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.


Budget 2014 : Ganga to receive ocean of funds

Ganga to receive ocean of funds – for clean-up, ghat development, and NRI contributions. Modi’s Varanasi constituency should be happy. Money also allocated for studying inter-linking of rivers.

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