NEW DELHI: Here are the highlights of Union Budget 2014 tabled by finance minister Arun Jaitley on Thursday:
* Indian Custom Single Window Project to be taken up for facilitating trade.
* Clean energy cess increased from Rs 50/ tonne to Rs 100/tonne.
* Additional 5% excise tax to be levied on aerated drinks with added sugar (cold drinks). Tobacco products also to get costly as excise duty hiked to 72%
* Government announces reduction in excise duty for specified food package industry from 10% to 6%.
* Excise duty on footwear reduced from 12% to 6%
* Basic custom duty on LED panel below 19 inch made nil.
* Government announces measures to encourage manufacture of LCD/LED panels of TVs.
* Housing loan rebate to raised from Rs 1.5 lakh to Rs 2 lakh.
* Net effect of direct tax proposals is revenue loss of Rs 22,200 crore.
* Government proposes to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh.
* Tax exemption limit for small and marginal, and senior tax payers changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens, no tax for income up to Rs 3 lakh per annum.
* No changes in tax rate.
* PPF limit to be raised to Rs 1.5 lakh: Jaitley
* Rs 100 crore for training of sportspersons for upcoming Asian Games.
* Government announces Rs 150 crore for communication needs of Andaman and Nicobar islands.
* Government announces Arun Prabha channel for northeastern region; will be 24/7 channel.
* Rs 1000 crore provided for rail connectivity in northeastern region.
* Programme for displaced Kashmiri migrants with Rs 500 crore to be started.
* Rs 100 crore set aside for project to link rivers.
* Government announces Rs 100 crore for development of Archaeological sites. Gaya to be developed as world class tourism spot.
* Rs 5000 crore set aside for defence outlay over and above amount provided under interim budget.
* National Police Memorial to be set up. Rs 50 crore set aside for this purpose.
* Rs 100 crore set aside for development of Technology Development Fund.
* Rs 100 crore War Memorial at Princess Park, India Gate.
* Policy of One Rank One Pension to be adopted for defence personnel.
* RBI will create framework for licenses of small banks.
* Government aims to provide all households with banking facilities to empower the weaker sections; there should be atleast 2 bank a/cs in each household.
* Urgent need to converge current Indian standard with international accounting standards: Jaitley
* Rs 37, 800 crore allotted for National Highways.
* Revision of rate of royalty on minerals to be taken up on request from the states.
* In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode.
* New and renewable energy deserves high priority; ultra modern power projects to be taken up in Rajasthan, Tamil Nadu, Ladakh with Rs 500 crore.
* Rs 4200 crore set aside for Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia , over 1620 km.
* Scheme for development of new airports at tier II and III cities through PPP mode.
* Rs 200 crore set aside for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur. Rs 50 crore set aside for Pashmina Production program in J&K.
* MSMEs are the backbone of the economy; to be revived through a Committee to examine and report in three months.
* 6 more textile clusters to be set up.
* Industrial Smart Cities to come up at 7 cities.
* All govt departments and ministries to be integrated through E-platform by 31 December this year.
* Rs 100 crore set aside for Kisan Television to provide real time information on various farming and agriculture issues. (Read story here)
* National Industrial Corridor to be set up. Rs 1000 crore set aside for this.
* Rs 5000 crore short time rural credit refinance fund for 2014-15.
* Rs 50 core set aside for indigenous cattle breed and blue revolution for inland fisheries.
* Propose to provide finance to 5 lakh landless farmers through NABARD.
* Govt will initiate scheme to provide a soil health card; Rs 100 crore set aside. Rs 56 crore for soil testing labs across the country.
* Agriculture University in Andhra Pradesh and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside by the government.
* Slum development to be included in Corporate Social Responsibility activities.
* Govt announces Rs 100 crore for modernization of madrassas.
* Govt announces development of Metro rails in PPP mode; Rs 100 crore set aside for metro scheme in Ahmedabad and Lucknow.
