10/07/2014
Some Highlights of Budget 2014
Budget 2014 News
Tax exemption limit goes up to Rs. 2.5 lakh from Rs. 2 lakh for people below sixty; to Rs. 3 lakh for senior citizens
Finance minister Arun Jaitley on Thursday raised the exemption limits for all individual tax payers by Rs.50,000 while keeping the rates untouched in the national budget for this fiscal.
The tax exemption limit for individuals below 60 years stands revised to Rs. 250,000, subject to parliament's approval, while for senior citizens it is proposed at Rs. 300,000.
This apart, deductions allowed under various heads such as investments in Sec 80C are also proposed to be raised by Rs. 50,000 to Rs. 150,000.
Deduction for interest on house loan goes upto Rs. 2 lakh from Rs.1.5 lakh
The government also raised the foreign direct investment (FDI) limit to 49% in insurance and defence as finance minister Arun Jaitley presented his maiden budget aimed at boosting growth to create millions of new jobs.
Jaitley also promised a stable tax regime and the formation of a high-level committee to deal with retrospective taxation, but refused to change rules in such cases.
Investors were spooked after the UPA introduced retrospective taxation in 2012, a move that allowed the previous government to raise tens of billions of dollars in tax remands from foreign companies.
The Union Budget projected the fiscal deficit at 3.6% of the gross domestic product (GDP) in 2015/16, accepting the fiscal deficit target of 4.1% in the current fiscal.
The finance minister also said the government aimed at sustained growth of 7-8% in the next 3-4 years, as the Economic Survey projected 5.4-5.9% GDP growth in fiscal 2014-15.
India's gross domestic product (GDP), the total value of all goods and services produced within the country's boundaries, has clocked sub-5% growth in two consecutive years.
With slow growth and escalating prices delivering a blow to the economy, Jaitley said the new government was bound to usher in policies for higher growth and lower inflation.
The government also earmarked Rs. 70.6 billion to create 100 "smart cities".
