Budget Highlights 2014
DIRECT TAXES
1. No change in Direct Tax rates
2. Income Tax Basic exemption limit for senior citizen individuals increased to Rs. 3 Lacs and for others Rs 2.5 Lacs
3. Education Cess to continue at 3%
4. Housing interest deduction for self occupied property increased to Rs 2 Lacs
5. Deduction limit under section 80C increased to Rs. 1.5 Lacs
6. Investment allowance for investments above 25 cr in units
7. Concessional rate of tax on dividend received from foreign subsidiaries continues
8. 10 year tax holiday for power companies starting production and distribution or before March 31, 2017
9. Transfer Pricing: Now use multiple years data of comparable for determining Arms’ Length Price
SERVICE TAX
1. Service Tax proposed on radio taxis
2. Exemption continue to be provided to print media from Service Tax
EXCISE AND CUSTOM
1. Basic custom duty on LED panel below 19 inch made nil
2. To cut basic customs duty on some petrochemical units.
3. Picture tubes exempted from Basic customs duty
4. Customs duty on some diamond grades increased to 2.5%
5. Excise Duty on cigaretted increased between 11%-72%
6. Clean energy cess increased to Rs. 100 per tonne
7. Excise Duty increased on tobacco products, and aerated water products with added sugar
8. Excise Duty reduced for specified food package industry from 10% to 6%
9. Excise duty reduced on footwear from 12% to 6%
10. Export duty on bauxite increased to 20%
11. Custom duty increased on flat steel products to 7.5%
OTHERS
1. PPF savings limit increased from 1 Lacs to 1.5 Lcas
2. All govt department and ministries to be integrated through E-platform by 31 Dec this year
3. E-Visas will be introduced in a phased manner at 9 airports in India
4. To apporve Goods and Services Tax (GST) by the end of the year
5. No retrospective taxes
6. FDI raised to 49% in Defence
7. Uniform KYC norms for entire Financial Sector
8. Accounting Standard for banks and Insurance sector would be notified seperately
9. 60 more Aykar Sewa Kendras to be set up in the country