* Rs 100 crore set aside for Community Radio Centres; 600 new and existing ones will be supported.
* National Rural Internet and Technology Mission; Rs 500 crore set aside.
* Govt proposes to set up Center of Excellence in MP named after Lok Nayak Jai Prakash Narayan.
* 5 more IITs and 5 IIMs to be set up .
* Propose to set up four more AIIMS; Rs. 500 crore set aside for this. Six new AIIMS started recently have become functional. Four new AIIMS will be set up in Andhra Pradesh, West Bengal, Vidarbha and Purvanchal.
* Govt proposes National Housing Banking programme; sets aside Rs 8000 crore for this program.
* Pradhan Mantri Gram Sadak Yojana has a massive impact on rural development; Govt sets aside Rs 14,389 crore for this scheme.
* Crisis Management Center for women at Delhi; money to be provided from Nirbhaya fund.
* Govt announces Beti Padhao, Beti Badhao Yojana; sets aside Rs 100 crore for this. (Read story here)
* Safety of women of prime importance.
* EPFO will launch a unified account scheme for portability of Provident Fund accounts.
* Schemes for disabled persons in the country. 15 new Brail presses to be established and revival of 10 existing.
* Rs 50,548 crore proposed for Schedule Caste development.
* Govt committed to providing 24/7 power supply to all homes. Deen Dayal Upadhyay Gram Jyoti Yojna for electricity supply to rural areas.
* Rs 200 crore for 'Statue of Unity' of Sardar Vallabh Patel.
* Pradhan Mantri Krishi Sichayin Yojana to be started for irrigation.
* We will examine proposal to give additional autonomy to banks and make them more responsible: Jaitley
* E-visas to be introduced at nine airports in India in phased manner. (Read storyhere)
* FDI in insurance to be increased to 49%
* FM announces FDI in defence up from 26 to 49 % with Indian management and control
* Transfer pricing is major area for litigation; proposes changes in transfer pricing regulation: Jaitley
* I propose to strengthen authority for advance ruling in tax: Jaitley
* Aim to achieve 7-8 per cent economic growth rate in next 3-4 years.
* We wish to provide an investment friendly taxation system: Jaitley
* This govt will not ordinarily change policies retrospectively which creates a fresh liability.
* GST will streamline tax administration and result in higher tax collection for center and states.
* A new urea policy would be formulated.
* Considering that we had two years of low GDP growth, a large subsidy burden, target of 4.1% fiscal burden is daunting: Jaitley
* We must address the problem of black money: Jaitley
* Iraq crisis leading behind an impact. Inflation has remained at elevated level: Jaitley
* We have taken up the challenge in the right ernest; will create a vibrant and strong India: Jaitley.
* The task before me is very challenging. We need to introduce fiscal prudence. there is an urgent need for more reforms.
* The steps I will announce are only the beginning of the journey we wish to take for macro economic stabilization: Jaitley
*People below poverty line anxious to free themselves: Jaitley
* Green shoots of recovery seen in world economy.
* We look forward to lower inflation: Jaitley
Link times of India
HIGHLIGHTS OF BUDGET
including Direct & Indirect Tax Proposals
· Aim to achieve 7-8% economic growth rate in next 3-4 years
· Aiming Fiscal Deficit of 3% in FY17, Fiscal deficit target for 2015-2016 set at 3.6%, Fiscal deficit will stay at 4.1 % for this year
· To approve Goods & Services Tax by end of year, Urgent need to converge current Indian standard with international accounting standards.
· No Retrospective Tax, All future under indirect transfer under retrospective tax regime will be scrutinized by a high level committee of CBDT
· Sets FY15 divestment target at Rs 43,425 cr
· Will make serious efforts to link rivers; Rs 100 cr set aside for project to link rivers.
· Committed to introduce 2nd Green Revolution; Protein revolution Proposes Rs 500 cr farm price stabilisation fund
· Rs 4,000cr for affordable housing
· Kisan TV channel to be launched soon
· Will launch broadband connectivity for pan-India
· FM proposes to set up 5 new IIMs and 5 new IITs
· To raise Defence FDI to 49%; Retain Indian control
· Plan to retain majority control in PSU banks; push retail FPOs
· Govt to constitute an Expenditure Management Commission
· To introduce Kisan Vikas Patra for unbanked savings
· To provide Rs 500 cr to boost rural power infrastructure
· Agriculture University in AP and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside
· FM announces development of Metro rails in PPP mode; Rs. 100 cr set aside for metro scheme in Ahmedabad and Lucknow
· E-visas will be introduced in a phased manner at 9 airports in India
· To spend Rs 7,060 cr for 100 smart cities
· Skill development programe for youth
· Rs 6500 crores set aside for safe drinking water
· Proposes 50000 cr for urban infra projects. Proposes Metro projects in cities with 20 lk people
· Rs 3600cr set aside for National Rural Drinking Water
· All govt departments and ministries to be integrated through E-platform by 31 Dec this year
INCOME TAX
· No change in direct tax rates
· Income tax exemption limit for Individuals below 60 years: 2.5 Lakhs, For senior citizens: 3 Lakhs
· No change in tax laws for Hindu Undivided Families
· Education cess to continue at 3%
· To raise Housing interest deduction limit to Rs 2 Lakhs
· Raises 80C investment cap to Rs 1.5 Lakhs
· To raise investment allowance for investments above Rs 25 cr in units
New tax slabs(F.Y.: 2014-15):
Upto 2.5 lakh - NIL;
above 2.5-5 lakh - 10%;
Rs 5-10 lakh - 20%;
Above Rs 10 lakh - 30% ;
Sr Citizen: Above 60(Upto 3lakh)/Above 80(Upto Rs 5 lakh)-NIL
Upto 2.5 lakh - NIL;
above 2.5-5 lakh - 10%;
Rs 5-10 lakh - 20%;
Above Rs 10 lakh - 30% ;
Sr Citizen: Above 60(Upto 3lakh)/Above 80(Upto Rs 5 lakh)-NIL
INDIRECT TAX: No major changes as Govt to approve “Goods & Services Tax” by end of year
EXCISE
· Cheaper Now: TV sets, Solar power units, computers, oil products, soaps
· Basic custom duty on LED panel below 19 inch made nil
· To cut basic customs duty on some petrochemical units. Exempting picture tubes from basic customs duty
· Hikes customs duty on flat steel products to 7.5% from 5%
· To cut excise duty to 6% from 12% on footwear Raises customs duties on some diamond grades to 2.5%
· Export duty on bauxite enhanced from 10% to 20%
· TV, computer, fridge to be cheaper
· Ups excise duty on gutka to 70% from 60%
· reduction in excise duty for specified food package industry from 10% to 6%.
· Announces increased excise duty on tobacco products, and aerated water products with added sugar
· Cigarettes, pan masalas to be Costlie
· Raises customs duties on some diamond grades to 2.5%
· To increase excise duty on cigarettes between 11% - 72%
· Clean Energy cess increased from Rs. 50/ tonne to Rs 100/tonne
· Cigarettes to become expensive, footwear gets cheaper
To raise export duty on bauxite to 20% from 10%
To cut excise duty to 6% from 12% on footwear below Rs 1,000
To raise excise duty on cigarette between 11%-72%
To raise excise duties on chewing tobacco, cigars
To raise excise duty on aerated water containing added sugar
Raises excise duty on pan masala to 16% from 12%
To cut excise duty to 6% from 12% on footwear below Rs 1,000
To raise excise duty on cigarette between 11%-72%
To raise excise duties on chewing tobacco, cigars
To raise excise duty on aerated water containing added sugar
Raises excise duty on pan masala to 16% from 12%
SERVICE TAX
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